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): August 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 August 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 June 30, 2008. The Earnings Release and Supplemental Financial Data contain information about the Registrants’ financial condition and results of operations for the quarterly period ended June 30, 2008. 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: August 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: August 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: Chris Papa
Post Properties, Inc.
(404) 846-5028

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

ATLANTA, August 4, 2008 – Post Properties, Inc. (NYSE: PPS) announced today a net loss attributable to common shareholders of $(27.0) million for the second quarter of 2008, compared to net income available to common shareholders of $62.0 million for the second quarter of 2007. On a diluted per share basis, the net loss attributable to common shareholders was $(0.61) for the second quarter of 2008, compared to net income available to common shareholders of $1.40 for the second quarter of 2007.

The net loss attributable to common shareholders was $(26.2) million for the six months ended June 30, 2008, compared to net income available to common shareholders of $84.6 million for the six months ended June 30, 2007. On a diluted per share basis, the net loss attributable to common shareholders was $(0.60) for the six months ended June 30, 2008, compared to net income available to common shareholders of $1.91 for the six months ended June 30, 2007.

The Company’s net loss attributable to common shareholders for the three and six months ended June 30, 2008 included (i) non-cash impairment charges of approximately $28.9 million attributable to the substantial cessation of current development activities associated with four land parcels in pre-development discussed below which were written down to their estimated fair market values, as well as the write off of capitalized pursuit costs associated with abandoned projects; and (ii) severance charges of $0.4 million associated with the elimination of certain employment positions in the second quarter of 2008. The Company eliminated additional employment positions in July 2008 and, as a result, recognized additional severance charges of approximately $1.6 million in the third quarter of 2008. The net loss attributable to common shareholders for the three and six months ended June 30, 2008 also included a charge of approximately $2.1 million and $8.2 million, respectively, related to the process to seek a potential sale of the Company. The Board formally concluded that process without a business combination or other sale transaction on June 25, 2008.

The Company’s reported net income (loss) attributable to common shareholders included net gains on the sales of apartment communities (including a proportionate 75% gain on the sale of a 75% interest in two apartment communities to a joint venture in 2007) of $55.3 million for the three months ended June 30, 2007 and $2.3 million and $72.0 million for the six months ended June 30, 2008 and 2007, respectively.

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 second quarter of 2008 was a deficit of $(12.6) million, or $(0.29) per diluted share, compared to FFO of $22.1 million, or $0.49 per diluted share, for the second quarter of 2007. The Company’s reported FFO for the second quarter of 2008 included the charges in the aggregate of approximately $31.4 million, or $0.71 per diluted share, discussed above. The Company’s reported FFO for the second quarter of 2007 included a net gain of approximately $1.7 million, or $0.04 per diluted share, on the sale of a land site in Dallas, Texas, offset by non-cash compensation expense of approximately $0.9 million, or $0.02 per diluted share, related to a variable compensation plan.

FFO for the six months ended June 30, 2008 totaled $1.3 million, or $0.03 per diluted share, compared to $42.8 million, or $0.95 per diluted share, for the first six months of 2007. The Company’s reported FFO for the six months ended June 30, 2008 included the charges in the aggregate of approximately $37.5 million, or $0.84 per share, discussed above. The Company’s reported FFO for the six months ended June 30, 2007 included net gains of approximately $3.9 million, or $0.09 per diluted share, on the sale of land sites in Atlanta, Georgia and Dallas, Texas.

Said David P Stockert, President and Chief Executive Officer, “We are taking the steps necessary to adjust our business plan to the realities of difficult current economic and financial market conditions. We have reduced the size and risk of our development pipeline and assessed the carrying value of our assets in order to maintain the strength of our balance sheet. With Post’s portfolio of high-quality, well located properties, moderate leverage and adequate liquidity, we believe we are positioned to navigate successfully this point in the economic cycle and to enhance the value of our business as conditions improve.”

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Conclusion of Strategic Process and Commitment to Strategies to Enhance Shareholder Value

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. After conducting a thorough process, the Board ended the process on June 25, 2008 due to the increasingly difficult market environment and a lack of definitive proposals. At the same time, the Board reaffirmed its commitment to actively pursue other strategies to enhance shareholder value through the following strategies:

•	Realizing value through asset sales, the proceeds of which can be used to repay debt, pay potential special dividends or repurchase shares, and fund committed investments:
	The Company is currently, or expects to commence, marketing for sale eight apartment communities from which it currently expects to realize gross proceeds of approximately $500 million. The communities, comprising 2,615 apartment units, include five communities, with an average age of 16 years, located in Atlanta, Georgia, one 18-year old community, located in the northern Virginia submarket of greater Washington, D.C., and the Company’s only two communities located in New York City. As of June 30, 2008, all eight communities were classified on the Company’s balance sheet as held for sale. The Company’s ability to sell these apartment communities will be dependent on the sales market for multifamily assets and the continued availability of financing at terms attractive to potential buyers. The Company currently expects to use the proceeds to repay debt, pay potential special dividends or repurchase shares of its common stock and fund its committed investments. See “Development, Disposition and Other Investment Activity – Disposition Activity” for further discussion.
•	Cutting costs by reducing corporate overhead, development and property management expenses:
	The Company is taking steps to reduce overhead expenses, including the elimination of 24 property management, corporate and development employment positions as of July 31, 2008 and certain other positions though attrition, which the Company currently expects will reduce overhead costs prospectively on an annual basis by approximately $3 million. As discussed above, the Company recognized severance charges relating to these job eliminations in the second and third quarters of 2008. There can be no assurance that the Company will not recognize additional severance charges in the third quarter of 2008 or in future periods.
•	Focusing the Company by evaluating the number of markets within which it operates, and the appropriate size of its development pipeline:
	After an evaluation of its development pipeline in light of difficult current market conditions, the Company has decided to defer further activities on four of its development projects: Allen Plaza I in Atlanta, Georgia, the third phase of Post Lake® at Baldwin Park in Orlando, Florida, Post Soho Square™ in Tampa, Florida, and Post Walk® at Citrus Park Village in Tampa, Florida which is also currently held for sale. The Company also decided to abandon the pursuit of its Post Plaza South™ development project in Charlotte, North Carolina and to terminate its purchase contract to acquire that site. The total projected development costs of these projects totaled more than $430 million. As discussed above, the Company recognized non-cash impairment charges relating to these decisions in the second quarter of 2008. As discussed above, the Company has also decided to exit the New York market through the sale of its two high-rise apartment communities located in Manhattan.
•	Pursuing construction loan financing and joint venture equity to fund development activity:
	The Company’s share of its active development pipeline is currently less than $500 million, with approximately $280 million of estimated construction costs that remain to be funded (approximately $250 million, excluding committed construction loan financing). The Company expects primarily to fund its active development pipeline using asset sale proceeds and available borrowing capacity under its unsecured revolving lines of credit. The Company is also currently pursuing potential construction loan financing and joint venture equity to fund its development pipeline and future project starts that are currently in pre-development. There can be no assurance that the Company will be able to attract construction loan financing and joint venture equity on terms that are attractive. If unable to do so, the Company expects to postpone projects currently in pre-development.

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Mature (Same Store) Community Data

For the second quarter of 2008, average economic occupancy at the Company’s 36 mature (same store) communities, containing 13,693 apartment units, was 93.8%, compared to 94.1% for the second quarter of 2007.

Total revenues for the mature communities increased 2.6% during the second quarter of 2008, compared to the second quarter of 2007, and operating expenses increased 6.6%, producing a 0.1% decrease in same store net operating income (“NOI”). The average monthly rental rate per unit increased 2.3% during the second quarter of 2008, compared to the second quarter of 2007. Property tax, maintenance and utility expenses accounted for a majority of the increase in operating expenses.

On a sequential basis, total revenues for the mature communities increased 1.3% and operating expenses increased 5.9% producing a 1.7% decrease in same store NOI for the second quarter of 2008, compared to the first quarter of 2008, or $0.5 million. On a sequential basis, the average monthly rental rate per unit increased 0.4%. Property tax and maintenance expenses accounted for a majority of the sequential increase in operating expenses. For the second quarter of 2008, average economic occupancy at the mature communities was 93.8%, compared to 94.3% for the first quarter of 2008.

For the six months ended June 30, 2008, average economic occupancy at the Company’s mature communities was 94.1% compared to 94.0% for the six months ended June 30, 2007.

Total revenues for the mature communities increased 2.7% during the six months ended June 30, 2008 compared to the six months ended June 30, 2007, and operating expenses increased 5.2% producing a 1.1% increase in same store NOI, or $0.7 million. The average monthly rental rate per unit increased 2.6% during the six months ended June 30, 2008, compared to the six months ended June 30, 2007.

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, Dispositions and Other Investment Activity

Development Activity

The Company today announced that it has completed the lease-up of the latest phase of its Post Hyde Park^® community in Tampa, Florida, consisting of 84 units. The Company also announced today that it has ceased further development activities at its Post Walk^® at Citrus Park Village community in Tampa, Florida, which had not yet commenced substantial physical construction. As of June 30, 2008, this community was classified on the Company’s balance sheet as held for sale.

As of June 30, 2008, the Company’s aggregate pipeline of development projects under construction totaled approximately $525.2 million (including the Company’s share, net of joint venture partner interests, of $479.4 million). The Company also owns land for which it is in pre-development with respect to approximately 1,822 rental apartment units and approximately 133,000 square feet of retail amenities. Total projected future development costs of this pre-development pipeline are estimated to be approximately $380 million. There can be no assurance that projects in pre-development will commence construction in the future or at all or that actual development costs will approximate estimated costs. The start of future developments will depend in large part on local market conditions, the Company’s ability to generate asset sale proceeds and the Company’s ability to attract potential construction loan financing and joint venture equity to fund development activities on terms that management believes are attractive. If unable to do so, the Company expects to postpone projects currently in pre-development.

Disposition Activity

The Company is currently, or expects to commence, marketing for sale the eight apartment communities discussed above. Gross proceeds from the sales of these eight communities are currently expected to be approximately $500 million. There can be no assurance that the gross proceeds will be realized or that these sales will close.

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Apartment Community Renovation Program

The Company is currently undertaking substantial renovations and re-leasing of three apartment communities, containing 1,226 units located in Atlanta, Georgia and Dallas, Texas. The Company believes that the long-term value of these communities will be enhanced as a result of the renovations; however, operating results at these communities is affected negatively by increased vacancy during the renovation period. As of June 30, 2008, the renovation of Post Chastain^®, containing 558 units, in Atlanta, Georgia was complete. The community is expected to reach stabilized occupancy later in 2008. As of June 30, 2008, the Company had completed the renovation of 106 units (15.9% of the total) at Post Peachtree Hills^® and Post Heights™. The renovation of these communities began earlier in 2008.

Condominium Activity

The Company recognized approximately $1.4 million of incremental losses, or $0.03 per diluted share, on condominium sales, net of minority interest, in FFO during the second quarter of 2008, compared to incremental gains of approximately $2.6 million, or $0.06 per diluted share, during the second quarter of 2007. The Company provides additional information on its condominium activities on page 17 of its Supplemental Financial Data.

The Company’s reported net loss on condominium sales in FFO during the second quarter of 2008 was primarily attributable to revised estimates reflecting the Company’s current expectations of total sales and costs for ongoing condominium projects through their expected sell-out, and reflects the Company’s current view of sales prices and trends, the residential and condominium housing markets, the current state of the credit markets, as well as general economic conditions.

Financing Activity

Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) was 43.6% at June 30, 2008, and variable rate debt as a percentage of total debt was 13.6% as of that same date. As of June 30, 2008, the Company had outstanding borrowings of approximately $144 million on its combined $630 million unsecured lines of credit.

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.

Third Quarter and Full Year 2008 Same Store NOI Outlook

The estimates and assumptions presented below are forward-looking and are based on the Company’s current and expected future view of the apartment market and general economic conditions as well as other risks outlined below under the caption “Forward Looking Statements.” There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below. The Company assumes no obligation to update this guidance in the future.

For the third quarter of 2008, the Company expects that same store NOI will increase in the range of 1.1% to 2.1%, compared to the third quarter of 2007, based on:

--	An increase in same store revenue of 1.1% to 1.5%
--	An increase in same store operating expenses of 0.8% to 1.2%.

The Company also expects that sequential same store NOI will increase in the third quarter of 2008 in the range of 3.2% to 4.2%, compared to the second quarter of 2008, based on:

--	An increase in same store revenue of 1.1% to 1.5%
--	A decrease in same store operating expenses of 1.8% to 2.2%.

For the full year of 2008, the Company expects that same store NOI will increase (decrease) in the range of (0.1%) to 0.4%, compared to the full year of 2007, based on:

--	An increase in same store revenue of 1.8% to 2.1%
--	An increase in same store operating expenses of 4.7% to 5.0%.

As announced in the first quarter, the Company will not provide earnings and FFO guidance for the third quarter and full year 2008.

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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.

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 impact of non-cash straight-line, long-term ground lease expense, non-cash impairment charges and strategic review costs. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund its operating capital expenditures through earnings. In addition, since most equity REITs provide AFFO information to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to AFFO.

Property Net Operating Income – 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

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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 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, August 5, at 10:00 a.m. ET. The telephone numbers are 888-819-8033 for US and Canada callers and 913-981-4903 for international callers. The access code is 4571165. 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 August 5, and will be available until Monday, August 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 4571165. 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 36 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.

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Post Properties owns 22,140 apartment homes in 61 communities, including 1,747 apartment units in five communities held in unconsolidated entities, 1,736 apartment units in five communities currently under construction and/or in lease-up. The Company is also developing and selling 514 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.

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 expectations with respect to the Company’s strategies to enhance shareholder value, the Company’s anticipated development and sales activities (including projected sales proceeds and the anticipated use therefrom as well as the projected costs, timing and anticipated potential sources of financing of projected future development activities), anticipated renovation projects, anticipated overhead reductions and anticipated third quarter and full year 2008 same store NOI operating results. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

The following are some of the factors that could cause the Company’s actual results and its expectations with respect to strategies to enhance shareholder value to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K dated December 31, 2007, as amended, and this press release; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related 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 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, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to enter into new joint ventures and the availability of equity financing from traditional real estate investors to fund development activities; the Company’s ability to obtain construction loan financing to fund development activities; uncertainties associated with the Company’s condominium conversion and for-sale housing business; uncertainties associated with loss of personnel in connection with the Company’s reduction of corporate and property development and management overhead; 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; and the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K dated December 31, 2007, as amended, and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, under the caption “Risk Factors” are specifically incorporated by reference into this press release.

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

	Three months ended					Six months ended
	June 30,					June 30,
	2008			2007		2008			2007
OPERATING DATA
Revenues from continuing operations	$	66,605		$	64,652	$	132,329		$	128,833
Net income (loss) available to common shareholders	$	(26,973	)	$	62,027	$	(26,196	)	$	84,589
Funds from operations available to common shareholders and unitholders (Table 1)	$	(12,639	)	$	22,092	$	1,269		$	42,794
Weighted average shares outstanding — diluted		44,011			44,278		43,939			44,192
Weighted average shares and units outstanding — diluted		44,305			44,900		44,287			44,840
PER COMMON SHARE DATA — DILUTED
Net income (loss) available to common shareholders	$	(0.61	)	$	1.40	$	(0.60	)	$	1.91
Funds from operations available to common shareholders and unitholders (Table 1) (1)	$	(0.29	)	$	0.49	$	0.03		$	0.95
Dividends declared	$	0.45		$	0.45	$	0.90		$	0.90

(1) Funds from operations per share were computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 358 shares and units for the six months ended June 30, 2008. Such dilutive securities were antidilutive to the income (loss) per share computations for the six months ended June 30, 2008 since the Company reported a per share loss from continuing operations under generally accepted accounting principles for such period. Additionally, diluted weighted average shares and units for the three months ended June 30, 2008 excludes 307 shares and units that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such period.

-8-

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

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
Net income (loss) available to common shareholders	$	(26,973	)	$	62,027		$	(26,196	)	$	84,589
Minority interest of common unitholders - continuing operations		(238	)		852			(284	)		882
Minority interest in discontinued operations		25			59			78			380
Depreciation on wholly-owned real estate assets, net		15,582			16,524			31,284			33,013
Depreciation on real estate assets held in unconsolidated entities		345			274			693			500
Gains on sales of real estate assets		368			(60,998	)		(4,062	)		(79,659	)
Incremental gains (losses) on condominium sales (1)		(1,748	)		3,360			(244	)		3,164
Gains on sales of real estate assets — unconsolidated entities		—			40			—			(162	)
Incremental gains on condominium sales - unconsolidated entities (1)		—			(46	)		—			87
Funds from operations available to common shareholders and unitholders	$	(12,639	)	$	22,092		$	1,269		$	42,794
Funds from operations — per share and unit — diluted (2)	$	(0.29	)	$	0.49		$	0.03		$	0.95
Weighted average shares and units outstanding — diluted (2)		44,305			44,900			44,645			44,840

(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.

(2)

Funds from operations per share were computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 358 shares and units for the six months ended June 30, 2008. Such dilutive securities were antidilutive to the income (loss) per share computations for the six months ended June 30, 2008 since the Company reported a per share loss from continuing operations under generally accepted accounting principles for such period. Additionally, diluted weighted average shares and units for the three months ended June 30, 2008 excludes 307 shares and units that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such period.

-9-

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

	Three months ended									Six months ended
	June 30,			June 30,			March 31,			June 30,			June 30,
	2008			2007			2008			2008			2007
Total same store NOI	$	30,190		$	30,223		$	30,724		$	60,914		$	60,257
Property NOI from other operating segments		2,625			2,036			2,304			4,929			4,715
Consolidated property NOI		32,815			32,259			33,028			65,843			64,972
Add (subtract):
Interest income		61			213			210			271			463
Other revenues		235			128			239			474			245
Minority interest in consolidated property partnerships		427			(716	)		(366	)		61			(693	)
Depreciation		(14,386	)		(14,375	)		(14,263	)		(28,649	)		(28,726	)
Interest expense		(10,112	)		(10,863	)		(10,156	)		(20,268	)		(21,908	)
Amortization of deferred financing costs		(859	)		(829	)		(851	)		(1,710	)		(1,641	)
General and administrative		(4,956	)		(5,959	)		(5,848	)		(10,804	)		(11,407	)
Investment and development		(1,356	)		(1,955	)		(1,458	)		(2,814	)		(3,505	)
Strategic review costs		(2,091	)		—			(6,070	)		(8,161	)		—
Impairment and severance charges		(29,300	)		—			—			(29,300	)		—
Gains (losses) on sales of real estate assets, net		(368	)		62,738			2,119			1,751			66,444
Equity in income of unconsolidated real estate entities		420			310			401			821			814
Other income (expense)		66			(261	)		(174	)		(108	)		(522	)
Minority interest of common unitholders		238			(852	)		46			284			(882	)
Income (loss) from continuing operations		(29,166	)		59,838			(3,143	)		(32,309	)		63,654
Income from discontinued operations		4,103			4,099			5,829			9,932			24,754
Net income (loss)	$	(25,063	)	$	63,937		$	2,686		$	(22,377	)	$	88,408

-10-

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

	Three Months Ended						Q2 ’08			Q2 ’08			Q2 ’08
	June 30,		June 30,		March 31,		vs. Q2 ’07			vs. Q1 ’08			% Same
	2008		2007		2008		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	14,969	$	14,425	$	14,787		3.8	%		1.2	%
Dallas		10,320		9,752		10,031		5.8	%		2.9	%
Washington, D.C.		8,991		8,795		8,864		2.2	%		1.4	%
Tampa		7,101		7,342		7,181		(3.3	)%		(1.1	)%
Charlotte		4,912		4,797		4,784		2.4	%		2.7	%
Houston		3,070		2,910		3,031		5.5	%		1.3	%
Austin		1,231		1,213		1,240		1.5	%		(0.7	)%
Orlando		991		1,052		1,015		(5.8	)%		(2.4	)%
Total rental and other revenues		51,585		50,286		50,933		2.6	%		1.3	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		6,072		5,959		5,773		1.9	%		5.2	%
Dallas		4,830		4,216		4,501		14.6	%		7.3	%
Washington, D.C.		3,023		2,825		3,040		7.0	%		(0.6	)%
Tampa		3,187		2,968		2,976		7.4	%		7.1	%
Charlotte		1,813		1,585		1,566		14.4	%		15.8	%
Houston		1,519		1,335		1,335		13.8	%		13.8	%
Austin		566		604		593		(6.3	)%		(4.6	)%
Orlando		385		571		425		(32.6	)%		(9.4	)%
Total		21,395		20,063		20,209		6.6	%		5.9	%
Net operating income
Atlanta		8,897		8,466		9,014		5.1	%		(1.3	)%		29.4	%
Dallas		5,490		5,536		5,530		(0.8	)%		(0.7	)%		18.2	%
Washington, D.C.		5,968		5,970		5,824		(0.0	)%		2.5	%		19.8	%
Tampa		3,914		4,374		4,205		(10.5	)%		(6.9	)%		13.0	%
Charlotte		3,099		3,212		3,218		(3.5	)%		(3.7	)%		10.3	%
Houston		1,551		1,575		1,696		(1.5	)%		(8.5	)%		5.1	%
Austin		665		609		647		9.2	%		2.8	%		2.2	%
Orlando		606		481		590		26.0	%		2.7	%		2.0	%
Total same store NOI	$	30,190	$	30,223	$	30,724		(0.1	)%		(1.7	)%		100.0	%

-11-

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

	Six months ended
	June 30,		June 30,
	2008		2007		% Change
Rental and other revenues
Atlanta	$	29,756	$	28,679		3.8	%
Dallas		20,351		19,319		5.3	%
Washington, D.C.		17,855		17,454		2.3	%
Tampa		14,283		14,668		(2.6	)%
Charlotte		9,696		9,457		2.5	%
Houston		6,100		5,738		6.3	%
Austin		2,471		2,390		3.4	%
Orlando		2,006		2,084		(3.7	)%
Total rental and other revenues		102,518		99,789		2.7	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		11,845		11,509		2.9	%
Dallas		9,331		8,311		12.3	%
Washington, D.C.		6,063		5,759		5.3	%
Tampa		6,164		5,898		4.5	%
Charlotte		3,379		3,214		5.1	%
Houston		2,853		2,619		8.9	%
Austin		1,159		1,210		(4.2	)%
Orlando		810		1,012		(20.0	)%
Total		41,604		39,532		5.2	%
Net operating income
Atlanta		17,911		17,170		4.3	%
Dallas		11,020		11,008		0.1	%
Washington, D.C.		11,792		11,695		0.8	%
Tampa		8,119		8,770		(7.4	)%
Charlotte		6,317		6,243		1.2	%
Houston		3,247		3,119		4.1	%
Austin		1,312		1,180		11.2	%
Orlando		1,196		1,072		11.6	%
Total same store NOI	$	60,914	$	60,257		1.1	%

-12-

Table 4
Computation of Debt Ratios
(In thousands)

	As of June 30,
	2008			2007
Total real estate assets per balance sheet	$	2,115,247		$	2,000,916
Plus:
Company share of real estate assets held in unconsolidated entities		94,510			71,395
Company share of accumulated depreciation — assets held in unconsolidated entities		6,049			4,360
Accumulated depreciation per balance sheet		499,981			560,927
Accumulated depreciation on assets held for sale		93,844			—
Total undepreciated real estate assets (A)	$	2,809,631		$	2,637,598
Total debt per balance sheet	$	1,064,405		$	938,998
Plus:
Company share of third party debt held in unconsolidated entities		65,128			44,880
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,129,533		$	975,328
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A)		40.2	%		37.0	%
Total debt per balance sheet	$	1,064,405		$	938,998
Plus:
Company share of third party debt held in unconsolidated entities		65,128			44,880
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)	$	1,224,533		$	1,070,328
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		43.6	%		40.6	%

-13-

EX-99.2

Exhibit 99.2

Second Quarter 2008
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		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 and its expectations with respect to strategies to enhance shareholder value to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K dated December 31, 2007, as amended, and in the Company’s press release; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related 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 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, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to enter into new joint ventures and the availability of equity financing from traditional real estate investors to fund development activities; the Company’s ability to obtain construction loan financing to fund development activities; uncertainties associated with the Company’s condominium conversion and for-sale housing business; uncertainties associated with loss of personnel in connection with the Company’s reduction of corporate and property development and management overhead; 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; and the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K dated December 31, 2007, as amended, and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

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

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
Revenues
Rental	$	62,286		$	60,873		$	124,474		$	121,538
Other property revenues		4,084			3,651			7,381			7,050
Other		235			128			474			245
Total revenues		66,605			64,652			132,329			128,833
Expenses
Property operating and maintenance (exclusive of items shown separately below)		33,555			32,265			66,012			63,616
Depreciation		14,386			14,375			28,649			28,726
General and administrative (1)		4,956			5,959			10,804			11,407
Investment, development and other (2)		1,356			1,955			2,814			3,505
Strategic review costs (3)		2,091			—			8,161			—
Impairment and severance costs (4)		29,300			—			29,300			—
Total expenses		85,644			54,554			145,740			107,254
Operating income (loss)		(19,039	)		10,098			(13,411	)		21,579
Interest income		61			213			271			463
Interest expense		(10,112	)		(10,863	)		(20,268	)		(21,908	)
Amortization of deferred financing costs		(859	)		(829	)		(1,710	)		(1,641	)
Gains (losses) on sales of real estate assets, net (5)		(368	)		62,738			1,751			66,444
Equity in income of unconsolidated real estate entities		420			310			821			814
Other income (expense) (6)		66			(261	)		(108	)		(522	)
Minority interest in consolidated property partnerships		427			(716	)		61			(693	)
Minority interest of common unitholders		238			(852	)		284			(882	)
Income (loss) from continuing operations		(29,166	)		59,838			(32,309	)		63,654
Discontinued operations (7)
Income from discontinued property operations, net of minority interest		4,103			4,099			7,642			7,864
Gains on sales of real estate assets, net of minority interest		—			—			2,290			16,890
Income from discontinued operations		4,103			4,099			9,932			24,754
Net income (loss)		(25,063	)		63,937			(22,377	)		88,408
Dividends to preferred shareholders		(1,910	)		(1,910	)		(3,819	)		(3,819	)
Net income (loss) available to common shareholders	$	(26,973	)	$	62,027		$	(26,196	)	$	84,589
Per common share data — Basic (8)
Income (loss) from continuing operations (net of preferred dividends)	$	(0.71	)	$	1.33		$	(0.82	)	$	1.38
Income from discontinued operations		0.09			0.09			0.23			0.57
Net income (loss) available to common shareholders	$	(0.61	)	$	1.43		$	(0.60	)	$	1.95
Weighted average common shares outstanding — basic		44,011			43,463			43,939			43,416
Per common share data — Diluted (8)
Income (loss) from continuing operations (net of preferred dividends)	$	(0.71	)	$	1.31		$	(0.82	)	$	1.35
Income from discontinued operations		0.09			0.09			0.23			0.56
Net income (loss) available to common shareholders	$	(0.61	)	$	1.40		$	(0.60	)	$	1.91
Weighted average common shares outstanding — diluted		44,011			44,278			43,939			44,192

3

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

(1) General and administrative costs for the six months ended June 30, 2008 included $353 compared to $283 for the three and six months ended June 30, 2007 of additional severance charges related to increased accruals for prior year severance arrangements. For the three months ended June 30, 2008, the Company recognized a reduction of general and administrative expenses of $153 related to changes in variable compensation costs under the Company’s Shareholder Value Plan due to the decrease in the Company’s share price during the quarter. For the three months ended June 30, 2007, the Company recognized a $431 increase in variable compensation costs under this plan.

(2) Investment, development and other expenses for the three and six months ended June 30, 2008 and 2007 included investment group expenses, development personnel and associated costs and land carry expenses not allocable to current development projects.

(3) Strategic review costs for the three and six months ended June 30, 2008 included financial, legal and other costs associated with the Company’s formal process to pursue a possible business combination or other sale transaction. In June 2008, the Company announced that the process had concluded without a business combination or other sale transaction.

(4) Impairment and severance costs for the three and six months ended June 30, 2008 included non-cash impairment charges of approximately $28,947 to write down land and pre-development costs associated with development projects that are no longer expected to be started in the near term, or that are expected to be marketed for sale, to their estimated fair values and to write off pursuit costs on certain abandoned development projects. Severance charges for the three and six months ended June 30, 2008 included approximately $353 related to a management and staff workforce reduction that was initiated in the second quarter of 2008. Subsequent to June 30, 2008, the Company recorded additional severance charges of approximately $1,600 upon the continuation of the management and staff workforce reductions through July 2008.

(5) For the three and six months ended June 30, 2008 and 2007, income (loss) from continuing operations 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 $160 and $291 for the three months ended and $407 and $451 for the six months ended June 30, 2008 and 2007, respectively. Net gains from condominium sales activities at other consolidated community conversion projects are included in discontinued operations under generally accepted accounting principles (see (7) below). A summary of revenues and costs and expenses of condominium activities included in continuing operations for the three and six months ended June 30, 2008 and 2007 was as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
Condominium revenues	$	10,051		$	25,222		$	18,348		$	31,091
Condominium costs and expenses		(10,419	)		(19,524	)		(16,597	)		(23,885	)
Gains (losses) on sales of condominiums, net	$	(368	)	$	5,698		$	1,751		$	7,206

For the three and six months ended June 30, 2007, the Company recognized a proportionate 75% gain on sale of real estate totaling approximately $55,300 related to the transfer of two operating apartment communities to newly formed unconsolidated entities, in which the Company retained a 25% non-controlling interest, for aggregate proceeds of approximately $89,352. The unconsolidated entities obtained mortgage financing secured by the apartment communities totaling approximately $85,772, of which approximately $21,431 was distributed to the Company.

For the three and six months ended June 30, 2007, gains on sales of real estate assets in continuing operations also included gains of $1,740 and $3,938, respectively, on the sales of land sites in Atlanta, Georgia and Dallas, Texas.

(6) For the three and six months ended June 30, 2008 and 2007, other expenses primarily included estimated state franchise and other income taxes.

4

(7) Under SFAS No. 144, the operating results of real estate assets designated as held for sale are included in discontinued operations for all periods presented. Additionally, all subsequent gains or additional losses on the sale of these assets are included in discontinued operations.

For the three and six months ended June 30, 2008, income from discontinued operations included the operating results of eight apartment communities, containing 2,615 units, held for sale at June 30, 2008 and one apartment community, containing 143 units, through its sale date in 2008. For the three and six months ended June 30, 2007, income from discontinued operations included the results of operations of the eight apartment communities held for sale at June 30, 2008, the apartment community sold in 2008, a condominium conversion community sold in 2007, and three apartment communities sold in 2007 through their sale dates.

The operating revenues and expenses of these communities for the three and six months ended June 30, 2008 and 2007 were as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
Revenues
Rental	$	11,196		$	13,013		$	22,502		$	26,272
Other property revenues		471			645			875			1,241
Total revenues		11,667			13,658			23,377			27,513
Expenses
Property operating and maintenance (exclusive of items shown separately below)		3,763			4,384			7,900			9,126
Depreciation		1,698			2,685			3,623			5,377
Interest		1,944			2,336			3,921			4,891
Minority interest in consolidated property partnerships		134			95			234			138
Total expenses		7,539			9,500			15,678			19,532
Income from discontinued property operations before minority interest		4,128			4,158			7,699			7,981
Minority interest		(25	)		(59	)		(57	)		(117	)
Income from discontinued property operations	$	4,103		$	4,099		$	7,642		$	7,864

For the six months ended June 30, 2008, the Company recognized net gains in discontinued operations of $2,311 ($2,290 net of minority interest), from the sale of an apartment community, containing 143 units. This sale generated net proceeds of approximately $19,433. For the six months ended June 30, 2007, the Company recognized net gains in discontinued operations of $16,974 ($16,714 net of minority interest), from the sale of an apartment community, containing 182 units.

For the six months ended June 30, 2007, 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 the first quarter of 2007. A summary of revenues and costs and expenses of condominium activities included in discontinued operations was as follows:

	Six months ended
	June 30, 2007
Condominium revenues	$	560
Condominium costs and expenses		(381	)
Gains on condominium sales, before minority interest		179
Minority interest		(3	)
Gains on condominium sales, net of minority interest	$	176

(8) 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., also a wholly-owned subsidiary of the Company, owns the controlling interest in Post Apartment Homes, L.P., the Operating Partnership through which the Company conducts its operations. As of June 30, 2008, there were 44,404 units of the Operating Partnership outstanding, of which 44,111, or 99.3%, 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 (loss) available to common shareholders to funds from operations available to common shareholders and unitholders and adjusted funds from operations available to common shareholders and unitholders is provided below.

	Three months ended						Six months ended
	June 30,						June 30,
	2008			2007			2008			2007
Net income (loss) available to common shareholders	$	(26,973	)	$	62,027		$	(26,196	)	$	84,589
Minority interest of common unitholders — continuing operations		(238	)		852			(284	)		882
Minority interest in discontinued operations (1)		25			59			78			380
Depreciation on consolidated real estate assets (2)		15,582			16,524			31,284			33,013
Depreciation on real estate assets held in unconsolidated entities		345			274			693			500
Gains on sales of real estate assets		368			(60,998	)		(4,062	)		(79,659	)
Incremental gains (losses) on condominium sales		(1,748	)		3,360			(244	)		3,164
Gains on sales of real estate assets — unconsolidated entities		—			40			—			(162	)
Incremental gains on condominium sales — unconsolidated entities (3)		—			(46	)		—			87
Funds from operations available to common shareholders and unitholders (A)	$	(12,639	)	$	22,092		$	1,269		$	42,794
Funds from operations available to common shareholders and unitholders (A)	$	(12,639	)	$	22,092		$	1,269		$	42,794
Annually recurring capital expenditures		(3,382	)		(3,464	)		(5,640	)		(6,080	)
Periodically recurring capital expenditures		(1,738	)		(1,562	)		(3,331	)		(3,867	)
Non-cash impairment charges		28,947			—			28,947			—
Non-cash straight-line adjustment for ground lease expenses		294			311			589			624
Strategic review costs		2,091			—			8,161			—
Adjusted funds from operations available to common shareholders and unitholders (4) (B)	$	13,573		$	17,377		$	29,995		$	33,471
Per Common Share Data — Basic
Funds from operations per share or unit, as defined (A÷C)	$	(0.29	)	$	0.50		$	0.03		$	0.97
Adjusted funds from operations per share or unit (4) (B÷C)	$	0.31		$	0.39		$	0.68		$	0.76
Dividends declared	$	0.45		$	0.45		$	0.90		$	0.90
Weighted average shares outstanding		44,011			43,463			43,939			43,416
Weighted average shares and units outstanding (C)		44,305			44,086			44,287			44,064
Per Common Share Data — Diluted
Funds from operations per share or unit, as defined (A÷D)	$	(0.29	)	$	0.49		$	0.03		$	0.95
Adjusted funds from operations per share or unit (4) (B÷D)	$	0.31		$	0.39		$	0.67		$	0.75
Dividends declared	$	0.45		$	0.45		$	0.90		$	0.90
Weighted average shares outstanding (5)		44,011			44,278			44,297			44,192
Weighted average shares and units outstanding (5) (D)		44,305			44,900			44,645			44,840

(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 $190 and $347 for the three months ended and $421 and $1,608 for the six months ended June 30, 2008 and 2007, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.
(5)	Funds from operations per share were computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 358 shares and units for the six months ended June 30, 2008. Such dilutive securities were antidilutive to the income (loss) per share computations for the six months ended June 30, 2008 since the Company reported a per share loss from continuing operations under generally accepted accounting principles for such period. Additionally, diluted weighted average shares and units for the three months ended June 30, 2008 excludes 307 shares and units that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such period.

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 and communities under rehabilitation. 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 36 communities containing 13,693 apartment units which were fully stabilized as of January 1, 2007, is summarized as follows:

	Three months ended							Six months ended
	June 30,							June 30,
	2008		2007		% Change			2008		2007		% Change
Rental and other revenues	$	51,585	$	50,286		2.6	%	$	102,518	$	99,789		2.7	%
Property operating and maintenance expenses (excluding depreciation and amortization)		21,395		20,063		6.6	%		41,604		39,532		5.2	%
Same store net operating income	$	30,190	$	30,223		(0.1	)%	$	60,914	$	60,257		1.1	%
Capital expenditures (1)
Annually recurring:
Carpet	$	628	$	643		(2.3	)%	$	1,154	$	1,189		(2.9	)%
Other		1,660		1,326		25.2	%		2,633		2,261		16.5	%
Total annually recurring		2,288		1,969		16.2	%		3,787		3,450		9.8	%
Periodically recurring (2)		1,575		571		175.8	%		2,813		1,136		147.6	%
Total capital expenditures (A)	$	3,863	$	2,540		52.1	%	$	6,600	$	4,586		43.9	%
Total capital expenditures per unit (A ÷ 13,693 units)	$	282	$	185		52.4	%	$	482	$	335		43.9	%
Average monthly rental rate per unit (3)	$	1,246	$	1,218		2.3	%	$	1,244	$	1,213		2.6	%

(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)	Periodically recurring expenditures for the three and six months ended June 30, 2008 include approximately $493 and $956, respectively related to the Company’s new “resident design center” program.
(3)	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 Second Quarter of 2008 to Second Quarter of 2007
(Increase (decrease) from same period in prior year)

	Three months ended												Six months ended
	June 30, 2008												June 30, 2008
										Average												Average
										Economic												Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy			Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		3.8	%		1.9	%		5.1	%		0.7	%		3.8	%		2.9	%		4.3	%		0.8	%
Dallas		5.8	%		14.6	%		(0.8	)%		(0.2	)%		5.3	%		12.3	%		0.1	%		0.5	%
Washington, DC		2.2	%		7.0	%		(0.0	)%		0.3	%		2.3	%		5.3	%		0.8	%		0.1	%
Tampa		(3.3	)%		7.4	%		(10.5	)%		(1.9	)%		(2.6	)%		4.5	%		(7.4	)%		(1.5	)%
Charlotte		2.4	%		14.4	%		(3.5	)%		(0.7	)%		2.5	%		5.1	%		1.2	%		(0.8	)%
Houston		5.5	%		13.8	%		(1.5	)%		(0.7	)%		6.3	%		8.9	%		4.1	%		0.3	%
Austin		1.5	%		(6.3	)%		9.2	%		(3.5	)%		3.4	%		(4.2	)%		11.2	%		(1.7	)%
Orlando		(5.8	)%		(32.6	)%		26.0	%		(2.6	)%		(3.7	)%		(20.0	)%		11.6	%		(1.0	)%
Total		2.6	%		6.6	%		(0.1	)%		(0.3	)%		2.7	%		5.2	%		1.1	%		0.1	%

(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						Six months ended						Occupancy
	Apartment		June 30,			June 30,						June 30,						at June 30,
Market	Units		2008			2008			2007			2008			2007			2008 (2)
Atlanta		4,243		29.4	%		94.4	%		93.7	%		94.7	%		93.9	%		94.8	%
Dallas		3,095		18.2	%		94.0	%		94.2	%		94.5	%		94.0	%		95.6	%
Washington, DC		1,700		19.8	%		94.5	%		94.2	%		94.2	%		94.1	%		94.6	%
Tampa		1,877		13.0	%		91.9	%		93.8	%		92.7	%		94.2	%		95.7	%
Charlotte		1,388		10.3	%		94.3	%		95.0	%		93.5	%		94.3	%		95.7	%
Houston		837		5.1	%		92.6	%		93.3	%		93.0	%		92.7	%		93.9	%
Austin		308		2.2	%		94.0	%		97.5	%		94.9	%		96.6	%		94.2	%
Orlando		245		2.0	%		93.6	%		96.2	%		94.2	%		95.2	%		96.3	%
Total		13,693		100.0	%		93.8	%		94.1	%		94.1	%		94.0	%		95.1	%

(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 93.0% and 93.4% for the three months ended and 93.2% and 93.3% for the six months ended June 30, 2008 and 2007, respectively. For the three months ended June 30, 2008 and 2007, net concessions were $320 and $216, respectively, and employee discounts were $143 and $153, respectively. For the six months ended June 30, 2008 and 2007, net concessions were $607 and $427, respectively, and employee discounts were $286 and $310, 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
	June 30,			March 31,
	2008			2008			% Change
Rental and other revenues	$	51,585		$	50,933			1.3	%
Property operating and maintenance expenses (excluding depreciation and amortization)		21,395			20,209			5.9	%
Same store net operating income (1)	$	30,190		$	30,724			(1.7	)%
Average economic occupancy		93.8	%		94.3	%		(0.5	)%
Average monthly rental rate per unit	$	1,246		$	1,241			0.4	%

(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 Second Quarter of 2008 to First Quarter 2008
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		1.2	%		5.2	%		(1.3	)%		(0.6	)%
Dallas		2.9	%		7.3	%		(0.7	)%		(1.0	)%
Washington, DC		1.4	%		(0.6	)%		2.5	%		0.7	%
Tampa		(1.1	)%		7.1	%		(6.9	)%		(1.6	)%
Charlotte		2.7	%		15.8	%		(3.7	)%		1.6	%
Houston		1.3	%		13.8	%		(8.5	)%		(0.8	)%
Austin		(0.7	)%		(4.6	)%		2.8	%		(1.9	)%
Orlando		(2.4	)%		(9.4	)%		2.7	%		(1.2	)%
Total		1.3	%		5.9	%		(1.7	)%		(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)

	June 30,			December 31,
	2008			2007
	(Unaudited)
Assets
Real estate assets
Land	$	232,160		$	276,680
Building and improvements		1,649,338			1,840,563
Furniture, fixtures and equipment		190,407			204,433
Construction in progress		135,232			134,125
Land held for future development		123,167			154,617
		2,330,304			2,610,418
Less: accumulated depreciation		(499,981	)		(562,226	)
For-sale condominiums		26,314			38,844
Assets held for sale, net of accumulated depreciation of $93,844 and $4,031 at June 30, 2008 and December 31, 2007, respectively		258,610			24,576
Total real estate assets		2,115,247			2,111,612
Investments in and advances to unconsolidated real estate entities		22,815			23,036
Cash and cash equivalents		17,988			11,557
Restricted cash		9,956			5,642
Deferred charges, net		10,159			10,538
Other assets		37,141			105,756
Total assets	$	2,213,306		$	2,268,141
Liabilities and shareholders’ equity
Indebtedness, including $34,261 and $0 secured by assets held for sale as of June 30, 2008 and December 31, 2007, respectively	$	1,064,405		$	1,059,066
Accounts payable and accrued expenses		99,003			100,215
Dividend and distribution payable		19,982			19,933
Accrued interest payable		4,790			4,388
Security deposits and prepaid rents		15,892			11,708
Total liabilities		1,204,072			1,195,310
Minority interest of common unitholders in Operating Partnership		6,034			10,354
Minority interests in consolidated real estate entities		2,921			3,972
Total minority interests		8,955			14,326
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:
44,119 and 43,825 shares issued, 44,111 and 43,825 shares outstanding at June 30, 2008 and December 31, 2007, respectively		441			438
Additional paid-in-capital		882,438			874,928
Accumulated earnings		124,101			189,985
Accumulated other comprehensive income (loss)		(3,385	)		(3,962	)
		1,003,624			1,061,418
Less common stock in treasury, at cost, 83 and 72 shares at June 30, 2008 and December 31, 2007, respectively		(3,345	)		(2,913	)
Total shareholders’ equity		1,000,279			1,058,505
Total liabilities and shareholders’ equity	$	2,213,306		$	2,268,141

10

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

Summary of Outstanding Debt at June 30, 2008

						Weighted Average Rate (1)
			Percentage			Three months ended June 30,
Type of Indebtedness	Balance		of Total			2008			2007
Unsecured fixed rate senior notes	$	535,000		50.2	%		6.4	%		6.4	%
Secured conventional fixed rate notes		385,134		36.2	%		5.5	%		6.2	%
Unsecured lines of credit		144,271		13.6	%		3.1	%		5.6	%
Secured tax exempt variable rate notes		—		0.0	%		—			4.3	%
	$	1,064,405		100.0	%		5.6	%		6.3	%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			of Total Debt (2)
Total fixed rate debt	$	920,134		86.4	%		5.6
Total variable rate debt		144,271		13.6	%		1.8
Total debt	$	1,064,405		100.0	%		5.1

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
Remainder of 2008	$	3,572			6.0	%
2009		76,618			5.5	%
2010		332,899	(3)		5.7	%
2011		141,431			5.4	%
2012		103,296			5.5	%
Thereafter		406,589			5.7	%
	$	1,064,405

Debt Statistics

	Six months ended
	June 30,
	2008			2007
Interest coverage ratio (4)(5)		2.2	x		2.3	x
Fixed charge coverage ratio (4)(6)		1.9	x		2.0	x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		40.2	%		37.0	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		43.6	%		40.6	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended June 30, 2007 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 $144,271 maturing in 2010.
(4)	Calculated for the six months ended June 30, 2008 and 2007.
(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

Covenant requirement(1)	As of June 30, 2008
Consolidated Debt to Total Assets cannot exceed 60%		38	%
Secured Debt to Total Assets cannot exceed 40%		14	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		3.3	x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		2.4	x

(1) A summary of the public debt covenant calculations and reconciliations of the financial components used in the public debt covenant calculations to the most comparable GAAP financial measures are detailed below.

	As of
	June 30, 2008
Ratio of Consolidate Debt to Total Assets
Consolidated debt, per balance sheet (A)	$	1,064,405
Total assets, as defined (B) (Table A)	$	2,796,972
Computed ratio (A÷B)		38	%
Required ratio (cannot exceed)		60	%
Ratio of Secured Debt to Total Assets
Total secured debt (C)	$	385,134
Computed ratio (C÷B)		14	%
Required ratio (cannot exceed)		40	%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	1,064,405
Total secured debt (C)		(385,134	)
Total unsecured debt (D)	$	679,271
Total unencumbered assets, as defined (E) (Table A)	$	2,207,991
Computed ratio (E÷D)		3.3	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)	$	125,140
Annual Debt Service Charge, as defined (G) (Table B)	$	51,152
Computed ratio (F÷G)		2.4	x
Required minimum ratio		1.5	x

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
	June 30, 2008
Total real estate assets	$	2,115,247
Add:
Investments in and advances to unconsolidated real estate entities		22,815
Accumulated depreciation		499,981
Accumulated depreciation on assets held for sale		93,844
Other tangible assets		65,085
Total assets for public debt covenant computations		2,796,972
Less:
Encumbered real estate assets		(588,981	)
Total unencumbered assets for public debt covenant computations	$	2,207,991

Table B

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

	Six months ended
Consolidated income available for debt service	June 30, 2008
Net income (loss)	$	(22,377	)
Add:
Minority interest of common unitholders		(206	)
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		17
Income before minority interest		(22,566	)
Add:
Non-cash impairment charges		28,947
Depreciation		28,649
Depreciation (company share) of assets held in unconsolidated entities		693
Depreciation of discontinued operations		3,623
Amortization of deferred financing costs		1,710
Interest expense		20,268
Interest expense (company share) of assets held in unconsolidated entities		1,387
Interest expense of discontinued operations		3,921
Less:
Gains on sales of real estate assets, net — continuing operations		(1,751	)
Gains on sales of real estate assets — discontinued operations		(2,311	)
Consolidated income available for debt service	$	62,570
Consolidated income available for debt service (annualized)	$	125,140
Annual debt service charge
Consolidated interest expense	$	20,268
Interest expense (company share) of assets held in unconsolidated entities		1,387
Interest expense of discontinued operations		3,921
Debt service charge	$	25,576
Debt service charge (annualized)	$	51,152

13

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

														Costs						Estimated
												Company		Incurred		Quarter		Quarter of		Quarter of				Units
		Number			Retail		Company			Estimated		Share of		as of		of Const.		First Units		Stabilized		Units		Under		Units
Community	Location	of Units			Sq. Ft.		Ownership			Cost		Est. Cost		06/30/08		Start		Available		Occupancy(1)		Leased(2)		Contract(3)		Closed(2)
														(Company
														Share)
Apartments (6):
Post Alexander™	Atlanta, GA		307			—		100	%	$	62.4	$	62.4	$	54.5		2Q 2006		1Q 2008		2Q 2009		97		N/A		N/A
Post Eastside™	Dallas, TX		435			37,900		100	%		56.7		56.7		35.0		4Q 2006		2Q 2008		4Q 2009		71		N/A		N/A
Post Frisco Bridges™	Dallas, TX		269			29,000		100	%		41.3		41.3		13.2		3Q 2007		1Q 2009		2Q 2010		—		N/A		N/A
Post Park®	Wash. DC		396			1,700		100	%		84.7		84.7		29.1		4Q 2007		1Q 2009		3Q 2010		—		N/A		N/A
Post West Austin™	Austin, TX		329			—		100	%		53.2		53.2		20.8		4Q 2007		1Q 2009		1Q 2010		—		N/A		N/A
Total Apartments			1,736			68,600				$	298.3	$	298.3	$	152.6								168
Condominiums (6):
The Residences at 3630 Peachtree™ (4)	Atlanta, GA		137			—		50	%	$	93.4	$	47.6	$	15.2		3Q 2007		3Q 2009		N/A		N/A		—		—
Four Seasons Residences	Austin, TX		147	(5)		8,000		100	%		133.5		133.5		29.3		1Q 2008		4Q 2009		N/A		N/A		60		—
Total Condominiums			284			8,000				$	226.9	$	181.1	$	44.5										60		—

(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 July 28, 2008.
(3)	As of July 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)	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.
(5)	Due to the combination of certain contiguous units, the aggregate unit count was reduced from 168 units to 147 units.
(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

The following are future projects for which the Company is currently in pre-development as well as other land positions. The estimates and assumptions detailed below, including the approximate number of units, 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 in the future 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.

Active Pre-Development Projects (1):

		Carrying Value		Estimated
		At June 30, 2008		Apartment Units		Estimated Retail
Project	Metro Area	(in thousands)		For Rent		Square Feet
South Lamar	Austin, TX	$	9,052		302		10,000
Post Morningside™ (2)	Charlotte, NC		—		400		25,000
Post Midtown Square® III	Houston, TX		3,438		124		11,000
Post Richmond™	Houston, TX		6,851		232		—
Wade I	Raleigh, NC		8,498		432		81,000	(3)
Post Carlyle Square™ II	Washington, D.C.		11,310		332		6,000
		$	39,149		1,822		133,000

Other Land Held for Future Development (4):

		Carrying Value
		At June 30, 2008		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Alexander	Atlanta, GA	$	8,665		2.5
Allen Plaza (three sites)	Atlanta, GA		27,669		5.6
Frisco Bridges II	Dallas, TX		5,456		5.4
Lake at Baldwin Park	Orlando, FL		17,554		13.5
Wade (two sites)	Raleigh, NC		14,016		19.6
Soho Square	Tampa, FL		10,658		4.1
		$	84,018		50.7
Total Land and Pre-Development Costs		$	123,167

(1)	Total development costs are projected to be approximately $380 million and include projected costs of proposed retail amenities, as applicable.
(2)	Site under contract to purchase. There can be no assurance that this land purchase will close. As of June 30, 2008, the Company had incurred pursuit costs and deposits totaling approximately $967 related to this project.
(3)	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.
(4)	Excludes land held for sale.

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 June 30, 2008
						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		June 30, 2008		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Chastain® (3)	Atlanta, GA		1990		558		867	$	1.09	$	1.29	$	3,693	$	830	$	48,133	$	16,445		558		—
Post Heights™	Dallas, TX		1998-1999		368		845		1.35		1.58		2,598		503		42,195		10,700		66		43
Post Peachtree Hills®	Atlanta, GA		1992-1994		300		978		1.12		1.42		2,436		479		19,539		10,600		40		37
					1,226											$	109,867	$	37,745		664		80

	Rehabilitation Cost Incurred in												Projected
	The Three Months Ended						Rehabilitation Capital Cost Incurred						Remaining
	June 30, 2008						As of June 30, 2008						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® (3)	$	662	$	—	$	662	$	15,938	$	457	$	16,395	$	50		2Q 2006		2Q 2008		4Q 2008
Post Heights™		2,015		3		2,018		3,052		24		3,076		7,624		1Q 2008		2Q 2009		1Q 2010
Post Peachtree Hills®		1,766		5		1,771		2,349		5		2,354		8,246		1Q 2008		1Q 2009		3Q 2009
	$	4,443	$	8	$	4,451	$	21,339	$	486	$	21,825	$	15,920

(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 $2,800 of projected non-revenue generating capital costs.
(3)	The renovation of Post Chastain® was completed during the second quarter of 2008. The Company expects this community to reach stabilized occupancy later in 2008.

16

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

								# of Rental Units		Average				Transfer Price/Est.		Book Value		Units(4)
		Year		Sale		Total		Occupied as of		Unit		Project Transfer		Price/Est. Cost		as of								Available
Project	Location	Completed		Start Date		Units		06/30/08		Sq. Ft. (1)		Price/Est. Cost (2)		Per Unit		06/30/08 (3)		Total		Closed		Under Contract		for Sale
Condominium Conversion Projects
Harbour Place City Homes™	Tampa, FL		1999		Q2 2006		206		2		1,036	$	37,000	$	180	$	3,087		206		163		1		42
RISETM	Houston, TX		2000		Q2 2006		143		30		1,407		26,250		184		8,807		143		88		9		46
Condominium Development Projects
The Condominiums at Carlyle Square™	Washington, DC		2007		2Q2007		145		N/A		855		46,200		319		6,162		145		126		4		15
Mercer Square™	Dallas, TX		2007		3Q2007		85		N/A		1,094		18,600		218		8,258		85		45		4		36
							579									$	26,314		579		422		18		139

Financial Summary — Aggregate Condominium Activity

	Three months ended							Three months ended							Six months ended							Six months ended							Cumulative through
	June 30, 2008							June 30, 2007							June 30, 2008							June 30, 2007							June 30, 2008
					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
Harbour Place City Homes™		8	$	1,857	$	(930	)		20	$	4,629	$	(355	)		11	$	2,505	$	(1,228	)		35	$	8,387	$	(561	)		163	$	40,250	$	(1,774	)
RISETM		8		2,372		(579	)		13		3,357		274			14		4,328		(676	)		20		5,409		277			87		22,872		(1,396	)
588TM (5)		—		—		—			—		—		—			—		—		—			1		560		179			127		34,557		3,526
The Peachtree ResidencesTM (5)		—		—		—			1		220		(46	)		—		—		—			11		4,332		87			121		41,547		562
Condominium Development Projects
The Condominiums at Carlyle Square™		6		2,849		5			35		17,236		3,009			22		7,918		1,566			35		17,295		2,975			123		54,241		9,333
Mercer Square™		11		2,973		286			—		—		—			13		3,597		484			—		—		—			41		11,809		701
		33		10,051		(1,218	)		69		25,442		2,882			60		18,348		146			102		35,983		2,957			662		205,276		10,952
Other		—		—		(160	)		—		—		(269	)		—		—		(407	)		—		—		(407	)		—		8		(1,044	)
Total		33	$	10,051	$	(1,378	)		69	$	25,442	$	2,613			60	$	18,348	$	(261	)		102	$	35,983	$	2,550			662	$	205,284	$	9,908

(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 June 30, 2008 totaled approximately $207.4 million.
(4)	Unit status is as of July 28, 2008. There can be no assurance that condominium units under contract will close.
(5)	Final condominium closings occurred in 2007 at these communities. 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 $(370) and $701 for the three months and $17 and $701 for the six months ended June 30, 2008 and 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 and six months ended June 30, 2008 and 2007.

17

Post Properties, Inc.
Community Acquisition and Disposition Summary

						Gross Amount		Gross
Property Name/Period	Location	Units		Year Built		Per Unit		Amount
Acquisitions
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									4.2%	(1)
Dispositions
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	(3)
Post Crest®	Atlanta, GA		410		1996	$	158,125		48,623,000	(3)
Q4 2007
Post Ashford®	Atlanta, GA		222		1987	$	103,603		23,000,000
Post Lindbergh®	Atlanta, GA		396		1998	$	154,542		45,899,000	(3)
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%	(2)
Q1 2008
Post Wilson™	Dallas, TX		143		1999	$	138,811	$	19,850,000
2008 YTD Total								$	19,850,000
Average Cap Rate - Acquisitions - 2008									5.6	%

(1)	Based on projected first twelve-month net operating income upon achievement of stabilized operations (as it relates to the second phase of Post Lake® at Baldwin Park which is 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 $2.9 million relating to closing costs and other amounts it plans to spend to improve this community.
(2)	Based on trailing twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit).
(3)	The Company transferred these communities to an unconsolidated entity, in which the Company retained a 25% interest. These amounts reflect the 75% 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 and six months ended June 30, 2008 and 2007 is detailed below.

	Three months ended				Six months ended
	June 30,				June 30,
	2008		2007		2008		2007
Development and acquisition expenditures (1)	$	41,255	$	37,030	$	80,613	$	66,620
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		4,443		2,539		7,951		7,206
Other community additions and improvements (3)		1,738		1,562		3,331		3,867
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		3,382		3,464		5,640		6,080
Corporate additions and improvements		190		347		421		1,608
	$	51,008	$	44,942	$	97,956	$	85,381
Other Data
Capitalized interest	$	3,288	$	2,688	$	6,671	$	5,795
Capitalized development and associated costs (5)	$	1,568	$	722	$	3,328	$	1,485

(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 four 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 Residences at 3630 Peachtree™ (2)	Atlanta, GA	Condominiums		137		50	%

Financial Data

	As of										Three months ended					Six months ended
	June 30, 2008										June 30, 2008					June 30, 2008
	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)	$	54,462	$	39,565	(3)	$	14,314	$	(3,926	) (1)	$	721		$	8	$	1,475		$	25
Post Crest® (1)		63,698		46,159	(3)		16,661		(6,280	) (1)		808			4		1,578			(1	)
Post Lindbergh® (1)		60,142		41,000	(4)		19,424		(3,679	) (1)		851			27		1,614			31
Post Biltmore™		36,246		17,000	(5)		14,167		6,840			609			90		1,220			181
Post Massachusetts Avenue™		69,116		49,996	(6)		10,182		6,822			1,418			291		2,889			585
The Residences at 3630 Peachtree™ (2)		96,733		56,550	(7)		34,271		9,153			(13	)		—		(42	)		—
Total	$	380,397	$	250,270		$	109,019	$	8,930		$	4,394		$	420	$	8,734		$	821

(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 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 at June 30, 2008 was $19,107 and $9,999, 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 June 30, 2008, $56,550 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 June 30, 2008 for properties stabilized by April 1, 2008 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by April 1, 2008 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	June 30, 2008		Adjustments			Adjusted
Rental revenues	$	62,286	$	4,066	(1)	$	66,352
Other property revenues		4,084		99	(1)		4,183
Total rental and other revenues (A)		66,370		4,165			70,535
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		33,555		(5,918	) (1)		27,637
Property net operating income (Table 1) (A-B)	$	32,815	$	10,083		$	42,898
Assumed property management fee (calculated at 3% of revenues) (A x 3%)							(2,116	)
Assumed property capital expenditure reserve ($300 per unit per year based on 17,294 units)							(1,297	)
Adjusted property net operating income						$	39,485
Annualized property net operating income (C)						$	157,940
Apartment units represented		22,140		(4,846	) (1)		17,294

	As of					As
Other Asset Data	June 30, 2008		Adjustments			Adjusted
Cash & equivalents	$	17,988				$	17,988
Real estate assets under construction, lease-up, conversion or rehabilitation, at cost (2)		135,232		301,405	(2)		436,637
Land held for future development				123,167			123,167
For-sale condominiums and assets held for sale (3)		284,924		(217,707	)(3)		67,217
Investments in and advances to unconsolidated real estate entities (4)		22,815		(3,708	)(4)		19,107
Restricted cash and other assets				47,097			47,097
Cash & other assets of unconsolidated real estate entities (5)		7,242		(5,160	)(5)		2,082
Total (D)	$	638,465	$	74,830		$	713,295
Other Liability Data
Indebtedness	$	1,064,405				$	1,064,405
Other liabilities (6)		142,588		(26,969	)(6)		115,619
Total liabilities of unconsolidated real estate entities (7)		260,263		(193,083	)(7)		67,180
Total (E)	$	1,467,256	$	(220,052	)	$	1,247,204

21

Other Data

	As of June 30, 2008
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (F)					$	95,000
Common shares outstanding		44,111
Common units outstanding		293
Total (G)		44,404	$	29.75	$	1,321,019
Implied market value of Company gross real estate assets (H) = (E+F+G-D)					$	1,949,928
Implied Portfolio Capitalization Rate (C÷H)						8.1	%

(1) The following table summarizes the adjustments made to the components of property net operating income for the three months ended June 30, 2008 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	$	(5,791	)	$	(366	)	$	(3,507	)		(3,546	)
Corporate property management expenses								(3,924	)
Company share of unconsolidated entities		2,003			140			750			(1,256	)
Held for sale operating properties		10,682			461			3,602			(44	)
Corporate apartments and other		(2,828	)		(136	)		(2,839	)
	$	4,066		$	99		$	(5,918	)		(4,846	)

(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 second quarter of 2008.
(3)	The adjustment reflects a reduction for the depreciated book value of eight apartment communities held for sale and included in discontinued operations at June 30, 2008, as the net property operating income of these communities 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 June 30, 2008” 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 June 30, 2008” 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 $13,084 and for credit investment balances of the Company’s investment in three unconsolidated entities of $13,885.
(7)	The “As of June 30, 2008” 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 impact of non-cash straight-line long-term ground lease expense, non-cash impairment charges and strategic review costs. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund 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.

24

Reconciliations of Supplemental Non-GAAP Financial Measures

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

	Three months ended									Six months ended
	June 30,			June 30,			March 31,			June 30,			June 30,
	2008			2007			2008			2008			2007
Total same store NOI	$	30,190		$	30,223		$	30,724		$	60,914		$	60,257
Property NOI from other operating segments		2,625			2,036			2,304			4,929			4,715
Consolidated property NOI		32,815			32,259			33,028			65,843			64,972
Add (subtract):
Interest income		61			213			210			271			463
Other revenues		235			128			239			474			245
Minority interest in consolidated property partnerships		427			(716	)		(366	)		61			(693	)
Depreciation		(14,386	)		(14,375	)		(14,263	)		(28,649	)		(28,726	)
Interest expense		(10,112	)		(10,863	)		(10,156	)		(20,268	)		(21,908	)
Amortization of deferred financing costs		(859	)		(829	)		(851	)		(1,710	)		(1,641	)
General and administrative		(4,956	)		(5,959	)		(5,848	)		(10,804	)		(11,407	)
Investment and development		(1,356	)		(1,955	)		(1,458	)		(2,814	)		(3,505	)
Strategic review costs		(2,091	)		—			(6,070	)		(8,161	)		—
Impairment and severance charges		(29,300	)		—			—			(29,300	)		—
Gains (losses) on sales of real estate assets, net		(368	)		62,738			2,119			1,751			66,444
Equity in income of unconsolidated real estate entities		420			310			401			821			814
Other income (expense)		66			(261	)		(174	)		(108	)		(522	)
Minority interest of common unitholders		238			(852	)		46			284			(882	)
Income (loss) from continuing operations		(29,166	)		59,838			(3,143	)		(32,309	)		63,654
Income from discontinued operations		4,103			4,099			5,829			9,932			24,754
Net income (loss)	$	(25,063	)	$	63,937		$	2,686		$	(22,377	)	$	88,408

25

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

	Three Months Ended						Q2 ’08			Q2 ’08			Q2 ’08
	June 30,		June 30,		March 31,		vs. Q2 '07			vs. Q1 '08			% Same
	2008		2007		2008		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	14,969	$	14,425	$	14,787		3.8	%		1.2	%
Dallas		10,320		9,752		10,031		5.8	%		2.9	%
Washington, D.C.		8,991		8,795		8,864		2.2	%		1.4	%
Tampa		7,101		7,342		7,181		(3.3	)%		(1.1	)%
Charlotte		4,912		4,797		4,784		2.4	%		2.7	%
Houston		3,070		2,910		3,031		5.5	%		1.3	%
Austin		1,231		1,213		1,240		1.5	%		(0.7	)%
Orlando		991		1,052		1,015		(5.8	)%		(2.4	)%
Total rental and other revenues		51,585		50,286		50,933		2.6	%		1.3	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		6,072		5,959		5,773		1.9	%		5.2	%
Dallas		4,830		4,216		4,501		14.6	%		7.3	%
Washington, D.C.		3,023		2,825		3,040		7.0	%		(0.6	)%
Tampa		3,187		2,968		2,976		7.4	%		7.1	%
Charlotte		1,813		1,585		1,566		14.4	%		15.8	%
Houston		1,519		1,335		1,335		13.8	%		13.8	%
Austin		566		604		593		(6.3	)%		(4.6	)%
Orlando		385		571		425		(32.6	)%		(9.4	)%
Total		21,395		20,063		20,209		6.6	%		5.9	%
Net operating income Atlanta		8,897		8,466		9,014		5.1	%		(1.3	)%		29.4	%
Dallas		5,490		5,536		5,530		(0.8	)%		(0.7	)%		18.2	%
Washington, D.C.		5,968		5,970		5,824		(0.0	)%		2.5	%		19.8	%
Tampa		3,914		4,374		4,205		(10.5	)%		(6.9	)%		13.0	%
Charlotte		3,099		3,212		3,218		(3.5	)%		(3.7	)%		10.3	%
Houston		1,551		1,575		1,696		(1.5	)%		(8.5	)%		5.1	%
Austin		665		609		647		9.2	%		2.8	%		2.2	%
Orlando		606		481		590		26.0	%		2.7	%		2.0	%
Total same store NOI	$	30,190	$	30,223	$	30,724		(0.1	)%		(1.7	)%		100.0	%

26

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

	Six months ended
	June 30,		June 30,
	2008		2007		% Change
Rental and other revenues Atlanta	$	29,756	$	28,679		3.8	%
Dallas		20,351		19,319		5.3	%
Washington, D.C.		17,855		17,454		2.3	%
Tampa		14,283		14,668		(2.6	)%
Charlotte		9,696		9,457		2.5	%
Houston		6,100		5,738		6.3	%
Austin		2,471		2,390		3.4	%
Orlando		2,006		2,084		(3.7	)%
Total rental and other revenues		102,518		99,789		2.7	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		11,845		11,509		2.9	%
Dallas		9,331		8,311		12.3	%
Washington, D.C.		6,063		5,759		5.3	%
Tampa		6,164		5,898		4.5	%
Charlotte		3,379		3,214		5.1	%
Houston		2,853		2,619		8.9	%
Austin		1,159		1,210		(4.2	)%
Orlando		810		1,012		(20.0	)%
Total		41,604		39,532		5.2	%
Net operating income
Atlanta		17,911		17,170		4.3	%
Dallas		11,020		11,008		0.1	%
Washington, D.C.		11,792		11,695		0.8	%
Tampa		8,119		8,770		(7.4	)%
Charlotte		6,317		6,243		1.2	%
Houston		3,247		3,119		4.1	%
Austin		1,312		1,180		11.2	%
Orlando		1,196		1,072		11.6	%
Total same store NOI	$	60,914	$	60,257		1.1	%

27

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

	Three months ended				Six months ended
	June 30,				June 30,
	2008		2007		2008		2007
Annually recurring capital expenditures by operating segment Fully stabilized	$	2,288	$	1,969	$	3,787	$	3,450
Communities stabilized during 2007		92		—		122		23
Development, rehabilitation and lease-up		416		410		655		661
Condominium conversion and other		—		277		—		616
Acquired		35		—		66		—
Other segments		551		808		1,010		1,330
Total annually recurring capital expenditures per statements of cash flows	$	3,382	$	3,464	$	5,640	$	6,080
Periodically recurring capital expenditures by operating segment Fully stabilized	$	1,575	$	571	$	2,813	$	1,136
Communities stabilized during 2007		—		748		17		1,975
Development, rehabilitation and lease-up		25		49		93		273
Condominium conversion and other		—		101		—		225
Acquired		—		—		36		—
Other segments		138		93		372		258
Total periodically recurring capital expenditures per statements of cash flows	$	1,738	$	1,562	$	3,331	$	3,867

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

	Six months ended
	June 30,
	2008			2007
Income (loss) from continuing operations	$	(32,309	)	$	63,654
Minority interest of common unitholders		(284	)		882
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		17			701
Gains on sales of real estate assets, net		(1,751	)		(66,444	)
Gains on sales of real estate assets — unconsolidated entities		—			(162	)
Non-cash impairment charges		28,947			—
Depreciation expense		28,649			28,726
Depreciation (company share) of assets held in unconsolidated entities		693			500
Interest expense		20,268			21,908
Interest expense (company share) of assets held in unconsolidated entities		1,387			642
Amortization of deferred financing costs		1,710			1,641
Income available for debt service (A)	$	47,327		$	52,048
Interest expense	$	20,268		$	21,908
Interest expense (company share) of assets held in unconsolidated entities		1,387			642
Interest expense for purposes of computation (B)		21,655			22,550
Dividends and distributions to preferred shareholders and unitholders		3,819			3,819
Fixed charges for purposes of computation (C)	$	25,474		$	26,369
Interest coverage ratio (A÷B)		2.2	x		2.3	x
Fixed charge coverage ratio (A÷C)		1.9	x		2.0	x

29

Table 5
Computation of Debt Ratios
(Dollars in thousands)

	As of June 30,
	2008			2007
Total real estate assets per balance sheet	$	2,115,247		$	2,000,916
Plus:
Company share of real estate assets held in unconsolidated entities		94,510			71,395
Company share of accumulated depreciation — assets held in unconsolidated entities		6,049			4,360
Accumulated depreciation per balance sheet		499,981			560,927
Accumulated depreciation on assets held for sale		93,844			—
Total undepreciated real estate assets (A)	$	2,809,631		$	2,637,598
Total debt per balance sheet	$	1,064,405		$	938,998
Plus:
Company share of third party debt held in unconsolidated entities		65,128			44,880
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,129,533		$	975,328
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A)		40.2	%		37.0	%
Total debt per balance sheet	$	1,064,405		$	938,998
Plus:
Company share of third party debt held in unconsolidated entities		65,128			44,880
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)	$	1,224,533		$	1,070,328
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		43.6	%		40.6	%

30

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

	June 30, 2008
Total shareholders’ equity, per balance sheet	$	1,000,279
Plus:
Accumulated depreciation, per balance sheet		499,981
Accumulated depreciation held for sale assets, per balance sheet		93,844
Minority interest of common unitholders in Operating Partnership, per balance sheet		6,034
Less:
Deferred charges, net, per balance sheet		(10,159	)
Preferred shares at liquidation value		(95,000	)
Total undepreciated book value (A)	$	1,494,979
Total common shares and units (B)		44,404
Company undepreciated book value per share (A÷B)	$	33.67

31