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): April 28, 2014

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):

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

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

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

¨ 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 April 28, 2014, 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 March 31, 2014. The Earnings Release and Supplemental Financial Data contain information about the Registrants’ financial condition and results of operations for the quarterly period ended March 31, 2014. 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: April 29, 2014

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: April 29, 2014

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 First Quarter 2014 Earnings

Investor/Analyst Conference Call Scheduled for Tuesday, April 29 at 10:00 a.m. ET

ATLANTA, Monday, April 28, 2014 - Post Properties, Inc. (NYSE: PPS) announced today net income available to common shareholders of $13.3 million, or $0.24 per diluted share, for the first quarter of 2014, compared to $19.4 million, or $0.35 per diluted share, for the first quarter of 2013.

Funds From Operations

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 first quarter of 2014 was $35.1 million, or $0.64 per diluted share, compared to $40.5 million, or $0.74 per diluted share, for the first quarter of 2013. Core FFO for the first quarter of 2014 (excluding FFO from condominium activities) was $34.3 million, or $0.63 per diluted share, compared to $32.3 million, or $0.59 per diluted share, for the first quarter of 2013.

Said Dave Stockert, Post’s CEO, “The Company produced solid growth again in the first quarter. Top-line revenue advanced 8% on a combination of healthy apartment market fundamentals and the profitable contribution of our value-creating development pipeline, with per share core funds from operations growing by nearly 7%.”

Same Store Community Data

Average economic occupancy at the Company’s 48 same store communities, containing 17,714 apartment units, was 95.4% for the first quarter of 2014 and 2013.

Total revenues for the same store communities increased 2.4% and total operating expenses increased 3.7% during the first quarter of 2014, compared to the first quarter of 2013, producing a 1.6% increase in same store net operating income (“NOI”). The average monthly rental rate per unit increased 2.3% during the first quarter of 2014, compared to the first quarter of 2013.

On a sequential basis, total revenues for the same store communities increased 0.5% and total operating expenses increased 2.2%, resulting in a 0.6% decrease in same store NOI for the first quarter of 2014, compared to the fourth quarter of 2013. On a sequential basis, the average monthly rental rate per unit increased 0.2%. For the first quarter of 2014, average economic occupancy at the same store communities was 95.4%, compared to 95.7% for the fourth quarter of 2013.

Same Store Results Adjusted for Three Communities Held for Sale

As discussed below, the Company is currently marketing for sale three communities. Total revenues for the same store communities, adjusted to include the three communities classified as held for sale, increased 2.6% and total operating expenses increased 4.9% during the first quarter of 2014, compared to the first quarter of 2013, producing a 1.1% increase in same store NOI. On a sequential basis, total revenues for the same store communities, again adjusted to include the three communities classified as held for sale, increased 0.4% and total operating expenses increased 2.7%, resulting in a 1.1% decrease in same store NOI for the first quarter of 2014, compared to the fourth quarter of 2013.

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. Information on 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.

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Investment Activity

Development Activity

In the aggregate, the Company has 1,620 units in five apartment communities, and approximately 25,464 square feet of retail space, under development or in lease-up with a total estimated cost of $260.7 million, and a remaining funding requirement of $79.6 million. The Company believes it has adequate internal resources to fund its development commitments.

The Company is also actively planning five additional development projects on land it already owns. These projects could total more than 1,800 apartment units with a total investment of more than $300 million. There can be no assurance that any of these projects will commence.

Planned Asset Sales Activity

The Company is currently marketing for sale three apartment communities, containing 645 apartment units and 65,900 square feet of retail space - Post Rice Lofts™ in Houston, Texas, and Post Toscana™ and Post Luminaria™, in New York, NY.

The Company is pursuing these sales in order to take advantage of strong demand for high-quality apartment assets, to harvest value and to enhance the Company’s capacity for future growth, particularly through development.

The Company currently expects that gross proceeds from the sale of these three assets may be $300 million or more, and is currently anticipating closings as early as the second and third quarter. Proceeds, after payment of transaction costs and a distribution to the Company’s partner in one of the communities, are expected to be used, in combination with a portion of cash on hand, as follows:

• To prepay a $120.0 million, 4.88% mortgage loan secured by Post Addison Circle™, and associated estimated prepayment premiums of approximately $4.2 million;

• To prepay a $49.7 million, 5.84% mortgage loan secured by Post Toscana™, if that loan is not otherwise assumed by the buyer, and associated estimated prepayment premiums of approximately $8.3 million to $8.5 million;

• To prepay a $33.5 million, 5.61% mortgage loan secured by Post Luminaria™, if that loan is not otherwise assumed by the buyer, and associated estimated prepayment premiums, the Company’s share of which are expected to be approximately $3.8 million to $4.0 million;

• To repurchase shares of common stock at least sufficient, when combined with the interest savings from the loan prepayments discussed above, to mitigate the dilution to recurring earnings and cash flow from the sale of the three communities; and

• To pay special dividends to common shareholders to the extent of required capital gains distributions, after various tax planning strategies have been employed.

There can be no assurance that the Company’s planned asset sales will be completed, or that the proceeds will be sufficient or will be applied in a manner consistent with the above.

The Company’s share of prepayment premiums discussed above and the write-off of unamortized deferred financing costs are projected to result in losses on early extinguishment of debt of $0.32 to $0.33 per diluted share, which were not included in the Company’s previously disclosed earnings guidance for 2014. There can be no assurance that the estimated losses on early extinguishment of debt will not change due to future changes in interest rates or otherwise.

Condominium Activity

In the first quarter of 2014, the Company closed the sale of its final available unit at the Ritz-Carlton Residences, Atlanta Buckhead, originally consisting of 126 units. At March 31, 2014, the Company had no further investment in condominium assets. The Company recognized net gains in FFO of $0.8 million, or $0.015 per diluted share, from condominium sales activities during the first quarter of 2014, compared to $8.2 million, or $0.15 per diluted share, during the first quarter of 2013.

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Financing Activity

Leverage, Line and Term Loan Capacity

Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of real estate assets and debt) was 36.6% at March 31, 2014.

As of April 25, 2014, the Company had cash and cash equivalents of $57.2 million. Additionally, the Company had no outstanding borrowings, and letters of credit totaling $0.4 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities in 2014.

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.

At-the-Market Common Equity Activity

The Company has available an at-the-market (“ATM”) common equity program that provides for the sale of up to 4 million shares of common stock. As of March 31, 2014 and since its inception, no shares have been issued under that program. Sales under this program are dependent upon a variety of factors, including, among others, market conditions, the trading price of the Company’s common stock, the Company’s liquidity position and the potential use of proceeds.

Information Technology Systems Initiatives

The Company is in the process of upgrading and replacing its financial and property management information technology systems, which it expects to be completed by the end of 2014. As part of this project, in addition to other system implementation costs capitalized, the Company is required to expense certain up-front implementation and training costs. These expensed system implementation costs totaled $0.2 million in the first quarter of 2014 and are currently projected to total approximately $1.3 million throughout 2014.

Supplemental Financial Data

The Company also produces Supplemental Financial Data that includes detailed information regarding the Company’s operating results, investment activity, financing activity, balance sheet and properties. 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 Investors/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://get.adobe.com/reader/.

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 listed below and on page 19 of the Supplemental Financial Data. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

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

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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 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, debt extinguishment gains (losses) and preferred stock redemption 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 (“NOI”) - 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 newly stabilized communities, lease-up communities, held for sale communities, sold communities 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 is the line on the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating 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) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. 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

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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.

The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.

Property Operating Statistics - The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property 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. Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post^® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.

Conference Call Information

The Company will hold its quarterly conference call on Tuesday, April 29, at 10:00 a.m. ET. The telephone numbers are 888-359-3627 for US and Canada callers and 719-325-2494 for international callers. The access code is 9720599. The conference call will be open to the public and can be listened to live on Post’s website at www.postproperties.com. Click Investors in the top menu, then select either Investor’s Overview or Events Calendar. The replay will begin at 1:00 p.m. ET on Tuesday, April 29, and will be available until Tuesday, May 6, at 1:00 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 9720599. A replay of the call also will be archived on Post’s website under Investors/Audio Archives.

About Post

Post Properties, founded more than 40 years ago, is a leading developer and operator of upscale multifamily communities. 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 high density urban and resort-style garden apartments. Post Properties is headquartered in Atlanta, Georgia, and has operations in ten markets across the country.

Post Properties has interests in 22,516 apartment units in 60 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,620 apartment units in five communities currently under development or in lease-up.

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 and in the Company’s outlook include, expectations regarding apartment market conditions, expectations regarding future operating conditions, including the Company’s current outlook as to expected funds from operations, adjusted funds from operations, revenue, operating expenses, net operating income, capital expenditures, depreciation, gains on sales and net income, anticipated development activities (including projected construction expenditures and timing), expectations regarding apartment community sales and the use of proceeds thereof (including the prepayment of indebtedness and prepayment penalties as well as the possible repurchase of shares and special dividends to sahreholders), expectations regarding use of proceeds from unsecured bank credit facilities, and expectations regarding offerings of the Company’s common stock and the use of proceeds thereof. All forward-looking statements are subject to

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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 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 for the year ended December 31, 2013 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnership in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; and any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and may be discussed in subsequent filings with the SEC. The risk factors discussed in the Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this press release.

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Financial Highlights

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

	Three months ended March 31,
	2014		2013
OPERATING DATA
Total revenues	$	93,512	$	86,358
Net income available to common shareholders	$	13,314	$	19,420
Funds from operations available to common shareholders and unitholders (Table 1)	$	35,129	$	40,537
Weighted average shares outstanding - diluted		54,291		54,639
Weighted average shares and units outstanding - diluted		54,426		54,782
PER COMMON SHARE DATA - DILUTED
Net income available to common shareholders	$	0.24	$	0.35
Funds from operations available to common shareholders and unitholders (Table 1) (1)	$	0.64	$	0.74
Dividends declared	$	0.36	$	0.25

1) Funds from operations available to common shareholders and unitholders per share was computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 116 and 202 for the three months ended March 31, 2014 and 2013, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 112 and 111 for the three months ended March 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”

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Table 1

Reconciliation of Net Income Available to Common Shareholders to

Funds From Operations Available to Common Shareholders and Unitholders

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

	Three months ended March 31,
	2014		2013
Net income available to common shareholders	$	13,314	$	19,420
Noncontrolling interests - Operating Partnership		33		51
Depreciation on consolidated real estate assets, net		21,489		20,777
Depreciation on real estate assets held in unconsolidated entities		293		289
Funds from operations available to common shareholders and unitholders	$	35,129	$	40,537
Funds from operations available to common shareholders and unitholders - core operations	$	34,319	$	32,343
Funds from operations available to common shareholders and unitholders - condominiums		810		8,194
Funds from operations available to common shareholders and unitholders	$	35,129	$	40,537
Funds from operations - per share and unit - diluted (1)	$	0.64	$	0.74
Funds from operations per share and unit - core operations	$	0.63	$	0.59
Weighted average shares and units outstanding - diluted (1)		54,538		54,893

1) Diluted weighted average shares and units include the impact of dilutive securities totaling 116 and 202 for the three months ended March 31, 2014 and 2013, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 112 and 111 for the three months ended March 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”

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Table 2

Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income

(Unaudited; In thousands)

	Three months ended
	March 31,			March 31,			December 31,
	2014			2013			2013
Total same store NOI	$	46,318		$	45,580		$	46,586
Property NOI from held for sale segment - residential		2,473			2,704			2,734
Property NOI from held for sale segment - commercial		300			423			364
Property NOI from other operating segments		3,606			153			4,279
Consolidated property NOI		52,697			48,860			53,963
Add (subtract):
Interest income		12			36			10
Other revenues		219			214			204
Depreciation		(21,767	)		(20,944	)		(21,914	)
Interest expense		(11,244	)		(11,052	)		(11,424	)
Amortization of deferred financing costs		(645	)		(624	)		(658	)
General and administrative		(4,128	)		(4,245	)		(4,751	)
Investment and development		(811	)		(489	)		(307	)
Other investment costs		(273	)		(305	)		(85	)
Other expenses		(907	)		-			(436	)
Gains on condominium sales activities, net		810			8,194			476
Equity in income of unconsolidated real estate entities, net		485			478			479
Other income (expense), net		(195	)		(166	)		(195	)
Income from continuing operations		14,253			19,957			15,362
Income from discontinued operations		-			433			28,501
Net income	$	14,253		$	20,390		$	43,863

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Table 3

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

(In thousands)

	Three months ended						Q1 ‘14 vs.  Q1 ‘13 % Change		Q1 ‘14 vs. Q4 ‘13 % Change		Q1 ‘14 %  Same Store NOI
	March 31, 2014		March 31, 2013		December 31, 2013
Rental and other revenues
Atlanta	$	20,846	$	19,817	$	20,682		5.2%		0.8%
Dallas		17,805		17,263		17,604		3.1%		1.1%
Houston		2,256		2,160		2,227		4.4%		1.3%
Austin		2,986		2,884		2,990		3.5%		(0.1)%
Washington, D.C.		12,823		13,040		12,990		(1.7)%		(1.3)%
Tampa		9,251		9,015		9,100		2.6%		1.7%
Orlando		2,709		2,785		2,747		(2.7)%		(1.4)%
Charlotte		6,596		6,548		6,573		0.7%		0.3%
Total rental and other revenues		75,272		73,512		74,913		2.4%		0.5%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		8,091		7,861		8,104		2.9%		(0.2)%
Dallas		7,664		7,191		7,387		6.6%		3.7%
Houston		870		820		857		6.1%		1.5%
Austin		1,345		1,226		1,278		9.7%		5.2%
Washington, D.C.		4,488		4,306		4,373		4.2%		2.6%
Tampa		3,416		3,321		3,272		2.9%		4.4%
Orlando		964		1,108		930		(13.0)%		3.7%
Charlotte		2,116		2,099		2,126		0.8%		(0.5)%
Total		28,954		27,932		28,327		3.7%		2.2%
Net operating income
Atlanta		12,755		11,956		12,578		6.7%		1.4%		27.5%
Dallas		10,141		10,072		10,217		0.7%		(0.7)%		21.9%
Houston		1,386		1,340		1,370		3.4%		1.2%		3.0%
Austin		1,641		1,658		1,712		(1.0)%		(4.1)%		3.5%
Washington, D.C.		8,335		8,734		8,617		(4.6)%		(3.3)%		18.0%
Tampa		5,835		5,694		5,828		2.5%		0.1%		12.6%
Orlando		1,745		1,677		1,817		4.1%		(4.0)%		3.8%
Charlotte		4,480		4,449		4,447		0.7%		0.7%		9.7%
Total same store NOI	$	46,318	$	45,580	$	46,586		1.6%		(0.6)%		100.0%
Average rental rate per unit
Atlanta	$	1,301	$	1,247	$	1,296		4.3%		0.4%
Dallas		1,232		1,199		1,228		2.8%		0.3%
Houston		1,374		1,306		1,364		5.2%		0.7%
Austin		1,551		1,490		1,544		4.1%		0.5%
Washington, D.C.		1,868		1,889		1,875		(1.1)%		(0.4)%
Tampa		1,402		1,371		1,396		2.3%		0.4%
Orlando		1,484		1,512		1,490		(1.9)%		(0.4)%
Charlotte		1,245		1,213		1,243		2.6%		0.2%
Total average rental rate per unit		1,380		1,349		1,377		2.3%		0.2%

-10-

Table 4

Computation of Debt Ratios

(In thousands)

	As of March 31,
	2014			2013
Total real estate assets per balance sheet	$	2,248,691		$	2,203,873
Plus:
Company share of real estate assets held in unconsolidated entities		57,389			58,448
Company share of accumulated depreciation - assets held in unconsolidated entities		13,022			11,526
Accumulated depreciation per balance sheet		875,069			863,594
Accumulated depreciation on assets held for sale		59,163			-
Total undepreciated real estate assets (A)	$	3,253,334		$	3,137,441
Total debt per balance sheet	$	1,097,709		$	1,101,495
Plus:
Company share of third party debt held in unconsolidated entities		49,531			49,531
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,147,240		$	1,151,026
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		35.3	%		36.7	%
Total debt per balance sheet	$	1,097,709		$	1,101,495
Plus:
Company share of third party debt held in unconsolidated entities		49,531			49,531
Preferred shares at liquidation value		43,392			43,392
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,190,632		$	1,194,418
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		36.6	%		38.1	%

-11-

EX-99.2

Exhibit 99.2

First Quarter 2014

Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations		3
Funds from Operations and Adjusted Funds From Operations		4
Consolidated Balance Sheets		5
Same Store Results		8
Debt Summary		11
Summary of Apartment Communities Under Development and Land Held for Future Investment and Acquisitions/Disposition Activity		14
Capitalized Costs Summary		15
Investments in Unconsolidated Real Estate Entities		16
Net Asset Value Supplemental Information		17
Non-GAAP Financial Measures and Other Defined Terms and Property Tables		19

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 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 for the year ended December 31, 2013 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; 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 succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnership in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this document.

Supplemental Financial Data 2 | P a g e  

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data) - (Unaudited)

	Three months ended March 31,
	2014		2013
Revenues
Rental	$	88,028	$	81,326
Other property revenues		5,265		4,818
Other		219		214
Total revenues		93,512		86,358
Expenses
Property operating and maintenance (exclusive of items shown separately below)		40,596		37,284
Depreciation		21,767		20,944
General and administrative		4,128		4,245
Investment and development (1)		811		489
Other investment costs (1)		273		305
Other expenses (2)		907		-
Total expenses		68,482		63,267
Operating income		25,030		23,091
Interest income		12		36
Interest expense		(11,244)		(11,052)
Amortization of deferred financing costs		(645)		(624)
Net gains on condominium sales activities (3)		810		8,194
Equity in income of unconsolidated real estate entities, net		485		478
Other income (expense), net		(195)		(166)
Income from continuing operations		14,253		19,957
Discontinued operations (4)
Income from discontinued property operations		-		433
Income from discontinued operations		-		433
Net income		14,253		20,390
Noncontrolling interests - consolidated real estate entities		16		3
Noncontrolling interests - Operating Partnership		(33)		(51)
Net income available to the Company		14,236		20,342
Dividends to preferred shareholders		(922)		(922)
Net income available to common shareholders	$	13,314	$	19,420
Per common share data - Basic (5)
Income from continuing operations (net of preferred dividends)	$	0.25	$	0.35
Income from discontinued operations		-		0.01
Net income available to common shareholders	$	0.25	$	0.36
Weighted average common shares outstanding - basic		54,175		54,437
Per common share data - Diluted (5)
Income from continuing operations (net of preferred dividends)	$	0.24	$	0.35
Income from discontinued operations		-		0.01
Net income available to common shareholders	$	0.24	$	0.35
Weighted average common shares outstanding - diluted		54,291		54,639

See Notes to Consolidated Financial Statements on page 6

Supplemental Financial Data 3 | P a g e  

FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands, except per share data) - (Unaudited)

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

	Three months ended March 31,
Funds From Operations	2014		2013
Net income available to common shareholders	$	13,314	$	19,420
Noncontrolling interests - Operating Partnership		33		51
Depreciation on consolidated real estate assets, net (6)		21,489		20,777
Depreciation on real estate assets held in unconsolidated entities		293		289
Funds from operations available to common shareholders and unitholders (A)	$	35,129	$	40,537
Funds from operations available to common shareholders and unitholders - core operations (B)	$	34,319	$	32,343
Funds from operations available to common shareholders and unitholders - condominiums		810		8,194
Funds from operations available to common shareholders and unitholders (A)	$	35,129	$	40,537
Adjusted Funds From Operations
Funds from operations available to common shareholders and unitholders (A)	$	35,129	$	40,537
Annually recurring capital expenditures		(2,421)		(3,474)
Periodically recurring capital expenditures		(2,521)		(4,694)
Non-cash straight-line adjustment for ground lease expenses		118		121
Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	30,305	$	32,490
Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D)	$	29,495	$	24,296
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7)		810		8,194
Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	30,305	$	32,490
Per Common Share Data - Diluted
Funds from operations per share or unit, as defined (A÷E)	$	0.64	$	0.74
Funds from operations per share or unit - core operations (B÷E)	$	0.63	$	0.59
Adjusted funds from operations per share or unit, as defined (7) (C÷E)	$	0.56	$	0.59
Adjusted funds from operations per share or unit - core operations (7) (D÷E)	$	0.54	$	0.44
Dividends declared	$	0.36	$	0.25
Weighted average shares outstanding (8)		54,403		54,750
Weighted average shares and units outstanding (8) (E)		54,538		54,893

See Notes to Funds from Operations and Adjusted Funds from Operations on page 6

Supplemental Financial Data 4 | P a g e  

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	March 31,              2014		December 31,     2013
	(Unaudited)
Assets
Real estate assets
Land	$	307,390	$	327,270
Building and improvements		2,257,267		2,408,906
Furniture, fixtures and equipment		283,343		291,027
Construction in progress		72,519		74,064
Land held for future investment		61,811		61,768
		2,982,330		3,163,035
Less: accumulated depreciation		(875,069)		(913,018)
For-sale condominiums		-		1,122
Assets held for sale, net of accumulated depreciation of $59,163 at March 31, 2014		141,430		-
Total real estate assets		2,248,691		2,251,139
Investments in and advances to unconsolidated real estate entities		4,039		4,056
Cash and cash equivalents		74,396		82,110
Restricted cash		4,821		4,712
Deferred financing costs, net		7,966		8,495
Other assets		30,445		31,165
Total assets	$	2,370,358	$	2,381,677
Liabilities and equity
Indebtedness, including $83,212 secured by assets held for sale as of March 31, 2014	$	1,097,709	$	1,098,734
Accounts payable, accrued expenses and other		60,796		73,431
Investments in unconsolidated real estate entities		16,830		16,687
Dividends and distributions payable		19,611		17,928
Accrued interest payable		9,042		5,157
Security deposits and prepaid rents		9,893		10,888
Total liabilities		1,213,881		1,222,825
Redeemable common units		6,645		6,121
Commitments and contingencies
Equity
Company shareholders’ equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 868 shares issued and outstanding		9		9
Common stock, $.01 par value, 100,000 authorized:
54,632 and 54,629 shares issued and 54,339 and 54,191 shares outstanding at March 31, 2014 and December 31, 2013, respectively		546		546
Additional paid-in-capital		1,110,074		1,111,861
Accumulated earnings		58,479		66,138
Accumulated other comprehensive income (loss)		(3,399)		(3,419)
		1,165,709		1,175,135
Less common stock in treasury, at cost, 375 and 519 shares at March 31, 2014 and December 31, 2013, respectively		(15,606)		(22,188)
Total Company shareholders’ equity		1,150,103		1,152,947
Noncontrolling interests - consolidated property partnerships		(271)		(216)
Total equity		1,149,832		1,152,731
Total liabilities and equity	$	2,370,358	$	2,381,677

See Notes to Consolidated Financial Statements on page 6

Supplemental Financial Data 5 | P a g e  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AND RECONCILIATION OF FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands)

1) Investment and development expenses include investment group expenses, development personnel and associated costs not allocable to development projects. Other investment costs primarily include land carry costs, principally property taxes and assessments.

2) Other expenses in 2014 include expenses of approximately $157 related to the continuation of a strategic initiative to upgrade the Company’s operating and financial software systems and estimated casualty losses of $750 related to extreme winter weather conditions in many of the Company’s markets and fire damage at one of the Company’s Atlanta, Georgia communities.

3) A summary of revenues and costs and expenses of condominium activities for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended         March 31,
	2014		2013
Condominium revenues	$	2,442	$	17,475
Condominium costs and expenses		(1,632)		(9,281)
Net gains on sales of condominiums	$	810	$	8,194

4) In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale or sold were included in discontinued operations for all periods presented. Additionally, all gains or losses on the sale of these assets were included in discontinued operations. For the three months ended March 31, 2013, income from discontinued operations included the operating results of one apartment community, containing 342 units (this community was subsequently sold in October 2013) as follows:

	Three months ended March 31, 2013
Revenues
Rental	$	1,070
Other property revenues		101
Total revenues		1,171
Expenses
Property operating and maintenance		471
Depreciation		177
Interest		90
Total expenses		738
Income from discontinued property operations	$	433

Supplemental Financial Data 6 | P a g e  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AND RECONCILIATION OF FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands)

Effective for the Company on January 1, 2014 the accounting and disclosure requirements for reporting discontinued operations were amended under GAAP. The amended guidance requires dispositions to be reported as discontinued operations only if such disposals represent a strategic shift that would have a major effect on the Company’s operations and financial results. In the three months ended March 31, 2014, the Company classified three communities, containing 645 units, as held for sale. Further, under the new accounting guidance, the Company determined that these communities did not meet the criteria for discontinued operations reporting. As a result, operations for these communities continue to be included in continuing operations. The revenues and expenses associated with the communities for the three months ended March 31, 2014 and 2013 were as follows:

	Three months ended         March  31,
	2014		2013
Revenues
Rental	$	5,772	$	5,508
Other property revenues		99		94
Total revenues		5,871		5,602
Property operating and maintenance expenses		(3,098)		(2,475)
Net operating income		2,773		3,127
Other expenses
Depreciation		(1,239)		(1,213)
Interest		(1,337)		(1,355)
Amortization of deferred financing costs		(59)		(59)
Net income	$	138	$	500
Net income, net of non-controlling interest	$	154	$	503

5) Post Properties, Inc., through its wholly-owned subsidiaries, is the sole general partner, a limited partner and owns a majority interest in Post Apartment Homes, L.P., the Operating Partnership, through which the Company conducts its operations. As of March 2014, there were 54,474 Operating Partnership units outstanding, of which 54,339, or 99.8%, were owned by the Company.

6) Depreciation on consolidated real estate assets is net of the minority interest portion of depreciation on consolidated entities.

7) Since the Company does not add back the depreciation of non-real estate assets in its calculation of FFO, non-real estate related capital expenditures of $128 and $340 for the three months ended March 31, 2014 and 2013, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.

8) Diluted weighted average shares and units include the impact of dilutive securities totaling 116 and 202 for the three months ended March 31, 2014 and 2013, respectively. Additionally, basic and diluted weighted average shares and units include the impact of non-vested shares and units totaling 112 and 111 for the three months ended March 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”

Supplemental Financial Data 7 | P a g e  

SAME STORE RESULTS

(In thousands, except per unit data) - (Unaudited)

Same Store Operating Results

The Company defines same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by three communities classified as held for sale in the three months ended March 31, 2014 and by a community sold in 2013. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income and Table 4 on page 25 for a year-to-date margin analysis. The operating performance and capital expenditures of the 48 communities containing 17,714 apartment units which were fully stabilized as of January 1, 2013, are summarized in the table below.

	Three months ended
	March 31,
	2014		2013		% Change
Revenues:
Rental and other revenue	$	72,778	$	71,170		2.3%
Utility reimbursements		2,494		2,342		6.5%
Total rental and other revenues (1)	$	75,272	$	73,512		2.4%
Property operating and maintenance expenses:
Personnel expenses		6,275		6,232		0.7%
Utility expense		4,102		3,730		10.0%
Real estate taxes and fees		11,868		11,009		7.8%
Insurance expenses		1,223		1,188		2.9%
Building and grounds repairs and maintenance		3,537		3,717		(4.8)%
Ground lease expense		230		230		-
Other expenses		1,719		1,826		(5.9)%
Total property operating and maintenance expenses (excluding depreciation and amortization) (1)		28,954		27,932		3.7%
Same store net operating income (1)	$	46,318	$	45,580		1.6%
Same store net operating income margin		61.5%		62.0%		(0.5)%
Capital expenditures (2)
Annually recurring:
Carpet	$	738	$	756		(2.4)%
Other		1,508		2,540		(40.6)%
Total annually recurring		2,246		3,296		(31.9)%
Periodically recurring (2)		1,322		2,898		(54.4)%
Total capital expenditures (A)	$	3,568	$	6,194		(42.4)%
Total capital expenditures per unit (A ÷ 17,714 units)	$	201	$	350		(42.6)%
Average monthly rental rate per unit (3)	$	1,380	$	1,349		2.3%
Gross turnover (4)		50.5%		51.9%		(1.4)%
Net turnover (5)		43.1%		44.8%		(1.7)%
Percentage rent increase - new leases (6)		2.1%		3.6%		(1.5)%
Percentage rent increase - renewed leases (6)		4.7%		5.3%		(0.6)%

1) Same store revenues, expenses and net operating income, including the three communities classified as held for sale in the three months ended March 31, 2014, increased by 2.6%, 4.9% and 1.1%, respectively.

2) See Table 5 on page 26 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 in the consolidated cash flow statements prepared under GAAP.

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 22 and Table 3 on page 23 for further information.

4) Gross turnover represents the percentage of leases expiring during the period that are not renewed by the existing resident(s).

5) Net turnover is gross turnover decreased by the percentage of expiring leases where the resident(s) transfer to a new apartment unit in the same community or in another Post^® community.

6) Percentage change is calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit. Accordingly, these percentage changes may differ from the change in the average monthly rental rate per unit due to the timing of move-ins and/or the term of the respective leases.

Supplemental Financial Data 8 | P a g e  

SAME STORE RESULTS (CON’T)

(In thousands, except per unit data) - (Unaudited)

Same Store Operating Results by Market - Comparison of First Quarter 2014 to First Quarter 2013

(Increase (decrease) between periods)

	Three months ended
Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic   Occupancy
Atlanta		5.2%			2.9%			6.7%			0.9%
Dallas		3.1%			6.6%			0.7%			0.2%
Houston		4.4%			6.1%			3.4%			(0.7)%
Austin		3.5%			9.7%			(1.0)%			(1.0)%
Washington, D.C.		(1.7)%			4.2%			(4.6)%			(0.7)%
Tampa		2.6%			2.9%			2.5%			(0.2)%
Orlando		(2.7)%			(13.0)%			4.1%			(0.2)%
Charlotte		0.7%			0.8%			0.7%			(0.9)%
Total		2.4%			3.7%			1.6%			0.0%

1) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

											Average Rental
					Average Economic						Rate Per Unit
					Occupancy (1)				Physical		Three Months
			% of NOI		Three months ended				Occupancy		Ended
	Apartment		Three months ended		March 31,				at March 31,		March 31,
Market	Units		March 31, 2014		2014		2013		2014 (2)		2014 (3)
Atlanta		5,065		27.5%		96.5%		95.6%		96.4%	$	1,301
Dallas		4,725		21.9%		95.5%		95.3%		94.9%		1,232
Houston		529		3.0%		97.5%		98.2%		96.8%		1,374
Austin		637		3.5%		94.9%		95.9%		97.0%		1,551
Washington, D.C.		2,301		18.0%		92.4%		93.1%		92.2%		1,868
Tampa		2,111		12.6%		96.9%		97.1%		96.1%		1,402
Orlando		598		3.8%		96.2%		96.4%		95.8%		1,484
Charlotte		1,748		9.7%		95.0%		95.9%		95.2%		1,245
Total		17,714		100.0%		95.4%		95.4%		95.3%	$	1,380

1) Average economic occupancy is defined 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. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts, would have been 94.9% and 94.8% for the three months ended March 31, 2014 and 2013, respectively. For the three months ended March 31, 2014 and 2013, net concessions were $209 and $279, respectively, and employee discounts were $153 and $153, 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 22 and Table 3 on page 23 for further information.

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SAME STORE RESULTS (CON’T)

(In thousands, except per unit data) - (Unaudited)

Sequential Same Store Operating Results - Comparison of First Quarter of 2014 to Fourth Quarter of 2013

	Three months ended
	March 31,		December 31,
	2014		2013		% Change
Rental and other revenue	$	72,778	$	72,570		0.3%
Utility reimbursements		2,494		2,343		6.4%
Total rental and other revenues (1)	$	75,272	$	74,913		0.5%
Personnel expenses		6,275		5,800		8.2%
Utility expense		4,102		3,936		4.2%
Real estate taxes and fees		11,868		11,048		7.4%
Insurance expenses		1,223		1,292		(5.3)%
Building and grounds repairs and maintenance		3,537		4,215		(16.1)%
Ground lease expense		230		230		0.0%
Other expenses		1,719		1,806		(4.8)%
Total property operating and maintenance expenses (excluding depreciation and amortization) (1)		28,954		28,327		2.2%
Same store net operating income (1) (2)	$	46,318	$	46,586		(0.6)%
Average economic occupancy		95.4%		95.7%		(0.3)%
Average monthly rental rate per unit	$	1,380	$	1,377		0.2%

1) Sequential same store revenues, expenses and net operating income, including the three communities classified as held for sale in the three months ended March 31, 2014, increased (decreased) by 0.4%, 2.7% and (1.1)%, respectively.

2) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

Sequential Same Store Operating Results by Market - Comparison of First Quarter of 2014 to Fourth Quarter of 2013

(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Occupancy
Atlanta		0.8%			(0.2)%			1.4%			(0.2)%
Dallas		1.1%			3.7%			(0.7)%			0.1%
Houston		1.3%			1.5%			1.2%			0.8%
Austin		(0.1)%			5.2%			(4.1)%			(1.5)%
Washington, D.C.		(1.3)%			2.6%			(3.3)%			(0.9)%
Tampa		1.7%			4.4%			0.1%			0.4%
Orlando		(1.4)%			3.7%			(4.0)%			(0.7)%
Charlotte		0.3%			(0.5)%			0.7%			(0.5)%
Total		0.5%			2.2%			(0.6)%			(0.3)%

1) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

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DEBT SUMMARY

(In thousands) - (Unaudited)

Summary of Outstanding Debt at March 31, 2014 - Consolidated

				Weighted Average Rate (1)
			Percentage	March 31,
Type of Indebtedness	Balance		of Total Debt	2014		2013
Unsecured fixed rate senior notes	$	400,000	36.5%		3.9%		3.9%
Unsecured bank term loan		300,000	27.3%		3.2%		3.2%
Secured fixed rate notes		397,709	36.2%		5.6%		5.6%
	$	1,097,709	100.0%		4.3%		4.3%
			Percentage	Weighted Average Maturity
	Balance		of Total Debt	of Total Debt (2)
Total fixed rate debt	$	1,097,709	100.0%		4.9
Total variable rate debt - unhedged		-	0.0%		0.0
Total debt	$	1,097,709	100.0%		4.9

Debt Maturities - Consolidated and Unconsolidated

	Consolidated				Unconsolidated Entities
				Weighted Avg.					Weighted Avg.
				Rate on Debt			Company		Rate on Debt
Aggregate debt maturities by year	Amount			Maturities (1)	Amount		Share		Maturities (1)
Remainder of 2014	$	2,936		5.9%	$	-	$	-	-
2015		124,205	(3)	4.9%		-		-	-
2016		4,418	(4)	5.9%		-		-	-
2017		154,736		4.8%		85,723		21,431	5.6%
2018		350,958	(5)	3.6%		41,000		10,250	5.7%
Thereafter		460,456		4.5%		51,000		17,850	3.5%
	$	1,097,709		4.3%	$	177,723	$	49,531	5.0%

Debt Statistics

	Three months ended              March 31,
	2014	2013
Interest coverage ratio (6)(7)	4.2x	4.0x
Interest coverage ratio (including capitalized interest) (6)(7)	3.9x	3.7x
Fixed charge coverage ratio (6)(8)	3.9x	3.7x
Fixed charge coverage ratio (including capitalized interest) (6)(8)	3.6x	3.4x
Total debt to annualized income available for debt service ratio (9)	5.8x	6.1x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (10)	35.3%	36.7%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (10)	36.6%	38.1%

1) Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at March 31, 2014 and 2013 are based on the debt outstanding at that date. Weighted average interest rate of the unsecured bank term loan represents the effective fixed interest rate based on outstanding borrowings as of March 31, 2014 and 2013, after considering the impact of interest rate swap arrangements that hedge this debt.

2) Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.

3) Includes a mortgage note payable of $120,000 that matures in February 2015 at which time it will automatically be extended for a one-year term at a variable interest rate.

4) Includes $0 outstanding on unsecured revolving lines of credit maturing in 2016. At March 31, 2014, the Company’s lines of credit bear interest at LIBOR plus 1.225%.

5) Includes a mortgage note payable of $49,740 at March 31, 2014 that matures in May 2018 at which time it will automatically be extended for a one-year term at variable interest rate.

6) Calculated for the three months ended March 31, 2014 and 2013.

7) Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and interest expense to consolidated interest expense is included in Table 7 on page 27.

8) Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders. The calculation of the fixed charge coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and fixed charges to consolidated interest expense plus dividends to preferred shareholders is included in Table 7 on page 27.

9) A computation of this ratio is included in Table 7 on page 27.

10) A computation of these debt ratios is included in Table 6 on page 26.

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Senior Unsecured Public Notes Debt Ratings

Moody’s - Baa2 (stable)

Standard & Poor’s - BBB (stable)

Financial Debt Covenants - Senior Unsecured Public Notes

	As of
Covenant requirement (1)	March 31, 2014
Consolidated Debt to Total Assets cannot exceed 60%	33%
Secured Debt to Total Assets cannot exceed 40%	12%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1	3.9x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1	4.2x

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 is detailed below.

Ratio of Consolidated Debt to Total Assets
	As of
	March 31, 2014
Consolidated debt, per balance sheet (A)	$	1,097,709
Total assets, as defined (B) (Table A)	$	3,291,922
Computed ratio (A÷B)		33%
Required ratio (cannot exceed)		60%
Ratio of Secured Debt to Total Assets
Total secured debt (C)	$	397,709
Computed ratio (C÷B)		12%
Required ratio (cannot exceed)		40%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	1,097,709
Total secured debt (C)		(397,709)
Total unsecured debt (D)	$	700,000
Total unencumbered assets, as defined (E) (Table A)	$	2,751,069
Computed ratio (E÷D)		3.9x
Required minimum ratio		1.5x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge (Annualized)
Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	197,676
Annual Debt Service Charge, as defined (G) (Table B)	$	47,392
Computed ratio (F÷G)		4.2x
Required minimum ratio		1.5x

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Table A

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

	As of
	March 31,              2014
Total real estate assets	$	2,248,691
Add:
Investments in and advances to unconsolidated real estate entities		4,039
Accumulated depreciation		875,069
Accumulated depreciation on assets held for sale		59,163
Other tangible assets		104,960
Total assets for public debt covenant computations		3,291,922
Less:
Encumbered real estate assets		(536,814)
Investments in and advances to unconsolidated real estate entities		(4,039)
Total unencumbered assets for public debt covenant computations	$	2,751,069

Table B

Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge - Annualized (1)

	Three months ended
Consolidated income available for debt service	March 31, 2014
Net income	$	14,253
Add:
Depreciation		21,767
Depreciation and amortization (company share) - unconsolidated entities		300
Amortization of deferred financing costs		645
Interest expense		11,244
Interest expense (company share) - unconsolidated entities		604
Income tax expense, net		202
Other non-cash (income) expense, net		1,214
Less:
Gains on condominium sales activities, net		(810)
Consolidated income available for debt service	$	49,419
Consolidated income available for debt service (annualized)	$	197,676
Annual debt service charge
Consolidated interest expense	$	11,244
Interest expense (company share) - unconsolidated entities		604
Debt service charge	$	11,848
Debt service charge (annualized)	$	47,392

1) The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2014 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants.

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SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENT AND

LAND HELD FOR FUTURE INVESTMENT

(In millions, except units, square footage and acreage) - (Unaudited)

Communities Under Development

				Estimated						Estimated		Costs		Quarter of First Units	Estimated
				Average		Estimated		Estimated		Total		Incurred			Quarter of
		Number		Unit Size		Retail		Total		Cost Per		as of			Stabilized	Percent
Community	Location	of Units		Sq. Ft. (1)		Sq. Ft. (1)		Cost (2)		Sq. Ft. (3)		3/31/2014		Available	Occupancy (4)	Leased (5)
Substantially complete, in lease-up
Post Parkside™ at Wade	Raleigh, NC		397		875		14,908	$	55.0	$	152	$	51.5	1Q 2013	3Q 2014	83.6%
Post Lake® at Baldwin Park, III	Orlando, FL		410		960		-		55.6		141		54.8	1Q 2013	3Q 2014	78.1%
Under construction
Post 510™	Houston, TX		242		857		-		34.8		168		32.4	1Q 2014	1Q 2015	21.9%
Post Soho Square™	Tampa, FL		231		880		10,556		39.8		196		27.2	2Q 2014	3Q 2015	7.8%
Post Alexander™, II	Atlanta, GA		340		830		-		75.5		268		15.2	2Q 2015	4Q 2016	N/A
Total			1,620				25,464	$	260.7			$	181.1

1) Square footage amounts are approximate. Actual square footage may vary.

2) To the extent that developments contain a retail component, total estimated cost includes estimated first generation tenant improvements and leasing commissions. For stabilized apartment communities, remaining unfunded construction costs include first generation retail tenant improvements and leasing commissions.

3) The estimated total cost per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage amounts used are approximate. Actual amounts may vary.

4) The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy or (ii) one year after completion of construction.

5) Represents unit status as of April 26, 2014.

Land Held for Future Investment

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.

		Carrying Value
		At March 31, 2014		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Centennial Park	Atlanta, GA	$	18,858		5.6
South Lamar II	Austin, TX		8,492		3.0
Frisco Bridges II	Dallas, TX		5,480		5.4
Galleria	Houston, TX		13,119		3.9
Wade	Raleigh, NC		10,300		26.6
Millennium	Atlanta, GA		2,775		1.0
Other land parcels	Atlanta, GA		2,787		10.2
Total Land Held for Future Investment		$	61,811		55.7

Acquisition/Disposition Activity

		Quarter		Est. Avg.				Est. Total				Company’s
		Acquired /		Unit Size	Year	Gross Price		Price Per		Cap		Ownership
Property Name	Location	Disposed	Units	Sq. Ft. (1)	Completed	(Thousands) (2)		Sq. Ft. (3)		Rate		%
Acquisitions
Post Lakeside™	Orlando, FL	Q2 2013	300	1,070	2013	$	48,500	$	151		5.2%(4)	100%
Dispositions
Post Renaissance®	Atlanta, GA	Q4 2013	342	914	1992-94	$	47,500	$	152		5.4%(5)	100%

1) Square footage amounts are approximate. Actual square footage may vary.

2) Excludes transaction costs and planned up front capital expenditures, if any.

3) The estimated total price per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage amounts used are approximate. Actual amounts may vary.

4) Based on projected first twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit). Also includes the impact of transaction costs and planned up front capital expenditures, if any.

5) Based on trailing twelve-month net operating income after adjustments for management fee (3%) and capital reserves ($300/unit).

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CAPITALIZED COSTS SUMMARY

(In thousands) - (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 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.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment 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 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 ended March 31, 2014 and 2013 is provided below.

	Three months ended
	March 31,
	2014		2013
New community development and acquisition activity (1)	$	14,913	$	33,932
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		1,286		918
Other community additions and improvements (3)		2,521		4,694
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		2,421		3,474
Corporate additions and improvements		128		340
	$	21,269	$	43,358
Other Data
Capitalized interest	$	846	$	1,004
Capitalized development and associated costs (5)	$	489	$	756

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.

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.

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INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

(In thousands) - (Unaudited)

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 provided below.

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 Massachusetts Avenue™	Washington, D.C.	Apartments	269	35%

Financial Data
	As of March 31, 2014										Three months ended March 31, 2014
Joint Venture Property	Gross Investment in   Real Estate (6)		Mortgage   Notes Payable			Entity     Equity		Company’s     Equity Investment			Entity NOI		Company’s Equity in   Income (Loss)		Mgmt.   Fees &   Other
Post Collier Hills® (1)	$	55,532	$	39,565	(2)	$	7,980	$	(4,834)	(1)	$	725	$	10
Post Crest® (1)		64,862		46,158	(2)		8,957		(7,237)	(1)		842		14
Post Lindbergh® (1)		61,235		41,000	(3)		12,148		(4,759)	(1)		734		(1)
Post Massachusetts Avenue™		71,438		51,000	(4)		3,738		4,039			1,872		462
Total	$	253,067	$	177,723		$	32,823	$	(12,791)		$	4,173	$	485	$	211	(5)

1) 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) These notes bear interest at a fixed rate of 5.63% and mature in June 2017.

3) This note bears interest at a fixed rate of 5.71% and matures in January 2018, at which time it will be automatically extended for a one-year term at a variable interest rate.

4) This note bears interest at a fixed rate of 3.5% and matures in February 2019. The note is prepayable without penalty beginning in February 2017.

5) Amounts include net property and asset management fees to the Company included in “Other Revenues” in the Company’s consolidated statements of operations.

6) Represents GAAP basis net book value plus accumulated depreciation.

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NET ASSET VALUE SUPPLEMENTAL INFORMATION (1)

(In thousands, except unit data, commercial square feet and stock price) - (Unaudited)

Financial Data

	Three months ended					As
Income Statement Data	March 31, 2014		Adjustments			Adjusted (3)
Rental revenues	$	88,028	$	(1,670)	(2)	$	86,358
Other property revenues		5,265		(4)	(2)		5,261
Total rental and other revenues (A)		93,293		(1,674)			91,619
Property operating & maintenance expenses
(excluding depreciation and amortization) (B)		40,596		(4,935)	(2)		35,661
Property net operating income (Table 1) (A-B)	$	52,697	$	3,261		$	55,958
Assumed property management fee
(calculated at 3% of revenues) (A x 3%)							(2,749)
Assumed property capital expenditure reserve
($300 per unit per year based on 19,775 units)							(1,483)
Adjusted property net operating income						$	51,726
Annualized property net operating income (C)						$	206,904
Apartment units represented (D)		22,516		(2,741)	(2)		19,775
Other Asset Data	As of March 31, 2014		Adjustments			As Adjusted
Cash & equivalents	$	74,396	$	-		$	74,396
Real estate assets under construction, at cost (4)		72,519		108,593	(4)		181,112
Land held for future investment		61,811		-			61,811
Assets held for sale (5)		141,430		(141,430)	(5)		-
Investments in and advances to unconsolidated real estate entities (5)		4,039		(4,039)	(5)		-
Restricted cash and other assets		35,266		-			35,266
Cash & other assets of unconsolidated apartment entities (6)		5,092		(3,649)	(6)		1,443
Total (E)	$	394,553	$	(40,525)		$	354,028
Other Liability Data
Indebtedness (7)	$	1,097,709	$	(10,711)	(7)	$	1,086,998
Investments in unconsolidated real estate entities (5)		16,830		(16,830)	(5)		-
Other liabilities (including noncontrolling interests) (8)		99,342		(8,367)	(8)		90,975
Total liabilities of unconsolidated apartment entities (9)		180,336		(130,084)	(9)		50,252
Total (F)	$	1,394,217	$	(165,992)		$	1,228,225

Other Data

	As of March 31, 2014
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (G)					$	43,392
Common shares outstanding		54,339
Common units outstanding		135
Total (H)		54,474	$	49.10	$	2,674,673
Implied market value of Company gross real estate assets (I) = (F+G+H-E)					$	3,592,262
Implied Portfolio Capitalization Rate (C÷I)						5.8%

1) 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.

Supplemental Financial Data 17 | P a g e  

The Company presents NOI for the first quarter ended March 31, 2014, for properties stabilized as of January 1, 2014, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of January 1, 2014, are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.

2) The following table summarizes the adjustments made to the components of property net operating income for the three months ended March 31, 2014, to adjust property net operating income to the Company’s share for fully stabilized communities:

	Rental Revenue		Other Revenue		Expenses		Units
Communities in lease-up	$	(1,755)	$	(124)	$	(1,200)		(1,620)
Company share of unconsolidated entities		1,879		122		688		(1,077)
Minority share of consolidated real estate entity held for sale		(547)		(2)		(299)		(44)
Corporate property management expenses		-		-		(2,890)		-
Corporate apartments and other		(1,247)		-		(1,234)		-
	$	(1,670)	$	(4)	$	(4,935)		(2,741)

3) The following table summarizes the Company’s share of the “As Adjusted” components of property net operating income, apartment units and commercial square feet by market for the three months ended March 31, 2014:

			Property Operating &
	Rental and		Maintenace Expenses		Property Net		Percentage of		Apartment Units /
	Other Revenues		(ex. Deprec. and Amort.)		Operating Income (NOI)		Total NOI		Commercial Sq. Ft.
Atlanta	$	21,903	$	8,400	$	13,503		25.3%		5,365
Dallas		17,805		7,664		10,141		19.0%		4,725
Houston		2,873		1,137		1,736		3.2%		653
Austin		4,357		1,907		2,450		4.6%		935
Washington, D.C.		16,085		5,553		10,532		19.7%		2,739
Tampa		9,251		3,416		5,835		10.9%		2,111
Orlando		3,919		1,420		2,499		4.7%		898
Charlotte		6,596		2,116		4,480		8.4%		1,748
Commercial		3,508		1,249		2,259		4.2%		-
Total		86,297		32,862		53,435		100.0%		19,174
Held for sale		5,322		2,799		2,523				601
	$	91,619	$	35,661	$	55,958				19,775
Approximate commercial Sq. Ft. (10)										664,000

4) The “As Adjusted” amount represents the CIP balance, adjusted for costs of completed apartment units, as follows:

Post Parkside™ at Wade	$                  51,492
Post Lake® at Baldwin Park - Phase III		54,778
Post 510™		32,438
Post Soho Square™		27,179
Post Alexander™ - Phase II		15,225
	$	181,112

5) The adjustments reflect reductions for assets held for sale and the investments in unconsolidated entities, as the net operating income of the held for sale assets and the Company’s respective share of net operating income of such investments in unconsolidated entities is included in the adjusted net operating income reflected above.

6) The “As of March 31, 2014” 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.

7) The adjustment reflects a reduction for the minority interest portion of the consolidated mortgage debt of a consolidated joint venture community. Likewise, only the Company’s majority share of that community is included in the adjusted net operating income reflected above.

8) The “As of March 31, 2014” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses and security deposits and prepaid rents as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense of $8,418, offset by the addition of noncontrolling interests of consolidated real estate entities of $51.

9) The “As of March 31, 2014” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partners’ respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.

10) Commercial square feet excludes 65,900 square feet at held for sale communities at March 31, 2014.

Supplemental Financial Data 18 | P a g e  

NON-GAAP FINANCIAL MEASURES AND OTHER DEFINED TERMS

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 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 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, debt extinguishment gains (losses) and preferred stock redemption 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 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.

Supplemental Financial Data 19 | P a g e  

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 newly stabilized communities, lease-up communities, held for sale communities, sold communities 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 is the line on the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating 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) interest coverage ratios; (2) fixed charge coverage ratios; (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; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. 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.

The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.

Property Operating Statistics - The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property 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. Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post^® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.

Supplemental Financial Data 20 | P a g e  

RECONCILIATIONS OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES

Table 1 - Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income

(In thousands) - (Unaudited)

	Three months ended
	March 31,		March 31,		December 31,
	2014		2013		2013
Total same store NOI	$	46,318	$	45,580	$	46,586
Property NOI from held for sale segment - residential		2,473		2,704		2,734
Property NOI from held for sale segment - commercial		300		423		364
Property NOI from other operating segments		3,606		153		4,279
Consolidated property NOI		52,697		48,860		53,963
Add (subtract):
Interest income		12		36		10
Other revenues		219		214		204
Depreciation		(21,767)		(20,944)		(21,914)
Interest expense		(11,244)		(11,052)		(11,424)
Amortization of deferred financing costs		(645)		(624)		(658)
General and administrative		(4,128)		(4,245)		(4,751)
Investment and development		(811)		(489)		(307)
Other investment costs		(273)		(305)		(85)
Other expenses		(907)		-		(436)
Gains on condominium sales activities, net		810		8,194		476
Equity in income of unconsolidated real estate entities, net		485		478		479
Other income (expense), net		(195)		(166)		(195)
Income from continuing operations		14,253		19,957		15,362
Income from discontinued operations		-		433		28,501
Net income	$	14,253	$	20,390	$	43,863

Supplemental Financial Data 21 | P a g e  

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

(In thousands, except average rental rates)

	Three months ended						Q1 ‘14		Q1 ‘14		Q1 ‘14
	March 31,		March 31,		December 31,		vs. Q1 ‘13		vs. Q4 ‘13		% Same
	2014		2013		2013		% Change		% Change		Store NOI
Rental and other revenues
Atlanta	$	20,846	$	19,817	$	20,682		5.2%		0.8%
Dallas		17,805		17,263		17,604		3.1%		1.1%
Houston		2,256		2,160		2,227		4.4%		1.3%
Austin		2,986		2,884		2,990		3.5%		(0.1)%
Washington, D.C.		12,823		13,040		12,990		(1.7)%		(1.3)%
Tampa		9,251		9,015		9,100		2.6%		1.7%
Orlando		2,709		2,785		2,747		(2.7)%		(1.4)%
Charlotte		6,596		6,548		6,573		0.7%		0.3%
Total rental and other revenues		75,272		73,512		74,913		2.4%		0.5%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		8,091		7,861		8,104		2.9%		(0.2)%
Dallas		7,664		7,191		7,387		6.6%		3.7%
Houston		870		820		857		6.1%		1.5%
Austin		1,345		1,226		1,278		9.7%		5.2%
Washington, D.C.		4,488		4,306		4,373		4.2%		2.6%
Tampa		3,416		3,321		3,272		2.9%		4.4%
Orlando		964		1,108		930		(13.0)%		3.7%
Charlotte		2,116		2,099		2,126		0.8%		(0.5)%
Total		28,954		27,932		28,327		3.7%		2.2%
Net operating income
Atlanta		12,755		11,956		12,578		6.7%		1.4%		27.5%
Dallas		10,141		10,072		10,217		0.7%		(0.7)%		21.9%
Houston		1,386		1,340		1,370		3.4%		1.2%		3.0%
Austin		1,641		1,658		1,712		(1.0)%		(4.1)%		3.5%
Washington, D.C.		8,335		8,734		8,617		(4.6)%		(3.3)%		18.0%
Tampa		5,835		5,694		5,828		2.5%		0.1%		12.6%
Orlando		1,745		1,677		1,817		4.1%		(4.0)%		3.8%
Charlotte		4,480		4,449		4,447		0.7%		0.7%		9.7%
Total same store NOI	$	46,318	$	45,580	$	46,586		1.6%		(0.6)%		100.0%
Average rental rate per unit
Atlanta	$	1,301	$	1,247	$	1,296		4.3%		0.4%
Dallas		1,232		1,199		1,228		2.8%		0.3%
Houston		1,374		1,306		1,364		5.2%		0.7%
Austin		1,551		1,490		1,544		4.1%		0.5%
Washington, D.C.		1,868		1,889		1,875		(1.1)%		(0.4)%
Tampa		1,402		1,371		1,396		2.3%		0.4%
Orlando		1,484		1,512		1,490		(1.9)%		(0.4)%
Charlotte		1,245		1,213		1,243		2.6%		0.2%
Total average rental rate per unit		1,380		1,349		1,377		2.3%		0.2%

Supplemental Financial Data 22 | P a g e  

Table 3 - Operating Community Table

Market / Submarket / Community	Yr. Completed / Yr. of Substantial           Renovations	No. of           Units		Avg. Unit Size     (Sq. Ft.)		Q1 2014 Avg. Monthly Rent				Q1 2014 Average Economic     Occ.
						Per     Unit		Per     Sq. Ft.
Atlanta
Buckhead / Brookhaven
Post Alexander™	2008		307		1,015	$	1,718	$	1.69		97.0%
Post Brookhaven®	1990-1992		735		933		1,142		1.22		97.3%
Post Chastain®	1990/2008		558		866		1,260		1.45		96.0%
Post Collier Hills® (1)(2)	1997		396		948		1,120		1.18		95.3%
Post Gardens®	1998		397		1,039		1,294		1.25		94.9%
Post Glen® (2)	1997		314		1,076		1,298		1.21		98.4%
Post Lindbergh® (1)(2)	1998		396		909		1,165		1.28		94.4%
Post Peachtree Hills®	1992-1994/2009		300		978		1,391		1.42		97.8%
Post StratfordTM	2000		250		1,000		1,376		1.38		97.1%
Dunwoody
Post Crossing® (2)	1995		354		1,036		1,190		1.15		96.2%
Emory Area
Post BriarcliffTM (2)	1999		688		1,006		1,237		1.23		96.5%
Midtown
Post ParksideTM	2000		188		886		1,559		1.76		99.4%
Northwest Atlanta
Post Crest® (1)(2)	1996		410		1,033		1,097		1.06		98.0%
Post Riverside®	1998		522		1,059		1,522		1.44		94.5%
Post SpringTM	2000		452		977		1,055		1.08		96.0%
Dallas
North Dallas
Post Addison CircleTM (2)	1998-2000		1,334		846		1,084		1.28		95.1%
Post EastsideTM	2008		435		912		1,201		1.32		95.0%
Post Legacy	2000		384		810		1,074		1.33		96.9%
Post Sierra at Frisco Bridges™	2009		268		896		1,123		1.25		96.0%
Uptown Dallas
Post AbbeyTM	1996		34		1,223		2,025		1.66		97.3%
Post Cole’s CornerTM	1998		186		800		1,198		1.50		97.7%
Post GalleryTM	1999		34		2,307		2,900		1.26		99.5%
Post HeightsTM	1998-1999/2009		368		845		1,373		1.62		94.5%
Post Katy Trail™	2010		227		898		1,641		1.83		96.5%
Post MeridianTM	1991		133		780		1,347		1.73		93.8%
Post SquareTM	1996		216		856		1,358		1.59		93.8%
Post Uptown VillageTM	1995-2000		496		736		1,140		1.55		96.5%
Post VineyardTM	1996		116		733		1,190		1.62		96.0%
Post VintageTM	1993		160		750		1,251		1.67		96.5%
Post WorthingtonTM	1993/2008		334		820		1,483		1.81		94.1%
Houston
Post 510™ (4)	2014		242		857		1,663		1.94		3.4%
Post Midtown Square® - Phases I & II	1999-2000		529		759		1,374		1.81		97.5%
Post Midtown Square® - Phase III	2012		124		889		1,744		1.96		95.3%
Post Rice LoftsTM (5)	1998		308		904		1,598		1.77		97.3%

Supplemental Financial Data 23 | P a g e  

Table 3 (con’t) - Operating Community Table

Market / Submarket / Community	Yr. Completed / Yr. of Substantial           Renovations	No. of           Units		Avg. Unit Size     (Sq. Ft.)		Q1 2014 Avg. Monthly Rent				Q1 2014 Average Economic     Occ.
						Per     Unit		Per     Sq. Ft.
Austin
Post Barton Creek™	1998		160		1,162	$	1,791	$	1.54		92.6%
Post Park Mesa™	1992		148		1,091		1,496		1.37		94.9%
Post South Lamar™	2012		298		853		1,614		1.89		94.7%
Post West Austin™	2009		329		889		1,549		1.74		96.2%
Washington D.C.
Maryland
Post Fallsgrove	2003		361		983		1,712		1.74		94.4%
Post Park®	2010		396		975		1,649		1.69		95.5%
Virginia
Post Carlyle Square™ - Phase I	2006		205		861		2,319		2.69		97.6%
Post Carlyle Square™ - Phase II	2012		344		906		2,416		2.67		93.3%
Post Corners at Trinity Centre (2)	1996		336		994		1,613		1.62		90.3%
Post Pentagon Row TM	2001		504		853		2,279		2.67		91.9%
Post Tysons Corner TM	1990		499		807		1,726		2.14		87.8%
Washington D.C.
Post Massachusetts Avenue TM (1)(2)	2002		269		883		3,234		3.66		95.2%
New York City
Post Luminaria TM (2)(3)(5)	2002		138		721		3,909		5.42		95.6%
Post Toscana TM (2)(5)	2003		199		817		3,915		4.79		94.7%
Tampa
Post Bay at Rocky Point™	1997		150		1,012		1,413		1.40		96.6%
Post Harbour PlaceTM	1999-2002		578		920		1,528		1.66		98.3%
Post Hyde Park® (2)	1996-2008		467		1,011		1,477		1.46		98.3%
Post Rocky Point®	1996-1998		916		1,031		1,282		1.24		95.0%
Post Soho Square™ (4)	2014		231		880		1,593		1.81		N/A
Orlando
Post Lake® at Baldwin Park	2004-2007		350		1,013		1,491		1.47		95.2%
Post Lake® at Baldwin Park - Phase III (4)	2013		410		960		1,526		1.59		60.0%
Post Lakeside™	2013		300		1,070		1,302		1.22		95.0%
Post ParksideTM	1999		248		867		1,474		1.70		97.6%
Charlotte
Post Ballantyne	2004		323		1,252		1,188		0.95		94.5%
Post Gateway PlaceTM	2000		436		804		1,121		1.39		92.9%
Post Park at Phillips Place®	1998		402		1,101		1,392		1.26		97.0%
Post South End™	2009		360		847		1,325		1.56		95.7%
Post Uptown PlaceTM	2000		227		800		1,178		1.47		93.9%
Raleigh
Post Parkside™ at Wade (4)	2013		397		875		1,015		1.16		56.4%

1) Communities held in unconsolidated entities.

2) Communities encumbered by secured mortgage indebtedness.

3) The Company owns a 68% interest in this community.

4) During the period, these communities, or portions thereof, were currently in lease-up.

5) These communities are held for sale at March 31, 2014.

Supplemental Financial Data 24 | P a g e  

Table 4 - Year-to-Date Margin Analysis

(In thousands)

	Three months ended March 31, 2014
	Rental and Other Property Revenues		Property     Operating &     Maintenance Expenses		Net     Operating     Income (“NOI”)		NOI     Margin	Expense     Margin
Same store communities	$	75,272	$	28,954	$	46,318	61.5%	38.5%
Newly stabilized communities (1)		4,306		1,633		2,673	62.1%	37.9%
Lease-up communities		1,879		1,200		679	N/A	N/A
Acquired communities		1,210		456		754	62.3%	37.7%
Held for sale communities		5,871		3,098		2,773	47.2%	52.8%
Other property segments:
Corporate apartments		1,247		1,116		131	10.5%	89.5%
Commercial		3,508		1,249		2,259	64.4%	35.6%
Corporate property management expenses (2)		-		2,890		(2,890)
	$	93,293	$	40,596
Consolidated property NOI (3)					$	52,697
Third-party management fees					$	211

1) The following table summarizes the Company’s net property management expense as a percentage of adjusted property revenues:

Numerator:
Corporate property management expenses	$	2,890
Less: Third-party management fees		(211)
Net property management expenses	$	2,679
Denominator:
Total rental and other property revenues	$	93,293
Less: Corporate apartment revenues		(1,247)
Adjusted property revenues	$	92,046
Net property management expenses as a percentage of adjusted property revenues		2.9%

2) Consolidated property NOI is a non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of consolidated property NOI to GAAP net income.

Supplemental Financial Data 25 | P a g e  

Table 5 - Reconciliation of Segment Cash Flow Data to Statements of Cash Flows

(In thousands)

	Three months ended March 31,
	2014		2013
Annually recurring capital expenditures by operating segment
Same store communities	$	2,246	$	3,296
Newly stabilized communities		5		14
Lease-up communities		10		3
Acquired communities		11		-
Held for sale communities		88		69
Commercial and other segments		61		92
Total annually recurring capital expenditures	$	2,421	$	3,474
Periodically recurring capital expenditures by operating segment
Same store communities	$	1,322	$	2,898
Newly stabilized communities		1		2
Lease-up communities		1		-
Acquired communities		1		-
Held for sale communities		256		1,524
Commercial and other segments		940		270
Total periodically recurring capital expenditures	$	2,521	$	4,694
Total revenue generating capital expenditures	$	1,286	$	918
Increase in capital expenditure accruals	$	(335)	$	(1,285)
Total property capital expenditures per statements of cash flows	$	5,893	$	7,801

Table 6 - Computation of Debt Ratios

(In thousands)

	As of March 31,
	2014		2013
Total real estate assets per balance sheet	$	2,248,691	$	2,203,873
Plus:
Company share of real estate assets held in unconsolidated entities		57,389		58,448
Company share of accumulated depreciation - assets held in unconsolidated entities		13,022		11,526
Accumulated depreciation per balance sheet		875,069		863,594
Accumulated depreciation on assets held for sale		59,163		-
Total undepreciated real estate assets (A)	$	3,253,334	$	3,137,441
Total debt per balance sheet	$	1,097,709	$	1,101,495
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,147,240	$	1,151,026
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		35.3%		36.7%
Total debt per balance sheet	$	1,097,709	$	1,101,495
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531
Preferred shares at liquidation value		43,392		43,392
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,190,632	$	1,194,418
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		36.6%		38.1%

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Table 7 - Computation of Coverage Ratios

(In thousands)

	Three months ended March 31,
	2014		2013
Net income	$	14,253	$	20,390
Other non-cash (income) expense, net		1,214		953
Income tax expense, net		202		166
Gains on condominium sales activities, net		(810)		(8,194)
Depreciation expense		21,767		20,944
Depreciation expense - discontinued operations		-		177
Depreciation and amortization (company share) - unconsolidated entities		300		297
Interest expense		11,244		11,052
Interest expense - discontinued operations		-		90
Interest expense (company share) - unconsolidated entities		604		604
Amortization of deferred financing costs		645		624
Income available for debt service (A)	$	49,419	$	47,103
Annualized income available for debt service (B)	$	197,676	$	188,412
Interest expense	$	11,244	$	11,052
Interest expense - discontinued operations		-		90
Interest expense (company share) - unconsolidated entities		604		604
Adjusted interest expense (C)		11,848		11,746
Capitalized interest		846		1,004
Adjusted interest expense (including capitalized interest) (D)	$	12,694	$	12,750
Adjusted interest expense	$	11,848	$	11,746
Dividends to preferred shareholders		922		922
Fixed charges (E)		12,770		12,668
Capitalized interest		846		1,004
Fixed charges (including capitalized interest) (F)	$	13,616	$	13,672
Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G)	$	1,147,240	$	1,151,026
Interest coverage ratio (A÷C)		4.2x		4.0x
Interest coverage ratio (including capitalized interest) (A÷D)		3.9x		3.7x
Fixed charge coverage ratio (A÷E)		3.9x		3.7x
Fixed charge coverage ratio (including capitalized interest) (A÷F)		3.6x		3.4x
Total debt to annualized income available for debt service ratio (G÷B)		5.8x		6.1x

Supplemental Financial Data 27 | P a g e  

Table 8 - Calculation of Company Undepreciated Book Value Per Share

(In thousands, except per share data)

	March 31, 2014
Total Company shareholders’ equity per balance sheet	$	1,150,103
Plus:
Accumulated depreciation, per balance sheet		875,069
Accumulated depreciation held for sale assets, per balance sheet		59,163
Noncontrolling interest of common unitholders - Operating Partnership		6,645
Less:
Deferred financing costs, net, per balance sheet		(7,966)
Preferred shares at liquidation value		(43,392)
Total undepreciated book value (A)	$	2,039,622
Total common shares and units (B)		54,474
Company undepreciated book value per share (A÷B)	$	37.44

Supplemental Financial Data 28 | P a g e