8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported): February 12, 2009

Post Properties, Inc.
Post Apartment Homes, L.P.

(Exact name of registrant as specified in its charter)

Georgia
Georgia

(State or other jurisdiction of incorporation)

1-12080
0-28226

(Commission File Number)

58-1550675
58-2053632

(IRS Employer Identification Number)

4401 Northside Parkway, Suite 800, Atlanta, Georgia 30327
(Address of principal executive offices)

Registrant’s telephone number, including area code (404) 846-5000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On February 11, 2009, Post Properties, Inc. and Post Apartment Homes, L.P. (collectively referred to as the “Registrants”), issued an Earnings Release and Supplemental Financial Data announcing their financial results for the quarterly period ended December 31, 2008. The Earnings Release and Supplemental Financial Data contain information about the Registrants’ financial condition and results of operations for the quarterly period ended December 31, 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: February 12, 2009

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

SIGNATURES

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

     Dated: February 12, 2009

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 Fourth Quarter 2008 Earnings
Investor/Analyst Conference Call Scheduled for February 12, 2009 at 10:00 a.m. ET

ATLANTA, February 11, 2009 — Post Properties, Inc. (NYSE: PPS) announced today a net loss attributable to common shareholders of $(15.3) million for the fourth quarter of 2008, compared to net income available to common shareholders of $77.3 million for the fourth quarter of 2007. On a diluted per share basis, the net loss attributable to common shareholders was $(0.35) for the fourth quarter of 2008, compared to net income available to common shareholders of $1.76 for the fourth quarter of 2007.

The Company’s net loss attributable to common shareholders was $(16.3) million for the year ended December 31, 2008, compared to net income available to common shareholders of $171.1 million for the year ended December 31, 2007. On a diluted per share basis, the Company’s net loss attributable to common shareholders was $(0.37) for the year ended December 31, 2008, compared to net income available to common shareholders of $3.88 for the year ended December 31, 2007.

The Company’s net loss attributable to common shareholders for the three months ended December 31, 2008 included (i) non-cash impairment charges of approximately $60.0 million relating to certain land held for sale and land held for investment (see below for further discussion), (ii) non-cash charges of approximately $1.6 million relating to the write-off of capitalized pursuit costs for two abandoned development projects, (iii) severance charges of approximately $2.9 million associated with the elimination of certain employment positions during the quarter, and (iv) a non-cash charge of approximately $0.9 million related to the mark-to-market of a derivative instrument that became ineffective during the third quarter of 2008.

The Company’s net loss attributable to common shareholders for the year ended December 31, 2008 included (i) non-cash impairment charges of approximately $87.8 million relating to certain land held for sale and land held for investment (see below for further discussion), (ii) non-cash charges of approximately $2.7 million relating to the write off of capitalized pursuit costs related to abandoned development projects, (iii) hurricane casualty losses of approximately $2.8 million, (iv) severance charges of approximately $5.5 million, and (v) charges of approximately $8.2 million relating to the process, no longer underway, to seek a potential sale of the Company.

The Company’s reported net loss attributable to common shareholders included net gains on the sales of apartment communities (including minority interest) of $49.4 million and $75.2 million for the three months and year ended December 31, 2008, respectively. The Company’s reported net income available to common shareholders for the three months and year ended December 31, 2007 included net gains on the sales of apartment communities (including minority interest) of $45.4 million and $62.4 million, respectively, as well as proportionate gains of approximately $26.0 million and $81.3 million, respectively, on the sale of a 75% interest in three apartment communities to a joint venture.

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

FFO for the fourth quarter of 2008 was a deficit of $(47.2) million, or $(1.06) per diluted share, compared to FFO of $22.7 million, or $0.51 per diluted share, for the fourth quarter of 2007. The Company’s reported FFO for the fourth quarter of 2008 included non-cash impairment charges, severance charges, abandoned pursuit costs and the non-cash derivative mark-to-market charge discussed above totaling approximately $65.4 million, or $1.47 per diluted share. The Company’s reported FFO for the fourth quarter of 2007 included a net gain of approximately $1.2 million, or $0.03 per diluted share, on the sale of a land site as well as a $0.1 million non-cash loss on the early extinguishment of tax-exempt secured indebtedness and related interest rate cap arrangements in connection with asset sales.

FFO for the year ended December 31, 2008 was a deficit of $(29.8) million, or $(0.67) per diluted share, compared to $89.4 million, or $2.00 per diluted share, for the year ended December 31, 2007. The Company’s reported FFO for the year ended December 31, 2008 included non-cash impairment charges, severance charges, hurricane casualty losses, abandoned pursuit costs and charges relating to the sale process discussed above totaling approximately $107.0 million, or $2.41 per diluted

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share. The Company’s reported FFO for the year ended December 31, 2007 included net gains of approximately $5.1 million, or $0.12 per diluted share, on the sale of land sites in Atlanta, Georgia and Dallas, Texas, offset partially by the $0.1 million non-cash loss on the early extinguishment of debt.

Mature (Same Store) Community Data

Average economic occupancy at the Company’s 38 mature (same store) communities, containing 14,029 apartment units, was 93.9% and 94.8% for the fourth quarter of 2008 and 2007, respectively.

Total revenues for the mature communities decreased 1.1% during the fourth quarter of 2008, compared to the fourth quarter of 2007, and operating expenses increased 1.5%, producing a 2.6%, or $0.9 million, decrease in same store net operating income (“NOI”). The average monthly rental rate per unit remained flat during the fourth quarter of 2008, compared to the fourth quarter of 2007.

On a sequential basis, total revenues for the mature communities decreased 2.7% and operating expenses decreased 7.9% producing a 0.9%, or $0.3 million, increase in same store NOI for the fourth quarter of 2008, compared to the third quarter of 2008. On a sequential basis, the average monthly rental rate per unit decreased 0.4%. For the fourth quarter of 2008, average economic occupancy at the mature communities was 93.9%, compared to 95.3% for the third quarter of 2008.

For the years ended December 31, 2008 and 2007, average economic occupancy at the Company’s mature communities was 94.4% and 94.6%, respectively.

Total revenues for the mature communities increased 1.4% during the year ended December 31, 2008 compared to the year ended December 31, 2007, and operating expenses increased 3.6% producing a 0.1%, or $0.1 million, decrease in same store NOI. The average monthly rental rate per unit increased 1.6% during the year ended December 31, 2008, compared to the year ended December 31, 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 and average rental rate per unit by geographic market is also included in the financial data (Table 3) accompanying this press release.

Cost Savings Activity

During the year ended December 31, 2008, the Company reduced its headcount approximately 15%, including an approximately 25% reduction in headcount in corporate office positions, through a combination of asset sales, out-sourcing, attrition and positions eliminated. In connection with these headcount reductions, the Company incurred severance charges during 2008 of approximately $5.5 million. The Company also implemented a salary freeze for associates with base salaries greater than $50,000, substantially reduced bonuses, including eliminating any incentive bonus for 2008 for the Company’s President and CEO, reduced long-term incentives for executive officers for 2008 and targeted long-term incentives for 2009. In addition, at his request, compensation paid to the Chairman of the Company’s Board of Directors was substantially reduced for 2008 and waived entirely for 2009.

Financing Activity

In October 2008, the Company closed six, cross-collateralized secured mortgage loans. The mortgage loans have an aggregate principal amount of approximately $184.7 million, require fixed, interest-only payments at 6.09% and mature in six years on November 1, 2014. The mortgage loans are also pre-payable without penalty beginning after October 2012.

In January 2009, the Company closed five, cross-collateralized secured mortgage loans. The mortgage loans have an aggregate principal amount of approximately $202.2 million, require fixed interest-only payments for the first two years and then principal and interest payments for the remaining term of the loans based on a 30-year amortization schedule. The loans bear interest at a fixed rate of 5.99% and mature in ten years on February 1, 2019.

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Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) was 45.7% at December 31, 2008, and variable rate debt as a percentage of total debt was 12.9% as of that same date. These percentages are computed without taking into account cash and cash equivalents on the Company’s balance sheet at December 31, 2008.

At the end of December 2008, the Company repaid approximately $39.2 million of secured debt that was scheduled to mature in early 2009, using available cash from its recent secured financings. In 2009, the Company has approximately $34.0 million of debt, secured by one of its New York apartment communities, that matures in March and that it currently plans to refinance. The Company also has approximately $92.3 million of weekly remarketed, variable rate taxable mortgage bonds that it intends to redeem in March 2009 using available cash equivalents from its recent secured financings.

As of February 9, 2009, the Company had no outstanding borrowings and letters of credit totaling approximately $37.2 million under its combined $630 million unsecured lines of credit, held available cash equivalents of approximately $191.6 million, and held approximately $25.5 million in a restricted cash collateral account with respect to the taxable mortgage bonds discussed above.

As the Company separately announced today, it has made a public tender offer for any and all of its $185 million, 7.7% senior unsecured notes due December 2010 and its $100 million, 5.125% senior unsecured notes due October 2011. The tender offer expires on February 19, 2009. The Company expects to fund any notes tendered using available cash equivalents, proceeds from the mortgage loans discussed above and through borrowings under its unsecured revolving 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.

Disposition, Development and Other Investment Activity

Disposition Activity

In October 2008, the Company closed the sale of its Post Woods® apartment community located in Atlanta, Georgia for a gross sales price of approximately $52.8 million. Post Woods® is a 494-unit garden-style apartment community located in the Cumberland/Vinings area of Atlanta and was completed in phases in the 1970’s and early 1980’s.

In December 2008, the Company closed the sale of its Post Lenox Park® apartment community located in Atlanta, Georgia for a gross sales price of approximately $22.7 million. Post Lenox Park® is a 206-unit garden-style apartment community located in the Buckhead area of Atlanta and was completed in 1995.

The Company continues to market for sale two other apartment communities located in Atlanta, Georgia and a third located in northern Virginia. The Company’s strategic plans no longer include selling its two New York City apartment communities that were previously being marketed for sale. As a result, those communities have been reflected in the same store operating data discussed above, with prior results having been adjusted to reflect the current period presentation.

Gross proceeds that may potentially be realized by the Company from the sales of the three communities being marketed for sale are currently expected to be more than $150 million, although current conditions in the global capital markets and the U.S. economy may adversely affect the Company’s ability to sell assets. As a result, there can be no assurance that the potential gross proceeds will be realized by the Company or that these assets will be sold.

Development Activity

As of December 31, 2008, the Company’s aggregate pipeline of development projects under construction totaled approximately $542.0 million (including the Company’s share, net of joint venture partner interests, of $508.3 million). As of the same date, approximately $200.7 million of estimated construction costs remained to be funded by the Company (or approximately $163.3 million, excluding committed construction loan financing and escrow deposits held by the construction lender). The Company expects to fund future estimated construction expenditures primarily by utilizing available cash equivalents of approximately $191.6 million and borrowing capacity under its unsecured revolving lines of credit totaling approximately $592.8 million as of February 9, 2009.

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In response to conditions in the global capital markets and the U.S. economy, the Company, as disclosed in the prior quarter, has deferred substantive activities on its pre-development pipeline. At present, management believes that the timing of future development starts will depend largely on the stabilization of capital market conditions and the U.S. economy, which it believes will influence conditions in employment and in local real estate markets, the Company’s ability to generate asset sales proceeds and its ability to attract potential construction loan financing and joint venture equity to fund future development. Until such time as substantive development activities re-commence or certain land positions are sold, the Company expects that operating results will be adversely impacted by costs of carrying land held for future development or sale.

Non-Cash Impairments of Land Held for Investment and Sale

Based on the Company’s outlook for conditions in the global capital markets and the U.S. economy, management revised its current expectations regarding the timing and projected future cash flows from land held for future development (including the Company’s expectations of possible future uses, capitalization rates, investors’ return expectations, rental rates and operating cash flows) and reduced its expectations regarding the estimated fair values of its land holdings. As a result, the Company recorded non-cash impairment charges of approximately $60.0 million in the fourth quarter of 2008 relating to a substantial portion of its land held for sale and land held for future investment (including the Company’s interest in a joint venture that holds land for future investment) in the fourth quarter of 2008. This charge was in addition to $27.8 million of non-cash impairment charges that the Company recorded in the second quarter of 2008.

The Company considers a real estate asset held for investment as impaired if the undiscounted, estimated future cash flows of the asset (both the annual estimated cash flow from future operations and the estimated cash flow from the asset’s eventual sale) over its expected holding period are less than the asset’s net book value. For those assets deemed impaired, a non-cash impairment charge was recognized to reduce the carrying value of the assets to their estimated fair values. For real estate assets held for sale, the Company recognized impairment losses for assets with a net book value in excess of their estimated fair values, less estimated costs to sell.

After considering the impact of the impairment charges discussed above, which on a cumulative basis represented an approximately 47% reduction to the original aggregate carrying values of its land assets, the Company’s land held for future investment and sale totaled $98.4 million at December 31, 2008.

Apartment Community Renovation and Remediation Activity

The Company is currently undertaking substantial renovations and re-leasing of two apartment communities, Post Peachtree Hills® in Atlanta, Georgia and Post Heights™ in Dallas, Texas, containing a total of 668 units. 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. The renovation of these communities began earlier in 2008. As of December 31, 2008, the Company had completed the renovation of 482 units (72% of the total) at these communities.

As announced last quarter, the Company is underway with an initiative to engage third-party engineers and consultants to inspect and evaluate each of its communities that have stucco exteriors or exterior insulation finishing systems (“EIFS”) for potential water penetration and other related issues. At this time, the Company has preliminarily determined that varying levels of remediation and improvements may be required to be performed at approximately 30 properties in its portfolio. The Company preliminarily estimates that the aggregate cost of this initiative could be approximately $45 million to complete the scope of the remediation and improvements, although the scope and cost will vary considerably among individual properties. The Company currently expects that a substantial majority of the costs related to these remediation efforts will be recorded as annually and periodically recurring capital expenditures. In addition and as a result of this project, the Company currently estimates that the net book value of certain building components totaling approximately $6.5 million to $7.0 million will be retired and, as such, are being depreciated on an accelerated basis over the remaining estimated useful life of those assets, which is expected to be not later than 2009. The work is currently underway at approximately seven properties and is expected to be completed at all the properties by 2010. The work may include, but not be limited to, remediation, improvements and replacements of exterior stucco and EIFS siding, windows and doors, roofing and gutters, exterior sealants and coatings. There can be no assurance that the scope of work or the Company’s preliminary estimates of costs will not change in the future.

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Condominium Activity

The Company recognized breakeven results from condominium activities during the fourth quarter of 2008, net of minority interest and provision for income taxes, compared to incremental gains of approximately $0.1 million during the fourth quarter of 2007.

During the fourth quarter of 2008, the Company completed the 100% sell-out of its condominium development project in the greater Washington D.C. area, containing 145 homes.

2009 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. In addition, the Company does not currently intend to provide quarterly earnings guidance during 2009.

Based on its current outlook, the Company currently expects that FFO for 2009 will be in the range of $1.05 to $1.25 per diluted share (including an $0.08 to $0.09 per diluted share loss on early extinguishment of indebtedness discussed below). The estimates of per share FFO for 2009 are based on the following assumptions:

•	a decrease in same store NOI of 4.5% to 8.0%, compared to 2008, based on:
	— a decrease in same store revenue of 2.5% to 4.3%, compared to 2008, and — an increase in same store operating expenses of 0.3% to 1.1%, compared to 2008;
•	an increase in expensed land and condominium carrying costs, deficits attributable to the lease up of apartment communities under rehabilitation and development, and the negative interest carry costs associated with available cash from financing activities totaling approximately $0.30 per diluted share, compared to 2008, although this amount could vary significantly based on the timing of forecasted capital, development and lease up activities;
•	a decrease in overhead expenses (G&A, property management and development and investment expenses, net of development costs capitalized) of 6.0% to 8.0%, compared to 2008;
•	a net loss attributable to condominium activities of $0.03 to $0.04 per diluted share; and
•	a loss on early extinguishment of indebtedness in March of $0.08 to $0.09 per diluted share.

Supplemental Financial Data

The Company also produces Supplemental Financial Data that includes detailed information regarding the Company’s operating results, investment activity, financing activity 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 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 24 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

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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, non-cash income (loss) related to mark-to-market of interest rate swap agreements, non-cash debt extinguishment costs 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 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

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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 Thursday, February 12, at 10:00 a.m. ET. The telephone numbers are 888-233-8078 for US and Canada callers and 913-312-6687 for international callers. The access code is 3047296. 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 Information/Event Calendar. The replay will begin at 1:00 p.m. ET on Thursday, February 12, and will be available until Wednesday, February 18, 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 3047296. A replay of the call also will be archived on Post’s website under Investor Information/Audio Archives. 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 37 years ago, is one of the largest developers and operators of upscale multifamily communities in the United States. The Company’s mission is delivering superior satisfaction and value to its residents, associates, and investors, with a vision of being the first choice in quality multifamily living. Operating as a real estate investment trust (“REIT”), the Company focuses on developing and managing Post^® branded resort-style garden and high density urban apartments. In addition, the Company develops high-quality condominiums and converts existing apartments to for-sale multifamily communities. Post Properties is headquartered in Atlanta, Georgia, and has operations in ten markets across the country.

Post Properties owns 21,189 apartment units in 58 communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,736 apartment units in five communities currently under construction and/or in lease-up. The Company is also developing and selling 361 for-sale condominium homes in three communities (including 129 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 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 costs, timing and expense to remediate and improve apartment communities with stucco and EIFS exteriors, anticipated overhead reductions, expectations regarding the timing and projected future cash flows from land held for future development and estimated fair values of land holdings, expectations regarding the source of funds for the tender offer of notes, and anticipated full year 2009 FFO, same store NOI and other 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.

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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 previous filings with the SEC; future conditions in the global capital markets, including changes in the availability of credit and liquidity; future local and national economic conditions, including changes in levels of employment, 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 in the Company’s quarterly report on Form 10-Q dated September 30, 2008 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, and the September 30, 2008 Form 10-Q under the caption “Risk Factors” are specifically incorporated by reference into this press release.

-8-

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

	Three months ended					Year ended
	December 31,					December 31,
	2008			2007		2008			2007
OPERATING DATA
Revenues from continuing operations	$	69,767		$	70,526	$	281,940		$	277,324
Net income (loss) available to common shareholders	$	(15,260	)	$	77,333	$	(16,289	)	$	171,062
Funds from operations (deficit) available to common shareholders and unitholders (Table 1)	$	(47,225	)	$	22,713	$	(29,820	)	$	89,382
Weighted average shares outstanding — diluted		44,146			44,006		44,009			44,129
Weighted average shares and units outstanding — diluted		44,384			44,541		44,316			44,738
PER COMMON SHARE DATA — DILUTED
Net income (loss) available to common shareholders	$	(0.35	)	$	1.76	$	(0.37	)	$	3.88
Funds from operations (deficit) available to common shareholders and unitholders (Table 1) (1)	$	(1.06	)	$	0.51	$	(0.67	)	$	2.00
Dividends declared	$	0.20		$	0.45	$	1.55		$	1.80

(1) Diluted weighted average shares and units for the three months and year ended December 31, 2008 exclude 19 and 159 shares and units, respectively, that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such periods.

-9-

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						Year ended
	December 31,						December 31,
	2008			2007			2008			2007
Net income (loss) available to common shareholders	$	(15,260	)	$	77,333		$	(16,289	)	$	171,062
Minority interest of common unitholders — continuing operations		(447	)		389			(719	)		1,347
Minority interest in discontinued operations		342			636			606			1,047
Depreciation on wholly-owned real estate assets, net		17,619			16,241			63,471			65,560
Depreciation on real estate assets held in unconsolidated entities		349			320			1,391			1,143
Gains on sales of real estate assets		(49,928	)		(72,588	)		(77,987	)		(157,620	)
Incremental gains (losses) on condominium sales (1)		100			382			(293	)		6,922
Gains on sales of real estate assets — unconsolidated entities		—			(16	)		—			(186	)
Incremental gains on condominium sales — unconsolidated entities (1)		—			16			—			107
Funds from operations (deficit) available to common shareholders and unitholders	$	(47,225	)	$	22,713		$	(29,820	)	$	89,382
Funds from operations (deficit) — per share and unit — diluted (2)	$	(1.06	)	$	0.51		$	(0.67	)	$	2.00
Weighted average shares and units outstanding — diluted (2)		44,384			44,541			44,316			44,738

(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 18 of the Supplemental Financial Data for further detail.

(2)

Diluted weighted average shares and units for the three months and year ended December 31, 2008 exclude 19 and 159 shares and units, respectively, that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such periods.

-10-

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

	Three months ended									Year ended
	December 31,			December 31,			September 30,			December 31,			December 31,
	2008			2007			2008			2008			2007
Total same store NOI	$	33,675		$	34,563		$	33,381		$	131,826		$	131,908
Property NOI from other operating segments		4,245			3,003			4,133			13,806			11,259
Consolidated property NOI		37,920			37,566			37,514			145,632			143,167
Add (subtract):
Interest income		300			170			96			667			822
Other revenues		294			186			261			1,029			602
Minority interest in consolidated property partnerships		(33	)		(440	)		(189	)		(395	)		(1,857	)
Depreciation		(18,241	)		(15,225	)		(14,979	)		(63,530	)		(61,476	)
Interest expense		(14,487	)		(12,080	)		(12,341	)		(48,863	)		(47,447	)
Amortization of deferred financing costs		(894	)		(828	)		(869	)		(3,473	)		(3,297	)
General and administrative		(3,464	)		(4,358	)		(3,859	)		(16,808	)		(18,093	)
Investment and development		(958	)		(1,598	)		(1,509	)		(5,131	)		(7,302	)
Other development costs		(422	)		(113	)		(463	)		(1,384	)		(400	)
Strategic review costs		—			—			—			(8,161	)		—
Impairment, severance and other charges		(64,560	)		—			(5,002	)		(98,862	)		—
Gains on sales of real estate assets, net		525			28,509			476			2,752			100,015
Equity in income of unconsolidated real estate entities		143			419			260			1,224			1,635
Other income (expense), net		(1,665	)		(393	)		534			(1,239	)		(1,177	)
Minority interest of common unitholders		447			(389	)		1			719			(1,347	)
Income (loss) from continuing operations		(65,095	)		31,426			(69	)		(95,823	)		103,845
Income from discontinued operations		51,744			47,816			27,145			87,171			74,854
Net income (loss)	$	(13,351	)	$	79,242		$	27,076		$	(8,652	)	$	178,699

-11-

Table 3
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands)

	Three months ended						Q4 ’08			Q4 ’08			Q4 ’08
	December 31,		December 31,		September 30,		vs. Q4 ’07			vs. Q3 ’08			% Same
	2008		2007		2008		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	14,729	$	14,891	$	15,075		(1.1	)%		(2.3	)%
Dallas		9,988		10,064		10,435		(0.8	)%		(4.3	)%
Washington, D.C.		8,818		8,908		8,999		(1.0	)%		(2.0	)%
Tampa		7,052		7,198		7,141		(2.0	)%		(1.2	)%
Charlotte		4,681		4,835		4,937		(3.2	)%		(5.2	)%
New York		3,772		3,806		3,809		(0.9	)%		(1.0	)%
Houston		3,084		3,006		3,134		2.6	%		(1.6	)%
Austin		1,236		1,227		1,299		0.7	%		(4.8	)%
Orlando		999		1,007		1,017		(0.8	)%		(1.8	)%
Total rental and other revenues		54,359		54,942		55,846		(1.1	)%		(2.7	)%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		6,162		5,580		6,461		10.4	%		(4.6	)%
Dallas		4,005		4,261		4,605		(6.0	)%		(13.0	)%
Washington, D.C.		3,106		2,937		3,231		5.8	%		(3.9	)%
Tampa		2,680		2,932		2,930		(8.6	)%		(8.5	)%
Charlotte		1,516		1,354		1,633		12.0	%		(7.2	)%
New York		1,131		1,113		1,119		1.6	%		1.1	%
Houston		1,129		1,230		1,464		(8.2	)%		(22.9	)%
Austin		525		562		588		(6.6	)%		(10.7	)%
Orlando		430		410		434		4.9	%		(0.9	)%
Total		20,684		20,379		22,465		1.5	%		(7.9	)%
Net operating income
Atlanta		8,567		9,311		8,614		(8.0	)%		(0.5	)%		25.4	%
Dallas		5,983		5,803		5,830		3.1	%		2.6	%		17.9	%
Washington, D.C.		5,712		5,971		5,768		(4.3	)%		(1.0	)%		17.0	%
Tampa		4,372		4,266		4,211		2.5	%		3.8	%		13.0	%
Charlotte		3,165		3,481		3,304		(9.1	)%		(4.2	)%		9.4	%
New York		2,641		2,693		2,690		(1.9	)%		(1.8	)%		7.8	%
Houston		1,955		1,776		1,670		10.1	%		17.1	%		5.8	%
Austin		711		665		711		6.9	%		0.0	%		2.1	%
Orlando		569		597		583		(4.7	)%		(2.4	)%		1.7	%
Total same store NOI	$	33,675	$	34,563	$	33,381		(2.6	)%		0.9	%		100.0	%
Average rental rate per unit
Atlanta	$	1,146	$	1,138				0.7	%
Dallas		1,076		1,057				1.8	%
Washington, D.C.		1,763		1,762				0.1	%
Tampa		1,237		1,304				(5.1	)%
Charlotte		1,183		1,195				(1.0	)%
New York		3,938		3,872				1.7	%
Houston		1,266		1,212				4.5	%
Austin		1,347		1,315				2.4	%
Orlando		1,346		1,437				(6.3	)%
Total average rental rate per unit		1,303		1,303				0.0	%

-12-

Table 3 (con’t)
Same Store Net Operating Income (NOI) Average Rental Rate per Unit by Market
(In thousands)

	Year ended
	December 31,		December 31,
	2008		2007		% Change
Rental and other revenues
Atlanta	$	59,560	$	58,468		1.9	%
Dallas		40,774		39,565		3.1	%
Washington, D.C.		35,672		35,297		1.1	%
Tampa		28,476		29,261		(2.7	)%
Charlotte		19,315		19,201		0.6	%
New York		15,074		14,694		2.6	%
Houston		12,319		11,751		4.8	%
Austin		5,006		4,846		3.3	%
Orlando		4,021		4,124		(2.5	)%
Total rental and other revenues		220,217		217,207		1.4	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		24,823		23,956		3.6	%
Dallas		18,183		17,332		4.9	%
Washington, D.C.		12,518		11,920		5.0	%
Tampa		11,903		12,140		(2.0	)%
Charlotte		6,628		6,316		4.9	%
New York		4,841		4,147		16.7	%
Houston		5,506		5,248		4.9	%
Austin		2,297		2,369		(3.0	)%
Orlando		1,692		1,871		(9.6	)%
Total		88,391		85,299		3.6	%
Net operating income
Atlanta		34,737		34,512		0.7	%
Dallas		22,591		22,233		1.6	%
Washington, D.C.		23,154		23,377		(1.0	)%
Tampa		16,573		17,121		(3.2	)%
Charlotte		12,687		12,885		(1.5	)%
New York		10,233		10,547		(3.0	)%
Houston		6,813		6,503		4.8	%
Austin		2,709		2,477		9.4	%
Orlando		2,329		2,253		3.4	%
Total same store NOI	$	131,826	$	131,908		(0.1	)%
Average rental rate per unit
Atlanta	$	1,149	$	1,127		2.0	%
Dallas		1,072		1,042		2.9	%
Washington, D.C.		1,765		1,737		1.6	%
Tampa		1,267		1,307		(3.1	)%
Charlotte		1,186		1,206		(1.7	)%
New York		3,905		3,775		3.4	%
Houston		1,252		1,183		5.8	%
Austin		1,337		1,281		4.4	%
Orlando		1,366		1,430		(4.5	)%
Total average rental rate per unit		1,306		1,286		1.6	%

-13-

Table 4
Computation of Debt Ratios
(In thousands)

	As of December 31,
	2008			2007
Total real estate assets per balance sheet	$	2,083,151		$	2,111,612
Plus:
Company share of real estate assets held in unconsolidated entities		124,240			91,085
Company share of accumulated depreciation — assets held in unconsolidated entities		6,952			5,149
Accumulated depreciation per balance sheet		553,814			562,226
Accumulated depreciation on assets held for sale		42,379			4,031
Total undepreciated real estate assets (A)	$	2,810,536		$	2,774,103
Total debt per balance sheet	$	1,112,913		$	1,059,066
Plus:					—
Company share of third party debt held in unconsolidated entities		77,760			60,959
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,190,673		$	1,120,025
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A) (1)		42.4	%		40.4	%
Total debt per balance sheet	$	1,112,913		$	1,059,066
Plus:
Company share of third party debt held in unconsolidated entities		77,760			60,959
Preferred shares at liquidation value		95,000			95,000
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,285,673		$	1,215,025
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A) (1)		45.7	%		43.8	%

(1) Excludes impact of available cash and cash equivalents of $75,472 at December 31, 2008.

-14-

EX-99.2

Exhibit 99.2

Fourth Quarter 2008

Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations		3
Calculation of Funds from Operations and Adjusted Funds From Operations		7
Same Store Results		8
Consolidated Balance Sheets		11
Consolidated Debt Summary		12
Summary of Communities Under Construction		15
Summary of Land Held for Future Investment and Sale		16
Summary of Communities Under Rehabilitation		17
Summary of Condominium Projects		18
Community Acquisition and Disposition Summary		19
Capitalized Costs Summary		20
Investments in Unconsolidated Real Estate Entities		21
Net Asset Value Supplemental Information		22
Non-GAAP Financial Measures and Other Defined Terms		24

The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute “forward-looking statements” within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results 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 previous filings with the SEC; future conditions in the global capital markets, including changes in the availability of credit and liquidity; future local and national economic conditions, including changes in levels of employment, 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 in the Company’s report on Form 10-Q dated September 30, 2008 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, and the September 30, 2008 Form 10-Q under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

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

	Three months ended						Year ended
	December 31,						December 31,
	2008			2007			2008			2007
Revenues
Rental	$	66,096		$	66,958		$	266,204		$	262,436
Other property revenues		3,377			3,382			14,707			14,286
Other		294			186			1,029			602
Total revenues		69,767			70,526			281,940			277,324
Expenses
Total property operating and maintenance (exclusive of items shown separately below)		31,553			32,774			135,279			133,555
Depreciation		18,241			15,225			63,530			61,476
General and administrative (1)		3,464			4,358			16,808			18,093
Investment and development (2)		958			1,598			5,131			7,302
Other investment costs (2)		422			113			1,384			400
Strategic review costs (3)		—			—			8,161			—
Impairment, severance and other costs (4)		64,560			—			98,862			—
Total expenses		119,198			54,068			329,155			220,826
Operating income (loss)		(49,431	)		16,458			(47,215	)		56,498
Interest income		300			170			667			822
Interest expense		(14,487	)		(12,080	)		(48,863	)		(47,447	)
Amortization of deferred financing costs		(894	)		(828	)		(3,473	)		(3,297	)
Net gains on sales of real estate assets, net of taxes (5)		525			28,509			2,752			100,015
Equity in income of unconsolidated real estate entities		143			419			1,224			1,635
Other income (expense), net (6)		(1,665	)		(393	)		(1,239	)		(1,177	)
Minority interest in consolidated property partnerships		(33	)		(440	)		(395	)		(1,857	)
Minority interest of common unitholders		447			(389	)		719			(1,347	)
Income (loss) from continuing operations		(65,095	)		31,426			(95,823	)		103,845
Discontinued operations (7)
Income from discontinued property operations, net of minority interest		2,668			3,210			12,455			13,051
Gains on sales of real estate assets, net of minority interest		49,076			44,728			74,716			61,925
Loss on early extinguishment of indebtedness, net of minority interest		—			(122	)		—			(122	)
Income from discontinued operations		51,744			47,816			87,171			74,854
Net income (loss)		(13,351	)		79,242			(8,652	)		178,699
Dividends to preferred shareholders		(1,909	)		(1,909	)		(7,637	)		(7,637	)
Net income (loss) available to common shareholders	$	(15,260	)	$	77,333		$	(16,289	)	$	171,062
Per common share data — Basic (8)
Income (loss) from continuing operations (net of preferred dividends)	$	(1.52	)	$	0.68		$	(2.35	)	$	2.21
Income from discontinued operations		1.17			1.10			1.98			1.72
Net income (loss) available to common shareholders	$	(0.35	)	$	1.77		$	(0.37	)	$	3.93
Weighted average common shares outstanding — basic		44,146			43,616			44,009			43,491
Per common share data — Diluted (8)
Income (loss) from continuing operations (net of preferred dividends)	$	(1.52	)	$	0.67		$	(2.35	)	$	2.18
Income from discontinued operations		1.17			1.09			1.98			1.70
Net income (loss) available to common shareholders	$	(0.35	)	$	1.76		$	(0.37	)	$	3.88
Weighted average common shares outstanding — diluted		44,146			44,006			44,009			44,129

3

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

(1)	For the three months and year ended December 31, 2008, as compared to 2007, general and administrative costs decreased primarily as a result of reduced executive bonus accruals and reduced accruals for certain award programs which were eliminated as part of the Company’s initiative to reduce expenses. For the year ended December 31, 2008 general and administrative costs also decreased as a result of reduced corporate governance costs. Beginning in the three months ended December 31, 2008, the Company began allocating personnel and other costs, primarily related to accounting, information technology and human resources that support property management and investment operations, from general and administrative expenses to property management and investment and development expenses. Prior period results have been adjusted to reflect the current period presentation.
(2)	Investment and development expenses for the three months and year ended December 31, 2008 and 2007 included investment group expenses, development personnel and associated costs not allocable to current development projects. Beginning in the three months ended December 31, 2008, the Company classified its land carry costs (primarily property taxes and assessments) to a separate line, “Other investment costs.” Previously, these costs were included in the line captioned investment and development expenses. Prior period results have been adjusted to reflect the current period presentation of land carry costs and other support costs discussed in (1) above.
(3)	Strategic review costs for the year ended December 31, 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, severance and other costs for the three months and year ended December 31, 2008 included non-cash impairment charges of approximately $61,611 and $90,558, respectively, to write down a substantial portion of the Company’s land held for sale and land held for investment that was deemed impaired, to their estimated fair values and to write off pursuit costs on certain abandoned development projects. Severance charges for the three months and year ended December 31, 2008 totaled approximately $2,949 and $5,540, respectively, related to the elimination of certain employment positions. Lastly, the Company recorded casualty losses of approximately $2,764 related to damage sustained at its Houston, Texas properties as a result of Hurricane Ike for the year ended December 31, 2008.
(5)	For the three months and year ended December 31, 2008 and 2007, income 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 $169 and $409 for the three months ended and $736 and $868 for the year ended December 31, 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 months and year ended December 31, 2008 and 2007 was as follows:

	Three months ended						Year ended
	December 31,						December 31,
	2008			2007			2008			2007
Condominium revenues	$	8,197		$	15,866		$	35,178		$	77,458
Condominium costs and expenses		(6,798	)		(14,573	)		(31,552	)		(63,897	)
Gains on sales of condominiums, before income taxes		1,399			1,293			3,626			13,561
Provision for income taxes		(874	)		—			(874	)		—
Gains on sales of condominiums, net of income taxes	$	525		$	1,293		$	2,752		$	13,561

For the three months and year ended December 31, 2007, the Company recognized, in continuing operations, a proportionate 75% gain on sale of real estate totaling approximately $25,968 and $81,268, respectively, related to the transfer of three operating apartment communities to newly formed unconsolidated entities, in which the Company retained a 25% non-controlling interest, for aggregate proceeds of approximately $45,571 and $134,922, respectively. The unconsolidated entities obtained mortgage financing secured by the apartment communities totaling approximately $126,724, of which approximately $31,681 was distributed to the Company.

4

	For the three months and year ended December 31, 2007, gains on sales of real estate assets in continuing operations also included gains of $1,248 and $5,186, respectively, on the sales of land sites in Atlanta, Georgia and Dallas, Texas.
(6)	For the three months and year ended December 31, 2008, other income (expense) primarily related to a non-cash expense related to the mark-to-market of an interest rate swap agreement that became ineffective under generally accepted accounting principles as well as inspection expenses related to the Company’s water penetration restoration project. For the three months and year ended December 31, 2008 and 2007, other expenses also includes estimated state franchise and other income taxes.
(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 months and year ended December 31, 2008, income from discontinued operations included the operating results of three apartment communities, containing 1,328 units, held for sale at December 31, 2008 and four apartment communities, containing 1,093 units, through their sale dates in 2008. For the three months and year ended December 31, 2007, income from discontinued operations included the results of operations of the three apartment communities held for sale at December 31, 2008, four apartment communities 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 months and year ended December 31, 2008 and 2007 were as follows:

	Three months ended						Year ended
	December 31,						December 31,
	2008			2007			2008			2007
Revenues
Rental	$	5,331		$	9,063		$	26,795		$	37,111
Other property revenues		282			548			1,505			2,355
Total revenues		5,613			9,611			28,300			39,466
Expenses
Total property operating and maintenance (exclusive of items shown separately below)		1,924			3,505			9,729			14,082
Depreciation		151			1,326			2,113			5,964
Interest		856			1,531			3,916			6,186
Total expenses		2,931			6,362			15,758			26,232
Income from discontinued property operations before minority interest		2,682			3,249			12,542			13,234
Minority interest		(14	)		(39	)		(87	)		(183	)
Income from discontinued property operations	$	2,668		$	3,210		$	12,455		$	13,051

For the three months and year ended December 31, 2008, the Company recognized net gains in discontinued operations of $49,373 ($49,045 net of minority interest) and $75,204 ($74,685 net of minority interest), respectively, from the sale of four apartment communities, containing 1,093 units. These sales generated aggregate net proceeds of approximately $74,652 and $131,931 for the three months and year ended December 31, 2008, respectively. For the three months and year ended December 31, 2007, the Company recognized net gains in discontinued operations of $45,433 ($44,832 net of minority interest) and $62,407 ($61,546 net of minority interest), respectively, from the sale of three apartment communities, containing 807 units. These sales generated aggregate net proceeds of approximately $67,152 and $90,893 for the three months and year ended December 31, 2007, respectively, of which approximately $67,152 was held by an exchange intermediary at December 31, 2007 pending the completion of a tax deferred exchange in the first quarter of 2008.

5

For the year ended December 31, 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:

	Three months ended					Year ended
	December 31,					December 31,
	2008		2007			2008		2007
Condominium revenues	$	—	$	—		$	—	$	560
Condominium costs and expenses		31		(106	)		31		(176	)
Gains (losses) on condominium sales, before minority interest		31		(106	)		31		384
Minority interest		—		2			—		(5	)
Gains (losses) on condominium sales, net of minority interest	$	31	$	(104	)	$	31	$	379

(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 December 31, 2008, there were 44,440 units of the Operating Partnership outstanding, of which 44,222, or 99.5%, were owned by the Company.

6

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						Year ended
	December 31,						December 31,
	2008			2007			2008			2007
Net income (loss) available to common shareholders	$	(15,260	)	$	77,333		$	(16,289	)	$	171,062
Minority interest of common unitholders — continuing operations		(447	)		389			(719	)		1,347
Minority interest in discontinued operations (1)		342			636			606			1,047
Depreciation on consolidated real estate assets (2)		17,619			16,241			63,471			65,560
Depreciation on real estate assets held in unconsolidated entities		349			320			1,391			1,143
Gains on sales of real estate assets		(49,928	)		(72,588	)		(77,987	)		(157,620	)
Incremental gains (losses) on condominium sales		100			382			(293	)		6,922
Gains on sales of real estate assets — unconsolidated entities		—			(16	)		—			(186	)
Incremental gains on condominium sales — unconsolidated entities (3)		—			16			—			107
Funds from operations (deficit) available to common shareholders and unitholders (A)	$	(47,225	)	$	22,713		$	(29,820	)	$	89,382
Funds from operations (deficit) available to common shareholders and unitholders (A)	$	(47,225	)	$	22,713		$	(29,820	)	$	89,382
Annually recurring capital expenditures (4)		(2,261	)		(2,295	)		(10,854	)		(11,110	)
Periodically recurring capital expenditures (4)		(2,042	)		(2,828	)		(7,156	)		(8,451	)
Non-cash impairment charges (5)		61,611			—			90,558			—
Non-cash loss (income) related to mark-to-market of interest rate swap agreement		901			—			238			—
Non-cash straight-line adjustment for ground lease expenses		289			255			1,166			1,193
Non-cash loss on early extinguishment of indebtedness associated with property sales		141			124			141			124
Strategic review costs		—			—			8,161			—
Adjusted funds from operations available to common shareholders and unitholders (6) (B)	$	11,414		$	17,969		$	52,434		$	71,138
Per Common Share Data — Basic
Funds from operations (deficit) per share or unit, as defined (A÷C)	$	(1.06	)	$	0.51		$	(0.67	)	$	2.03
Adjusted funds from operations per share or unit (6) (B÷C)	$	0.26		$	0.41		$	1.18		$	1.61
Dividends declared	$	0.20		$	0.45		$	1.55		$	1.80
Weighted average shares outstanding		44,146			43,616			44,009			43,491
Weighted average shares and units outstanding (C)		44,384			44,150			44,316			44,101
Per Common Share Data — Diluted
Funds from operations (deficit) per share or unit, as defined (A÷D)	$	(1.06	)	$	0.51		$	(0.67	)	$	2.00
Adjusted funds from operations per share or unit (6) (B÷D)	$	0.26		$	0.40		$	1.18		$	1.59
Dividends declared	$	0.20		$	0.45		$	1.55		$	1.80
Weighted average shares outstanding (7)		44,146			44,006			44,009			44,129
Weighted average shares and units outstanding (7) (D)		44,384			44,541			44,316			44,738

(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 18 for further detail.
(4)	Excludes approximately $1,048 of periodically recurring and $308 of annually recurring capital expenditures, respectively, related to the Company’s water intrusion remediation project for the three months and year ended December 31, 2008.
(5)	Excludes severance charges of $2,949 and $5,540 for the three months and year ended December 31, 2008, respectively.
(6)	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 $79 and $971 for the three months ended and $692 and $2,903 for the year ended December 31, 2008 and 2007, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.
(7)	Diluted weighted average shares and units for the three months and year ended December 31, 2008 exclude 19 and 159 shares and units, respectively, that were antidilutive to all income (loss) per share computations under generally accepted accounting principles and the deficit in funds from operations for such periods.

7

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

Same Store Results

The Company defines fully stabilized or same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by communities sold 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 26 for a reconciliation of same store net operating income to GAAP net income. Same store results for current and prior periods include the Company’s two New York communities that are no longer being marketed for sale. The operating performance and capital expenditures of the 38 communities containing 14,029 apartment units which were fully stabilized as of January 1, 2007, is summarized as follows:

	Three months ended							Year ended
	December 31,							December 31,
	2008		2007		% Change			2008		2007		% Change
Rental and other revenues	$	54,359	$	54,942		(1.1	)%	$	220,217	$	217,207		1.4	%
Real estate taxes and insurance expenses		8,096		7,397		9.4	%		33,710		31,885		5.7	%
Other property operating and maintenance expenses		12,588		12,982		(3.0	)%		54,681		53,414		2.4	%
Total property operating and maintenance expenses (excluding depreciation and amortization) (1)		20,684		20,379		1.5	%		88,391		85,299		3.6	%
Same store net operating income	$	33,675	$	34,563		(2.6	)%	$	131,826	$	131,908		(0.1	)%
Capital expenditures (2)
Annually recurring:
Carpet	$	631	$	550		14.7	%	$	2,587	$	2,495		3.7	%
Other		1,504		1,066		41.1	%		5,799		4,432		30.8	%
Total annually recurring (3)		2,135		1,616		32.1	%		8,386		6,927		21.1	%
Periodically recurring (3)		2,267		2,021		12.2	%		6,647		4,070		63.3	%
Total capital expenditures (A)	$	4,402	$	3,637		21.1	%	$	15,033	$	10,997		36.7	%
Total capital expenditures per unit (A ÷ 14,029 units)	$	314	$	259		21.1	%	$	1,072	$	784		36.7	%
Average monthly rental rate per unit (4)	$	1,303	$	1,303		0.0	%	$	1,306	$	1,286		1.6	%

(1)	Beginning in the fourth quarter of 2008, other property operating and maintenance expenses include certain expenses reclassified from corporate property management expenses for all periods presented. The reclassified operating expenses relate primarily to relief and preventative maintenance engineers, collections personnel, certain property related advertising and property level performance based awards.
(2)	See Table 3 on page 29 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital expenditures and total periodically recurring capital expenditures as presented on the consolidated cash flow statements prepared under GAAP.
(3)	Annually recurring expenditures for the three months and year ended December 31, 2008 included $308 related to the Company’s water intrusion remediation project. Periodically recurring expenditures for the three months and year ended December 31, 2008 include approximately $581 and $2,052, respectively related to the Company’s new “resident design center” program. Periodically recurring expenditures for the three months and year ended December 31, 2008 also included approximately $860 related to the Company’s water intrusion remediation project.
(4)	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. See Table 2 on page 27 for further information.

8

Same Store Operating Results by Market -
Comparison of Fourth Quarter of 2008 to Fourth Quarter of 2007
(Increase (decrease) from same period in prior year)

	Three months ended												Year ended
	December 31, 2008												December 31, 2008
										Average												Average
										Economic												Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy			Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		(1.1	)%		10.4	%		(8.0	)%		(1.9	)%		1.9	%		3.6	%		0.7	%		0.0	%
Dallas		(0.8	)%		(6.0	)%		3.1	%		(1.7	)%		3.1	%		4.9	%		1.6	%		(0.3	)%
Washington, DC		(1.0	)%		5.8	%		(4.3	)%		(1.2	)%		1.1	%		5.0	%		(1.0	)%		(0.4	)%
Tampa		(2.0	)%		(8.6	)%		2.5	%		2.7	%		(2.7	)%		(2.0	)%		(3.2	)%		0.1	%
Charlotte		(3.2	)%		12.0	%		(9.1	)%		(1.6	)%		0.6	%		4.9	%		(1.5	)%		(0.9	)%
New York		(0.9	)%		1.6	%		(1.9	)%		(2.5	)%		2.6	%		16.7	%		(3.0	)%		(0.8	)%
Houston		2.6	%		(8.2	)%		10.1	%		(1.2	)%		4.8	%		4.9	%		4.8	%		(0.4	)%
Austin		0.7	%		(6.6	)%		6.9	%		(1.8	)%		3.3	%		(3.0	)%		9.4	%		(1.0	)%
Orlando		(0.8	)%		4.9	%		(4.7	)%		5.3	%		(2.5	)%		(9.6	)%		3.4	%		2.0	%
Total		(1.1	)%		1.5	%		(2.6	)%		(0.9	)%		1.4	%		3.6	%		(0.1	)%		(0.2	)%

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

Same Store Occupancy by Market

																					Average Rental
						Average Economic						Average Economic									Rate Per Unit
			% of NOI			Occupancy (1)						Occupancy (1)						Physical			Three Months
			Three months ended			Three months ended						Year ended						Occupancy			Ended
	Apartment		December 31,			December 31,						December 31,						at December 31,			December 31,
Market	Units		2008			2008			2007			2008			2007			2008 (2)			2008 (3)
Atlanta		4,242		25.4	%		94.3	%		96.2	%		94.9	%		94.9	%		93.2	%	$	1,146
Dallas		3,095		17.9	%		94.4	%		96.1	%		94.7	%		95.0	%		94.3	%		1,076
Washington, DC		1,700		17.0	%		93.1	%		94.3	%		94.0	%		94.4	%		92.9	%		1,763
Tampa		1,877		13.0	%		95.5	%		92.8	%		94.1	%		94.0	%		95.8	%		1,237
Charlotte		1,388		9.4	%		90.6	%		92.2	%		93.1	%		94.0	%		89.8	%		1,183
New York		337		7.8	%		94.3	%		96.8	%		95.0	%		95.8	%		92.9	%		3,938
Houston		837		5.8	%		92.3	%		93.5	%		93.0	%		93.4	%		91.3	%		1,266
Austin		308		2.1	%		94.0	%		95.8	%		95.2	%		96.2	%		91.6	%		1,347
Orlando		245		1.7	%		96.3	%		91.0	%		95.6	%		93.6	%		96.4	%		1,346
Total		14,029		100.0	%		93.9	%		94.8	%		94.4	%		94.6	%		93.3	%	$	1,303

(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 93.1% and 94.0% for the three months ended and 93.5% and 93.8% for the year ended December 31, 2008 and 2007, respectively. For the three months ended December 31, 2008 and 2007, net concessions were $279 and $280, respectively, and employee discounts were $173 and $197, respectively. For the year ended December 31, 2008 and 2007, net concessions were $1,229 and $988, respectively, and employee discounts were $744 and $816, respectively.
(2)	Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage.
(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. See Table 2 on page 27 for further information.

9

Same Store Sequential Comparison

	Three months ended
	December 31,			September 30,
	2008			2008			% Change
Rental and other revenues	$	54,359		$	55,846			(2.7	)%
Real estate taxes and insurance expenses		8,096			8,301			(2.5	)%
Other property operating and maintenance expenses		12,588			14,164			(11.1	)%
Total property operating and maintenance expenses (excluding depreciation and amortization)		20,684			22,465			(7.9	)%
Same store net operating income (1)	$	33,675		$	33,381			0.9	%
Average economic occupancy		93.9	%		95.3	%		(1.4	)%
Average monthly rental rate per unit	$	1,303		$	1,308			(0.4	)%

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

Sequential Same Store Operating Results by Market —
Comparison of Fourth Quarter of 2008 to Third Quarter 2008
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		(2.3	)%		(4.6	)%		(0.5	)%		(1.4	)%
Dallas		(4.3	)%		(13.0	)%		2.6	%		(1.0	)%
Washington, DC		(2.0	)%		(3.9	)%		(1.0	)%		(1.6	)%
Tampa		(1.2	)%		(8.5	)%		3.8	%		0.1	%
Charlotte		(5.2	)%		(7.2	)%		(4.2	)%		(4.3	)%
New York		(1.0	)%		1.1	%		(1.8	)%		(1.5	)%
Houston		(1.6	)%		(22.9	)%		17.1	%		(1.2	)%
Austin		(4.8	)%		(10.7	)%		0.0	%		(2.9	)%
Orlando		(1.8	)%		(0.9	)%		(2.4	)%		(1.6	)%
Total		(2.7	)%		(7.9	)%		0.9	%		(1.4	)%

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

10

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

	December 31,
	2008			2007
	(Unaudited)
Assets
Real estate assets
Land	$	258,593		$	276,680
Building and improvements		1,802,496			1,840,563
Furniture, fixtures and equipment		205,221			204,433
Construction in progress		189,393			134,125
Land held for future investment		81,555			154,617
		2,537,258			2,610,418
Less: accumulated depreciation		(553,814	)		(562,226	)
For-sale condominiums		14,610			38,844
Assets held for sale, net of accumulated depreciation of $42,379 and $4,031 at December 31, 2008 and 2007, respectively		85,097			24,576
Total real estate assets		2,083,151			2,111,612
Investments in and advances to unconsolidated real estate entities		39,300			23,036
Cash and cash equivalents		75,472			11,557
Restricted cash		10,164			5,642
Deferred charges, net		10,278			10,538
Other assets		31,301			105,756
Total assets	$	2,249,666		$	2,268,141
Liabilities and shareholders’ equity
Indebtedness	$	1,112,913		$	1,059,066
Accounts payable and accrued expenses		106,171			100,215
Dividend and distribution payable		8,888			19,933
Accrued interest payable		5,493			4,388
Security deposits and prepaid rents		15,941			11,708
Total liabilities		1,249,406			1,195,310
Minority interest of common unitholders in Operating Partnership		4,410			10,354
Minority interests in consolidated real estate entities		8,220			3,972
Total minority interests		12,630			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:
44,222 and 43,825 shares issued, 44,222 and 43,825 shares outstanding at December 31, 2008 and 2007, respectively		442			438
Additional paid-in-capital		886,643			874,928
Accumulated earnings		105,300			189,985
Accumulated other comprehensive income (loss)		(1,819	)		(3,962	)
		990,595			1,061,418
Less common stock in treasury, at cost, 80 and 72 shares at December 31, 2008 and 2007, respectively		(2,965	)		(2,913	)
Total shareholders’ equity		987,630			1,058,505
Total liabilities and shareholders’ equity	$	2,249,666		$	2,268,141

11

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

Summary of Outstanding Debt at December 31, 2008

						Weighted Average Rate (1)
			Percentage			Three months ended December 31,
Type of Indebtedness	Balance		of Total			2008			2007
Unsecured fixed rate senior notes	$	535,000		48.1	%		6.4	%		6.4	%
Secured conventional fixed rate notes		434,774		39.1	%		5.5	%		5.6	%
Secured conventional variable rate notes		92,275		8.3	%		6.7	%		6.1	%
Unsecured lines of credit		50,864		4.5	%		3.2	%		5.3	%
	$	1,112,913		100.0	%		5.9	%		6.0	%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			of Total Debt (2) (3)
Total fixed rate debt	$	969,774		87.1	%		3.9
Total variable rate debt		143,139		12.9	%		0.6
Total debt	$	1,112,913		100.0	%		3.5

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
2009	$	129,619	(3)		4.5	%
2010		239,488	(4)		6.7	%
2011		141,427			5.4	%
2012		103,292			5.5	%
2013		205,304			6.1	%
Thereafter		293,783			5.8	%
	$	1,112,913

Debt Statistics

	Year ended
	December 31,
	2008			2007
Interest coverage ratio (5)(6)		2.3x			2.6x
Fixed charge coverage ratio (5)(7)		2.0x			2.2x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		42.4	%		40.4	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		45.7	%		43.8	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended December 31, 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)	The Company gave notice of its intent to prepay its $92,275 secured weekly remarketed variable rate notes in full in March 2009. These notes have a scheduled maturity in 2029.
(4)	Includes outstanding balances on lines of credit of $50,864 maturing in 2010.
(5)	Calculated for the year ended December 31, 2008 and 2007.
(6)	Interest coverage ratio is defined as net income available for debt service divided by interest expense. For purposes of this calculation, net income available for debt service represents income from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, impairment charges, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities, and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and interest expense to consolidated interest expense is included in Table 4 on page 30.
(7)	Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders and distributions to preferred unitholders. For purposes of this calculation, net income available for debt service represents earnings from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, impairment charges, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities, and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the fixed coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and fixed charges to consolidated interest expense plus preferred dividends to shareholders and preferred distributions to unitholders is included in Table 4 on page 30.
(8)	A computation of the debt ratios is included in Table 5 on page 31.

12

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

Financial Debt Covenants — Senior Unsecured Public Notes

	As of
Covenant requirement (1)	December 31, 2008
Consolidated Debt to Total Assets cannot exceed 60%		39	%
Secured Debt to Total Assets cannot exceed 40%		19	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		3.5	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
	December 31, 2008
Ratio of Consolidated Debt to Total Assets
Consolidated debt, per balance sheet (A)	$	1,112,913
Total assets, as defined (B) (Table A)	$	2,835,581
Computed ratio (A÷B)		39	%
Required ratio (cannot exceed)		60	%
Ratio of Secured Debt to Total Assets
Total secured debt (C)	$	527,049
Computed ratio (C÷B)		19	%
Required ratio (cannot exceed)		40	%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	1,112,913
Total secured debt (C)		(527,049	)
Total unsecured debt (D)	$	585,864
Total unencumbered assets, as defined (E) (Table A)	$	2,053,091
Computed ratio (E÷D)		3.5x
Required minimum ratio		1.5x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge
Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	136,750
Annual Debt Service Charge, as defined (G) (Table B)	$	55,837
Computed ratio (F÷G)		2.4x
Required minimum ratio		1.5x

13

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

Table A

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

	As of
	December 31, 2008
Total real estate assets	$	2,083,151
Add:
Investments in and advances to unconsolidated real estate entities		39,300
Accumulated depreciation		553,814
Accumulated depreciation on assets held for sale		42,379
Other tangible assets		116,937
Total assets for public debt covenant computations		2,835,581
Less:
Encumbered real estate assets		(782,490	)
Total unencumbered assets for public debt covenant computations	$	2,053,091

Table B

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

	Year ended
	December 31, 2008
Consolidated income available for debt service
Net income (loss)	$	(8,652	)
Add:
Minority interest of common unitholders		(113	)
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		130
Income before minority interest		(8,635	)
Add:
Non-cash impairment charges		90,558
Depreciation		63,530
Depreciation (company share) of assets held in unconsolidated entities		1,391
Depreciation of discontinued operations		2,113
Amortization of deferred financing costs		3,473
Interest expense		48,863
Interest expense (company share) of assets held in unconsolidated entities		3,058
Interest expense of discontinued operations		3,916
Income tax expense		1,525
Other non-cash expenses		6,383
Less:
Gains on sales of real estate assets, net — continuing operations		(3,626	)
Gains on sales of real estate assets — discontinued operations		(75,235	)
Other non-cash income		(564	)
Consolidated income available for debt service	$	136,750
Annual debt service charge
Consolidated interest expense	$	48,863
Interest expense (company share) of assets held in unconsolidated entities		3,058
Interest expense of discontinued operations		3,916
Annual debt service charge	$	55,837

14

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		12/31/08		Start		Available		Occupancy (1)		Leased (2)		Contract (3)		Closed (2)
													(Company
													Share)
Apartments (5):
Post Alexander™	Atlanta, GA		307		—		100	%	$	57.3	$	57.3	$	57.3		2Q 2006		1Q 2008		2Q 2009		215		N/A		N/A
Post Eastside™	Dallas, TX		435		37,900		100	%		56.7		56.7		53.8		4Q 2006		2Q 2008		1Q 2010		157		N/A		N/A
Post Frisco Bridges™	Dallas, TX		269		29,000		100	%		41.3		41.3		26.6		3Q 2007		2Q 2009		2Q 2010		—		N/A		N/A
Post Park®	Wash. DC		396		1,700		100	%		84.7		84.7		48.9		4Q 2007		2Q 2009		3Q 2010		—		N/A		N/A
Post West Austin™	Austin, TX		329		—		100	%		53.2		53.2		33.0		4Q 2007		2Q 2009		2Q 2010		—		N/A		N/A
Total Apartments			1,736		68,600				$	293.2	$	293.2	$	219.6								372
Condominiums (5):
The Ritz-Carlton Residences, Atlanta, Buckhead (4)	Atlanta, GA		129		—		62.5	%(4)	$	115.3	$	81.6	$	37.1		3Q 2007		4Q 2009		N/A		N/A		—		—
Four Seasons Residences	Austin, TX		147		8,000		100	%		133.5		133.5		50.9		1Q 2008		1Q 2010		N/A		N/A		61		—
Total Condominiums			276		8,000				$	248.8	$	215.1	$	88.0										61		—

(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 February 2, 2009.
(3)	As of February 2, 2009, 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. The condominium portion of the project is owned through a joint venture with an Atlanta-based condominium development partner and is branded as The Ritz-Carlton Residences, Atlanta, Buckhead. See footnote 3 on page 21 for further information concerning this venture.
(5)	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.

15

Post Properties, Inc.
Summary of Land Held for Future investment and Sale

The following are land positions (including pre-development costs incurred to date) that the Company currently holds. There can be no assurance that projects held for future investment will be developed in the future or at all or that land held for sale will be sold. The Company assumes no obligation to update this outlook in the future.

     Land Held for Future Investment:

		Carrying Value
		At December 31, 2008		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Alexander	Atlanta, GA	$	6,652		2.5
Allen Plaza	Atlanta, GA		19,100		5.6
South Lamar	Austin, TX		4,987		4.0
Frisco Bridges II	Dallas, TX		5,480		5.4
Midtown Square III	Houston, TX		3,502		1.6
Richmond	Houston, TX		4,425		2.1
Baldwin Park	Orlando, FL		9,840		13.5
Wade	Raleigh, NC		10,955		31.4
Soho Square	Tampa, FL		5,020		4.1
Carlyle Square II	Washington, D.C.		11,594		2.4
Total Land Held for Future Development (1)		$	81,555		72.6

     Land Held for Sale:

		Carrying Value
		At December 31, 2008		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Millennium	Atlanta, GA	$	2,774		1.0
Spring Hill	Atlanta, GA		2,023		9.1
Wade	Raleigh, NC		8,626		49.1
Citrus Park	Tampa, FL		3,450		17.7
Total Land Held for Sale (2)		$	16,873		76.9

(1)	The carrying value of land held for future development at December 31, 2008 has been written-down to reflect previously recorded impairments totaling $72,171.
(2)	The carrying value of land held for sale at December 31, 2008 has been written-down to reflect previously recorded impairments of $15,660.

16

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

								Average Monthly Rental				Property NOI		Property NOI						Number of Units
								Rate Per Sq. Ft. (1)				For the Fiscal		For the		Undepreciated		Projected		As of December 31, 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		December 31, 2008		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Heights™	Dallas, TX		1998-1999		368		845	$	1.35	$	1.52	$	2,598	$	307	$	42,195	$	10,700		289		42
Post Peachtree Hills®	Atlanta, GA		1992-1994		300		978		1.12		1.36		2,436		221		19,539		10,600		193		40
					668											$	61,734	$	21,300		482		82

	Rehabilitation Cost Incurred in												Projected
	The Three Months Ended						Rehabilitation Capital Cost Incurred						Remaining
	December 31, 2008						As of December 31, 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 Heights™	$	2,067	$	—	$	2,067	$	7,167	$	24	$	7,191	$	3,509		1Q 2008		2Q 2009		1Q 2010
Post Peachtree Hills®		1,379		13		1,392		6,256		18		6,274		4,326		1Q 2008		2Q 2009		4Q 2009
	$	3,446	$	13	$	3,459	$	13,423	$	42	$	13,465	$	7,835

(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 $ 1,600 of projected non-revenue generating capital costs.

17

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

								# of Rental Units		Average				Transfer		Book Value		Units (4)
		Year		Sale		Total		Occupied as of		Unit		Project Transfer		Price/Est. Cost		as of						Under		Available
Project	Location	Completed		Start Date		Units		12/31/08		Sq. Ft. (1)		Price/Est. Cost (2)		Per Unit		12/31/08 (3)		Total		Closed		Contract		for Sale
Condominium Conversion Projects
Harbour Place City Homes™	Tampa, FL		1999		Q2 2006		206		1		1,036	$	37,000	$	180	$	2,578		206		170		3		33
RISETM	Houston, TX		2000		Q2 2006		143		13		1,407		26,250		184		6,399		143		102		—		41
Condominium Development Projects
The Condominiums at Carlyle Square™	Washington, DC		2007		2Q2007		145		N/A		855		46,200		319		—		145		145		—		—
Mercer Square™	Dallas, TX		2007		3Q2007		85		N/A		1,094		18,600		218		5,633		85		54		1		30
							579									$	14,610		579		471		4		104

Financial Summary — Aggregate Condominium Activity

	Three months ended							Three months ended							Year ended							Year ended							Cumulative through
	December 31, 2008							December 31, 2007							December 31, 2008							December 31, 2007							December 31, 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™		3	$	613	$	(56	)		4	$	881	$	(830	)		15	$	3,348	$	(1,972	)		55	$	12,963	$	(2,220	)		167	$	41,093	$	(2,518	)
RISETM		4		1,316		(35	)		7		1,567		(486	)		29		7,941		(795	)		38		10,023		(861	)		102		26,486		(1,513	)
588TM (5)		—		—		31			—		—		(106	)		—		—		31			1		560		73			127		34,557		3,557
The Peachtree ResidencesTM (5)		—		—		—			—		—		16			—		—		—			12		4,592		107			121		41,547		562
Condominium Development Projects
The Condominiums at Carlyle Square™		14		5,683		1,318			27		10,328		1,772			44		16,943		3,208			101		46,252		8,673			145		63,266		10,975
Mercer Square™		2		581		(321	)		11		3,082		97			25		6,936		604			28		8,212		285			53		15,148		820
		23		8,193		937			49		15,858		463			113		35,168		1,076			235		82,602		6,057			715		222,097		11,883
Other		—		4		(64	)		—		8		(401	)		—		10		(625	)		—		8		(548	)		—		18		(1,263	)
Total		23	$	8,197	$	873			49	$	15,866	$	62			113	$	35,178	$	451			235	$	82,610	$	5,509			715	$	222,115	$	10,620

(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 15) of approximately $215.1 million and book value of unsold condominiums above, committed capital to the condominium business at December 31, 2008 totaled approximately $229.7 million.
(4)	Unit status is as of February 2, 2009. 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 $101 and $336 for the three months and $130 and $1,520 for the year ended December 31, 2008 and 2007, respectively. Excludes the impact of income tax expense of $874 for the three months and year ended December 31, 2008 attributable to gains on condominium sales, as applicable. There was no income tax provision for the three months and year ended December 31, 2007.

18

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
Q3 2008
Post Oglethorpe®	Atlanta, GA		250		1994	$	154,000		38,500,000
Q4 2008
Post Woods®	Atlanta, GA		494		1977-1983	$	106,781		52,750,000
Post Lenox Park®	Atlanta, GA		206		1995	$	110,194		22,700,000
2008 YTD Total								$	133,800,000
Average Cap Rate - Dispositions - 2008									6.1	% (2)

(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.

19

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

The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development, construction and rehabilitation of apartment and condominium communities. In addition, the Company capitalizes expenditures that enhance the value of existing assets and expenditures that substantially extend the life of existing assets. All other expenditures necessary to maintain a community in ordinary operating condition are expensed as incurred. Additionally, for new development communities, carpet, vinyl and blind replacements are expensed as incurred during the first five years (which corresponds to the estimated depreciable life of these assets) after construction completion. Thereafter, these replacements are capitalized. Further, the Company expenses as incurred the interior and exterior painting of operating communities, unless those communities are under major rehabilitation.

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

A summary of community acquisition and development improvements and other capitalized expenditures for the three months and year ended December 31, 2008 and 2007 is detailed below.

	Three months ended				Year ended
	December 31,				December 31,
	2008		2007		2008		2007
Development and acquisition expenditures (1)	$	56,698	$	42,731	$	173,204	$	284,239
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		3,785		2,428		16,340		13,074
Other community additions and improvements (3) (6)		3,090		2,828		8,204		8,451
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4) (6)		2,569		2,295		11,162		11,110
Corporate additions and improvements		79		971		692		2,903
	$	66,221	$	51,253	$	209,602	$	319,777
Other Data
Capitalized interest	$	2,860	$	3,143	$	12,406	$	11,801
Capitalized development and associated costs (5)	$	1,247	$	1,304	$	5,822	$	4,053

(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 17).
(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.
(6)	Includes approximately $1,048 of periodically recurring and $308 of annually recurring capital expenditures, respectively, related to the Company’s water intrusion remediation project for the three months and year ended December 31, 2008.

20

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

Apartments and Condominium Development Communities

The Company holds investments in 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	%
3630 Peachtree North Tower	Atlanta, GA	Land		—		50	%
3630 Peachtree South Tower (2)	Atlanta, GA	Mixed-Use		129		49	%

Financial Data

	As of										Three months ended						Year ended
	December 31, 2008										December 31, 2008						December 31, 2008
	Gross Investment		Mortgage/Construction			Entity		Company’s Equity			Entity			Company’s			Entity			Company’s
Joint Venture Property	in Real Estate (9)		Notes Payable			Equity		Investment			NOI			Equity in Earnings			NOI			Equity in Earnings
Post Collier Hills® (1)	$	54,535	$	39,565	(4)	$	13,632	$	(4,034	) (1)	$	718		$	5		$	2,877		$	27
Post Crest® (1)		63,786		46,159	(4)		15,805		(6,408	) (1)		716			(22	)		3,072			(29	)
Post Lindbergh® (1)		60,211		41,000	(5)		18,514		(3,821	) (1)		688			(16	)		3,001			2
Post Biltmore™		36,292		29,272	(6)		1,579		2,408			560			(24	)		2,401			189
Post Massachusetts Avenue™		69,338		50,500	(7)		9,637		6,586			1,583			263			6,043			1,120
3630 Peachtree North Tower		11,145		8,153	(8)		3,067		(1,722	) (2)		—			—			6			—
3630 Peachtree South Tower (3)		124,388		74,364	(8)		46,709		30,306	(3)		(122	)		(63	)		(213	)		(85	)
Total	$	419,695	$	289,013		$	108,943	$	23,315		$	4,143		$	143		$	17,187		$	1,224

(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 credit investment reflects the impact of impairment charges of $3,253 in the three months ended December 31, 2008 and is classified in consolidated liabilities on the Company’s consolidated balance sheet.
(3)	The mixed-use project (the “Master JV”) consists of 129 luxury for-sale condominiums to be marketed as The Ritz-Carlton Residences, Atlanta, Buckhead (sponsored through a joint venture between the Company and a private condominium developer; the “Condo JV”) and approximately 425,000 square feet of Class A office space (sponsored through a joint venture between an office REIT and a private office developer). The Condo JV owns an approximate 49% pro-rata interest in the Master JV accounted for on the equity method, representing the condominium portion of the project. The Company has a $15,500 preferred equity interest and a 62.5% residual equity interest in the Condo JV and, consequently, consolidates that entity on its balance sheet. The minority partner’s equity interest in the condo JV, totaling $6,760, is included in the Company’s equity investment reflected above. The Company’s share of gross real estate assets and construction notes payable, net of its partners’ interests, at December 31, 2008 was $35,864 and $14,082, respectively. See page 15 for further information regarding the for-sale condominium portion of the project.
(4)	These notes bear interest at a fixed rate of 5.63% and mature in 2017.
(5)	This note bears interest at a fixed rate of 5.71% and matures in 2017.
(6)	This note bears interest at a fixed rate of 5.83% and requires monthly interest only payments through 2013. The note is prepayable without penalty in September 2011.
(7)	This note bears interest at a fixed rate of 5.82% and requires monthly interest only payments through 2013. The note is prepayable without penalty in September 2011.
(8)	At December 31, 2008, $82,517 was outstanding under a $187,128 construction loan facility bearing interest at a variable rate of LIBOR plus 1.35% and which matures in 2011.
(9)	Represents GAAP basis net book value plus accumulated depreciation.

21

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

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

The Company presents below NOI for the quarter ended December 31, 2008 for properties stabilized by October 1, 2008 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by July 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
	December 31, 2008		Adjustments			Adjusted
Income Statement Data
Rental revenues	$	66,096	$	(182	) (1)	$	65,914
Other property revenues		3,377		(68	) (1)		3,309
Total rental and other revenues (A)		69,473		(250	)		69,223
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		31,553		(5,718	) (1)		25,835
Property net operating income (Table 1) (A-B)	$	37,920	$	5,468		$	43,388
Assumed property management fee (calculated at 3% of revenues) (A x 3%)							(2,077	)
Assumed property capital expenditure reserve ($300 per unit per year based on 16,971 units)							(1,273	)
Adjusted property net operating income						$	40,038
Annualized property net operating income (C)						$	160,152
Apartment units represented (D)		21,189		(4,218	) (1)		16,971

	As of					As
	December 31, 2008		Adjustments			Adjusted
Other Asset Data
Cash and cash equivalents	$	75,472	$	—		$	75,472
Real estate assets under construction, lease-up, conversion or rehabilitation, at cost (2)		189,393		226,040	(2)		415,433
Land held for future development		81,555		—			81,555
For-sale condominiums and assets held for sale (3)		99,707		(68,224	) (3)		31,483
Investments in and advances to unconsolidated real estate entities (4)		39,300		(8,994	) (4)		30,306
Restricted cash and other assets		41,465		—			41,465
Cash & other assets of unconsolidated real estate entities (5)		5,551		(3,927	) (5)		1,624
Total (E)	$	532,443	$	144,895		$	677,338
Other Liability Data
Indebtedness	$	1,112,913		—		$	1,112,913
Other liabilities (6)		144,713		(27,924	) (6)		116,789
Total liabilities of unconsolidated real estate entities (7)		209,018		(148,656	) (7)		60,362
Total (F)	$	1,466,644	$	(176,580	)	$	1,290,064

22

Other Data

	As of December 31, 2008
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (G)					$	95,000
Common shares outstanding		44,222
Common units outstanding		218
Total (H)		44,440	$	16.50	$	733,260
Implied market value of Company gross real estate assets (I) = (F+G+H-E)					$	1,440,986
Implied Portfolio Capitalization Rate (C÷I)						11.1	%
Implied Market Value of Company gross real estate assets per unit (I÷D)					$	84.9

(1) The following table summarizes the adjustments made to the components of property net operating income for the three months ended December 31, 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	$	(4,166	)	$	(299	)	$	(2,773	)		(2,962	)
Corporate property management expenses		—			—			(2,419	)		—
Company share of unconsolidated entities		2,005			124			750			(1,256	)
Held for sale operating properties		4,339			204			1,459			—
Corporate apartments and other		(2,360	)		(97	)		(2,735	)		—
	$	(182	)	$	(68	)	$	(5,718	)		(4,218	)

(2)	The “As Adjusted” amount represents CIP balance per the Company’s balance sheet plus the costs of properties under construction and lease-up that have been transferred to operating real estate assets as apartment units are completed, plus the gross book value for communities under rehabilitation during the fourth quarter of 2008.
(3)	The adjustment reflects a reduction for the depreciated book value of three apartment communities held for sale and included in discontinued operations at December 31, 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. The “As Adjusted” amount represents the consolidated equity investment in 3630 Peachtree South Tower (i.e., The Ritz-Carlton Residences, Atlanta, Buckhead). Minority interest related to 3630 Peachtree South Tower of $6,760 is included in the “As Adjusted” amount in Other Liabilities.
(5)	The “As of December 31, 2008” amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment entities.
(6)	The “As of December 31, 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 $13,661 and for credit investment balances of the Company’s investment in three unconsolidated entities of $14,263.
(7)	The “As of December 31, 2008” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partner’s respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.

23

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

Definitions of Supplemental Non-GAAP Financial Measures and Other Defined Terms

The Company uses certain non-GAAP financial measures and other defined terms in this accompanying Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures 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, non-cash income (loss) related to mark-to-market of interest rate swap agreements, non-cash debt extinguishment costs 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.

24

Same Store Capital Expenditures — The Company uses same store annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The Company believes that same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its same store communities on an ongoing basis. The corresponding GAAP measures include information with respect to the Company’s other operating segments consisting of communities stabilized in the prior year, lease-up communities, rehabilitation communities, sold properties and commercial properties in addition to same store information. Therefore, the Company believes that the Company’s presentation of same store annually recurring and periodically recurring capital expenditures is necessary to demonstrate same store replacement costs over time. The Company believes that the most directly comparable GAAP measure to same store annually recurring and periodically recurring capital expenditures are the lines on the Company’s consolidated statements of cash flows entitled “annually recurring capital expenditures” and “periodically recurring capital expenditures.”

Debt Statistics and Debt Ratios — The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) an interest coverage ratio; (2) a fixed charge coverage ratio; (3) total debt as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; and (8) a ratio of consolidated income available to debt service to annual debt service charge. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.

Average Economic Occupancy — The Company uses average economic occupancy as a statistical measure of operating performance. The Company defines average economic occupancy as gross potential rent less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage.

25

Reconciliations of Supplemental Non-GAAP Financial Measures

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

	Three months ended									Year ended
	December 31,			December 31,			September 30,			December 31,			December 31,
	2008			2007			2008			2008			2007
Total same store NOI	$	33,675		$	34,563		$	33,381		$	131,826		$	131,908
Property NOI from other operating segments		4,245			3,003			4,133			13,806			11,259
Consolidated property NOI		37,920			37,566			37,514			145,632			143,167
Add (subtract):
Interest income		300			170			96			667			822
Other revenues		294			186			261			1,029			602
Minority interest in consolidated property partnerships		(33	)		(440	)		(189	)		(395	)		(1,857	)
Depreciation		(18,241	)		(15,225	)		(14,979	)		(63,530	)		(61,476	)
Interest expense		(14,487	)		(12,080	)		(12,341	)		(48,863	)		(47,447	)
Amortization of deferred financing costs		(894	)		(828	)		(869	)		(3,473	)		(3,297	)
General and administrative		(3,464	)		(4,358	)		(3,859	)		(16,808	)		(18,093	)
Investment and development		(958	)		(1,598	)		(1,509	)		(5,131	)		(7,302	)
Other development costs		(422	)		(113	)		(463	)		(1,384	)		(400	)
Strategic review costs		—			—			—			(8,161	)		—
Impairment, severance and other charges		(64,560	)		—			(5,002	)		(98,862	)		—
Gains on sales of real estate assets, net		525			28,509			476			2,752			100,015
Equity in income of unconsolidated real estate entities		143			419			260			1,224			1,635
Other income (expense), net		(1,665	)		(393	)		534			(1,239	)		(1,177	)
Minority interest of common unitholders		447			(389	)		1			719			(1,347	)
Income (loss) from continuing operations		(65,095	)		31,426			(69	)		(95,823	)		103,845
Income from discontinued operations		51,744			47,816			27,145			87,171			74,854
Net income (loss)	$	(13,351	)	$	79,242		$	27,076		$	(8,652	)	$	178,699

26

Table 2
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(Dollars in thousands)

	Three months ended						Q4 ’08			Q4 ’08			Q4 ’08
	December 31,		December 31,		September 30,		vs. Q4 ’07			vs. Q3 ’08			% Same
	2008		2007		2008		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	14,729	$	14,891	$	15,075		(1.1	)%		(2.3	)%
Dallas		9,988		10,064		10,435		(0.8	)%		(4.3	)%
Washington, D.C.		8,818		8,908		8,999		(1.0	)%		(2.0	)%
Tampa		7,052		7,198		7,141		(2.0	)%		(1.2	)%
Charlotte		4,681		4,835		4,937		(3.2	)%		(5.2	)%
New York		3,772		3,806		3,809		(0.9	)%		(1.0	)%
Houston		3,084		3,006		3,134		2.6	%		(1.6	)%
Austin		1,236		1,227		1,299		0.7	%		(4.8	)%
Orlando		999		1,007		1,017		(0.8	)%		(1.8	)%
Total rental and other revenues		54,359		54,942		55,846		(1.1	)%		(2.7	)%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		6,162		5,580		6,461		10.4	%		(4.6	)%
Dallas		4,005		4,261		4,605		(6.0	)%		(13.0	)%
Washington, D.C.		3,106		2,937		3,231		5.8	%		(3.9	)%
Tampa		2,680		2,932		2,930		(8.6	)%		(8.5	)%
Charlotte		1,516		1,354		1,633		12.0	%		(7.2	)%
New York		1,131		1,113		1,119		1.6	%		1.1	%
Houston		1,129		1,230		1,464		(8.2	)%		(22.9	)%
Austin		525		562		588		(6.6	)%		(10.7	)%
Orlando		430		410		434		4.9	%		(0.9	)%
Total		20,684		20,379		22,465		1.5	%		(7.9	)%
Net operating income
Atlanta		8,567		9,311		8,614		(8.0	)%		(0.5	)%		25.4	%
Dallas		5,983		5,803		5,830		3.1	%		2.6	%		17.9	%
Washington, D.C.		5,712		5,971		5,768		(4.3	)%		(1.0	)%		17.0	%
Tampa		4,372		4,266		4,211		2.5	%		3.8	%		13.0	%
Charlotte		3,165		3,481		3,304		(9.1	)%		(4.2	)%		9.4	%
New York		2,641		2,693		2,690		(1.9	)%		(1.8	)%		7.8	%
Houston		1,955		1,776		1,670		10.1	%		17.1	%		5.8	%
Austin		711		665		711		6.9	%		0.0	%		2.1	%
Orlando		569		597		583		(4.7	)%		(2.4	)%		1.7	%
Total same store NOI	$	33,675	$	34,563	$	33,381		(2.6	)%		0.9	%		100.0	%
Average rental rate per unit
Atlanta	$	1,146	$	1,138				0.7	%
Dallas		1,076		1,057				1.8	%
Washington, D.C.		1,763		1,762				0.1	%
Tampa		1,237		1,304				(5.1	)%
Charlotte		1,183		1,195				(1.0	)%
New York		3,938		3,872				1.7	%
Houston		1,266		1,212				4.5	%
Austin		1,347		1,315				2.4	%
Orlando		1,346		1,437				(6.3	)%
Total average rental rate per unit		1,303		1,303				0.0	%

27

Table 2 (con’t)
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(Dollars in thousands)

	Year ended
	December 31,		December 31,
	2008		2007		% Change
Rental and other revenues
Atlanta	$	59,560	$	58,468		1.9	%
Dallas		40,774		39,565		3.1	%
Washington, D.C.		35,672		35,297		1.1	%
Tampa		28,476		29,261		(2.7	)%
Charlotte		19,315		19,201		0.6	%
New York		15,074		14,694		2.6	%
Houston		12,319		11,751		4.8	%
Austin		5,006		4,846		3.3	%
Orlando		4,021		4,124		(2.5	)%
Total rental and other revenues		220,217		217,207		1.4	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		24,823		23,956		3.6	%
Dallas		18,183		17,332		4.9	%
Washington, D.C.		12,518		11,920		5.0	%
Tampa		11,903		12,140		(2.0	)%
Charlotte		6,628		6,316		4.9	%
New York		4,841		4,147		16.7	%
Houston		5,506		5,248		4.9	%
Austin		2,297		2,369		(3.0	)%
Orlando		1,692		1,871		(9.6	)%
Total		88,391		85,299		3.6	%
Net operating income
Atlanta		34,737		34,512		0.7	%
Dallas		22,591		22,233		1.6	%
Washington, D.C.		23,154		23,377		(1.0	)%
Tampa		16,573		17,121		(3.2	)%
Charlotte		12,687		12,885		(1.5	)%
New York		10,233		10,547		(3.0	)%
Houston		6,813		6,503		4.8	%
Austin		2,709		2,477		9.4	%
Orlando		2,329		2,253		3.4	%
Total same store NOI	$	131,826	$	131,908		(0.1	)%
Average rental rate per unit
Atlanta	$	1,149	$	1,127		2.0	%
Dallas		1,072		1,042		2.9	%
Washington, D.C.		1,765		1,737		1.6	%
Tampa		1,267		1,307		(3.1	)%
Charlotte		1,186		1,206		(1.7	)%
New York		3,905		3,775		3.4	%
Houston		1,252		1,183		5.8	%
Austin		1,337		1,281		4.4	%
Orlando		1,366		1,430		(4.5	)%
Total average rental rate per unit		1,306		1,286		1.6	%

28

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

	Three months ended				Year ended
	December 31,				December 31,
	2008		2007		2008		2007
Annually recurring capital expenditures by operating segment
Fully stabilized	$	2,135	$	1,616	$	8,386	$	6,927
Communities stabilized during 2007		24		31		175		73
Development, rehabilitation and lease-up		191		171		1,173		1,049
Condominium conversion and other		—		57		—		731
Acquired		17		23		110		27
Other segments		202		397		1,318		2,303
Total annually recurring capital expenditures per statements of cash flows (1)	$	2,569	$	2,295	$	11,162	$	11,110
Periodically recurring capital expenditures by operating segment
Fully stabilized	$	2,267	$	2,021	$	6,647	$	4,070
Communities stabilized during 2007		86		121		184		2,458
Development, rehabilitation and lease-up		40		47		144		452
Condominium conversion and other		—		340		—		758
Acquired		189		6		228		6
Other segments		508		293		1,001		707
Total periodically recurring capital expenditures per statements of cash flows (1)	$	3,090	$	2,828	$	8,204	$	8,451

(1) Includes approximately $1,048 of periodically recurring and $308 of annually recurring capital expenditures, respectively, related to the Company’s water intrusion remediation project for the three months and year ended December 31, 2008.

29

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

	Year ended
	December 31,
	2008			2007
Income (loss) from continuing operations	$	(95,823	)	$	103,845
Minority interest of common unitholders		(719	)		1,347
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		130			1,520
Other non-cash expenses, net		5,819			4,189
Income tax expense		1,525			1,327
Gains on sales of real estate assets, net		(3,626	)		(100,015	)
Gains on sales of real estate assets — unconsolidated entities		—			(186	)
Non-cash impairment charges		90,558			—
Depreciation expense		63,530			61,476
Depreciation (company share) of assets held in unconsolidated entities		1,391			1,143
Interest expense		48,863			47,447
Interest expense (company share) of assets held in unconsolidated entities		3,058			1,760
Amortization of deferred financing costs		3,473			3,297
Income available for debt service (A)	$	118,179		$	127,150
Interest expense	$	48,863		$	47,447
Interest expense (company share) of assets held in unconsolidated entities		3,058			1,760
Interest expense for purposes of computation (B)		51,921			49,207
Dividends and distributions to preferred shareholders and unitholders		7,637			7,637
Fixed charges for purposes of computation (C)	$	59,558		$	56,844
Interest coverage ratio (A÷B)		2.3x			2.6x
Fixed charge coverage ratio (A÷C)		2.0x			2.2x

30

Table 5
Computation of Debt Ratios
(Dollars in thousands)

	As of December 31,
	2008			2007
Total real estate assets per balance sheet	$	2,083,151		$	2,111,612
Plus:
Company share of real estate assets held in unconsolidated entities		124,240			91,085
Company share of accumulated depreciation — assets held in unconsolidated entities		6,952			5,149
Accumulated depreciation per balance sheet		553,814			562,226
Accumulated depreciation on assets held for sale		42,379			4,031
Total undepreciated real estate assets (A)	$	2,810,536		$	2,774,103
Total debt per balance sheet	$	1,112,913		$	1,059,066
Plus:					—
Company share of third party debt held in unconsolidated entities		77,760			60,959
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,190,673		$	1,120,025
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A) (1)		42.4	%		40.4	%
Total debt per balance sheet	$	1,112,913		$	1,059,066
Plus:
Company share of third party debt held in unconsolidated entities		77,760			60,959
Preferred shares at liquidation value		95,000			95,000
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,285,673		$	1,215,025
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A) (1)		45.7	%		43.8	%

(1) Excludes impact of available cash and cash equivalents of $75,472 at December 31, 2008.

31

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

	December 31, 2008
Total shareholders’ equity, per balance sheet	$	987,630
Plus:
Accumulated depreciation, per balance sheet		553,814
Accumulated depreciation held for sale assets, per balance sheet		42,379
Minority interest of common unitholders in Operating Partnership, per balance sheet		4,410
Less:
Deferred charges, net, per balance sheet		(10,278	)
Preferred shares at liquidation value		(95,000	)
Total undepreciated book value (A)	$	1,482,955
Total common shares and units (B)		44,440
Company undepreciated book value per share (A÷B)	$	33.37

32