10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file numbers 1-12080 and 0-28226

POST PROPERTIES, INC.

POST APARTMENT HOMES, L.P.

(Exact name of registrant as specified in its charter)

Georgia	58-1550675
Georgia	58-2053632
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4401 Northside Parkway, Suite 800, Atlanta, Georgia 30327

(Address of principal executive offices — zip code)

(404) 846-5000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

Post Properties, Inc.	Yes	x	No	¨
Post Apartment Homes, L.P.	Yes	x	No	¨

Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period as the registrant was required to submit and post such files).

Post Properties, Inc.	Yes	x	No	¨
Post Apartment Homes, L.P.	Yes	x	No	¨

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers or smaller reporting company. See definition of accelerated filer, large accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Post Properties, Inc.	Large Accelerated Filer	x	Accelerated Filer	¨
	Non-Accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨
Post Apartment Homes, L.P.	Large Accelerated Filer	¨	Accelerated Filer	¨
	Non-Accelerated Filer	x  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Post Properties, Inc.	Yes	¨	No	x
Post Apartment Homes, L.P.	Yes	¨	No	x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:

54,339,043 shares of common stock outstanding as of April 30, 2014.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2014, of Post Properties, Inc. and Post Apartment Homes, L.P. Unless stated otherwise or the context otherwise requires, references to “Post Properties” or the “Company” mean Post Properties, Inc. and its controlled and consolidated subsidiaries. References to “Post Apartment Homes” or the “Operating Partnership” mean Post Apartment Homes, L.P. and its controlled and consolidated subsidiaries. The terms “the Company,” “we,” “our” and “us” refer to the Company or the Company and the Operating Partnership collectively, as the text requires.

The Company is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. As of March 31, 2014, the Company owned an approximate 99.8% interest in the Operating Partnership. The remaining 0.2% interests are owned by persons other than the Company.

Management believes that combining the two quarterly reports on Form 10-Q for the Company and the Operating Partnership provides the following benefits:

• Combined reports better reflect how management and the analyst community view the business as a single operating unit;

• Combined reports enhance investors’ understanding of the Company and the Operating Partnership by enabling them to view the business and its results as a whole and in the same manner as management;

• Combined reports are more efficiently prepared by the Company and the Operating Partnership and result in time and cost efficiencies; and

• Combined reports are more efficiently reviewed by investors and analysts by reducing the amount of duplicate disclosures.

Management operates the Company and the Operating Partnership as one business. The management of the Company is comprised of the same members as the management of the Operating Partnership. These individuals are officers of the Company and employees of the Operating Partnership.

The Company believes it is important to understand the few differences between the Company and the Operating Partnership in the context of how these two entities operate as a consolidated company. The Company is a REIT, and its only material asset is its ownership of partnership interests of the Operating Partnership. As a result, the Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership. The Operating Partnership holds all of the assets and indebtedness of the Company and retains the ownership interests in the Company’s joint ventures. Except for net proceeds from public equity issuances by the Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates all remaining capital required by the Company’s business. These sources include the Operating Partnership’s operations and its direct or indirect incurrence of indebtedness.

There are a few differences in the disclosures for the Company and the Operating Partnership which are reflected and presented as such in the consolidated footnotes to the financial statements to this Form 10-Q. Noncontrolling interests and the presentation of equity are the main areas of difference between the consolidated financial statements of the Company and the Operating Partnership. The Company’s consolidated statement of operations reflects a reduction to income for the noncontrolling interests held by the Operating Partnership’s unitholders other than the Company (0.2% at March 31, 2014). This quarterly report on Form 10-Q presents the following separate financial information for both the Company and the Operating Partnership:

• Consolidated financial statements;

• The following information in the notes to the consolidated financial statements:

• Computation of earnings per share for the Company

• Computation of earnings per unit for the Operating Partnership

POST PROPERTIES, INC.

POST APARTMENT HOMES, L.P.

INDEX

		Page
Part I	FINANCIAL INFORMATION
	Item 1 Financial Statements
	POST PROPERTIES, INC.
	Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013		1
	Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013		2
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013		3
	Consolidated Statements of Equity and Accumulated Earnings for the three months ended March 31, 2014 and 2012		4
	Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013		5
	POST APARTMENT HOMES, L.P.
	Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013		6
	Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013		7
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013		8
	Consolidated Statements of Equity for the three months ended March 31, 2014 and 2013		9
	Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013		10
	POST PROPERTIES, INC. & POST APARTMENT HOMES, L.P.
	Notes to Consolidated Financial Statements		11
	Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
	Item 3 Quantitative and Qualitative Disclosures about Market Risk		45
	Item 4 Controls and Procedures		46
Part II	OTHER INFORMATION
	Item 1 Legal Proceedings		46
	Item 1A Risk Factors		46
	Item 2 Unregistered Sales of Equity Securities and Use of Proceeds		47
	Item 3 Defaults Upon Senior Securities		47
	Item 4 Mine Safety Disclosures		47
	Item 5 Other Information		47
	Item 6 Exhibits		48
	Signatures		49
	Exhibit Index		51

POST PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	March 31,			December 31,
	2014			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		1,112,829			1,111,861
Accumulated earnings		58,225			66,138
Accumulated other comprehensive income (loss)		(3,399	)		(3,419	)
		1,168,210			1,175,135
Less common stock in treasury, at cost, 375 and 519 shares at March 31, 2014 and December 31, 2013, respectively		(18,107	)		(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

The accompanying notes are an integral part of these consolidated financial statements.

1

POST PROPERTIES, INC.

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		811			489
Other investment costs		273			305
Other expenses		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		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
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
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
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

The accompanying notes are an integral part of these consolidated financial statements.

2

POST PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three months ended
	March 31,
	2014			2013
Net income	$	14,253		$	20,390
Net change in derivative financial instruments		20			925
Total comprehensive income		14,273			21,315
Comprehensive income attributable to noncontrolling interests:
Consolidated real estate entities		16			3
Operating Partnership		(33	)		(53	)
Total Company comprehensive income	$	14,256		$	21,265

The accompanying notes are an integral part of these consolidated financial statements.

3

POST PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF EQUITY AND ACCUMULATED EARNINGS

(In thousands, except per share data)

(Unaudited)

											Accumulated									Noncontrolling
					Additional						Other						Total			Interests -
	Preferred		Common		Paid-in			Accumulated			Comprehensive			Treasury			Company			Consolidated			Total
	Stock		Stock		Capital			Earnings			Income (Loss)			Stock			Equity			Real Estate Entities			Equity
2014
Equity & Accum. Earnings, December 31, 2013	$	9	$	546	$	1,111,861		$	66,138		$	(3,419	)	$	(22,188	)	$	1,152,947		$	(216	)	$	1,152,731
Comprehensive income		—		—		—			14,236			20			—			14,256			(16	)		14,240
Employee stock purchase, stock option and other plan issuances		—		—		29			(1,134	)		—			4,081			2,976			—			2,976
Adjustment for ownership interest of redeemable common units		—		—		(7	)		—			—			—			(7	)		—			(7	)
Stock-based compensation		—		—		946			—			—			—			946			—			946
Dividends to preferred shareholders		—		—		—			(922	)		—			—			(922	)		—			(922	)
Dividends to common shareholders ($0.36 per share)		—		—		—			(19,562	)		—			—			(19,562	)		—			(19,562	)
Distributions to noncontrolling interests - consolidated real estate entities		—		—		—			—			—			—			—			(39	)		(39	)
Adjustment to redemption value of redeemable common units		—		—		—			(531	)		—			—			(531	)		—			(531	)
Equity & Accum. Earnings, March 31, 2014	$	9	$	546	$	1,112,829		$	58,225		$	(3,399	)	$	(18,107	)	$	1,150,103		$	(271	)	$	1,149,832
2013
Equity & Accum. Earnings, December 31, 2012	$	9	$	545	$	1,107,354		$	27,266		$	(11,679	)	$	(3,781	)	$	1,119,714		$	(94	)	$	1,119,620
Comprehensive income		—		—		—			20,342			923			—			21,265			(3	)		21,262
Employee stock purchase, stock option and other plan issuances		—		1		1,212			—			—			581			1,794			—			1,794
Adjustment for ownership interest of redeemable common units		—		—		(5	)		—			—			—			(5	)		—			(5	)
Stock-based compensation		—		—		822			—			—			—			822			—			822
Dividends to preferred shareholders		—		—		—			(922	)		—			—			(922	)		—			(922	)
Dividends to common shareholders ($0.25 per share)		—		—		—			(13,647	)		—			—			(13,647	)		—			(13,647	)
Distributions to noncontrolling interests - consolidated real estate entities		—		—		—			—			—			—			—			(57	)		(57	)
Adjustment to redemption value of redeemable common units		—		—		—			432			—			—			432			—			432
Equity & Accum. Earnings, March 31, 2013	$	9	$	546	$	1,109,383		$	33,471		$	(10,756	)	$	(3,200	)	$	1,129,453		$	(154	)	$	1,129,299

The accompanying notes are an integral part of these consolidated financial statements.

4

POST PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three months ended
	March 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	14,253		$	20,390
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		21,767			21,121
Amortization of deferred financing costs		645			624
Net gains on sales of real estate assets		(810	)		(8,194	)
Other, net		271			700
Equity in income of unconsolidated entities, net		(485	)		(478	)
Distributions of earnings of unconsolidated entities		622			675
Stock-based compensation		948			824
Changes in assets, decrease (increase) in:
Other assets		1,078			(393	)
Changes in liabilities, increase (decrease) in:
Accrued interest payable		3,885			3,758
Accounts payable and accrued expenses		(9,718	)		(6,299	)
Security deposits and prepaid rents		(1,104	)		149
Net cash provided by operating activities		31,352			32,877
Cash Flows From Investing Activities
Development and construction of real estate assets		(16,907	)		(32,313	)
Proceeds from sales of real estate assets		2,442			19,500
Capitalized interest		(846	)		(1,004	)
Property capital expenditures		(5,893	)		(7,801	)
Corporate additions and improvements		(128	)		(340	)
Other investments		(29	)		—
Net cash used in investing activities		(21,361	)		(21,958	)
Cash Flows From Financing Activities
Payments on indebtedness		(1,025	)		(969	)
Payments of financing costs and other		(102	)		(265	)
Proceeds from employee stock purchase and stock options plans		2,311			1,104
Distributions to noncontrolling interests - real estate entities		(39	)		(57	)
Distributions to noncontrolling interests - common unitholders		(45	)		(36	)
Dividends paid to preferred shareholders		(922	)		(922	)
Dividends paid to common shareholders		(17,883	)		(13,618	)
Net cash used in financing activities		(17,705	)		(14,763	)
Net decrease in cash and cash equivalents		(7,714	)		(3,844	)
Cash and cash equivalents, beginning of period		82,110			118,698
Cash and cash equivalents, end of period	$	74,396		$	114,854

The accompanying notes are an integral part of these consolidated financial statements.

5

POST APARTMENT HOMES, L.P.

CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31,			December 31,
	2014			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
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
Operating Partnership equity
Preferred units		43,392			43,392
Common units
General partner		12,691			12,715
Limited partner		1,097,419			1,100,259
Accumulated other comprehensive income (loss)		(3,399	)		(3,419	)
Total Operating Partnership 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

The accompanying notes are an integral part of these consolidated financial statements.

6

POST APARTMENT HOMES, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit 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		811			489
Other investment costs		273			305
Other expenses		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		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
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
Net income available to the Operating Partnership		14,269			20,393
Distributions to preferred unitholders		(922	)		(922	)
Net income available to common unitholders	$	13,347		$	19,471
Per common unit data—Basic
Income from continuing operations (net of preferred distributions)	$	0.25		$	0.35
Income from discontinued operations		—			0.01
Net income available to common unitholders	$	0.25		$	0.36
Weighted average common units outstanding—basic		54,310			54,580
Per common unit data—Diluted
Income from continuing operations (net of preferred distributions)	$	0.24		$	0.35
Income from discontinued operations		—			0.01
Net income available to common unitholders	$	0.24		$	0.35
Weighted average common units outstanding—diluted		54,426			54,782

The accompanying notes are an integral part of these consolidated financial statements.

7

POST APARTMENT HOMES, L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three months ended
	March 31,
	2014		2013
Net income	$	14,253	$	20,390
Net change in derivative financial instruments		20		925
Total comprehensive income		14,273		21,315
Comprehensive income attributable to noncontrolling interests:
Consolidated real estate entities		16		3
Total Operating Partnership comprehensive income	$	14,289	$	21,318

The accompanying notes are an integral part of these consolidated financial statements.

8

POST APARTMENT HOMES, L.P.

CONSOLIDATED STATEMENTS OF EQUITY

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

										Accumulated			Total			Noncontrolling
				Common Units						Other			Operating			Interests -
	Preferred			General			Limited			Comprehensive			Partnership			Consolidated			Total
	Units			Partner			Partners			Income (Loss)			Equity			Real Estate Entities			Equity
2014
Equity, December 31, 2013	$	43,392		$	12,715		$	1,100,259		$	(3,419	)	$	1,152,947		$	(216	)	$	1,152,731
Comprehensive income		922			133			13,181			20			14,256			(16	)		14,240
Contributions from the Company related to employee stock purchase, stock option and other plans		—			30			2,946			—			2,976			—			2,976
Adjustment for ownership interest of redeemable common units		—			—			(7	)		—			(7	)		—			(7	)
Equity-based compensation		—			9			937			—			946			—			946
Distributions to preferred unitholders		(922	)		—			—			—			(922	)		—			(922	)
Distributions to common unitholders ($0.36 per unit)		—			(196	)		(19,366	)		—			(19,562	)		—			(19,562	)
Distributions to noncontrolling interests—consolidated real estate entities		—			—			—			—			—			(39	)		(39	)
Adjustment to redemption value of redeemable common units		—			—			(531	)		—			(531	)		—			(531	)
Equity, March 31, 2014	$	43,392		$	12,691		$	1,097,419		$	(3,399	)	$	1,150,103		$	(271	)	$	1,149,832
2013
Equity, December 31, 2012	$	43,392		$	12,477		$	1,075,524		$	(11,679	)	$	1,119,714		$	(94	)	$	1,119,620
Comprehensive income		922			195			19,225			923			21,265			(3	)		21,262
Contributions from the Company related to employee stock purchase, stock option and other plans		—			18			1,776			—			1,794			—			1,794
Adjustment for ownership interest of redeemable common units		—			—			(5	)		—			(5	)		—			(5	)
Equity-based compensation		—			8			814			—			822			—			822
Distributions to preferred unitholders		(922	)		—			—			—			(922	)		—			(922	)
Distributions to common unitholders ($0.25 per unit)		—			(137	)		(13,510	)		—			(13,647	)		—			(13,647	)
Distributions to noncontrolling interests—consolidated real estate entities		—			—			—			—			—			(57	)		(57	)
Adjustment to redemption value of redeemable common units		—			—			432			—			432			—			432
Equity, March 31, 2013	$	43,392		$	12,561		$	1,084,256		$	(10,756	)	$	1,129,453		$	(154	)	$	1,129,299

The accompanying notes are an integral part of these consolidated financial statements.

9

POST APARTMENT HOMES, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three months ended
	March 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	14,253		$	20,390
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		21,767			21,121
Amortization of deferred financing costs		645			624
Net gains on sales of real estate assets		(810	)		(8,194	)
Other, net		271			700
Equity in income of unconsolidated entities, net		(485	)		(478	)
Distributions of earnings of unconsolidated entities		622			675
Equity-based compensation		948			824
Changes in assets, decrease (increase) in:
Other assets		1,078			(393	)
Changes in liabilities, increase (decrease) in:
Accrued interest payable		3,885			3,758
Accounts payable and accrued expenses		(9,718	)		(6,299	)
Security deposits and prepaid rents		(1,104	)		149
Net cash provided by operating activities		31,352			32,877
Cash Flows From Investing Activities
Development and construction of real estate assets		(16,907	)		(32,313	)
Proceeds from sales of real estate assets		2,442			19,500
Capitalized interest		(846	)		(1,004	)
Property capital expenditures		(5,893	)		(7,801	)
Corporate additions and improvements		(128	)		(340	)
Other investments		(29	)		—
Net cash used in investing activities		(21,361	)		(21,958	)
Cash Flows From Financing Activities
Payments on indebtedness		(1,025	)		(969	)
Payments of financing costs and other		(102	)		(265	)
Contributions from the Company related to stock sales, employee stock purchase and stock option plans		2,311			1,104
Distributions to noncontrolling interests—real estate entities		(39	)		(57	)
Distributions to noncontrolling interests—non-Company common unitholders		(45	)		(36	)
Distributions to preferred unitholders		(922	)		(922	)
Distributions to common unitholders		(17,883	)		(13,618	)
Net cash used in financing activities		(17,705	)		(14,763	)
Net decrease in cash and cash equivalents		(7,714	)		(3,844	)
Cash and cash equivalents, beginning of period		82,110			118,698
Cash and cash equivalents, end of period	$	74,396		$	114,854

The accompanying notes are an integral part of these consolidated financial statements.

10

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization

Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise.

The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Internal Revenue Code of 1986, as amended.

At March 31, 2014, the Company had 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. At March 31, 2014, approximately 28.9%, 21.8%, 13.4% and 9.7% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively.

At March 31, 2014, the Company had outstanding 54,339 shares of common stock and owned the same number of units of common limited partnership interests (“Common Units”) in the Operating Partnership, representing a 99.8% ownership interest in the Operating Partnership. Common Units held by persons other than the Company totaled 135 at March 31, 2014 and represented a 0.2% common minority interest in the Operating Partnership. Each Common Unit may be redeemed by the holder thereof for either one share of Company common stock or cash equal to the fair market value thereof at the time of redemption, at the option, but outside the control, of the Operating Partnership. The Operating Partnership presently anticipates that it will cause shares of common stock to be issued in connection with each such redemption rather than paying cash (as has been done in all redemptions to date). With each redemption of outstanding Common Units for Company common stock, the Company’s percentage ownership interest in the Operating Partnership will increase. In addition, whenever the Company issues shares of common stock, the Company will contribute any net proceeds therefrom to the Operating Partnership and the Operating Partnership will issue an equivalent number of Common Units to the Company. The Company’s weighted average common ownership interest in the Operating Partnership was 99.8% and 99.7% for the three months ended March 31, 2014 and 2013, respectively.

Basis of presentation

The accompanying unaudited financial statements have been prepared by the Company’s management in accordance with generally accepted accounting principles for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2013.

The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries. The Company also consolidates other entities in which it has a controlling financial interest or entities where it is determined to be the primary beneficiary under ASC Topic 810, “Consolidation.” Under ASC Topic 810, variable interest entities (“VIEs”) are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The application of ASC Topic 810 requires management to make significant estimates and

11

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

judgments about the Company’s and its other partners’ rights, obligations and economic interests in such entities. For entities in which the Company has less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, the Company’s share of the net earnings or losses of these entities is included in consolidated net income. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company’s noncontrolling interest of common unitholders (also referred to as “Redeemable Common Units”) in the operations of the Operating Partnership is calculated based on the weighted average unit ownership during the period.

Revenue recognition

Residential properties are leased under operating leases with terms of generally one year or less. Rental revenues from residential leases are recognized on the straight-line method over the approximate life of the leases, which is generally one year. The recognition of rental revenues from residential leases when earned has historically not been materially different from rental revenues recognized on a straight-line basis.

Under the terms of residential leases, the residents of the Company’s residential communities are obligated to reimburse the Company for certain utility usage, water and electricity (at selected properties), where the Company is the primary obligor to the public utility entity. These utility reimbursements from residents are reflected as other property revenues in the consolidated statements of operations.

Sales and the associated gains or losses of real estate assets and for-sale condominiums were recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment – Real Estate Sales.” In periods through March 31, 2014, the Company accounted for condominium projects under the deposit method based on an evaluation of the factors specified in ASC Topic 360-20. As of March 31, 2014, the Company has no remaining investments in condominium communities. Under ASC Topic 360-20, the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. In subsequent periods, cumulative project cost of sale allocations and the resulting profits were adjusted to reflect changes in the actual and estimated costs and revenues of each project.

Cost capitalization

For communities under development or construction, the Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs associated with the development and construction activity. Interest is capitalized to projects under development or construction based upon the weighted average cumulative project costs for each month multiplied by the Company’s weighted average borrowing costs, expressed as a percentage. Weighted average borrowing costs include the costs of the Company’s fixed rate secured and unsecured borrowings and the variable rate unsecured borrowings under its line of credit facilities. The weighted average borrowing costs, expressed as a percentage, was 4.6% for the three months ended March 31, 2014 and 2013. Aggregate interest costs capitalized to projects under development or construction were $846 and $1,004 for the three months ended March 31, 2014 and 2013, respectively. Internal development and construction personnel and associated costs are capitalized to projects under development or construction based upon the effort associated with such projects. Aggregate internal development and construction personnel and associated costs capitalized to projects under development or construction were $489 and $756 for the three months ended March 31, 2014 and 2013, respectively. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the completion of rental and condominium units, interest and other construction costs are capitalized and 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 or sale. This results in a proration of costs between amounts that are capitalized and expensed as the residential units in apartment and condominium development communities become available for occupancy or sale. In addition, prior to the completion of rental units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing as well as property management and leasing personnel expenses) of such rental communities. Prior to the completion and closing of condominium units, the Company expenses all sales and marketing costs related to such units.

Real estate assets, depreciation and impairment

Real estate assets are stated at the lower of depreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and components—40 years; other building and land improvements—20 years; furniture, fixtures and equipment – 5-10 years).

12

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment.” Factors considered by management in evaluating impairment of its existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value.

The Company periodically classifies real estate assets as held for sale. An asset is classified as held for sale after the approval of the Company’s board of directors and after an active program to sell the asset has commenced. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the accompanying consolidated balance sheets. Upon a decision to no longer market an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. As of March 31, 2014, the Company had three apartment communities classified as held for sale on the consolidated balance sheet.

For condominium communities, the operating results and associated gains and losses are reflected on the consolidated statement of operations in the caption titles “Net gains on condominium sales activities” (see discussion under “revenue recognition” above), and the net book value of the condominium assets is reflected separately on the consolidated balance sheet in the caption titled, “For-sale condominiums.”

Derivative financial instruments

The Company accounts for derivative financial instruments at fair value under the provisions of ASC Topic 815, “Derivatives and Hedging.” The Company measures derivative financial instruments subject to master netting agreements on a net basis. The Company uses derivative financial instruments, primarily interest rate swap arrangements to manage or hedge its exposure to interest rate changes. Under ASC Topic 815, derivative instruments qualifying as hedges of specific cash flows are recorded on the balance sheet at fair value with an offsetting increase or decrease to accumulated other comprehensive income, an equity account, until the hedged transactions are recognized in earnings. Quarterly, the Company evaluates the effectiveness of its cash flow hedges. Any ineffective portion of cash flow hedges is recognized immediately in earnings.

Fair value measurements

The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets recorded at fair value, if any, to its impairment valuation analysis of real estate assets, to its disclosure of the fair value of financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 are summarized in note 8 utilizing the following hierarchy:

• Level 1 – Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

• Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

• Level 3 – Unobservable inputs for the assets or liability.

Recently issued and adopted accounting pronouncements (discontinued operations)

In April 2014, Accounting Standards Update No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity” was issued. This guidance amends ASC Topics 360 and 205 and changes the requirements for reporting discontinued operations. Under the new guidance, a disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The new guidance also modifies the disclosure requirements for disposal groups reported as discontinued operations and for other significant disposal groups not reported as discontinued operations. Generally, the new guidance will result in fewer asset disposal groups being reported as discontinued operations in the Company’s financial statements. ASU 2014-08 is to be applied prospectively for periods on or after December 31, 2014 with early adoption permitted, but only for assets held for sale or sold that have not been reported in previously issued financial statements. The Company early adopted ASU 2014-08, effective as of January 1, 2014 (see note 2).

13

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Supplemental cash flow information

Supplemental cash flow information for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014			2013
Interest paid, including interest capitalized	$	8,205		$	8,388
Income tax payments, net		7			—
Non-cash investing and financing activities:
Dividends and distributions payable		19,611			13,682
Common stock 401k matching contribution		658			670
Construction and property capital expenditure cost accruals, increase (decrease)		(2,395	)		2,261
Adjustments to equity related to redeemable common units, net increase (decrease)		(538	)		427

2. REAL ESTATE ACTIVITY

Dispositions

In the three months ended March 31, 2014, the Company classified three apartment communities, containing 645 units, as held for sale. Two of the communities, containing 337 units are located in New York, New York and the additional community, containing 308 units, is located in Houston, Texas. This disposition activity is part of the Company’s on-going investment strategy of recycling investment capital to fund investment and development of apartment communities. These real estate assets classified as held for sale are reported separately on the accompanying consolidated balance sheet at $141,430, which represents the lower of their depreciated cost or fair value less costs to sell. The carrying amount of the major components of assets and liabilities of these communities were as follows:

	March 31, 2014
Land	$	22,542
Building and improvements		166,715
Furniture, fixtures and equipment		11,336
Less: accumulated depreciation		(59,163	)
Assets held for sale, net of accumulated depreciation	$	141,430
Secured indebtedness	$	83,212

In May 2014, one of these apartment communities, containing 308 units, was subsequently sold for gross proceeds of approximately $71,750 (see note 14). The additional apartment communities are expected to be sold later in 2014.

Assets held for sale subsequent to January 1, 2014

Subsequent to the adoption of ASU 2014-08 (see note 1), an amendment to ASC Topic 360, and as of January 1, 2014, the Company determined that the three apartment communities classified as held for sale did not meet the criteria requiring separate reporting as discontinued operations. As a result, the operations of these communities and any resulting gains (losses) on sales of the communities will continue to be reported in continuing operations for all periods presented. Total revenues and property net operating income of these assets is included in the segment information in note 9 under the segment caption titled, “held for sale communities.” The net income and net income attributable to the Company related to these communities for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014		2013
Net income	$	138	$	500
Net income, net of noncontrolling interest	$	154	$	503

14

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Assets held for sale/sold prior to January 1, 2014

In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale and sold were reported in discontinued operations in the consolidated statement of operations for all periods presented. Additionally, all gains and 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 results of operations of one apartment community, containing 342 units, through its sale date 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

Condominium activities

In 2013 and through March 31, 2014, the Company was selling condominium homes at two wholly owned condominium communities, one in Atlanta, Georgia (the “Atlanta Condominium Project”) and one in Austin, Texas (the “Austin Condominium Project”). The Austin Condominium Project completed its sell-out in the second quarter of 2013, and the Atlanta Condominium Project completed the sale of its final unit in March 2014. The revenues, costs and expenses associated with consolidated condominium activities for the three months ended March 31, 2014 and 2013 were 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

For the three months ended March 31, 2014 and 2013, the Company closed one and 20 condominium homes, respectively, at these condominium communities.

3. INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

At March 31, 2014, the Company held investments in two individual limited liability companies (the “Apartment LLCs”) with institutional investors that own four apartment communities, including three communities located in Atlanta, Georgia and one community located in Washington, D.C. The Company has a 25% and 35% equity interest in these Apartment LLCs.

The Company accounts for its investments in the Apartment LLCs using the equity method of accounting. At March 31, 2014 and December 31, 2013, the Company’s investment in the 35% owned Apartment LLC totaled $4,039 and $4,056, respectively, excluding the credit investments discussed below. The Company’s investment in the 25% owned Apartment LLC at March 31, 2014 and December 31, 2013 reflects a credit investment of $16,830 and $16,687, respectively. These credit balances resulted from distribution of financing proceeds in excess of the Company’s historical cost upon the formation of the Apartment LLC and are reflected in consolidated liabilities on the Company’s consolidated balance sheet. The operating results of the Company include its allocable share of net income from the investments in the Apartment LLCs. The Company provides property and asset management services to the Apartment LLCs for which it earns fees.

15

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

A summary of financial information for the Apartment LLCs in the aggregate is as follows:

	March 31,			December 31,
Apartment LLCs—Balance Sheet Data	2014			2013
Real estate assets, net of accumulated depreciation of $45,000 and $43,649 at March 31, 2014 and December 31, 2013, respectively	$	208,067		$	209,132
Cash and other		5,092			4,978
Total assets	$	213,159		$	214,110
Mortgage notes payable	$	177,723		$	177,723
Other liabilities		2,613			2,673
Total liabilities		180,336			180,396
Members’ equity		32,823			33,714
Total liabilities and members’ equity	$	213,159		$	214,110
Company’s equity investment in Apartment LLCs (1)	$	(12,791	)	$	(12,631	)

(1) At March 31, 2014 and December 31, 2013, the Company’s equity investment includes its credit investments of $16,830 and $16,687, respectively, discussed above.

	Three months ended
	March 31,
Apartment LLCs—Income Statement Data	2014		2013
Revenues
Rental	$	6,485	$	6,285
Other property revenues		439		446
Total revenues		6,924		6,731
Expenses
Property operating and maintenance		2,751		2,651
Depreciation and amortization		1,376		1,340
Interest		2,238		2,238
Total expenses		6,365		6,229
Net income	$	559	$	502
Company’s share of net income in Apartment LLCs	$	485	$	478

At March 31, 2014, mortgage notes payable included four mortgage notes. The first $51,000 mortgage note bears interest at 3.50%, requires monthly interest only payments and matures in 2019. The second and third mortgage notes total $85,724, bear interest at 5.63%, require interest only payments and mature in 2017. The fourth mortgage note totals $41,000, bears interest at 5.71%, requires interest only payments, and matures in January 2018 with a one-year automatic extension at a variable interest rate.

4. INDEBTEDNESS

At March 31, 2014 and December 31, 2013, the Company’s indebtedness consists of the following:

	Payment			Maturity			March 31,		December 31,
Description	Terms		Interest Rate	Date			2014		2013
Senior Unsecured Notes		Int.	3.375%—4.75%		2017—2022	(1)	$	400,000	$	400,000
Unsecured Bank Term Loan		Int.	LIBOR + 1.70%(2)		2018			300,000		300,000
Secured Mortgage Notes		Prin. and Int.	4.88%—5.99%		2015—2019	(4)		397,709		398,734
Total							$	1,097,709	$	1,098,734

(1) There are no maturities of senior unsecured notes in 2014. The remaining unsecured notes mature between 2017 and 2022.

(2) Represents stated rate at March 31, 2014. As discussed below, the Company has entered into interest rate swap arrangements that effectively fix the interest rate under this facility. At March 31, 2014, the effective blended interest rate under the Term Loan was 3.24%.

(3) Represents stated rate at March 31, 2014.

(4) There are no maturities of secured notes in 2014. These notes mature between 2015 and 2019.

16

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Debt maturities

The aggregate maturities of the Company’s indebtedness are as follows:

Remainder of 2014	$	2,936
2015		124,205
2016		4,418
2017		154,736
2018		350,958
Thereafter		460,456
	$	1,097,709

Debt issuances and retirements

There were no issuances or retirements of indebtedness for the three months ended March 31, 2014. In May 2014, the Company prepaid $120,000 of secured mortgage indebtedness using available cash and line of credit borrowings, which were largely repaid from the net proceeds of an apartment community sale (see note 2). The indebtedness was scheduled to initially mature in February 2015, and the stated rate on the indebtedness was 4.88%. In conjunction with the prepayment, the Company expects to recognize an extinguishment loss of approximately $4,300 related to the payment of prepayment premiums and the write-off of unamortized deferred loan costs.

Unsecured lines of credit

At March 31, 2014, the Company had a $300,000 syndicated unsecured revolving line of credit (the “Syndicated Line”). At March 31, 2014, the Syndicated Line had a stated interest rate of LIBOR plus 1.225%, was provided by a syndicate of eleven financial institutions and required the payment of annual facility fees of 0.225% of the aggregate loan commitments. The Syndicated Line matures in January 2016 and may be extended for an additional year at the Company’s option, subject to the satisfaction of certain conditions. The Syndicated Line provides for the interest rate and facility fee rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The components of the interest rate and the facility fee rate that are based on the Company’s credit ratings range from 1.00% to 1.80% and from 0.15% to 0.40%, respectively. The Syndicated Line also includes a competitive bid option for borrowings up to 50% of the loan commitments, which may result in interest rates for such borrowings below the stated interest rates for the Syndicated Line, depending on market conditions. The credit agreement for the Syndicated Line contains customary restrictions, representations, covenants and events of default, including minimum fixed charge coverage, minimum unsecured interest coverage, and maximum leverage ratios. The Syndicated Line also restricts the amount of capital the Company can invest in specific categories of assets, such as improved land, properties under construction, condominium properties, non-multifamily properties, debt or equity securities, notes receivable and unconsolidated affiliates. The Syndicated Line prohibits the Company from investing further capital in condominium assets and certain mixed-use projects, as defined. At March 31, 2014, letters of credit to third parties totaling $420 had been issued for the account of the Company under this facility.

Additionally, at March 31, 2014, the Company had a $30,000 unsecured line of credit (the “Cash Management Line”). The Cash Management Line matures in January 2016, includes a one-year extension option, and carries pricing and terms, including financial covenants, substantially consistent with the Syndicated Line.

Unsecured term loan

At March 31, 2014, the Company had outstanding a $300,000 unsecured bank term loan facility provided by a syndicate of eight financial institutions (the “Term Loan”). As of March 31, 2014, the Term Loan carried a stated interest rate of LIBOR plus 1.70%. The Term Loan provides for the stated interest rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The component of the interest rate based on the Company’s credit ratings ranges from 1.50% to 2.30%. The Term Loan matures in January 2018, includes two six-month extension options, and carries other terms, including financial covenants, substantially consistent with the Syndicated Line discussed above. As discussed in note 8, the Company entered into interest rate swap arrangements to serve as cash flow hedges of amounts outstanding under the Term Loan. The interest rate swap arrangements effectively fix the LIBOR component of the interest rate paid under the Term Loan at a blended rate of approximately 1.54%. As a result, the effective blended interest rate on the Term Loan was 3.24% as of March 31, 2014 (subject to any adjustment based on subsequent changes in the Company’s credit ratings).

17

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Debt compliance and other

The Company’s Syndicated Line, Cash Management Line, Term Loan and senior unsecured notes contain customary restrictions, representations, covenants and events of default and require the Company to meet certain financial covenants. Debt service and fixed charge coverage covenants require the Company to maintain coverages of a minimum of 1.5 to 1.0, as defined in applicable debt arrangements. Additionally, the Company’s ratio of unencumbered adjusted property-level net operating income to unsecured interest expense may not be less than 2.0 to 1.0, as defined in the applicable debt arrangements. Leverage covenants generally require the Company to maintain calculated covenants above/below minimum/maximum thresholds. The primary leverage ratios under these arrangements include total debt to total asset value (maximum of 60%), total secured debt to total asset value (maximum of 40%) and unencumbered assets to unsecured debt (minimum of 1.5 to 1.0), as defined in the applicable debt arrangements. The Company believes it met these financial covenants at March 31, 2014.

5. EQUITY AND NONCONTROLLING INTERESTS

Common stock

In May 2012, the Company adopted an at-the-market (“ATM”) common equity sales program for the sale of up to 4,000 shares of common stock. At March 31, 2014, the Company had not used this program and had 4,000 shares remaining for issuance. There were no sales of common stock for the three months ended March 31, 2014 or 2013 under this program. In future periods, the Company and the Operating Partnership may use the proceeds from this program for general corporate purposes.

In December 2012, the Company’s board of directors adopted a stock and unsecured note repurchase program under which the Company and the Operating Partnership may repurchase up to $200,000 of common and preferred stock and unsecured notes through December 2014. There were no shares of common stock repurchased for the three months ended March 31, 2014 under this stock repurchase program. For the year ended December 31, 2013, the Company repurchased 550 shares of common stock at an aggregate cost of $24,800 and at an average gross price per share of $45.08.

Noncontrolling interests

In accordance with ASC Topic 810, the Company and the Operating Partnership determined that the noncontrolling interests related to the common units of the Operating Partnership, held by persons other than the Company, met the criterion to be classified and accounted for as “temporary” equity (reflected outside of total equity as “Redeemable Common Units”). At March 31, 2014, the aggregate redemption value of the noncontrolling interests in the Operating Partnership of $6,645 was in excess of its net book value of $2,786. At December 31, 2013, the aggregate redemption value of the noncontrolling interests in the Operating Partnership of $6,121 was in excess of its net book value of $2,792. The Company further determined that the noncontrolling interests in its consolidated real estate entities met the criterion to be classified and accounted for as a component of permanent equity.

A roll-forward of activity relating to the Company’s Redeemable Common Units for the nine months ended March 31, 2014 and 2013 was as follows:

	Three months ended
	March 31,
	2014			2013
Redeemable common units, beginning of period	$	6,121		$	7,159
Comprehensive income		33			53
Adjustment for ownership interest of redeemable common units		7			5
Stock-based compensation		2			2
Distributions to common unitholders		(49	)		(36	)
Adjustment to redemption value of redeemable common units		531			(432	)
Redeemable common units, end of period	$	6,645		$	6,751

18

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

6. COMPANY EARNINGS PER SHARE

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per share was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common shareholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Noncontrolling interests—Operating Partnership		(33	)		(50	)
Preferred stock dividends		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common shareholders	$	13,287		$	18,950
Common shares (denominator):
Weighted average shares outstanding—basic		54,175			54,437
Dilutive shares from stock options		116			202
Weighted average shares outstanding—diluted		54,291			54,639
Per-share amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

Stock options to purchase 216 and 58 shares of common stock for the three months ended March 31, 2014 and 2013, respectively, were excluded from the computation of diluted income from continuing operations per common share as these stock options were antidilutive.

7. OPERATING PARTNERSHIP EARNINGS PER UNIT

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per unit was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common unitholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Preferred unit distributions		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common unitholders	$	13,320		$	19,000
Common units (denominator):
Weighted average units outstanding—basic		54,310			54,580
Dilutive units from stock options		116			202
Weighted average units outstanding—diluted		54,426			54,782
Per-unit amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

Stock options to purchase 216 and 58 shares of common stock for the three months ended March 31, 2014 and 2013, respectively, were excluded from the computation of diluted income from continuing operations per common unit as these stock options were antidilutive.

19

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

8. FAIR VALUE MEASURES AND OTHER FINANCIAL INSTRUMENTS

From time to time, the Company records certain assets and liabilities at fair value. Real estate assets may be stated at fair value if they become impaired in a given period and may be stated at fair value if they are held for sale and the fair value of such assets is below historical cost. Additionally, the Company records derivative financial instruments at fair value. The Company also uses fair value metrics to evaluate the carrying values of its real estate assets and for the disclosure of certain financial instruments. Fair value measurements were determined by management using available market information and appropriate valuation methodologies available to management at March 31, 2014. Considerable judgment is necessary to interpret market data and estimate fair value. Accordingly, there can be no assurance that the estimates discussed herein, using Level 2 and 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate assets or other financial instruments. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts.

Real estate assets

The Company periodically reviews its real estate assets, including operating assets, construction in progress and land held for future investment, for impairment purposes using Level 3 inputs, primarily comparable sales and market data, independent valuations and discounted cash flow models. For the three months ended March 31, 2014 and 2013, the Company did not recognize any impairment charges related to its real estate assets.

Derivatives and other financial instruments

The Company manages its exposure to interest rate changes through the use of derivative financial instruments, primarily interest rate swap arrangements. At March 31, 2014, the Company had outstanding three interest rate swap arrangements with substantially similar terms and conditions. These arrangements have an aggregate notional amount of $230,000 and require the Company to pay a blended fixed rate of approximately 1.55% (with the counterparties paying the Company the floating one-month LIBOR rate). Additionally, the Company had outstanding a fourth interest rate swap arrangement with a notional amount of $70,000 and it requires the Company to pay a fixed rate of approximately 1.50% (with the counterparty paying the Company the floating one-month LIBOR rate) (together, the “Interest Rate Swaps”). The Interest Rate Swaps serve as cash flow hedges of amounts outstanding under the Company’s variable rate Term Loan (see note 4) and provide for an effective blended fixed rate for the corresponding amount of Term Loan borrowings, of approximately 3.24% at March 31, 2014 (subject to an adjustment based on subsequent changes in the Company’s credit ratings). The Interest Rate Swaps terminate in January 2018.

The Interest Rate Swaps are measured and accounted for at fair value on a recurring basis. The Interest Rate Swaps outstanding at March 31, 2014 and December 31, 2013 were valued as net liabilities of $3,408 and $3,428, respectively, primarily using level 2 inputs, as substantially all of the fair value was determined using widely accepted discounted cash flow valuation techniques along with observable market-based inputs for similar types of arrangements. The Company reflects both the respective counterparty’s nonperformance risks and its own nonperformance risks in its fair value measurements using unobservable inputs. However, the impact of such risks was not considered material to the overall fair value measurements of the derivatives. These liabilities are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Under ASC Topic 815, a corresponding amount is included in accumulated other comprehensive income (loss), an equity account, until the hedged transactions are recognized in earnings. The following table summarizes the effect of these Interest Rate Swaps (designated as cash flow hedges) on the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013:

	Three months ended
	December 31,
Interest Rate Swap / Cash Flow Hedging Instruments	2014			2013
Gain (loss) recognized in other comprehensive income	$	(1,010	)	$	(73	)
Loss reclassified from accumulated other comprehensive income into interest expense	$	(1,029	)	$	(997	)

20

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

The amounts reported in accumulated other comprehensive income as of March 31, 2014 will be reclassified to interest expense as interest payments are made under the hedged indebtedness. Over the next year, the Company estimates that $4,103 will be reclassified from accumulated comprehensive income to interest expense.

As part of the Company’s on-going procedures, the Company monitors the credit worthiness of its financial institution counterparties and its exposure to any single entity, which it believes minimizes credit risk concentration. The Company believes the likelihood of realized losses from counterparty non-performance is remote. The Interest Rate Swaps are cross defaulted with the Company’s Term Loan and Syndicated Line (see note 4) and contain certain provisions consistent with these types of arrangements. If the Company was required to terminate the Interest Rate Swaps and settle the obligations thereunder as of March 31, 2014, the termination payment by the Company would have been approximately $3,422.

Other financial instruments

Cash equivalents, rents and accounts receivables, accounts payable, accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values because of the short-term nature of these instruments. At March 31, 2014, the fair value of fixed rate debt was approximately $828,538 (carrying value of $797,709) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $305,883 (carrying value of $300,000). At December 31, 2013, the fair value of fixed rate debt was approximately $816,582 (carrying value of $798,734) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $305,653 (carrying value of $300,000). Long-term indebtedness was valued using Level 2 inputs, primarily market prices of comparable debt instruments.

9. SEGMENT INFORMATION

Segment description

In accordance with ASC Topic 280, “Segment Reporting,” the Company presents segment information based on the way that management organizes the segments within the enterprise for making operating decisions and assessing performance. The segment information is prepared on the same basis as the internally reported information used by the Company’s chief operating decision makers to manage the business.

The Company’s chief operating decision makers focus on the Company’s primary sources of income from apartment community rental operations. Apartment community rental operations are generally broken down into segments based on the various stages in the apartment community ownership lifecycle. These segments are described below. All commercial properties and other ancillary service and support operations are combined in the line item “other property segments” in the accompanying segment information. The segment information presented below reflects the segment categories based on the lifecycle status of each community as of January 1, 2013. The segment information for the three months ended March 31, 2014 and 2013 has been adjusted to reflect the impact of reclassifying, from the fully stabilized community segment to the held for sale community segment, the operating results of three apartment communities designated as held for sale in the three months ended March 31, 2014 described below.

• Fully stabilized communities – those apartment communities which have been stabilized (the earlier of the point at which a property reaches 95% occupancy or one year after completion of construction) for both 2014 and 2013.

• Newly stabilized communities – those apartment communities which reached stabilized occupancy in 2013.

• Lease-up communities – those apartment communities that are under development and lease-up but were not stabilized by the beginning of 2014, including communities that stabilized in 2014.

• Acquired communities – those communities acquired in 2014 or 2013.

• Held for sale communities – those apartment and mixed-use communities classified as held for sale in 2014 (see note 2).

Segment performance measure

Management uses contribution to consolidated property net operating income (“NOI”) as the performance measure for its operating segments. The Company uses NOI, including NOI of stabilized communities, as an operating measure. NOI is defined as rental and other property revenue from real estate operations less total property and maintenance expenses from real estate operations (excluding depreciation and amortization). The Company believes that NOI is an important supplemental measure of operating performance for a

21

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

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 operating segment 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 the Company’s consolidated statement of operations entitled “net income (loss)” is the most directly comparable GAAP measure to NOI.

Segment information

The following table reflects each segment’s contribution to consolidated revenues and NOI together with a reconciliation of segment contribution to property NOI to consolidated net income for the three months ended March 31, 2014 and 2013. Additionally, substantially all of the Company’s assets relate to the Company’s property rental operations. Asset cost, depreciation and amortization by segment are not presented because such information at the segment level is not reported internally.

	Three months ended March 31,
	2014			2013
Revenues
Fully stabilized communities	$	75,272		$	73,512
Newly stabilized communities		4,306			2,171
Lease-up communities		1,879			24
Acquired communities		1,210			—
Held for sale communities		5,871			5,602
Other property segments		4,755			4,835
Other		219			214
Consolidated revenues	$	93,512		$	86,358
Contribution to Property Net Operating Income
Fully stabilized communities	$	46,318		$	45,580
Newly stabilized communities		2,673			673
Lease-up communities		679			(29	)
Acquired communities		754			—
Held for sale communities		2,773			3,127
Other property segments, including corporate management expenses		(500	)		(491	)
Consolidated property net operating income		52,697			48,860
Interest income		12			36
Other revenues		219			214
Depreciation		(21,767	)		(20,944	)
Interest expense		(11,244	)		(11,052	)
Amortization of deferred financing costs		(645	)		(624	)
General and administrative		(4,128	)		(4,245	)
Investment and development		(811	)		(489	)
Other investment costs		(273	)		(305	)
Other expenses		(907	)		—
Gains on condominium sales activities, net		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
Income from discontinued operations		—			433
Net income	$	14,253		$	20,390

10. STOCK-BASED COMPENSATION PLANS

As the primary operating subsidiary of the Company, the Operating Partnership participates in and bears the compensation expenses associated with the Company’s stock-based compensation plans. The information discussed below relating to the Company’s stock-based compensation plans is also applicable for the Operating Partnership.

22

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Incentive stock plans

Incentive stock awards are granted under the Company’s 2003 Incentive Stock Plan, as amended and restated in October 2008 (the “2003 Stock Plan”). Under the 2003 Stock Plan, an aggregate of 3,469 shares of common stock were reserved for issuance. Of this amount, stock grants count against the total shares available under the 2003 Stock Plan as 2.7 shares for every one share issued, while options (and stock appreciation rights (“SAR”) settled in shares) count against the total shares available as one share for every one share issued on the exercise of an option (or SAR). The exercise price of each option granted under the 2003 Stock Plan may not be less than the market price of the Company’s common stock on the date of the option grant and all options may have a maximum life of ten years. Participants receiving restricted stock grants are generally eligible to vote such shares and receive dividends on such shares. Substantially all stock option and restricted stock grants are subject to annual vesting provisions (generally three to five years) as determined by the compensation committee overseeing the 2003 Stock Plan.

Compensation costs for stock options have been estimated on the grant date using the Black-Scholes option-pricing method. The weighted average assumptions used in the Black-Scholes option-pricing model are as follows:

	Three months ended March 31,
	2014			2013
Dividend yield		2.8	%		2.0	%
Expected volatility		43.0	%		43.1	%
Risk-free interest rate		1.8	%		1.1	%
Expected option term (years)		6.0 years			6.0 years

The Company’s assumptions were derived from the methodologies discussed herein. The expected dividend yield reflects the Company’s current historical yield, which was expected to approximate the future yield at the date of grant. Expected volatility was based on the historical volatility of the Company’s common stock. The risk-free interest rate for the expected life of the options was based on the implied yields on the U.S. Treasury yield curve at the date of grant. The weighted average expected option term was based on the Company’s historical data for prior period stock option exercise and forfeiture activity.

Restricted stock

Compensation cost for restricted stock is amortized ratably into compensation expense over the applicable vesting periods. Total compensation expense related to restricted stock was $770 and $671 for the three months ended March 31, 2014 and 2013, respectively. At March 31, 2014, there was $4,911 of unrecognized compensation cost related to restricted stock. This cost is expected to be recognized over a weighted average period of 2.1 years.

A summary of the activity related to the Company’s restricted stock for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended March 31,
	2014				2013
	Shares		Weighted-Avg. Grant-Date Fair Value		Shares		Weighted-Avg. Grant-Date Fair Value
Unvested shares, beginning of period		75	$	48		65	$	42
Granted (1)		55		47		65		50
Unvested shares, end of period		130		47		130		46

(1) The total value of the restricted share grants for the three months ended March 31, 2014 and 2013 was $2,566 and $3,271, respectively.

Stock options

Compensation cost for stock options is amortized ratably into compensation expense over the applicable vesting periods. The Company recorded compensation expense related to stock options of $139 and $116 for the three months ended March 31, 2014 and 2013, respectively, recognized under the fair value method. At March 31, 2014, there was $829 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of 2.1 years.

23

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

A summary of stock option activity under all plans for the three months ended March 31, 2014 and 2013, is presented below:

	Three months ended March 31,
	2014					2013
				Exercise					Exercise
	Shares			Price		Shares			Price
Options outstanding, beginning of period		539		$	36		685		$	34
Granted		35			47		29			50
Exercised		(73	)		29		(29	)		28
Options outstanding, end of period (1)		501			38		685			35
Options exercisable, end of period (1)		439			37		628			34
Options vested and expected to vest, end of period (1)		498			38		682			35
Weighted average fair value of options granted during the period	$	15.21				$	17.26

(1) At March 31, 2014, the aggregate intrinsic value of stock options outstanding, exercisable and vested/expected to vest was $5,662, $5,540 and $5,656, respectively. At that same date, the weighted average remaining contractual lives of stock options outstanding, exercisable and vested/expected to vest was 4.2 years, 3.5 years and 4.2 years, respectively.

Upon the exercise of stock options, the Company issues shares of common stock from treasury shares or, to the extent treasury shares are not available, from authorized common shares. The total intrinsic value of stock options exercised for the three months ended March 31, 2014 and 2013 was $1,292 and $614, respectively.

At March 31, 2014, the Company segregated its outstanding options into two ranges, based on exercise prices, as follows:

	Options Outsanding						Options Exercisable
Option Ranges	Shares		Weighted Avg. Exercise Price		Weighted Avg. Life (Years)		Shares		Weighted Avg. Exercise Price
$12.22—$40.15		265	$	29		3.4		265	$	29
$44.05—$50.30		236		47		5.1		174		47
Total		501		38		4.2		439		37

Employee stock purchase plan

The Company maintains an Employee Stock Purchase Plan (the “ESPP”) approved by Company shareholders in 2005. The maximum number of shares issuable under the ESPP is 300. The purchase price of shares of common stock under the ESPP is equal to 85% of the lesser of the closing price per share of common stock on the first or last day of the trading period, as defined. The Company records the aggregate cost of the ESPP (generally the 15% discount on the share purchases) as a period expense. Total compensation expense relating to the ESPP was $39 and $37 for the three months ended March 31, 2014 and 2013, respectively.

11. INCOME TAXES

The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Company must distribute annually at least 90% of its adjusted taxable income, as defined in the Code, to its shareholders and satisfy certain other organizational and operating requirements. It is management’s current intention to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to federal income tax at the corporate level on the taxable income it distributes to its shareholders. Should the Company fail to qualify as a REIT in any tax year, it may be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. The Company may be subject to certain state and local taxes on its income and property, and to federal income taxes and excise taxes on its undistributed taxable income.

The Operating Partnership files tax returns as a limited partnership under the Code. As a partnership, the income and losses of the Operating Partnership are allocated to its partners, including the Company, for inclusion in their respective income tax returns. Accordingly, no provision or benefit for income taxes has been included in the accompanying financial statements. The Operating Partnership intends to make sufficient cash distributions to the Company to enable it to meet its annual REIT distribution requirements.

24

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

In the preparation of income tax returns in federal and state jurisdictions, the Company, the Operating Partnership and their taxable REIT subsidiaries assert certain tax positions based on their understanding and interpretation of the income tax law. The taxing authorities may challenge such positions and the resolution of such matters could result in the payment and recognition of additional income tax expense. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company, the Operating Partnership and their subsidiaries’ (including the taxable REIT subsidiaries (“TRSs”)) income tax returns are subject to examination by federal and state tax jurisdictions for years 2010 through 2012. Net income tax loss carryforwards and other tax attributes generated in years prior to 2010 are also subject to challenge in any examination of the 2010 to 2012 tax years.

As of March 31, 2014 and December 31, 2013, the Company’s TRSs had unrecognized tax benefits of approximately $797 which primarily related to uncertainty regarding the sustainability of certain deductions taken on prior year income tax returns of the TRS with respect to the amortization of certain intangible assets. The uncertainty surrounding this unrecognized tax benefit will generally be clarified in future periods as income tax loss carryforwards are utilized. To the extent these unrecognized tax benefits are ultimately recognized, they may affect the effective tax rate in a future period. The Company’s policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense. Accrued interest and penalties for the three months ended March 31, 2014 and 2013 were not material to the Company’s results of operations, cash flows or financial position.

The TRSs are utilized principally to perform such non-REIT activities as asset and property management, for-sale housing (condominiums) sales and other services. These TRSs are subject to federal and state income taxes. The TRSs recorded no net income tax expense (benefit) for federal income taxes for the three months ended March 31, 2014 and 2013, as a result of the ability to offset book and taxable income (loss), if any, through the use of offsetting valuation allowances resulting from the inability to recognize net deferred tax assets in the current or prior year as discussed below.

The Company’s net deferred tax assets primarily reflect real estate asset basis differences between carrying amounts for financial and income tax reporting purposes, income tax loss carryforwards and the timing of income and expense recognition for certain accrued liabilities and transactions. At December 31, 2013, net deferred tax assets approximately totaled $25,166. At December 31, 2013, management had established valuation allowances to offset such net deferred tax assets due primarily to historical losses at the TRSs in prior years and the variability of the income (loss) of these subsidiaries. The tax benefits associated with such unused valuation allowances may be recognized in future periods, if the TRSs generate sufficient taxable income to utilize such amounts or if the TRSs determine that it is more likely than not that the related deferred tax assets are realizable. For the three months ended March 31, 2014, changes to the components of net deferred tax assets were offset by changes to deferred tax asset valuation allowances.

12. OTHER EXPENSES

Other expenses in 2014 included 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 primarily related to extreme winter weather conditions in many of the Company’s markets, and due to fire damage at one of the Company’s Atlanta, Georgia communities.

13. LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES

In September 2010, the United States Department of Justice (the “DOJ”) filed a lawsuit against the Company in the United States District Court for the Northern District of Georgia. The suit alleges various violations of the Fair Housing Act (“FHA”) and the Americans with Disabilities Act (“ADA”) at properties designed, constructed or operated by the Company in the District of Columbia, Virginia, Florida, Georgia, New York, North Carolina and Texas. The plaintiff seeks statutory damages and a civil penalty in unspecified amounts, as well as injunctive relief that includes retrofitting apartments and public use areas to comply with the FHA and the ADA and prohibiting construction or sale of noncompliant units or complexes. The Company filed a motion to transfer the case to the United States District Court for the District of Columbia, where a previous civil case involving alleged violations of the FHA and ADA by the Company was filed and ultimately dismissed. On October 29, 2010, the United States District Court for the Northern District of Georgia issued an opinion finding that the complaint shows that the DOJ’s claims are essentially the same as the previous civil case, and, therefore, granted the Company’s motion and transferred the DOJ’s case to the United States District Court for the District of Columbia. Under the Court’s scheduling orders, the deadline for completion of discovery was November 2013 and briefing of any dispositive motions is to be accomplished by April 2014. Until such time as the court issues rulings on the application of the law to the facts of this case, it is not possible to predict or determine the outcome of the legal proceeding, nor is it possible to estimate the amount of loss, if any, that would be associated with an adverse decision.

25

POST PROPERTIES, INC. AND POST APARTMENT HOMES, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited, in thousands, except per share or unit and apartment unit data)

The Company is involved in various other legal proceedings incidental to their business from time to time, some of which are expected to be covered by liability or other insurance. Management of the Company believes that any resolution of pending proceedings or liability to the Company which may arise as a result of these various other legal proceedings will not have a material effect on the Company’s results of operations, cash flows or financial position.

14. SUBSEQUENT EVENTS

The Company evaluated the accounting and disclosure requirements for subsequent events reporting through the issuance date of the financial statements. In May 2014, the Company completed the sale of an apartment community, containing 308 units, located in Houston, Texas for gross proceeds of approximately $71,750. The Company expects to recognize a net gain on the sale of approximately $36,000 in the second quarter of 2014. In May 2014, the Company prepaid $120,000 of secured mortgage indebtedness using available cash and line of credit borrowings, which were largely repaid from the net proceeds of the apartment community sale. The indebtedness was scheduled to initially mature in February 2015, and the stated rate on the indebtedness was 4.88%. In conjunction with the prepayment, the Company expects to recognize an extinguishment loss of approximately $4,300 related to the payment of prepayment premiums and the write-off of unamortized deferred loan costs.

26

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Company overview

Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise.

The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Code.

At March 31, 2014, the Company had 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. At March 31, 2014, approximately 28.9%, 21.8%, 13.4% and 9.7% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively.

At March 31, 2014, the Company owned approximately 99.8% of the common limited partnership interests (“Common Units”) in the Operating Partnership. Common Units held by persons other than the Company represented a 0.2% common noncontrolling interest in the Operating Partnership.

The discussion below is combined for the Company and the Operating Partnership as their results of operations and financial conditions are substantially the same except for the effect of the 0.2% weighted average common noncontrolling interest in the Operating Partnership.

Operations Overview

The following discussion provides an overview of the Company’s operations, and should be read in conjunction with the more full discussion of the Company’s operating results, liquidity and capital resources and risk factors reflected elsewhere in this Form 10-Q.

Property Operations

Year-over-year same store revenues and net operating income (“NOI”) increased by 2.4% and 1.6%, respectively, in the first quarter of 2014, as compared to the first quarter of 2013. The Company’s operating results for the first quarter of 2014 and its outlook for the remainder of 2014 are more fully discussed in the “Results of Operations” and “Outlook” sections below. The Company’s outlook for the remainder of 2014 is based on the expectation that economic and employment conditions will continue to gradually improve. However, there continues to be significant risk and uncertainty in the economy and the unemployment rate continues to be higher than normal. If the economic recovery was to stall or U.S. economic conditions were to worsen, the Company’s operating results would be adversely affected. Furthermore, development of new multi-family rental units has continued to increase, which has increased the competitive supply of rental units in the markets in which the Company operates. This new supply has contributed to a moderation in the rate of rental income and NOI growth in recent quarters and this trend is expected to continue for the remainder of 2014.

Disposition Activity

In the three months ended March 31, 2014, the Company initiated the marketing for sale of three apartment communities and associated retail space. Two of the communities, containing 337 units, are located in New York, New York and represent the Company’s two communities in that market. The additional community, continuing 308 units, is located in Houston, Texas. The proceeds from these expected sales may be used to prepay certain mortgage indebtedness, to pay special dividends to shareholders necessary to distribute taxable earnings, to repurchase shares of common stock or for general corporate purposes.

27

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

In May 2014, the Company closed the sale of the apartment community located in Houston, Texas for gross proceeds of $71,750. The Company anticipates recognizing a gain on sale of approximately $36,000 in the second quarter of 2014. In addition, in May 2014, the Company prepaid $120,000 of secured mortgage indebtedness using available cash and line of credit borrowings, which were largely repaid from the net proceeds of the apartment community sale. The indebtedness was scheduled to initially mature in February 2015, and the stated rate on the indebtedness was 4.88%. In conjunction with the prepayment, the Company expects to recognize an extinguishment loss of approximately $4,300 related to the payment of prepayment premiums and the write-off of unamortized deferred loan costs.

Development Activity

In late 2013 and in early 2014, the Company substantially completed construction of Post Parkside™ at Wade in Raleigh, North Carolina, consisting of 397 apartment units and approximately 14,908 square feet of retail space and Post Lake^® at Baldwin Park, Phase III, consisting of 410 apartment units. These communities were 83.6% and 78.1% leased at April 26, 2014, respectively. The Company also began the initial lease-up of Post 510™ in Houston, Texas and Post Soho Square™ in Tampa, Florida in 2014. These communities were 21.9% and 7.8% leased at April 26, 2014, respectively. The Company had three apartment communities undergoing construction (Post 510™, Post Soho Square™ and Post Alexander™, Phase II) which are more fully discussed in “Liquidity and Capital Resources” section below under the sub-caption “Current Communities Under Development.”

The square footage amounts are approximate and actual amounts may vary. The Company currently expects to utilize available cash, available borrowing capacity under its unsecured bank credit facilities, or other indebtedness, and, from time to time, asset sales and net proceeds from its at-the-market common equity sales program to fund future estimated construction expenditures.

In addition, the Company may commence development activities at more of its existing land sites over the next two years. Management believes, however, that the timing of such development starts will depend largely on a continued favorable outlook for multi-family apartment rentals, capital market conditions and the U.S. economy. Until such time as additional development activities commence or certain land positions are sold, the Company expects that operating results will be adversely impacted by costs of carrying land held for future investment or sale. There can be no assurance that land held for investment will be developed in the future or at all. Although the Company does not believe that any impairment exists at March 31, 2014, should the Company change its expectations regarding the timing and projected undiscounted future cash flows expected from land held for future investment, or the estimated fair value of its assets, the Company could be required to recognize impairment losses in future periods.

Condominium Activity

In the first quarter of 2014, the Company completed 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.

Other Expenses

Other expenses in 2014 included 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 weather conditions in many of the Company’s markets, and due to fire damage at one of the Company’s Atlanta, Georgia communities.

The following discussion should be read in conjunction with the selected financial data and with all of the accompanying consolidated financial statements appearing elsewhere in this report. This discussion is combined for the Company and the Operating Partnership as their results of operations and financial condition are substantially the same except for the effect of the 0.2% weighted average common minority interest in the Operating Partnership. See the summary financial information in the section below titled, “Results of Operations.”

Disclosure Regarding Forward-Looking Statements

Certain statements made in this report, 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. In addition, the Company, or the executive officers on the Company’s behalf, may from time to time make forward-looking statements in reports and other documents the Company files with the Securities Exchange Commission (SEC) or in connection with oral statements made to the press, potential investors or others. 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. Forward-looking statements include statements preceded by, followed by or that include the words “believes,” “expects,”

28

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

“anticipates,” “plans,” “estimates,” “should,” or similar expressions. Examples of such statements in this report include expectations regarding economic and apartment market conditions, the Company’s anticipated operating results in 2014, expectations regarding future impairment charges, expectations regarding engagement in the for-sale condominium business, anticipated construction and development activities (including projected costs, timing and anticipated potential sources of financing of future development activities), expectations regarding cash flows from operating activities, expected costs of development, anticipated investment, interest and other expenses, expectations regarding the use of proceeds from outstanding borrowings and effective interest rates under the Company’s unsecured term loan and revolving credit facilities, expectations regarding compensation costs for stock-based compensation, expectations regarding the delivery of apartment units at lease-up communities, the Company’s expected debt levels, expectations regarding the prepayment of indebtedness, expectations regarding the availability of additional capital, unsecured and secured financing, the anticipated dividend level in 2014 and expectations regarding the source of funds for payment of the dividend, expectations regarding the Company’s ability to execute its 2014 business plan and to meet short-term and long-term liquidity requirements, including capital expenditures, development and construction expenditures, land and apartment community sales and acquisitions, dividends and distributions on its common and preferred equity and debt service requirements and long-term liquidity requirements including maturities of long-term debt and acquisition and development activities, the Company’s expectations regarding asset acquisitions, the Company’s expectations regarding apartment community sales and the use of proceeds there of (including the prepayment of indebtedness and prepayment penalties as well as the possible repurchase of shares and special dividends to shareholders), the Company’s expectations regarding the use of joint venture arrangements, expectations regarding the Company’s at-the-market common equity program and the use of proceeds thereof, expectations regarding the DOJ matter and the outcome of and insurance coverage for other legal proceedings, and expectations regarding the Company’s ability to maintain its REIT status under the Internal Revenue Code. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of the Company’s management, which in turn are based on currently available information. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding the market for the Company’s apartment communities, demand for apartments in the markets in which it operates, competitive conditions and general economic conditions. These assumptions could prove inaccurate. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond the Company’s ability to control or predict. Such factors include, but are not limited to, the following:

• The success of the Company’s business strategies described on pages 2 to 3 of the Company’s Form 10-K;

• 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 or the responsibility for recourse guarantees;

• The effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks;

• Uncertainties associated with the global capital markets, including the continued availability of traditional sources of capital and liquidity and related factors;

• The Company’s ability to maintain its current dividend level;

• 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 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 effect of changes in interest rates and the effectiveness of interest rate hedging contracts;

• The success of the Company’s acquired apartment communities;

• The Company’s ability to succeed in new markets;

29

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

• 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 (“DOJ”) regarding the Americans with Disabilities Act and the Fair Housing Act (including any award of compensatory or punitive damages or injunctive relief requiring the Company to retrofit apartments or public use areas or prohibiting the sale of apartment communities) 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;

• Uncertainties associated with increased costs to own and maintain the Company’s apartment communities;

• Ongoing risks and uncertainties associated with the Company’s previous investment in for-sale condominium housing, including warranty and related obligations;

• 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 Operating Partnership’s ability to continue to be treated as a partnership 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;

• Any breach of the Company’s privacy or information security systems; and

• Other factors, including the risk factors discussed in Item 1A of the Company’s Form 10-K.

Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.

Critical accounting policies and new accounting pronouncements

In the preparation of financial statements and in the determination of Company operating performance, the Company utilizes certain significant accounting policies. The Company’s significant accounting policies are included in the notes to the Company’s consolidated financial statements included in the Company’s Form 10-K. The Company’s critical accounting policies are those that require application of management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. For a complete description of the Company’s critical accounting policies, please refer to pages 30 and 31 of the Company’s Form 10-K. Other than the change related to the reporting of discontinued operations, as discussed below, there were no significant changes to the Company’s critical accounting policies and estimates for the three months ended March 31, 2014. The discussion below details the Company’s critical accounting policies related to asset impairments and revenue and profit recognition of for-sale condominium activities as well as the impact of the new accounting pronouncement relating to discontinued operations.

The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology summarized in its accounting policies (see note 1 to the consolidated financial statements). Under current accounting literature, the evaluation of the recoverability of the Company’s real estate assets requires the judgment of Company management in the determination of the future cash flows expected from the assets and the estimated holding period for the assets. The Company uses market capitalization rates to determine the estimated residual value of its operating real estate assets and, generally, takes a long-term view of the holding period of its assets unless specific facts and circumstances warrant shorter holding periods (expected sales, departures from certain geographic markets, etc.). The Company considers a real estate asset held for investment as impaired if the undiscounted, estimated future cash flows of the asset (both the annual estimated cash flow from future operations and the estimated cash flow from the asset’s eventual sale) over its expected holding period are less than the asset’s net book value. For real estate assets held for sale, if any, the Company recognizes impairment losses if an asset’s net book value is in excess of its estimated fair value, less costs to sell. At March 31, 2014, management believed it had applied reasonable estimates and judgments in determining the proper classification of its real estate assets and determined that no impairment existed. See notes 1 and 8 to the consolidated financial statements for a further discussion of the Company’s methodologies for determining the fair value of the Company’s real estate assets. Should external or internal circumstances change requiring the need to shorten the holding periods or adjust the estimated future cash flows of certain of the Company’s assets, the Company could be required to record impairment charges in the future.

30

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Under ASC Topic 360-20, “Plant Property and Equipment – Real Estate Sales,” the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. In subsequent periods, project cost of sale allocations and profits were adjusted to reflect changes in the actual and estimated costs and revenues of each project.

In April 2014, Accounting Standards Update No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity” was issued. ASU 2014-08 amends ASC Topics 360 and 205 and changes the requirements for reporting discontinued operations. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. ASU 2014-08 also modifies the disclosure requirements for disposal groups reported as discontinued operations and for other significant disposal groups not reported as discontinued operations. Generally, the Company anticipates that fewer sales of apartment communities will be reported as discontinued operations in the Company’s financial statements, as a result of this standard. ASU 2014-08 is to be applied prospectively for periods on or after December 31, 2014 with early adoption permitted, but only for assets held for sale or sold that have not been reported in previously issued financial statements. The Company elected to early adopt ASU 2014-08, effective as of January 1, 2014. In the three months ended March 31, 2014, the Company classified three apartment communities as held for sale and determined that all of the communities did not meet the criteria requiring discontinued operations reporting. As such, as described in note 2 to the consolidated financial statements, the results of operations of these communities continue to be reported in continuing operations.

Results of operations

The following discussion of results of operations should be read in conjunction with the consolidated statements of operations and the community operations/segment performance information included below.

The Company’s revenues and earnings from continuing operations are generated primarily from the operation of its apartment communities. For purposes of evaluating comparative operating performance, the Company categorizes its operating apartment communities based on the period each community reaches stabilized occupancy. The Company generally considers a community to have achieved stabilized occupancy on the earlier to occur of (1) attainment of 95% physical occupancy on the first day of any month or (2) one year after completion of construction.

For the three months ended March 31, 2014, the Company’s portfolio of operating apartment communities, excluding four communities held in unconsolidated entities, consisted of the following: (1) 48 communities that were completed and stabilized for all of the current and prior year, (2) one community and portions of two communities which reached stabilized occupancy in 2013, (3) one community acquired in 2013, (4) two communities and a portion of one community in lease-up in 2014, and (5) three communities classified as held for sale (and not reported as discontinued operations under ASC Topic 360).

The Company has adopted an accounting policy related to communities in the lease-up stage whereby substantially all operating expenses (including pre-opening marketing and management and leasing personnel expenses) are expensed as incurred. During the lease-up phase, the sum of interest expense on completed units and other operating expenses (including pre-opening marketing and management and leasing personnel expenses) will initially exceed rental revenues, resulting in a “lease-up deficit,” which continues until such time as rental revenues exceed such expenses. Lease-up deficits for the three months ended March 31, 2014 and 2013 were $501 and $826, respectively. The Company expects to incur lease-up deficits during the remainder of 2014 at lease-up communities, as the Company continues to deliver completed apartment units.

In order to evaluate the operating performance of its communities for the comparative years listed below, the Company has presented financial information which summarizes the rental and other revenues, property operating and maintenance expenses (excluding depreciation and amortization) and net operating income on a comparative basis for all of its operating communities and for its stabilized operating communities. Net operating income is a supplemental non-GAAP financial measure. The Company believes that the line on the Company’s consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to net operating income. Net operating income is reconciled to GAAP net income in the financial information accompanying the tables. The Company believes that net operating income 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. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, operating segment groupings and individual properties. Additionally, the Company believes that net operating income, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community.

31

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

All operating communities

The operating performance and capital expenditures from continuing operations for all of the Company’s apartment communities and other commercial properties summarized by segment for the three months ended March 31, 2014 and 2013 were as follows:

	Three months ended March 31,
	2014		2013		% Change
Rental and other property revenues
Fully stabilized communities (1)	$	75,272	$	73,512		2.4	%
Newly stabilized communities (2)		4,306		2,171		98.3	%
Lease-up communities (3)		1,879		24		7729.2	%
Acquired communities (4)		1,210		—		—
Held for sale communities (5)		5,871		5,602		4.8	%
Other property segments (6)		4,755		4,835		(1.7	)%
		93,293		86,144		8.3	%
Property operating and maintenance expenses (excluding depreciation and amortization)
Fully stabilized communities (1)		28,954		27,932		3.7	%
Newly stabilized communities (2)		1,633		1,498		9.0	%
Lease-up communities (3)		1,200		53		2164.2	%
Acquired communities (4)		456		—		—
Held for sale communities (5)		3,098		2,475		25.2	%
Other property segments, including corporate management expenses (7)		5,255		5,326		(1.3	)%
		40,596		37,284		8.9	%
Property net operating income (8)	$	52,697	$	48,860		7.9	%
Capital expenditures (9)(10)
Annually recurring:
Carpet	$	754	$	780		(3.3	)%
Other		1,667		2,653		(37.2	)%
Total	$	2,421	$	3,433		(29.5	)%
Periodically recurring	$	2,521	$	4,685		(46.2	)%
Average apartment units in service		20,189		19,076		5.8	%

(1) Communities which reached stabilization prior to January 1, 2013.

(2) Communities which reached stabilized occupancy in 2013.

(3) Communities in lease-up but were not stabilized by the beginning of 2014, including communities stabilized in 2014.

(4) Communities acquired subsequent to January 1, 2013.

(5) Communities classified as held for sale (and not reported as discontinued operations under ASC Topic 360).

(6) Other property segment revenues include revenues from commercial properties, revenues from furnished apartment rentals above the unfurnished rental rates and any property revenue not directly related to property operations. Other property segment revenues exclude other corporate revenues of $219 and $214 for the three months ended March 31, 2014 and 2013, respectively.

(7) Other expenses include expenses associated with commercial properties, furnished apartment rentals and corporate property management expenses. Corporate property management expenses were $2,890 and $2,902 for the three months ended March 31, 2014 and 2013, respectively. Amounts for the three months ended March 31, 2013 have been adjusted to conform to the 2014 segment presentation.

(8) A reconciliation of property net operating income to GAAP net income is detailed below.

32

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

	Three months ended March 31,
	2014			2013
Fully stabilized community NOI	$	46,318		$	45,580
Property NOI from other operating segments		6,379			3,280
Consolidated property NOI		52,697			48,860
Add (subtract):
Interest income		12			36
Other revenues		219			214
Depreciation		(21,767	)		(20,944	)
Interest expense		(11,244	)		(11,052	)
Amortization of deferred financing costs		(645	)		(624	)
General and administrative		(4,128	)		(4,245	)
Investment and development		(811	)		(489	)
Other investment costs		(273	)		(305	)
Other expenses		(907	)		—
Gains on condominium sales activities, net		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
Income from discontinued operations		—			433
Net income	$	14,253		$	20,390

(9) In addition to those expenses which relate to property operations, the Company incurs annually recurring and periodically recurring expenditures relating to acquiring new assets, materially enhancing the value of an existing asset, or substantially extending the useful life of an existing asset, all of which are capitalized. Recurring capital expenditures are those that are generally expected to be incurred on an annual basis. Periodically recurring capital expenditures are those that generally occur less frequently than on an annual basis.

(10) A reconciliation of property capital expenditures from continuing operations to total annually recurring and periodically recurring capital expenditures as presented in the consolidated statements of cash flows under GAAP is detailed below:

	Three months ended
	March 31,
	2014			2013
Annually recurring capital expenditures
Continuing operations	$	2,421		$	3,433
Discontinued operations		—			41
Total annually recurring capital expenditures	$	2,421		$	3,474
Periodically recurring capital expenditures
Continuing operations	$	2,521		$	4,685
Discontinued operations		—			9
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

33

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Fully stabilized communities

The Company defines fully stabilized communities as those which have reached stabilization prior to the beginning of the previous year, adjusted by communities classified as held for sale. For the 2014 to 2013 comparison, fully stabilized communities are defined as those communities which reached stabilization prior to January 1, 2013. This portfolio consisted of 48 communities with 17,714 units, including 12 communities with 5,065 units (28.6%) located in Atlanta, Georgia, 15 communities with 4,725 units (26.7%) located in Dallas, Texas, 6 communities with 2,301 units (13.0%) located in the greater Washington D.C. metropolitan area, 4 communities with 2,111 units (11.9%) located in Tampa, Florida, 5 communities with 1,748 units (9.9%) located in Charlotte, North Carolina and 6 communities with 1,764 units (9.9%) located in other markets. The operating performance of these communities was as follows:

	Three months ended March 31,
	2014			2013			% Change
Rental and other revenues	$	75,272		$	73,512			2.4	%
Property operating and maintenance expenses (excluding depreciation and amortization)		28,954			27,932			3.7	%
Same store net operating income (1)	$	46,318		$	45,580			1.6	%
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		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	%
Average economic occupancy (4)		95.4	%		95.4	%		0.0	%
Physical occupancy, end of period (4)		95.3	%		94.9	%		0.4	%
Gross turnover (5)		50.5	%		51.9	%		(1.4	)%
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) Net operating income of stabilized communities is a supplemental non-GAAP financial measure. See page 33 for a reconciliation of net operating income for stabilized communities to GAAP net income.

(2) A reconciliation of these segment components of property capital expenditures to total annually recurring and periodically recurring and total capital expenditures as presented in the consolidated statements of cash flows prepared under GAAP is detailed below.

34

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

	Three months ended March 31,
	2014			2013
Annually recurring capital expenditures by operating segment
Fully stabilized 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
Fully stabilized 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

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 same store communities. The corresponding GAAP measures include information with respect to the Company’s other operating segments consisting of newly stabilized communities, lease-up communities, acquired communities, held for sale and/or sold communities and commercial properties in addition to same store information. Therefore, the Company believes that its 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 “total property capital expenditures.”

(3) Average monthly rental rate is defined as the gross actual rental rates for leased units and the anticipated rental rates for unoccupied units, divided by total units.

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

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

(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.

35

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Comparison of three months ended March 31, 2014 to three months ended March 31, 2013

The Operating Partnership reported net income available to common unitholders of $13,347 for the three months ended March 31, 2014, compared to $19,471 for the three months ended March 31, 2013. The Company reported net income available to common shareholders of $13,314 for the three months ended March 31, 2014, compared to $19,420 for the three months ended March 31, 2013. As discussed below, the decrease in income between periods primarily reflects decreased gains on condominium sales, offset somewhat by the improved operating performance of the Company’s operating communities.

Rental and other revenues from property operations increased $7,149 or 8.3% from 2013 to 2014 primarily due to increased revenues from the Company’s fully stabilized communities of $1,760 or 2.4%, increased revenues of $2,135 from newly stabilized communities, increased revenues of $1,855 from lease-up communities and increased revenues of $1,210 from the acquisition of a community in May 2013. The revenue increase from fully stabilized communities is discussed in more detail below. The revenue increase from newly stabilized communities reflects the stabilization of three communities in mid-2013. The revenue increase from lease-up communities reflects the lease-up of portions of three communities as apartment units were completed in 2013 and into 2014.

Property operating and maintenance expenses (exclusive of depreciation and amortization) increased $3,312 or 8.9% from 2013 to 2014 primarily due to increases from fully stabilized communities of $1,022 or 3.7%, increases of $135 from newly stabilized communities, increases of $1,147 from lease-up communities, increases of $456 from the acquisition of a community in May 2013, and increases of $623 from held for sale communities. The increased expense from fully stabilized communities is discussed in more detail below. The expense increase from newly stabilized communities reflects the stabilization of these communities in mid-2013. The expense increase from lease-up communities reflects the operating expenses and initial personnel and marketing costs associated with the lease-up of portions of three development communities that began delivering apartment units in 2013. The expense increase from held for sale communities primarily reflects increased property taxes due primarily to the reduction in tax abatements at the Company’s two New York communities.

For the three months ended March 31, 2014 and 2013, there were no sales of wholly owned apartment communities. In May 2014, the Company closed the sale of one apartment community. In addition, the Company is currently marketing for sale two apartment communities which are expected to close in 2014. The Company may continue to be a seller of apartment communities in future periods depending on market conditions and consistent with its investment strategy of recycling investment capital to fund investment and development activities and to provide additional cash liquidity, as discussed in the “Liquidity and Capital Resources” section below. The timing and amount of future gain recognition will fluctuate based on the size and individual age of apartment communities sold.

For the three months ended March 31, 2014 and 2013, gains on condominium sales activities were $810 and $8,194, respectively. The decrease in condominium gains between periods primarily reflects reduced closings from 20 units in 2013 to one unit in 2014. The condominium unit sale in 2014 represents the final condominium unit at the Company’s condominium community in Atlanta, Georgia. As of March 31, 2014, the Company has no additional condominium units remaining for sale.

Depreciation expense increased $823 or 3.9% from 2013 to 2014, primarily due to increased depreciation of $952 related to the completion of apartment units at three lease-up communities beginning in mid-2013 and into 2014 and $335 related to the one community acquired in May 2013, offset partially by decreased depreciation of $559 from fully stabilized communities primarily due to reduced depreciation at recently developed and acquired communities due to the cessation of depreciation on certain fully depreciated short-lived assets and acquired lease intangibles.

General and administrative expenses decreased $117 or 2.8%, from 2013 to 2014 primarily due to somewhat lower legal expenses associated with on-going legal matters and due to the timing of annual incentive plan expense recognition between years.

Investment and development expenses increased $322 or 65.8%, from 2013 to 2014 primarily due to the reduction of capitalized development personnel and associated costs of $267 between years. This decrease was due to the reduction of development capitalization at three communities that were substantially completed in 2013, offset partially by increased capitalization at one development community that commenced in 2013. Additionally, development personnel and other costs increased by $55 between years. The Company expects to continue to complete portions of its existing development pipeline in 2014 and also expects to commence new developments later in 2014. The Company expects that the capitalization of development costs and expenses will decrease somewhat in 2014, which will result in increased net investment and development expenses in 2014.

36

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Other investment costs decreased slightly from 2013 to 2014. Other investment costs primarily include land carry expenses, such as property taxes and assessments. The decrease primarily reflects reduced land carry expenses related to land placed under development in 2013.

Interest expense increased $192 or 1.7% from 2013 to 2014 primarily due to decreased interest capitalization in 2014, as well as increased gross interest costs, net of amounts allocated to discontinued operations in 2013. Decreased interest capitalization on the Company’s development projects of $158 primarily related to the substantial completion of three apartment communities in early 2013, partially offset by increased interest capitalization on three communities that commenced construction in late 2012 and in 2013. The Company expects interest expense for the full year of 2014 to be higher than in 2013 due to reduced interest capitalization as additional development projects are completed in 2014.

Other expenses of $907 in 2014 included 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 weather conditions in many of the Company’s markets, and due to fire damage at one of the Company’s Atlanta, Georgia communities.

Annually recurring and periodically recurring capital expenditures decreased $3,176 or 39.1% from 2013 to 2014. The decrease in periodically recurring capital expenditures of $2,164 primarily reflects reduced water intrusion remediation projects and structural improvements at four communities and fire sprinkler system replacement work at another community in 2013, partially offset by tenant improvements at an office property as well as siding and structural improvements at two communities in 2014. For the full year 2014, the Company expects periodically recurring capital expenditures to be lower than 2013 primarily due to reduced exterior remediation and structural improvement projects in 2014. The decrease in annually recurring capital expenditures of $1,012 primarily reflects roofing expenditures at one community in 2013. For the full year 2014, the Company expects annually recurring capital expenditures to be consistent with to modestly higher than 2013 primarily due to the timing of normalized capital expenditures between years.

Fully stabilized communities

Rental and other revenues increased $1,760 or 2.4% from 2013 to 2014. This increase primarily resulted from a 2.3% increase in the average monthly rental rate per apartment unit between periods. The increase in average rental rates resulted in a revenue increase of approximately $1,672 between periods. Average economic occupancy was 95.4% in 2013 and in 2014. The slight change in occupancy rates between periods resulted in higher vacancy losses of $38 in 2013. The remaining increase in rental and other property revenues of $126 was primarily due to somewhat higher utility reimbursements. Average rental rate increases were primarily due to increasing rental demand resulting from a gradually improving economy, favorable demographics and favorable market fundamentals. See the “Outlook” section below for an additional discussion of revenue trends for 2014.

Property operating and maintenance expenses (exclusive of depreciation and amortization) increased $1,022 or 3.7% from 2013 to 2014. This increase was primarily due to increased property tax expenses of $858 or 7.8% and increased utility expenses of $373 or 10.0%. These increases were offset partially by decreased maintenance expenses of $180 or 4.9%. The increase in property tax expenses primarily reflects increased expense accruals in 2014 due to higher expected real estate valuations by tax authorities in most of the Company’s markets. Utility expenses increased due primarily to higher electric consumption in certain markets due to the extreme winter weather conditions in 2014. Maintenance expenses decreased due to lower grounds maintenance expenses in 2014 primarily resulting from the timing of spring planting and other grounds expenses between years. See the “Outlook” section below for a discussion of expense trends for 2014.

Asset disposals and discontinued operations

In the three months ended March 31, 2014, the Company classified three apartment communities, containing 645 units, as held for sale. Two of the communities, containing 337 units are located in New York, New York and the additional community, containing 308 units, is located in Houston, Texas. These real estate assets classified as held for sale are reported separately on the accompanying consolidated balance sheet at $141,430, which represents the lower of their depreciated cost or fair value less costs to sell. In accordance with ASC Topic 360, as amended by ASU 2014-08, the Company will only report asset disposals as discontinued operations if the disposals represent a strategic shift that has, or will have, a major effect on the entity’s operations and financial results. As discussed below, the Company believes these planned asset disposals do not meet that criteria.

37

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Assets held for sale subsequent to January 1, 2014

Subsequent to the adoption of ASU 2014-08 (see note 1), an amendment to ASC Topic 360, and as of January 1, 2014, the Company determined that the three apartment communities classified as held for sale did not meet the criteria requiring separate reporting as discontinued operations. As a result, the operations of the communities and the resulting gains on sales of the communities will continue to be reported in continuing operations for all periods presented. The revenue, expenses, net income and net income attributable to the Company of these communities for the three months ended March 31, 2014 and 2013 is 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

In May 2014, one of the apartment communities, containing 308 units, was subsequently sold for gross proceeds of approximately $71,750 (see note 14 to the consolidated financial statements). The additional apartment communities are expected to be sold later in 2014.

Assets held for sale/sold prior to January 1, 2014

In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale and sold were reported in discontinued operations in the consolidated statement of operations for all periods presented. Additionally, all gains and 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 results of operations of one apartment community, containing 342 units (this community was subsequently sold in October 2013) as follows:

The revenues and expenses of this community for the three months ended March 31, 2013 were 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

As discussed under “Liquidity and Capital Resources” below, the Company has sold and may continue to sell real estate assets in future periods as part of its overall investment, disposition and acquisition strategy depending upon market conditions. As such, the Company may continue to have additional assets classified as held for sale; however, the timing and amount of future asset sales will fluctuate based on the size and individual age of the apartment communities sold and, as a result, the future impact on aggregate revenues, expenses and gain recognition will vary from year to year.

38

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Outlook

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

The Company’s outlook for full year 2014 is based on the expectation that economic and employment conditions will continue to gradually improve. However, there continues to be significant risk and uncertainty in the economy and the unemployment rate continues to be higher than normal. If the economic recovery was to stall or U.S. economic conditions were to worsen, the Company’s operating results would be adversely affected. Furthermore, a moderate supply of new apartment units over the past several years, coupled with improving multi-family housing demand in the Company’s markets, has generally supported improved operating fundamentals in the multi-family rental markets. As such, development of new multi-family rental units has continued to increase, which has increased the competitive supply of new rental units in the markets in which the Company operates. This new supply contributed to a moderation in the rate of rental income and NOI growth in 2013 and this trend has and is expected to continue into 2014.

Rental and other revenues from fully stabilized communities are expected to increase modestly for 2014, compared to 2013, driven primarily by new and renewed leases being completed at modestly higher market rental rates, as the Company expects to generally maintain occupancy levels relatively consistent with those in 2013. The rate of revenue growth is expected to continue to moderate in 2014, compared to 2013, largely attributable to new supply of competitive rental apartments. Operating expenses of fully stabilized communities are expected to increase for 2014. On a year-over-year basis, the Company expects property tax, personnel and maintenance expenses (exterior paint) to be the largest contributors to operating expense growth. As a result, management expects fully stabilized community net operating income to increase modestly for 2014. Further, management expects net operating income from newly stabilized communities to increase in 2014 as these communities reached stabilized occupancy in mid-2013. Management also expects that net operating income from lease-up communities will increase moderately in 2014. Additionally, net operating income is expected to increase for the full year of 2014 from one apartment community acquired in May 2013.

Management expects general and administrative, property management and investment and development expenses, net of amounts capitalized to development projects, to increase modestly for 2014, compared to 2013. Capitalized development personnel and costs are expected to decrease modestly in 2014 as portions of the Company’s development communities are expected to be completed in mid-2014. These decreases are expected to be partially offset by capitalization to new development starts expected to commence in the second half of 2014. Additionally, other expenses are expected to include costs associated with information technology system upgrades that are expected to be completed in 2014.

Management expects interest expense for 2014 to be somewhat higher than in 2013 due primarily to reduced interest capitalization to development communities as additional communities are expected to be completed in 2014.

In May 2014, the Company closed the sale of one apartment community, containing 308 units. Also in 2014, the Company is currently marketing for sale two additional apartment communities, containing 337 units, and expects to recognize gains on these sales. The net proceeds from these sales are currently expected to be used to prepay certain secured mortgage indebtedness, including indebtedness secured by two of the communities expected to be sold, to pay special dividends to shareholders necessary to distribute taxable earnings, to repurchase shares of common stock or for general corporate purposes. Sales of assets and any payment of special dividends or prepayment of indebtedness could be dilutive to the Company’s earnings outlook depending on the timing and amount of sales and the use and timing of net proceeds received; however, management intends to pursue reinvestment opportunities to mitigate dilution to earnings and cash flow, and to maintain the strength of the balance sheet. The prepayment of secured debt would also require the Company to incur losses on extinguishment of debt relating to prepayment penalties and the write-off of unamortized deferred financing costs. There can be no assurance that these sales will close in 2014, or that the expected use of proceeds will not change.

The Company currently expects to utilize available cash, retained 2014 operating cash flow, available borrowing capacity under its unsecured bank credit facilities, or other indebtedness and, from time to time, its at-the-market common equity program to fund future estimated construction expenditures. See the “Liquidity and Capital Resources” section below where discussed further. The Company’s 2014 outlook does not currently anticipate any share issuances under the Company’s at-the-market equity program in 2014. Future sales under the at-the-market common equity program will depend upon a variety of factors, including, among others, the volume of investment activities, market conditions, the trading price of the Company’s common stock relative to other sources of capital and the Company’s liquidity position.

39

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Liquidity and capital resources

The discussion in this Liquidity and capital resources section is the same for the Company and the Operating Partnership, except that all indebtedness described herein has been incurred by the Operating Partnership.

The Company’s net cash provided by operating activities decreased from $32,877 for the three months ended March 31, 2013 to $31,352 for the three months ended March 31, 2014 primarily due to the timing of the changes in the working capital components of operating cash flow between years, partially offset by increased property net operating income in 2014 from fully stabilized, newly stabilized, lease-up and acquisition communities. For the full year 2014, the Company expects cash flows from operating activities to increase moderately resulting from expected increases from fully stabilized, newly stabilized and lease-up communities as discussed above, offset somewhat by higher net interest expense in 2014.

Net cash flows used in investing activities decreased from $21,958 for the three months ended March 31, 2013 to $21,361 for the three months ended March 31, 2014 primarily due to reduced construction and development expenditures between periods, as certain development projects were substantially completed in late 2013 and into 2014, partially offset by reduced proceeds from the sale of condominium units, as the Company completed the sale of its only remaining unit in 2014. For the full year 2014, the Company expects to continue to incur development expenditures on its existing development projects. The Company also expects to generate proceeds from the sale of certain apartment communities in 2014 as part of its overall investment, disposition and acquisition strategy depending on market conditions.

Net cash flows used in financing activities increased from $14,763 for the three months ended March 31, 2013 to $17,705 for the three months ended March 31, 2014 primarily due to increased dividends to shareholders between years. For the full year 2014, based on its current outlook, the Company expects minimal to no new net debt issuances or equity issuances under its ATM program as the Company currently expects to use available cash and cash flow from operations to fund current development expenditures. As discussed above, the Company may use the net proceeds from the expected sales of apartment communities, in combination with a portion of cash on hand and, if necessary, line of credit borrowings, to prepay secured mortgage indebtedness in 2014, to pay special dividends to shareholders and to repurchase shares of common stock.

Since 1993, the Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended. Management currently intends to continue operating the Company as a REIT in 2013. As a REIT, the Company is subject to a number of organizational and operating requirements, including a requirement to distribute 90% of its adjusted taxable income to its shareholders. As a REIT, the Company generally will not be subject to federal income taxes on its taxable income it distributes to its shareholders.

Generally, the Company’s objective is to meet its short-term liquidity requirement of funding the payment of its current level of quarterly preferred and common stock dividends to shareholders through its net cash flows provided by operating activities, less its annually recurring and periodically recurring property and corporate capital expenditures. These operating capital expenditures are the capital expenditures necessary to maintain the earnings capacity of the Company’s operating assets over time. For the three months ended March 31, 2014, the Company’s net cash flow from operations, reduced by annual operating capital expenditures, was sufficient to fully fund the Company’s dividend payments to common and preferred shareholders.

In February 2014, the Company’s board of directors increased the quarterly dividend rate from $0.33 to $0.36 per common share. The Company currently expects to maintain the quarterly dividend payment rate to common shareholders of $0.36 per share for 2014. However, future dividend payments by the Company will be paid at the discretion of the board of directors and will depend on the actual funds from operations of the Company, the Company’s financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors that the board of directors deems relevant. The Company’s board of directors reviews the dividend quarterly, and there can be no assurance that the current dividend level will be maintained.

To the extent the Company continues to pay dividends at this dividend rate, the Company expects to use net cash flows from operations reduced by annual operating capital expenditures to fund the dividend payments to common and preferred shareholders. The Company may also use cash and cash equivalents and, if its net cash flows from operations are not sufficient to meet its anticipated dividend payment rate, line of credit borrowings to fund dividend payments. The Company’s dividends can be paid as a combination of cash and stock in order to satisfy the annual distribution requirements applicable to REITs. To the extent that

40

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

management considers it advisable to distribute gains from any future asset sales to shareholders in the form of a special dividend, the Company may pay a portion of such dividend in the form of stock to preserve liquidity. The Company’s net cash flow from operations continues to be sufficient to meet the dividend requirements necessary to maintain its REIT status.

The Company generally expects to utilize available net cash flow from operations, available cash and cash equivalents and available capacity under its revolving lines of credit to fund its short-term liquidity requirements, including capital expenditures, dividends and distributions on its common and preferred equity and its debt service requirements. The Company generally expects to fund its long-term liquidity requirements, including maturities of long-term debt and acquisition and development activities, through long-term unsecured and secured borrowings, possibly through the sale of selected operating communities, through net proceeds from the Company’s at-the-market common equity program and possibly through equity or leveraged joint venture arrangements. As it has done in the past, the Company may also use joint venture arrangements in future periods to reduce its market concentrations in certain markets, build critical mass in other markets and to reduce its exposure to certain risks of its future development activities.

As previously discussed, the Company has used the proceeds from the sale of selected operating communities and condominium homes as one means of funding its development and acquisition activities. Total net sales proceeds from operating community and condominium sales for the three months ended March 31, 2014 and for the full year of 2013 were $2,442 and $116,684, respectively. Proceeds from these asset sales were used to increase available cash and cash equivalent balances and to fund development and acquisition activities. As of March 31, 2014, the Company had three apartment communities held for sale. The expected net proceeds from such sales may be used to prepay certain mortgage indebtedness, pay any special dividends necessary to distribute its taxable earnings, to repurchase shares of common stock, and otherwise for general corporate purposes. Sales of assets and any payment of special dividends or prepayment of indebtedness could be dilutive to the Company’s 2014 earnings depending on the timing and amount of sales and the use and timing of net proceeds received. The prepayment of indebtedness would require the Company to incur losses on extinguishment of debt relating to prepayment penalties and the write-off of unamortized deferred financing costs. Sales of apartment communities are subject to market conditions and there can be no assurance that these sales will occur or that the use of proceeds may not change.

In May 2012, the Company adopted an at-the-market common equity sales program for the sale of up to 4,000 shares of common stock. At March 31, 2014, the Company had 4,000 shares remaining for issuance under the program. The Company has used previous programs and may use this program, from time to time, as an additional source of capital and liquidity and to maintain the strength of its balance sheet. Sales under the program will be dependent on a variety of factors, including, among others, market conditions, the trading price of the Company’s common stock relative to other sources of capital and the Company’s liquidity position.

As of March 31, 2014, the Company’s aggregate pipeline of five apartment communities under development and lease-up totaled approximately $260,700, of which approximately $79,600 remained to be incurred by the Company. The Company may also begin additional developments in 2014 and in future periods. The Company currently expects to utilize available cash, retained cash flow from operations, available borrowing capacity under its unsecured bank credit facilities, or other indebtedness and, from time to time, its at-the-market common equity program to fund future estimated construction expenditures.

As of April 25, 2014, the Company had cash and cash equivalents of approximately $57,200. Additionally, the Company had no outstanding borrowings, and $420 of outstanding letters of credit under its $330,000 combined unsecured revolving line of credit facilities. The terms, conditions and restrictive covenants associated with the Company’s unsecured revolving line of credit facilities, term loan and senior unsecured notes are summarized in note 4 to the consolidated financial statements. Management believes the Company was in compliance with the covenants of the Company’s unsecured revolving lines of credit, term loan and senior unsecured notes at March 31, 2014.

Management believes it will have adequate available cash and capacity under its unsecured revolving lines of credit to execute its 2014 business plan and meet its short-term liquidity requirements. The Company also currently believes that it will continue to have access to additional equity capital, unsecured debt financing and secured debt financing through loan programs sponsored by Fannie Mae, Freddie Mac and other secured lenders. In the past, the Company has utilized loan programs sponsored by Fannie Mae and Freddie Mac as a key source of capital to finance its growth and its operations. Should these entities discontinue providing liquidity to the multi-family sector, it could significantly reduce the Company’s access to debt capital and/or increase borrowing costs and could adversely affect the development of multi-family homes. In addition, the amount and timing of any new debt financings may be limited by restrictive covenants under the Company’s current unsecured debt arrangements, such as coverage ratios and limitations on aggregate secured debt as a percentage of total assets, as defined. There can be no assurances that secured financing will continue to be available through U.S. government sponsored programs and other secured lenders or that the Company’s access to additional debt financings will not be limited by its financial covenants.

41

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Stock and debt repurchase programs

In May 2012, the Company adopted an ATM common equity sales program for the sale of up to 4,000 shares of common stock. At March 31, 2014, the Company had 4,000 shares remaining for issuance under the program. There were no issuances for the three months ended March 31, 2014 or 2013 under this plan. The Company has used and expects to use these programs, from time to time, as an additional source of capital and liquidity and to maintain the strength of its balance sheet.

In December 2012, the Company’s board of directors adopted a stock and unsecured note repurchase program under which the Company and the Operating Partnership may repurchase up to $200,000 of common and preferred stock and unsecured notes through December 31, 2014. For the three months ended March 31, 2014, there were no repurchases under this program. For the year ended December 31, 2013, the Company repurchased 550 shares of common stock at an aggregate cost of $24,800 and at an average gross price per share of $45.08.

Capitalization of fixed assets and community improvements

The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development and construction of new apartment communities. In addition, the Company capitalizes expenditures that enhance the value of existing assets and expenditures that substantially extend the life of existing assets. All other expenditures necessary to maintain a community in ordinary operating condition are expensed as incurred.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment communities under development and construction. The incremental personnel and associated costs are capitalized to the projects under development and construction based upon the effort associated with such projects. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the commencement of leasing activities, interest and other construction costs are capitalized and included in 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 practice 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 expenses) of such communities.

Acquisition of assets and community development and other capitalized expenditures for the three months ended March 31, 2014 and 2013 are summarized as follows:

	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 land and community development and acquisition costs, exclusive of the change in construction payables between years.

(2) Represents expenditures for major renovations of communities and other upgrade costs that enhance the rental value of such units.

(3) Represents property improvement expenditures that generally occur less frequently than on an annual basis.

(4) Represents property improvement expenditures of a type that are expected to be incurred on an annual basis.

(5) Reflects development personnel and associated costs capitalized to construction and development activities.

42

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

Current communities under development

At March 31, 2014, the Company had 1,620 apartment units in five communities under development or in lease-up. These communities are summarized in the table below ($ in millions except cost per square foot data).

				Estimated						Estimated		Costs		Quarter		Estimated
		Number		Average		Estimated		Estimated		Total		Incurred		of First		Quarter of
		of		Unit Size		Retail		Total		Cost Per		as of		Units		Stabilized		Percent
Community	Location	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.

Inflation

Substantially all of the leases at the Company’s communities allow, at the time of renewal, for adjustments in the rent payable thereunder, and thus may enable the Company to seek increases in rents. The substantial majority of these leases are for one year or less and the remaining leases are for up to two years. At the expiration of a lease term, the Company’s lease agreements generally provide that the term will be extended unless either the Company or the lessee gives at least sixty (60) days written notice of termination. In addition, the Company’s policy generally permits the early termination of a lease by a lessee upon thirty (30) days written notice to the Company and the payment of an amount equal to two month’s rent as compensation for early termination. The short-term nature of these leases generally serves to offset the risk to the Company that the adverse effect of inflation may have on the Company’s general, administrative and operating expenses.

Funds from operations

The Company uses the National Association of Real Estate Investment Trusts (“NAREIT”) definition of funds from operations (“FFO”). FFO is defined by NAREIT as net income available to common shareholders determined in accordance with GAAP, excluding gains (or losses) from extraordinary items and sales of depreciable property, plus depreciation of real estate assets, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO is a supplemental non-GAAP financial measure. FFO presented herein 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.

The Company also uses FFO as an operating measure. 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 “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, management 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 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 the Company’s consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.

43

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Unaudited, in thousands, except per share or unit and apartment unit data)

FFO should not be considered as an alternative to net income available to common shareholders (determined in accordance with GAAP) as an indicator of the Company’s financial performance. While management believes that FFO is an important supplemental non-GAAP financial measure, management believes it is also important to stress that FFO should not be considered as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity. Further, FFO is not necessarily indicative of sufficient cash flow to fund all of the Company’s needs or ability to service indebtedness or make distributions.

A reconciliation of net income available to common shareholders to FFO available to common shareholders and unitholders for the three months ended March 31, 2014 and 2013 was as follows.

	Three months ended March 31,
	2014		2013
Net income available to common shareholders	$	13,314	$	19,420
Noncontrolling interests - Operating Partnership
Noncontrolling interests - Operating Partnership		33		51
Depreciation on consolidated real estate assets		21,489		20,777
Depreciation on real estate assets held in unconsolidated entities		293		289
Funds from operations available to common shareholders and unitholders (1)	$	35,129	$	40,537
Weighted average shares outstanding - basic (2)		54,286		54,548
Weighted average shares and units outstanding - basic (2)		54,421		54,691
Weighted average shares outstanding - diluted (2)		54,403		54,750
Weighted average shares and units outstanding - diluted (2)		54,538		54,893

(1) For the three months ended March 31, 2014, FFO included other expenses of approximately $907 associated with the continuation of an initiative to upgrade enterprise software systems and casualty losses related to the extreme winter weather conditions in 2014.

(2) Diluted weighted average shares and units included 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 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 funds from operations per share. Such non-vested shares and units are considered in the income per share computations under generally accepted accounting principles using the “two-class method.”

44

1ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company’s primary market risk exposure is interest rate risk. At March 31, 2014, the Company had no outstanding variable rate debt tied to LIBOR under its aggregate $330,000 line of credit arrangements. At March 31, 2014, the Company had outstanding variable rate debt of $300,000 under a term loan facility (“Term Loan”) at interest rates tied to LIBOR (see note 4 to the consolidated financial statements). In addition, the Company had outstanding three interest rate swap arrangements with substantially similar terms and conditions with notional amounts totaling $230,000 and a fourth swap arrangement with substantially similar terms and conditions and a notional amount of $70,000. These interest rate swap arrangements (as summarized in the table below) serve as cash flow hedges for amounts outstanding under the Term Loan and provide an effective blended interest rate for the corresponding amount of Term Loan borrowings of 3.24% at March 31, 2014. In addition, the Company has interest rate risk associated with fixed rate debt at maturity. The discussion in this section is the same for the Company and the Operating Partnership, except that all indebtedness described herein has been incurred by the Operating Partnership or one of its subsidiaries.

Management has and will continue to manage interest rate risk as follows:

• maintain a conservative ratio of fixed rate, long-term debt to total debt such that variable rate exposure is kept at an acceptable level;

• fix certain long-term variable rate debt through the use of interest rate swaps or interest rate caps with appropriately matching maturities;

• use derivative financial instruments where appropriate to fix rates on anticipated debt transactions; and

• take advantage of favorable market conditions for long-term debt and/or equity.

Management uses various financial models and advisors to achieve these objectives.

The table below provides information, including the fair value measured in accordance with ASC Topic 815, about the Company’s derivative financial instruments that are sensitive to changes in interest rates. For the Company’s interest rate swap arrangements, the table presents notional amounts and weighted average interest rates by (expected) contractual maturity dates. Notional amounts are used to calculate the contractual payments to be exchanged under the contract.

Interest Rate Derivatives	Hedged Debt Instrument	Notional Amount			Average Fixed Pay Rate			Average Receive Rate	Termination Date		Fair Value
											Asset (Liab.)
Interest rate swaps - variable to fixed (three) (1)	Term loan borrowings	$	230,000	(1)		1.55	%	one-month LIBOR		1/19/2018	$	(2,723	)
Interest rate swaps - variable to fixed (one) (2)	Term loan borrowings	$	70,000	(2)		1.50	%	one-month LIBOR		1/19/2018	$	(685	)
											$	(3,408	)

(1) Cash payments under the arrangements began in January 2012 based on aggregate notional amounts of $100,000. Notional amounts increased to an aggregate of $230,000 in June 2012.

(2) Cash payments under this arrangement began in July 2012.

As more fully described in note 8 to the consolidated financial statements, the interest rate swap arrangement is carried on the consolidated balance sheet at the fair value shown above in accordance with ASC Topic 815. For the three months ended March 31, 2014, there were no material changes in outstanding fixed or variable rate debt arrangements. The Company has no floating rate LIBOR-based borrowings outstanding as of March 31, 2014, excluding the variable rate bank term loan debt effectively swapped to fixed rates under the derivative financial instruments. As such, fluctuations in such loans would have no effect on the Company’s interest costs.

45

ITEM 4. CONTROLS AND PROCEDURES

As required by Securities and Exchange Commission rules, the Company and the Operating Partnership have evaluated the effectiveness of the design and operation of their disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. This evaluation was carried out under the supervision and with the participation of the management of the Company and the Operating Partnership, including the principal executive officer and principal financial officer. Based on this evaluation, these officers have concluded that the design and operation of the Company’s and the Operating Partnership’s disclosure controls and procedures were effective as of the end of the period covered by this quarterly report on Form 10-Q. Disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as amended (the “Exchange Act”)) are the controls and other procedures of the Company and the Operating Partnership that are designed to ensure that information required to be disclosed by the Company and the Operating Partnership in the reports that they file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There were no changes to the Company’s or the Operating Partnership’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this report that materially affected, or are reasonably likely to materially affect, the Company’s or the Operating Partnership’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In September 2010, the United States Department of Justice (the “DOJ”) filed a lawsuit against the Company in the United States District Court for the Northern District of Georgia. The suit alleges various violations of the Fair Housing Act (“FHA”) and the Americans with Disabilities Act (“ADA”) at properties designed, constructed or operated by the Company in the District of Columbia, Virginia, Florida, Georgia, New York, North Carolina and Texas. The plaintiff seeks statutory damages and a civil penalty in unspecified amounts, as well as injunctive relief that includes retrofitting apartments and public use areas to comply with the FHA and the ADA and prohibiting construction or sale of noncompliant units or complexes. The Company filed a motion to transfer the case to the United States District Court for the District of Columbia, where a previous civil case involving alleged violations of the FHA and ADA by the Company was filed and ultimately dismissed. On October 29, 2010, the United States District Court for the Northern District of Georgia issued an opinion finding that the complaint shows that the DOJ’s claims are essentially the same as the previous civil case, and, therefore, granted the Company’s motion and transferred the DOJ’s case to the United States District Court for the District of Columbia. Under the Court’s scheduling orders, the deadline for completion of discovery was November 2013 and briefing of any dispositive motions is to be accomplished by April 2014. Until such time as the court issues rulings on the application of the law to the facts of this case, it is not possible to predict or determine the outcome of the legal proceeding, nor is it possible to estimate the amount of loss, if any, that would be associated with an adverse decision.

The Company is involved in various other legal proceedings incidental to their business from time to time, some of which are expected to be covered by liability or other insurance. Management of the Company believes that any resolution of pending proceedings or liability to the Company which may arise as a result of these various other legal proceedings will not have a material effect on the Company’s results of operations, cash flows or financial position.

ITEM 1A. RISK FACTORS

There were no material changes in the Registrants’ Risk Factors as previously disclosed in Item 1A of the Registrants’ Annual Report on Form 10-K for the year ended December 31, 2013.

46

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) None.

(b) Not applicable.

(c) The following table summarizes the Company’s purchases of its equity securities for the three months ended March 31, 2014 (in thousands, except shares and per share amounts).

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
January 1, 2014 January 31, 2014		—	$	—		—	$	175,200
February 1, 2014 February 28, 2014		—		—		—	$	175,200
March 1, 2014 March 31, 2014		—		—		—	$	175,200
Total		—	$	—		—	$	175,200

(1) In the fourth quarter of 2012, the Company’s board of directors approved a stock repurchase program that was announced on December 5, 2012 under which the Company may repurchase up to $200,000 of common or preferred stock through December 31, 2014.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

47

ITEM 6. EXHIBITS

Certain exhibits required by Item 601 of Regulation S-K have been filed with previous reports by the Registrants and are incorporated by reference herein.

The Registrants agree to furnish a copy of all agreements relating to long-term debt upon request of the SEC.

Exhibit No.		Description
3.1(a)	—	Articles of Incorporation of the Company
3.2(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.3(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.4(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.5(c)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.6(d)	—	Bylaws of the Company (as Amended and Restated effective as of June 9, 2009)
4.1(e)	—	Indenture between the Company and SunTrust Bank, as Trustee
4.2(f)	—	First Supplemental Indenture to the Indenture between the Operating Partnership and SunTrust Bank, as Trustee
4.3(g)	—	Form of Post Apartment Homes, L.P. 4.75% Note due 2017
4.4(h)	—	Form of Post Apartment Homes, L.P. 3.375% Note due 2022
10.1*	—	Amended and Restated Employment and Change in Control Agreement with David C. Ward
11.1(i)	—	Statement Regarding Computation of Per Share Earnings
31.1	—	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, and adopted under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	—	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, and adopted under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	—	Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted under Section 906 of the Sarbanes-Oxley Act of 2002
32.2	—	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted under Section 906 of the Sarbanes-Oxley Act of 2002
101	—	The following financial information for the Company and the Operating Partnership, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Equity and Accumulated Earnings, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to the Consolidated Financial Statements.

* Identifies management contract or compensatory plan required to be filed.

(a) Filed as an exhibit to the Registration Statement on Form S-11 (SEC File No. 33-61936), as amended, of the Company and incorporated herein by reference.

(b) Filed as an exhibit to the Annual Report on Form 10-K of the Registrants for the year ended December 31, 2002 and incorporated herein by reference.

(c) Filed as an exhibit to the Quarterly Report on Form 10-Q of the Registrants for the quarter ended September 30, 1999 and incorporated herein by reference.

(d) Filed as an exhibit to the current Report on Form 8-K of the Registrants filed on February 12, 2009 and incorporated herein by reference.

(e) Filed as an exhibit to the Registration Statement on Form S-3 (SEC File No. 333-42884), as amended, of the Company and incorporated herein by reference.

(f) Filed as an exhibit to the Registration Statement on Form S-3ASR (SEC File No. 333-139581) of the Company and incorporated herein by reference.

(g) Filed as an exhibit to the Current Report on Form 8-K of the Registrants filed October 18, 2010 and incorporated herein by reference.

(h) Filed as an exhibit to the Current Report on Form 8-K of the Registrants filed November 7, 2012 and incorporated herein by reference.

(i) The information required by this exhibit is included in notes 6 and 7 to the consolidated financial statements and is incorporated herein by reference.

48

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, thereunto duly authorized.

	POST PROPERTIES, INC.
May 8, 2014	By	/s/ David P. Stockert
		David P. Stockert
		President and Chief Executive Officer
		(Principal Executive Officer)
May 8, 2014	By	/s/ Christopher J. Papa
		Christopher J. Papa
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
May 8, 2014	By	/s/ Arthur J. Quirk
		Arthur J. Quirk
		Senior Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

49

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, thereunto duly authorized.

	POST APARTMENT HOMES, L.P.
	By:	Post GP Holdings, Inc., its sole general partner
May 8, 2014	By	/s/ David P. Stockert
		David P. Stockert
		President and Chief Executive Officer
		(Principal Executive Officer)
May 8, 2014	By	/s/ Christopher J. Papa
		Christopher J. Papa
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
May 8, 2014	By	/s/ Arthur J. Quirk
		Arthur J. Quirk
		Senior Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

50

ITEM 6. EXHIBITS

Certain exhibits required by Item 601 of Regulation S-K have been filed with previous reports by the Registrants and are incorporated by reference herein.

The Registrants agree to furnish a copy of all agreements relating to long-term debt upon request of the SEC.

Exhibit No.		Description
3.1(a)	—	Articles of Incorporation of the Company
3.2(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.3(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.4(b)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.5(c)	—	Articles of Amendment to the Articles of Incorporation of the Company
3.6(d)	—	Bylaws of the Company (as Amended and Restated effective as of June 9, 2009)
4.1(e)	—	Indenture between the Company and SunTrust Bank, as Trustee
4.2(f)	—	First Supplemental Indenture to the Indenture between the Operating Partnership and SunTrust Bank, as Trustee
4.3(g)	—	Form of Post Apartment Homes, L.P. 4.75% Note due 2017
4.4(h)	—	Form of Post Apartment Homes, L.P. 3.375% Note due 2022
10.1*	—	Amended and Restated Employment and Change in Control Agreement with David C. Ward
11.1(i)	—	Statement Regarding Computation of Per Share Earnings
31.1	—	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, and adopted under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	—	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, and adopted under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	—	Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted under Section 906 of the Sarbanes-Oxley Act of 2002
32.2	—	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted under Section 906 of the Sarbanes-Oxley Act of 2002
101		The following financial information for the Company and the Operating Partnership, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Equity and Accumulated Earnings, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to the Consolidated Financial Statements.

* Identifies management contract or compensatory plan required to be filed.

(a) Filed as an exhibit to the Registration Statement on Form S-11 (SEC File No. 33-61936), as amended, of the Company and incorporated herein by reference.

(b) Filed as an exhibit to the Annual Report on Form 10-K of the Registrants for the year ended December 31, 2002 and incorporated herein by reference.

(c) Filed as an exhibit to the Quarterly Report on Form 10-Q of the Registrants for the quarter ended September 30, 1999 and incorporated herein by reference.

(d) Filed as an exhibit to the current Report on Form 8-K of the Registrants filed on February 12, 2009 and incorporated herein by reference.

(e) Filed as an exhibit to the Registration Statement on Form S-3 (SEC File No. 333-42884), as amended, of the Company and incorporated herein by reference.

(f) Filed as an exhibit to the Registration Statement on Form S-3ASR (SEC File No. 333-139581) of the Company and incorporated herein by reference.

(g) Filed as an exhibit to the Current Report on Form 8-K of the Registrants filed October 18, 2010 and incorporated herein by reference.

(h) Filed as an exhibit to the Current Report on Form 8-K of the Registrants filed November 7, 2012 and incorporated herein by reference.

(i) The information required by this exhibit is included in notes 6 and 7 to the consolidated financial statements and is incorporated herein by reference.

51

EX-10.1

Exhibit 10.1

EXECUTION VERSION

AMENDED AND RESTATED EMPLOYMENT AND

CHANGE IN CONTROL AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AND CHANGE IN CONTROL AGREEMENT (the “Agreement”) is made and entered into on this 4th day of April, 2011, by and among DAVID C. WARD, an individual resident of the State of Texas (the “Executive”), and POST PROPERTIES, INC., POST APARTMENT HOMES, L.P., and POST SERVICES, INC., and amends, restates and supersedes the Amended and Restated Employment and Change in Control Agreement among Executive and Post Properties, Inc., Post Apartment Homes, L.P., and Post Services, Inc., dated February 29, 2008 (the “2008 Agreement”).

WITNESSETH

WHEREAS, the Post Group and Executive desire collectively to amend and restate the 2008 Agreement in the form of this Agreement (i) to eliminate Executive’s right to a Gross Up Payment if payments or benefits under this Agreement result in the Executive being subject to an excise tax under § 4999 of the Code and (ii) to change certain other provisions to make this Agreement consistent with the employment agreements of Post Group’s other executive officers; and

WHEREAS, the Post Group desires individually and/or collectively to employ Executive, and Executive desires to be employed individually and/or collectively by the Post Group, all on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Post Group and Executive, intending to be legally bound, hereby agree as follows:

§ 1. Definitions.

1.1 Affiliate. The term “Affiliate” for purposes of this Agreement shall mean (a) Post Apartment Homes, (b) Post Services, (c) Post GP Holdings, or (d) any other organization if Post, Post Apartment Homes, Post Services or Post GP Holdings (i) beneficially own more than twenty percent (20%) of the outstanding voting capital stock of such organization (if such organization is a corporation) or more than twenty percent (20%) of the beneficial interests of such organization (if such organization is not a corporation) as of the date of this Agreement and (ii) possess the power to direct or cause the direction of the day to day operations and affairs of such organization, whether through ownership of voting securities, by contract, in the capacity of general partner, manager or managing member or otherwise as of the date of this Agreement.

1.2. Board. The term “Board” for purposes of this Agreement shall mean the Board of Directors of Post.

1.3 Cash Compensation. The term “Cash Compensation” for purposes of this Agreement shall mean the sum of:

(a) Executive’s annual base salary (as determined without regard to any salary deferral election) pursuant to § 5.1 in effect on the day before Executive’s employment terminates under § 4 or § 6 or, if greater, Executive’s average annualized annual base salary (as determined without regard to any salary deferral election) pursuant to § 5.1 over the three (3) consecutive year period which ends on the date that Executive’s employment so terminates, and

(b) (1) in the event Executive’s employment terminates under § 4, the average annual bonuses which have been paid to Executive pursuant to § 5.2 or which would have been paid pursuant to § 5.2 but for a bonus deferral election with respect to Executive’s performance over the three (3) consecutive calendar year period immediately preceding the calendar year during which Executive’s employment so terminates whether (i) such bonuses are paid (or would have been paid but for a bonus deferral election) in cash, in property, or in any combination of cash and property or (ii) such bonuses are paid during the calendar year for which performance is measured or are paid subsequent to the end of the calendar year for which performance is measured; or

(2) in the event Executive’s employment terminates under § 6, Executive’s target bonus as approved by the Compensation Committee for the calendar year in which Executive’s termination of employment occurs, or if no such target bonus has been approved for such calendar year, then the average annual bonus determined pursuant to § 1.3(b)(1).

In no event shall the value of any stock option or restricted stock grants made to Executive in any calendar year, nor any income which Executive realizes in any calendar year from the exercise of any such stock options or the lapse of any restrictions on such restricted stock grants, nor any payments under any long-term incentive compensation program maintained by the Post Group be treated as part of Executive’s salary under § 1.3(a) or as part of Executive’s bonuses under § 1.3(b).

1.4 Cause. The term “Cause” for purposes of this Agreement shall (subject to § 1.4(d)) mean:

(a) Executive is convicted of, pleads guilty to, or confesses or otherwise admits to a member of the Post Group, a prosecutor, or otherwise publicly admits, any felony or any act of fraud, misappropriation, or embezzlement, or Executive otherwise engages in a fraudulent act or course of conduct;

2

(b) There is any material act or omission by Executive involving malfeasance or gross negligence in the performance of Executive’s duties to a member of the Post Group to the material detriment of the Post Group; or

(c) Executive breaches in any material respect any of the covenants set forth in § 7, § 8, § 9 or § 10 of this Agreement; provided, however,

(d) No such act or omission or event shall be treated as “Cause” under this Agreement unless (i) Executive has been provided a detailed, written statement of the basis for the Post Group’s belief such act or omission or event constitutes “Cause” and an opportunity to meet with the Compensation Committee (together with Executive’s counsel if Executive chooses to have Executive’s counsel present at such meeting) after Executive has had a reasonable period in which to review such statement and, if the allegation is under § 1.4(b) or § 1.4(c), has had at least a thirty (30) day period to take corrective action, and (ii) the Compensation Committee after such meeting (if Executive meets with the Compensation Committee) and after the end of such thirty (30) day correction period (if applicable) determines reasonably and in good faith and by the affirmative vote of at least a majority of the members of the Compensation Committee then in office at a meeting called and held for such purpose that “Cause” does exist under this Agreement.

1.5 Change in Control. The term “Change in Control” for purposes of this Agreement shall mean:

(a) a “change in control” of Post of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A for a proxy statement filed under Section 14(a) of the Exchange Act as in effect on the date of this Agreement;

(b) a “person” (as that term is used in 14(d)(2) of the Exchange Act) becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of securities representing forty-five percent (45%) or more of the combined voting power for election of directors of the then outstanding securities of Post;

(c) the individuals who at the beginning of any period of two (2) consecutive years or less (starting on or after the date of this Agreement) constitute the Board cease for any reason during such period to constitute at least a majority of the Board, unless the election or nomination for election of each new member of the Board was approved by vote of at least two-thirds (2/3) of the members of such Board then still in office who were members of such Board at the beginning of such period;

(d) the consummation of any reorganization, merger, consolidation, or share exchange as a result of which the common stock of Post shall be changed,

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converted, or exchanged into or for securities of another organization (other than a merger with an Affiliate identified in §1.1(a), (b) or (c) of this Agreement or a wholly-owned subsidiary of Post), or any dissolution or liquidation of Post, or any sale or the disposition of fifty percent (50%) or more of the assets or business of Post; or

(e) the consummation of any reorganization, merger, consolidation, or share exchange with another corporation unless (i) the persons who were the beneficial owners of the outstanding shares of the common stock of Post immediately before the consummation of such transaction beneficially own more than sixty percent (60%) of the outstanding shares of the common stock of the successor or survivor corporation in such transaction immediately following the consummation of such transaction and (ii) the number of shares of the common stock of such successor or survivor corporation beneficially owned by the persons described in § 1.5(e)(i) immediately following the consummation of such transaction is beneficially owned by each such person in substantially the same proportion that each such person had beneficially owned shares of Post common stock immediately before the consummation of such transaction, provided, however (iii) the percentage described in § 1.5(e)(i) of the beneficially owned shares of the successor or survivor corporation and the number described in § 1.5(e)(ii) of the beneficially owned shares of the successor or survivor corporation shall be determined exclusively by reference to the shares of the successor or survivor corporation which result from the beneficial ownership of shares of common stock of Post by the persons described in § 1.5(e)(i) immediately before the consummation of such transaction.

1.6 Code. The term “Code” for purposes of this Agreement shall mean the Internal Revenue Code of 1986, as amended.

1.7 Compensation Committee. The term “Compensation Committee” for purposes of this Agreement shall mean the Executive Compensation and Management Development Committee of the Board or any successor of such committee or, if there is no such successor, the Board.

1.8 Confidential or Proprietary Information. The term “Confidential or Proprietary Information” for purposes of this Agreement shall mean any secret, confidential, or proprietary information of Post or any Affiliate (not otherwise included in the definition of Trade Secret in § 1.26 of this Agreement) that has not become generally available to the public by the act of one who has the right to disclose such information without violating any right of Post or any Affiliate.

1.9 Delayed Payment Date. The term “Delayed Payment Date” for purposes of this Agreement shall mean the date which is six (6) months and one (1) day after the date that Executive has a Separation from Service.

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1.10 Disability. The term “Disability” for purposes of this Agreement shall mean that Executive, as a result of a mental or physical condition or illness affecting a major life activity, is unable to perform the essential functions of Executive’s job at the Post Group for any consecutive 180-day period, even with reasonable accommodation, all as reasonably determined by the Compensation Committee.

1.11 Effective Date. The term “Effective Date” for purposes of this Agreement shall mean either the date which includes the “closing” of the transaction which makes a Change in Control effective, if the Change in Control is made effective through a transaction which has a “closing”, or the date a Change in Control is reported in accordance with applicable law as effective to the Securities and Exchange Commission (or otherwise publicly announced as effective), if the Change in Control is made effective other than through a transaction which has a “closing”.

1.12 Exchange Act. The term “Exchange Act” for purposes of this Agreement shall mean the Securities Exchange Act of 1934, as amended.

1.13 Good Reason.

(1) The term “Good Reason” for purposes of § 6 of this Agreement shall (subject to § 1.13(1)(f)) mean:

(a) there is a reduction after a Change in Control, but before the end of Executive’s Protection Period, in Executive’s base salary pursuant to § 5.1, or there is a “Significant Reduction” after a Change in Control, but before the end of Executive’s Protection Period, in Executive’s eligibility to receive in the aggregate the bonuses pursuant to § 5.2 and the incentive compensation or awards pursuant to § 5.3 or § 5.4, without Executive’s express written consent. For purposes of this § 1.13(1)(a), “Significant Reduction” shall mean a reduction, in the aggregate, of ten percent (10%) or more from the aggregate of the target bonus award and the target incentive compensation award established for the calendar year in which the Change in Control occurs, determined without consideration of any other payments made to Executive upon a Change in Control;

(b) there is a reduction after a Change in Control, but before the end of Executive’s Protection Period, in the scope, importance, or prestige of Executive’s duties, responsibilities, or authority (other than a mere change in Executive’s title, if such change in title is consistent with the organizational structure of the Post Group following such Change in Control) without Executive’s express written consent;

(c) at any time after a Change in Control, but before the end of Executive’s Protection Period (without Executive’s express written consent), there is a transfer of Executive’s primary work site from Executive’s primary work site on the date of such Change in Control or, if Executive subsequently consents

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in writing to such a transfer under this Agreement, from the primary work site that was the subject of such consent, to a new primary work site that is more than thirty-five (35) miles from Executive’s then current primary work site, unless such new primary work site is closer to Executive’s primary residence than Executive’s then current primary work site; or

(d) there is a failure (without Executive’s express written consent) after a Change in Control, but before the end of Executive’s Protection Period, to continue to provide to Executive health and welfare benefits, deferred compensation benefits, and executive perquisites that are in the aggregate comparable in value to those provided to Executive immediately prior to the Change in Control Date;

(e) the Post Group fails to agree (other than as a result of Cause or Executive’s refusal to update Appendix A to this Agreement) to an extension of the term of this Agreement under § 3 at any time before Executive reaches age 65, or if a Change in Control occurs before the executive reaches age 65, the end of Executive’s Protection Period; provided, however,

(f) No such act or omission shall be treated as “Good Reason” under § 1.13(1) unless

(i) (A) Executive delivers to the Compensation Committee a detailed, written statement of the basis for Executive’s belief that such act or omission constitutes Good Reason, (B) Executive delivers such statement before the later of (1) the end of the ninety (90) day period that starts on the date there is an act or omission which forms the basis for Executive’s belief that Good Reason exists, or (2) the end of the period mutually agreed upon for purposes of this § 1.13(1)(f)(i)(B) in writing by Executive and the Chairman of the Compensation Committee, (C) Executive gives the Compensation Committee a thirty (30) day period after the delivery of such statement to cure the basis for such belief, and (D) Executive actually submits Executive’s written resignation to the Compensation Committee during the sixty (60) day period that begins immediately after the end of such thirty (30) day period if Executive reasonably and in good faith determines that Good Reason continues to exist after the end of such thirty (30) day period, or

(ii) the Post Group states in writing to Executive that Executive has the right to treat any such act or omission as Good Reason under this Agreement and Executive resigns during the sixty (60) day period that starts on the date such statement is actually delivered to Executive;

(g) If (A) Executive gives the Compensation Committee the statement described in § 1.13(1)(f)(i) before the end of the thirty (30) day period that immediately follows the end of the Protection Period and Executive thereafter

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resigns within the period described in § 1.13(1)(f)(i), or (B) the Post Group provides the statement to Executive described in § 1.13(1)(f)(ii) before the end of the thirty (30) day period that immediately follows the end of the Protection Period and Executive thereafter resigns within the period described in § 1.13(1)(f)(ii), then (C) such resignation shall be treated under this Agreement as if made in Executive’s Protection Period; and

(h) If Executive consents in writing to any reduction described in § 1.13(1)(a) or § 1.13(1)(b), to any transfer described in § 1.13(1)(c) or to any failure described in § 1.13(1)(d) in lieu of exercising Executive’s right to resign for Good Reason and delivers such consent to the Post Group, the date such consent is delivered to the Post Group thereafter shall be treated under this definition as the date of a Change in Control for purposes of determining whether Executive subsequently has Good Reason under this Agreement to resign under § 6.1 or § 6.3 as a result of any subsequent reduction described in § 1.13(1)(a) or § 1.13(1)(b), any subsequent transfer described in § 1.13(1)(c), or any subsequent failure described in § 1.13(1)(d).

(2) The term “Good Reason” for purposes of § 4 of this Agreement shall mean:

(a) there is a change in Executive’s eligibility for compensation and benefits in a manner that results in Executive’s compensation and benefits being reduced five percent (5%) more than the reduction in compensation and benefits effected with respect to other executives of the Post Group who are at or above the Executive Vice President level; or

(b) there is a significant reduction in Executive’s level of responsibility or authority (other than a mere change in Executive’s title) without Executive’s express written consent; or

(c) there is a transfer of Executive’s primary work site from the Executive’s primary work site on the date of this Agreement or, if the Executive subsequently consents in writing to such a transfer under this Agreement, from the primary work site that was the subject of such consent, to a new primary work site that is more than thirty-five (35) miles from Executive’s then current primary work site, unless such new primary work site is closer to Executive’s primary residence than Executive’s then current primary work site or unless Executive provides his express written consent; or

(d) the Post Group fails to agree (other than as a result of Cause or Executive’s refusal to update Appendix A to this Agreement) to an extension of the term of this Agreement under § 3 at any time before Executive reaches age 65; provided, however,

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(e) No such act or omission shall be treated as “Good Reason” under § 1.13(2) unless

(i) (A) Executive delivers to the Compensation Committee a detailed, written statement of the basis for Executive’s belief that such act or omission constitutes Good Reason, (B) Executive delivers such statement before the later of (1) the end of the ninety (90) day period that starts on the date there is an act or omission which forms the basis for Executive’s belief that Good Reason exists, or (2) the end of the period mutually agreed upon for purposes of this § 1.13(2)(e)(i)(B) in writing by Executive and the Chairman of the Compensation Committee, (C) Executive gives the Compensation Committee a thirty (30) day period after the delivery of such statement to cure the basis for such belief, and (D) Executive actually submits Executive’s written resignation to the Compensation Committee during the sixty (60) day period that begins immediately after the end of such thirty (30) day period if Executive reasonably and in good faith determines that Good Reason continues to exist after the end of such thirty (30) day period, or

(ii) the Post Group states in writing to Executive that Executive has the right to treat any such act or omission as Good Reason under this § 1.13(2) and Executive resigns during the sixty (60) day period that starts on the date such statement is actually delivered to Executive.

1.14 Group Health Plan. The term “Group Health Plan” for purposes of this Agreement shall mean the group health plan maintained by any member of the Post Group for the purpose of providing medical, dental and vision benefits for the employees of the Post Group and any Affiliates.

1.15 Interest. The term “Interest” for purposes of this Agreement shall mean interest for the period between Executive’s Separation from Service and Executive’s Delayed Payment Date at the three (3) month LIBOR rate (using the three (3) month LIBOR rate published in The Wall Street Journal on the date of Executive’s Separation from Service) plus 100 basis points, compounded monthly.

1.16 Multifamily Property. The term “Multifamily Property” for purposes of this Agreement and any renewal of this Agreement shall mean any real property on which an upscale multifamily residential-use development has been constructed or is under construction as of the date of this or any renewal of this Agreement.

1.17 Post. The term “Post” for purposes of this Agreement shall mean Post Properties, Inc., a Georgia corporation, and any successor to Post.

1.18 Post Apartment Homes. The term “Post Apartment Homes” for purposes of this Agreement shall mean Post Apartment Homes, L.P., a Georgia limited partnership, and any successor to Post Apartment Homes.

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1.19 Post GP Holdings. The term “Post GP Holdings” for purposes of this Agreement shall mean Post GP Holdings, Inc., a Georgia, corporation, and any successor to Post GP Holdings.

1.20. Post Group. The term “Post Group” for purposes of this Agreement shall mean, individually and collectively, Post, Post Apartment Homes and Post Services.

1.21 Post Services. The term “Post Services” for purposes of this Agreement shall mean Post Services, Inc., a Georgia corporation, and any successor to Post Services.

1.22 Protection Period. The term “Protection Period” for purposes of this Agreement shall (subject to § 1.13(1)(g)) mean the three (3) year period which begins on the Effective Date.

1.23 Restricted Period. The term “Restricted Period” for purposes of this Agreement shall mean the period which starts on the date Executive’s employment by the Post Group terminates for any reason or no reason and which ends (i) on the first anniversary of such termination date for purposes of § 9 and § 10 and (ii) on the second anniversary of such termination date for purposes of § 7 and § 8.

1.24 Separation from Service. The term “Separation from Service” for purposes of this Agreement shall mean a “separation from service” within the meaning of § 409A of the Code and the related income tax regulations.

1.25 Specified Employee. The term “Specified Employee” for purposes of this Agreement shall mean a “specified employee” within the meaning of § 409A of the Code and the related income tax regulations.

1.26 Trade Secret. The term “Trade Secret” for purposes of this Agreement shall mean information, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers that:

(a) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and

(b) is the subject of reasonable efforts by Post or an Affiliate to maintain its secrecy.

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§ 2. Employment.

2.1 General. Subject to the terms of this Agreement, the Post Group, or one or more of the members of the Post Group, hereby employ Executive, and Executive hereby accepts such employment for the “term” described in § 3. The members of the Post Group hereby delegate to Post the power and the responsibility to act on their benefit under this Agreement. Post shall allocate between the members of the Post Group which actually employ Executive all compensation and other expenses related to their employment of Executive.

2.2 Title and Duties and Responsibilities. Executive’s title at the Post Group initially shall be Executive Vice President, Regional Investment Director, and Executive initially shall be responsible for the investments currently made by the Post Group in the Houston, Dallas and Austin, Texas markets, for recommending an investment and development strategy for those markets and for implementing the investment and development strategy adopted for those markets, which implementation shall include making recommendations on possible acquisitions and dispositions and developments in such markets based on the investment and development strategy adopted for those markets. Executive shall have such additional duties and responsibilities for the members of the Post Group as shall be assigned to him by Post’s Chief Executive Officer or his or her delegate or Post’s Chief Investment Officer or his or her delegate. Executive shall devote his full business time, skills, and best efforts to rendering services on behalf of the Post Group and shall exercise such care as is customarily required by executives undertaking similar duties for entities similar to the Post Group.

§ 3. Term.

3.1 Initial Term. Subject to § 3.2, the term of employment of Executive shall be for one (1) year commencing on the date of this Agreement.

3.2 Automatic Renewals. The term of this Agreement (subject to § 3.3, § 4 and § 6) shall renew for one (1) additional year on each successive anniversary of the date of this Agreement unless the Board notifies Executive in writing of Post’s decision not to renew this Agreement at least thirty (30) days prior to expiration of the then current term; provided, however, no automatic renewal under this § 3.2 shall extend the term of this Agreement beyond the term in which Executive reaches age 65.

3.3 Special Rules. If Executive’s Protection Period begins before the term of this Agreement expires, this Agreement shall continue (notwithstanding § 3.2) in effect through the end of Executive’s Protection Period and, if Executive has a right to any compensation or benefits under § 6 before the term of this Agreement expires, the term of this Agreement shall continue until Executive agrees that all of the Post Group’s obligations to Executive under this Agreement have been satisfied in full or a court of competent jurisdiction makes a final determination that the Post Group has no further obligations to Executive under this Agreement, whichever comes first.

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§ 4. Termination.

4.1 General Rule. Any member of the Post Group may terminate Executive’s employment at any time and Executive may resign at any time; provided, that if the termination is without Cause or Executive resigns for Good Reason,

(a) The Post Group, following Executive’s Separation from Service, shall continue to pay Executive pursuant to its standard payroll practices his base salary under § 5.1 as if Executive was still employed for a period of eighteen (18) months; provided, however, if Executive is a Specified Employee at his Separation from Service, any Cash Compensation payable to Executive between the period beginning on the date of Executive’s Separation from Service and ending on Executive’s Delayed Payment Date shall be delayed until Executive’s Delayed Payment Date, at which time all the so delayed payments shall be made in a lump sum with Interest;

(b) The Post Group, following Executive’s Separation from Service, shall pay to Executive in a lump sum (i) a pro-rata portion (based on the number of days Executive had already worked during the calendar year in which he has a Separation from Service) of the average percentage payout of the target bonus, if any, awarded to executives at or above the Executive Vice President level, payable at the same time annual bonuses are paid to executives at or above the Executive Vice President level, plus (ii) a bonus equal to the Executive’s average annual bonus (calculated pursuant to § 1.3(b)(1)) multiplied by 1.5, payable at Executive’s Separation from Service; provided, however, if Executive is a Specified Employee at his Separation from Service, this payment shall be delayed until Executive’s Delayed Payment Date, at which time the so delayed payment shall be made in a lump sum with Interest;

(c) The Post Group shall provide or make available health care coverage and shall provide reimbursement for life insurance and long-term disability premiums as follows:

(i) During the period starting on the date of Executive’s Separation from Service and ending on the earlier of (A) the last day of the eighteen (18) month period following Executive’s Separation from Service (the “18 Month Period”) or (B) the date when Executive is no longer entitled to continued coverage under § 4980B of the Code (the “COBRA Period”), the Post Group shall provide continued coverage under the Group Health plan pursuant to § 4980B of the Code (“COBRA Coverage”) and reimburse Executive for a portion of the monthly premiums paid by Executive for such COBRA Coverage,

(ii) If the period described in § 4.1(c)(i) ends because Executive is no longer entitled to COBRA Coverage, for the remainder of the 18 Month Period, if any, the Post Group shall provide Executive continued coverage under the Group Health Plan and shall reimburse Executive for a portion of the monthly premiums paid by Executive,

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(iii) If so requested by Executive in writing before the end of the coverage period described in either § 4.1(c)(i) or § 4.1(c)(ii), whichever is applicable, the Post Group will make available to Executive continued coverage under the Group Health Plan for up to an additional eighteen (18) months following the end of such coverage period to the extent Executive had such coverage under the Group Health Plan at the end of such coverage period and timely pays the monthly premium then paid by former employees for comparable COBRA Coverage,

(iv) The reimbursable portion of the premiums paid by Executive each month under § 4.1(c)(i) and § 4.1(c)(ii) shall equal the dollar amount the Post Group would have paid on Executive’s behalf each month for the coverage which had been in effect immediately before Executive’s Separation from Service under the Group Health Plan had Executive remained employed by the Post Group for the remainder of the 18 Month Period. For the avoidance of doubt, the Post Group will not be responsible for any reimbursement during the period described in § 4.1(c)(iii),

(v) The Post Group shall reimburse Executive during the 18 Month Period for a portion of Executive’s monthly premiums to purchase life insurance coverage and long-term disability coverage which is no less than the face amount of Executive’s life insurance coverage and long-term disability coverage in effect immediately before Executive’s Separation from Service, and the reimbursable portion each month shall equal the dollar amount the Post Group would have paid in premiums on Executive’s behalf each month for the life insurance coverage and long-term disability coverage under the policies which had been in effect immediately before Executive’s Separation from Service had Executive remained employed by the Post Group for the remainder of the 18 Month Period,

(vi) The reimbursements called for under this § 4.1(c) shall be requested by Executive and processed and made by the Post Group in accordance with the policies and procedures in effect from time to time under the Post Group’s standard expense reimbursement policy for the Post Group’s senior executives as provided to Executive, but no cost or expense shall be reimbursable under this § 4.1(c) after the end of the calendar year immediately following the calendar year in which Executive incurs such cost or expense even if reimbursement was permissible at a later date under such policy, and

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(vii) The Post Group shall add to each reimbursement made pursuant to this § 4.1(c) an amount which the Post Group acting in good faith reasonably determines would be sufficient for Executive to pay his income and employment tax due on such reimbursement if Executive was subject to the maximum marginal tax rates; provided, however, if Executive is a Specified Employee at his Separation from Service, no such additional payments shall be made until the Delayed Payment Date, and the Post Group on the Delayed Payment Date shall make a lump sum payment in cash with Interest to Executive which the Post Group acting in good faith reasonably determines would be sufficient for Executive to pay his income and employment tax due on all of the reimbursements made before such date pursuant to this § 4.1(c) if Executive was subject to the maximum marginal tax rates; and

(d) (i) Each outstanding stock option granted to Executive by Post shall become exercisable immediately before Executive’s termination of employment to the full extent the option would have become exercisable if Executive had remained employed by the Post Group through the 18 Month Period, and each option shall remain exercisable until the earlier of (A) the expiration of the term of the option or (B) the date the option would have expired if Executive’s employment had terminated at the end of the 18 Month Period without Cause or for Good Reason, and

(ii) Executive, immediately before his Separation from Service, shall vest in any outstanding restricted stock granted by Post to the full extent Executive would have vested in the restricted stock had Executive remained employed by the Post Group through the 18 Month Period.

4.2 Termination for Cause, Resignation without Good Reason or as a result of Death or Disability. If (a) any member of the Post Group terminates Executive’s employment for Cause, (b) Executive resigns without Good Reason or (c) Executive’s employment terminates as a result of Executive’s death or Disability, then (i) the Post Group’s only obligation to Executive under this Agreement shall (subject to applicable withholdings) be to pay Executive’s base salary and bonus, if any, which were due and payable pursuant to § 5.1 or § 5.2 on the date Executive has a Separation from Service and to reimburse Executive for expenses Executive had already incurred and which would have otherwise been reimbursed pursuant to § 5.6 but for such Separation from Service and (ii) Executive shall have the right to receive any benefits payable under the Post Group’s employee benefit plans, programs and policies (including options to purchase Post stock) which Executive otherwise has a nonforfeitable right to receive under this Agreement at the time of Executive’s Separation from Service; provided, however, if the Post Group acting in good faith determines that any such payment would subject Executive to a tax under § 409A of the Code if made at his Separation from Service, such payment shall be delayed and made at Executive’s Delayed Payment Date with Interest.

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§ 5. Compensation.

5.1 Base Salary. Executive’s initial annual base salary under this Agreement shall be $290,000, less required deductions. The Compensation Committee shall review Executive’s base salary on an annual basis, and the Compensation Committee, upon such review and in its sole discretion, may increase or decrease Executive’s base salary by an amount which the Compensation Committee deems appropriate in light of the Post Group’s and Executive’s performance during the period covered by such review; provided, however, that Executive’s base salary under this § 5.1 shall not be reduced below $290,000 per annum. Executive’s base salary, less any required deductions, shall be paid to Executive in accordance with the Post Group’s standard payroll practices and procedures for salaried employees. Notwithstanding the foregoing, Post reserves the right before a Change in Control to roll-back Executive’s Base Salary if such roll-back is effected pursuant to a roll-back program approved by the Board which includes a majority of the executives at or above the Executive Vice President level, and the roll-back for Executive is consistent with the roll-back for such other executives.

5.2 Bonus. In addition to his compensation under § 5.1, Executive shall receive during the term of this Agreement an annual bonus, provided that the personal and corporate goals to be established by the Compensation Committee are met or exceeded. In the event that Executive is paid a bonus under this § 5.2 for any period of time less than one year, Executive’s bonus shall be a pro rata share of the annual bonus.

5.3 Incentive Compensation and Equity Compensation. In addition to his compensation under § 5.1 and § 5.2, Executive shall receive awards under such incentive compensation or equity compensation programs maintained by Post, as in effect from time to time, as the Compensation Committee shall determine.

5.4 Comparison With Other REIT’s. At regular intervals Post shall continue to retain Compensation Consultants to assure that the total compensation paid to Executive is comparable to that being paid to executives at comparable Apartment REITs, and/or other REITs of a similar size, all as determined by the Compensation Committee.

5.5 Expenses. Executive shall be reimbursed for all reasonable business-related expenses incurred by Executive at the request of or on behalf of a member of the Post Group in accordance with the Post Group’s expense reimbursement policies and procedures for its senior executives, including, without limitation, first class travel expenses incurred in connection with the performance of Executive’s duties and responsibilities under this Agreement.

5.6 Vacation. In addition to Post-wide company holidays, Executive shall during the term of this Agreement be eligible to take at any time up to 20 business days

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(or 25 business days after 20 years of service) of vacation during each calendar year at any time on or after the first day of each such calendar year. Vacation days not taken shall be forfeited, and Executive will not receive any pay in lieu of vacation.

5.7 Benefit Plans. Executive shall be entitled to participate in such medical, dental, disability, hospitalization, life insurance, and other employee benefit plans as are maintained by the Post Group for the benefit of senior executive officers.

§ 6. Change In Control.

6.1 General Rule. If there is a Change in Control and either (i) any member of the Post Group during Executive’s Protection Period terminates Executive’s employment without Cause, or (ii) Executive during Executive’s Protection Period resigns for Good Reason, then

(a) The Post Group shall pay Executive in cash in a lump sum at his Separation from Service (i) a pro-rata portion of the target bonus (as set by the Compensation Committee) that Executive would be eligible to receive under § 5.2 for the days Executive had already worked during the calendar year in which he has a Separation from Service, plus (ii) two (2) times Executive’s then Cash Compensation; provided, however, if Executive is a Specified Employee at Executive’s Separation from Service, the payments specified in this § 6.1(a) shall be delayed and paid with Interest on his Delayed Payment Date; and

(b) (i) Each outstanding stock option granted to Executive by Post shall (notwithstanding the terms under which such option was granted) become fully vested and exercisable on the date of Executive’s Separation from Service and shall (notwithstanding the terms under which such option was granted) remain exercisable for the remaining term of each such option (as determined as if there had been no such Separation from Service), subject to the same terms and conditions as if Executive had remained employed by the Post Group for such term or such period (other than any term or condition which gives Post the right to cancel any such option) and (ii) any restrictions on any outstanding restricted stock grants to Executive by Post immediately shall (notwithstanding the terms under which such grant was made) expire and Executive’s right to such stock shall be non-forfeitable; and

(c) The Post Group shall provide or make available health care coverage and shall provide reimbursement for life insurance and long-term disability premiums as follows:

(i) During the period starting on the date of Executive’s Separation from Service and ending on the earlier of (A) the last day of the twenty-four month period following Executive’s Separation from Service (the “24 Month Period”) or (B) the date when Executive is no longer entitled to continued coverage under § 4980B of the Code (the “COBRA

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Period”), the Post Group shall provide continued coverage under the Group Health plan pursuant to § 4980B of the Code (“COBRA Coverage”) and reimburse Executive for a portion of the monthly premiums paid by Executive for such COBRA Coverage,

(ii) If the period described in § 6.1(c)(i) ends because Executive is no longer entitled to COBRA Coverage, for the remainder (if any) of the 24 Month Period, if any, the Post Group shall provide Executive (1) continued coverage under the Group Health Plan or (2) if coverage for Executive is not available under the Group Health Plan, health insurance coverage from an insurance company selected by Executive and reimburse Executive for a portion of the monthly premiums paid by Executive for either form of coverage,

(iii) If so requested by Executive in writing before the end of the coverage period described in either § 6.1(c)(i) or § 6.1(c)(ii), whichever is applicable, the Post Group will make available to Executive continued coverage under the Group Health Plan for up to an additional eighteen (18) months following the end of such coverage period to the extent Executive had such coverage under the Group Health Plan at the end of such coverage period and timely pays the monthly premium then paid by former employees for comparable COBRA Coverage,

(iv) The reimbursable portion of the premiums paid by Executive each month under § 6.1(c)(i) and § 6.1(c)(ii) shall equal the dollar amount the Post Group would have paid on Executive’s behalf each month for the coverage which had been in effect immediately before Executive’s Separation from Service under the Group Health Plan had Executive remained employed by the Post Group for the remainder of the 24 Month Period. For the avoidance of doubt, the Post Group will not be responsible for any reimbursement during the period described in § 6.1(c)(iii),

(v) The Post Group shall reimburse Executive during the 24 Month Period for a portion of Executive’s monthly premiums to purchase life insurance coverage and long-term disability coverage which is no less than the face amount of Executive’s life insurance coverage and long-term disability coverage in effect immediately before Executive’s Separation from Service, and the reimbursable portion each month shall equal the dollar amount the Post Group would have paid in premiums on Executive’s behalf each month for the life insurance coverage and long-term disability coverage under the policies which had been in effect immediately before Executive’s Separation from Service had Executive remained employed by the Post Group for the remainder of the 24 Month Period,

16

(vi) The reimbursements called for under this § 6.1(c) shall be requested by Executive and processed and made by the Post Group in accordance with the policies and procedures in effect from time to time under the Post Group’s standard expense reimbursement policy for the Post Group’s senior executives as provided to Executive, but no cost or expense shall be reimbursable under this § 6.1(c) after the end of the calendar year immediately following the calendar year in which Executive incurs such cost or expense even if reimbursement was permissible at a later date under such policy, and

(vii) The Post Group shall add to each reimbursement made pursuant to this § 6.1(c) an amount which the Post Group acting in good faith reasonably determines would be sufficient for Executive to pay his income and employment tax due on such reimbursement if Executive was subject to the maximum marginal tax rates; provided, however, if Executive is a Specified Employee at his Separation from Service, no such additional payments shall be made until the Delayed Payment Date, and the Post Group on the Delayed Payment Date shall make a lump sum payment in cash with Interest to Executive which the Post Group acting in good faith reasonably determines would be sufficient for Executive to pay his income and employment tax due on all of the reimbursements made before such date pursuant to this § 6.1(c) if Executive was subject to the maximum marginal tax rates.

(d) If Executive is entitled to and accepts any benefits under § 6 of this Agreement, Executive shall not be entitled to and shall not receive any benefits under § 4 of this Agreement.

6.2 No Increase In Other Benefits.

If Executive’s employment terminates under the circumstances described in § 6.1 or § 6.3, Executive expressly waives Executive’s right, if any, to have any payment made under § 6.1 taken into account to increase the benefits otherwise payable to, or on behalf of, Executive under any employee benefit plan, whether qualified or unqualified, maintained by the Post Group.

6.3 Termination In Anticipation Of A Change In Control.

Executive shall be treated under § 6.1 as if Executive’s employment had been terminated without Cause or Executive had resigned for Good Reason during Executive’s Protection Period if:

(a) Executive’s employment is terminated by a member of the Post Group without Cause or Executive resigns for Good Reason,

17

(b) such termination is effected or such resignation is effective at any time in the sixty (60) day period which ends on the Effective Date of a Change In Control, and

(c) there is an Effective Date for such Change In Control.

6.4 Termination as a result of Death or Disability.

If Executive’s employment terminates exclusively as a result of Executive’s death or a Disability, Executive agrees that no member of the Post Group will have any obligation to Executive under this § 6, and that Executive shall be entitled to only those benefits set forth in § 4.2.

§ 7. No Solicitation Of Customers.

Executive will not, during the Restricted Period, for purposes of competing with Post or any Affiliate, solicit on Executive’s own behalf or on behalf of any other person, firm, or corporation which engages, directly or indirectly, in the development, operation, management, or leasing of a Multifamily Property, any customer of Post or any Affiliate with whom Executive had a personal business interaction at any time during the two (2) years immediately prior to the termination of Executive’s employment by any member of the Post Group. This § 7 shall not prohibit a general solicitation not targeted at Post’s or an Affiliate’s customers and in which Executive has no participation or involvement.

§ 8. Antipirating Of Employees.

Executive will not during the Restricted Period employ or seek to employ on Executive’s own behalf or on behalf of any other person, firm or corporation that engages, directly or indirectly, in the development, operation, management, or leasing, of a Multifamily Property, any person who was employed by a member of the Post Group in an executive, managerial, or supervisory capacity during the term of Executive’s employment by a member of the Post Group and with whom Executive had business dealings during the two (2) year period which ends on the date Executive’s employment by any member of the Post Group terminates (whether or not such employee would commit a breach of contract), and who has not ceased to be employed by a member of the Post Group for a period of at least one (1) year. This § 8 shall not prohibit a general solicitation not targeted at employees of Post or an Affiliate and in which Executive has no participation or involvement.

§ 9. Trade Secrets And Confidential Or Proprietary Information.

Executive hereby agrees to hold in a fiduciary capacity for the benefit of Post and each Affiliate, and will not directly or indirectly use or disclose, any Trade Secret that Executive may have acquired during the term of Executive’s employment by any member of the Post Group for so long as such information remains a Trade Secret even if such information remains a Trade Secret after the expiration of the Restricted Period.

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In addition, Executive agrees during the Restricted Period to hold in a fiduciary capacity for the benefit of Post and each Affiliate, and not to directly or indirectly use or disclose, any Confidential or Proprietary Information that Executive may have acquired (whether or not developed or compiled by Executive and whether or not Executive was authorized to have access to such information) during the term of, in the course of, or as a result of Executive’s employment by any member of the Post Group.

§ 10. Covenant Not To Compete.

During the Restricted Period, Executive shall not serve as an employee, independent contractor, or otherwise render any advice or services similar to those listed in § 2, directly or indirectly, to any person, firm, or corporation listed on Appendix A of this Agreement with respect to its operations in the U.S. Office of Management and Budget’s metropolitan statistical areas for Dallas, Austin and Houston, Texas. Executive agrees that the entities listed on Appendix A are the Post Group’s principal competitors in the markets where the Post Group is currently engaged in business. Executive further agrees that Executive and the Post Group will, in return for additional consideration, agree to update Appendix A in connection with the annual renewal of this Agreement in order to fairly include only the Post Group’s principal competitors.

§ 11. Reasonable and Necessary Restrictions.

The Post Group has identified Executive as an individual with significant skills and experience critical to the business of the Post Group. In view of the significant and growing demand for executive talent and the need to ensure continuity of the senior management team for the Post Group, the Post Group desires to provide Executive through this Agreement with certain incentives to remain in the Post Group’s employment. This Agreement is also designed to provide additional motivation for meeting the Post Group’s goals and objectives, to address potential long term employment concerns of Executive, and to impose certain reasonable restrictions on Executive’s activities designed to protect the Post Group’s interests should Executive’s employment terminate.

Executive acknowledges that Post and its Affiliates shall disclose or make available Confidential Information and Trade Secrets to Executive that could be used by Executive to the detriment of Post and its Affiliates. In addition, in connection with his employment, Executive shall develop important relationships and contacts with employees valuable to Post and its Affiliates.

Executive further acknowledges that § 7, § 8, § 9, and § 10 of this Agreement are fair and reasonable, enforcement of the provisions of this Agreement will not cause Executive undue hardship, and the provisions of this Agreement are reasonably necessary and commensurate with the need to protect the Post Group and their business interests and property from irreparable harm.

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Executive acknowledges that the restrictions, prohibitions, and other provisions set forth in this Agreement, including without limitation the Restricted Period and those set forth in § 7, § 8, § 9, and § 10, are reasonable, fair and equitable in scope, terms, and duration; are necessary to protect the legitimate business interests of the Post Group; and are a material inducement to the Post Group to enter into this Agreement. Executive covenants that Executive will not challenge the enforceability of this Agreement nor will Executive raise any equitable defense to its enforcement.

§ 12. Specific Performance.

Executive acknowledges that the obligations undertaken by him pursuant to this Agreement are unique and that the Post Group likely will have no adequate remedy at law if Executive shall fail to perform any of Executive’s obligations under this Agreement, and Executive therefore confirms that the Post Group’s right to specific performance of the terms of this Agreement is essential to protect the rights and interests of the Post Group. Accordingly, in addition to any other remedies that the Post Group may have at law or in equity, the Post Group will have the right to have all obligations, covenants, agreements, and other provisions of this Agreement specifically performed by Executive, and the Post Group will have the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by Executive, and Executive submits to the jurisdiction of the courts of the State of Georgia for this purpose.

§ 13. Section 280G Provisions.

Notwithstanding anything in this Agreement to the contrary, to the extent that any payments and benefits called for under this Agreement, together with any other payments and benefits made available to Executive by the Post Group (collectively, the “Payments”), will result in Executive’s being subject to an excise tax under § 4999 of the Code, then a determination shall be made regarding which of the following options would be more advantageous to Executive, after paying all applicable taxes (including any applicable tax under § 4999 of the Code) (the “Determination”): (i) to receive all of the Payments, or (ii) to receive the portion of the Payments that in the aggregate is One Dollar ($1.00) less than the amount which would cause the Payments to be subject to the excise tax imposed by § 4999 of the Code (the “Safe Harbor Amount”). The Determination required under this § 13 shall be made at the expense of Post by a firm of independent accountants selected by Post and reasonably acceptable to Executive. If the Determination is that it would be more advantageous to Executive after paying all applicable taxes to receive all of the Payments pursuant to § 13(i), then such Payments shall be made to Executive in accordance with the terms of this Agreement. If the Determination is that it would be more advantageous to Executive after paying all applicable taxes to receive the Safe Harbor Amount pursuant to § 13(ii), then only the Safe Harbor Amount shall be paid to Executive in accordance with the terms of this Agreement. In the event the Safe Harbor Amount pursuant to § 13(ii) is to be paid to Executive, the Payments to which Executive would otherwise be entitled to under this Agreement shall be reduced in the following order: (1) any cash severance benefits

20

provided under § 6.1(a), (2) any acceleration of vesting of stock options or restricted stock provided under § 6.1(b), (3) any benefits provided under § 6.1(c), and (4) any other Payments under the Agreement.

Any Determination under this § 13 shall be made in accordance with a reasonable interpretation and application of § 280G of the Code and any applicable related regulations (whether proposed, temporary, or final) and any related Internal Revenue Service rulings and any related case law. If the Post Group reasonably requests that Executive take action to mitigate or challenge any tax or assessment and Executive complies with such request, the Post Group shall provide Executive with such information and such expert advice and assistance from Post’s independent accountants, lawyers, and other advisors as Executive may reasonably request and shall pay for all expenses incurred in effecting such compliance and any related fines, penalties, interest, and other assessments.

§ 14. Executive’s Legal Fees and Expenses.

If any action at law or in equity is necessary for Executive to enforce or interpret the terms of this Agreement, the Post Group shall promptly pay Executive’s reasonable attorneys’ fees and other reasonable expenses incurred with respect to such action. If any other action is taken with respect to this Agreement, the Post Group shall bear its own attorneys’ fees and expenses and Executive shall bear Executive’s own attorneys’ fees and expenses. If a reimbursement is called for under this § 14, such reimbursement shall be made no later than the end of the calendar year immediately following the calendar year in which Executive pays the related legal fees or expenses. The Post Group and Executive acknowledge and agree that the deadline set forth in the immediately preceding sentence is only intended to satisfy an express requirement in the regulations under § 409A of the Code and that such sentence shall not give the Post Group the right to delay making a reimbursement in accordance with the first sentence in this § 14.

§ 15. Miscellaneous.

15.1 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Executive and his executor, administrator, heirs, personal representatives, and assigns, and the Post Group, and their successors and assigns; provided, however, that Executive shall not be entitled to assign or delegate any of his rights or obligations hereunder without the prior written consent of the Post Group.

15.2 Construction of Agreement. No provision of this Agreement or any related document shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority, including an arbitrator, by reason of such party having or being deemed to have structured or drafted such provision.

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15.3 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia.

15.4 Survival of Agreements. All covenants and agreements made in this Agreement shall survive the execution and delivery of this Agreement and the termination of Executive’s employment under this Agreement for any reason.

15.5 Headings and References. The section and sub-section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All references to sections (§) in this Agreement shall be to sections (§) of this Agreement unless otherwise expressly noted.

15.6 Notices. All notices, requests, consents, and other communications called for under this Agreement shall be in writing and shall be deemed to be given when delivered personally or mailed first class, registered or certified mail, postage prepaid, in either case, addressed as follows:

(a) If to Executive:

to Executive’s most recent address provided to Post.

(b) If to the Post Group:

Post Properties, Inc.

One Riverside

4401 Northside Parkway

Suite 800

Atlanta, GA 30327-3057

Attention: Corporate Secretary

with a copy to:

Keith M. Townsend

King & Spalding LLP

1180 Peachtree Street

Atlanta, GA 30309-3521

15.7 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

15.8 Entire Agreement. This Agreement constitutes the entire agreement of the Post Group and Executive with respect to the subject matter hereof and supersedes and replaces all prior agreements, written or oral, with respect to the subject matter hereof, including the 2008 Agreement. This Agreement may be modified only by a written instrument signed by the member of the Post Group and Executive.

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15.9 Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

15.10 No Waiver. No waiver by any party of any breach by the other party of any condition or provision contained in this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by Executive or an authorized officer of a member of the Post Group, as the case may be.

15.11 Reference; Non-Disparagement. In the event of Executive’s termination without Cause or resignation for Good Reason, the Post Group agrees to provide Executive with a reference. Each member of the Post Group agrees not to disparage or demean Executive, publicly or otherwise. Executive also agrees not to disparage or demean any member of the Post Group or any of their officers or directors or shareholders, publicly or otherwise.

15.12 Compliance With Section 409A of the Code. The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the regulations and other guidance issued thereunder (the “Requirements”), and that the Agreement be construed and operated in accordance with such Requirements, or an exception to such Requirements, so that benefits under this Agreement shall not be included in income under Section 409A of the Code; provided, however, that nothing in the Agreement shall be construed as a covenant by the Post Group that payments made pursuant to the Agreement will not be subject to taxation under Section 409A of the Code, or as a guarantee or indemnity by the Post Group for any particular tax consequences for the payments called for under the Agreement. Any ambiguities in this Agreement shall be construed to effect the intent as described in this § 15.12. If any provision of this Agreement is found to be in violation of the Requirements, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render such provision in conformity with the Requirements, or with the consent of Executive shall be deemed excised from this Agreement, and this Agreement shall be construed and enforced to the maximum extent permitted by the Requirements as if such provision had been originally incorporated in this Agreement as so modified or restricted, or as if such provision had not been originally incorporated in this Agreement, as the case may be. Notwithstanding anything to the contrary, nothing in this Section 15.12 is intended, or shall be construed, to limit the cash payments or other benefits to which Executive is entitled under this Agreement without Executive’s express written consent.

A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits

23

that are considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” or a “termination of employment” shall mean “such a separation from service.” Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of Post. In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Code Section 409A.

Any reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation, that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by Post under this Agreement be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that Post is obligated to pay or provide, in any given calendar year, shall not affect the expenses or the in-kind benefits that Post is obligated to pay or provide in any other calendar year; (iii) the Executive’s right to have Post pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall Post’s obligations to make such reimbursements or to provide such in-kind benefits apply after Executive’s death, except that reimbursable expenses incurred prior to Executive’s death shall be paid to Executive’s estate or beneficiary.

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IN WITNESS WHEREOF, the members of the Post Group and Executive have executed this Agreement as of the date first written above.

POST PROPERTIES, INC.
By:	/s/ David P. Stockert
Name:	David P. Stockert
Title:	CEO and President
POST APARTMENT HOMES, L.P.
By: Post GP Holdings, Inc.
	By:	/s/ David P. Stockert
	Name:	David P. Stockert
	Title:	CEO and President
POST SERVICES, INC.
By:	/s/ David P. Stockert
Name:	David P. Stockert
Title:	CEO and President
EXECUTIVE
/s/ David C. Ward
David C. Ward

25

APPENDIX A

AMLI Residential Properties, LP

AIMCO

Archstone

AvalonBay Communities, Inc.

Camden Property Trust

Equity Residential

Fairfield Residential LLC

Gables Residential

Lincoln Property Company

Mid-America Apartment Communities, Inc.

The Hanover Company

Trammell Crow Residential

UDR, Inc.

Wood Partners, LLC

Mill Creek Residential

GID Investment Advisers LLC

Colonial Properties Trust

Greystar Real Estate Partners, LLC

Bell Partners

Behringer Harvard

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David P. Stockert, certify that:

1. I have reviewed this report on Form 10-Q of Post Properties, Inc. and Post Apartment Homes, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

May 8, 2014

By:	/s/ David P. Stockert	By:	/s/ David P. Stockert
	David P. Stockert		David P. Stockert
	President and Chief Executive Officer of Post Properties, Inc.		President and Chief Executive Officer of Post GP Holdings, Inc., the sole general partner of Post Apartment Homes, L.P.

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Christopher J. Papa, certify that:

1. I have reviewed this report on Form 10-Q of Post Properties, Inc. and Post Apartment Homes, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

May 8, 2014

By:	/s/ Christopher J. Papa	By:	/s/ Christopher J. Papa
	Christopher J. Papa		Christopher J. Papa
	Executive Vice President and Chief Financial Officer of Post Properties, Inc.		Executive Vice President and Chief Financial Officer of Post GP Holdings, Inc., the sole general partner of Post Apartment Homes, L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Post Properties, Inc. (“Post”) and Post Apartment Homes, L.P. (“PAH,” and together with Post, the “Registrants”) for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the President and Chief Executive Officer of Post and Post GP Holdings, Inc., PAH’s general partner, certifies that:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrants.

By:	/s/ David P. Stockert
	David P. Stockert
	President and Chief Executive Officer
	May 8, 2014

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Post Properties, Inc. (“Post”) and Post Apartment Homes, L.P. (“PAH,” and together with Post, the “Registrants”) for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Executive Vice President and Chief Financial Officer of Post and Post GP Holdings, Inc., PAH’s general partner, certifies that:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrants.

By:	/s/ Christopher J. Papa
	Christopher J. Papa
	Executive Vice President and
	Chief Financial Officer
	May 8, 2014

XML

Investments in Unconsolidated Real Estate Entities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2014 Property	Dec. 31, 2013	Mar. 31, 2014 3.50% Mortgage Note Payable [Member]	Mar. 31, 2014 5.63% Mortgage Notes Payable [Member]	Mar. 31, 2014 5.71% Mortgage Notes Payable [Member]	Mar. 31, 2014 Unconsolidated Properties [Member] Property	Dec. 31, 2013 Unconsolidated Properties [Member]	Mar. 31, 2014 Unconsolidated Properties [Member] Minimum [Member]	Mar. 31, 2014 Unconsolidated Properties [Member] Maximum [Member]	Mar. 31, 2014 Washington, D.C. [Member] Unconsolidated Properties [Member] Property	Mar. 31, 2014 Atlanta, Georgia [Member] Unconsolidated Properties [Member] Property
Equity method investment, ownership percentage								25.00%	35.00%
Number of real estate properties	60					4				1	3
Investment in owned subsidiaries	$ 4,039	$ 4,056
Investments in unconsolidated real estate entities	16,830	16,687				16,830	16,687
Mortgage note payable			$ 51,000	$ 85,724	$ 41,000	$ 177,723	$ 177,723
Mortgage notes payable bearing interest rate			3.50%	5.63%	5.71%
Mortgage note payable maturity date			2019	2017	January 2018
Automatic extension period (in years)					1 year

XML

Fair Value Measures and Other Financial Instruments - Schedule of Effect of Interest Rate Swaps Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging [Member], Interest Rate Swap [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive income	$ (1,010)	$ (73)
Loss reclassified from accumulated other comprehensive income into interest expense	$ (1,029)	$ (997)

XML

Equity and Noncontrolling Interests - Schedule of Redeemable Common Units (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity And Noncontrolling Interests [Line Items]
Redeemable common units, beginning of period	$ 6,121
Comprehensive income	14,240	21,262
Adjustment for ownership interest of redeemable common units	7	5
Stock-based compensation	946	822
Distributions to common unitholders	(19,562)	(13,647)
Adjustment to redemption value of redeemable common units	(531)	432
Redeemable common units, end of period	6,645
Redeemable Common Units [Member]
Equity And Noncontrolling Interests [Line Items]
Redeemable common units, beginning of period	6,121	7,159
Comprehensive income	33	53
Adjustment for ownership interest of redeemable common units	7	5
Stock-based compensation	2	2
Distributions to common unitholders	(49)	(36)
Adjustment to redemption value of redeemable common units	531	(432)
Redeemable common units, end of period	$ 6,645	$ 6,751

XML

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting [Abstract]
Stabilized occupancy benchmark percentage	95.00%	95.00%
Number of years to achieve stabilized occupancy subsequent to completion of construction	1 year	1 year

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Indebtedness - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		1 Months Ended	3 Months Ended		3 Months Ended
	Mar. 31, 2014	Mar. 31, 2014 Lines of Credit [Member]	May 31, 2014 Subsequent Event [Member]	Mar. 31, 2014 Unsecured Bank Term Loan [Member] OptionPlan	Mar. 31, 2014 Unsecured Bank Term Loan [Member] Interest Rate Swap [Member]	Mar. 31, 2014 Cash Management Line [Member] OptionPlans
Debt Instrument [Line Items]
Prepaid secured mortgage indebtedness			$ 120,000
Indebtedness maturity date	2015-02
Stated rate on the indebtedness	4.88%		4.88%
Net gain (loss) on extinguishment of indebtedness			4,300
Line of credit facility, current borrowing capacity		300,000				30,000
Interest Rate, spread over LIBOR		1.225%		1.70%
Line of credit facility annual facility fees percentage		0.225%
Line of credit facility, expiration year		January 2016		January 2018		January 2016
Interest rate based on credit ratings ranges, minimum		1.00%
Interest rate based on credit ratings ranges, maximum		1.80%		2.30%
Facility fee rate based on credit ratings range, minimum		0.15%
Facility fee rate based on credit ratings range, maximum		0.40%
Line of credit facility, competitive bid option for short-term funds, percentage		50.00%
Letters of credit issued	420
Number of extension options						1
Time period extension option				6 months		1 year
Term loan facility, borrowing capacity				$ 300,000
Interest rate based on credit ratings ranges, minimum				1.50%
Six-month extension options				2
Interest rate paid under the Term Loan					1.54%
Effective blended interest rate on the Term Loan					3.24%
Coverage's ratio	1.5
Company's ratio	2.0
Unencumbered assets to unsecured debt	1.5
Leverage ratio	60.00%
Total secured debt to total asset value	40.00%
Line of credit facility, covenant terms	The Company's Syndicated Line, Cash Management Line, Term Loan and senior unsecured notes contain customary restrictions, representations, covenants and events of default and require the Company to meet certain financial covenants. Debt service and fixed charge coverage covenants require the Company to maintain

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Organization and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accounting Policies [Abstract]
Interest paid, including interest capitalized	$ 8,205	$ 8,388
Income tax payments, net	7
Non-cash investing and financing activities:
Dividends and distributions payable	19,611	13,682
Common stock 401k matching contribution	658	670
Construction and property capital expenditure cost accruals, increase (decrease)	(2,395)	2,261
Adjustments to equity related to redeemable common units, net increase (decrease)	$ (538)	$ 427

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Stock-Based Compensation Plans - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for issuance	3,469
Stock grants counted against the total shares for every share issued	2.7
Stock-based compensation arrangement maximum assumption expected period, years	10 years
Description and terms of 2003 incentive stock plan	Incentive stock awards are granted under the Company’s 2003 Incentive Stock Plan, as amended and restated in October 2008 (the “2003 Stock Plan”). Under the 2003 Stock Plan, an aggregate of 3,469 shares of common stock were reserved for issuance. Of this amount, stock grants count against the total shares available under the 2003 Stock Plan as 2.7 shares for every one share issued, while options (and stock appreciation rights (“SAR”) settled in shares) count against the total shares available as one share for every one share issued on the exercise of an option (or SAR). The exercise price of each option granted under the 2003 Stock Plan may not be less than the market price of the Company’s common stock on the date of the option grant and all options may have a maximum life of ten years. Participants receiving restricted stock grants are generally eligible to vote such shares and receive dividends on such shares. Substantially all stock option and restricted stock grants are subject to annual vesting provisions (generally three to five years) as determined by the compensation committee overseeing the 2003 Stock Plan.
Maximum number of shares issuable under the ESPP	300
Percentage of share purchase price	85.00%
Discount on the share purchases	15.00%
Employee stock purchase plan description, compensation expense	$ 39	$ 37
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense relating to restricted stock	770	671
Unrecognized compensation cost related to unvested stock options	4,911
Unrecognized compensation costs, weighted average period of recognition, years	2 years 1 month 6 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense relating to restricted stock	139	116
Unrecognized compensation costs, weighted average period of recognition, years	2 years 1 month 6 days
Intrinsic value of stock options exercised	1,292	614
Unrecognized compensation cost related to unvested stock options	$ 829
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award vesting period, (in years)	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award vesting period, (in years)	5 years

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Investments in Unconsolidated Real Estate Entities (Tables) (Unconsolidated Properties [Member])

3 Months Ended

Mar. 31, 2014

Unconsolidated Properties [Member]

Summary of Financial Information for Apartment LLCs

A summary of financial information for the Apartment LLCs in the aggregate is as follows:

	March 31,			December 31,
Apartment LLCs - Balance Sheet Data	2014			2013
Real estate assets, net of accumulated depreciation of $45,000 and $43,649 at March 31, 2014 and December 31, 2013, respectively	$	208,067		$	209,132
Cash and other		5,092			4,978
Total assets	$	213,159		$	214,110
Mortgage notes payable	$	177,723		$	177,723
Other liabilities		2,613			2,673
Total liabilities		180,336			180,396
Members’ equity		32,823			33,714
Total liabilities and members’ equity	$	213,159		$	214,110
Company’s equity investment in Apartment LLCs (1)	$	(12,791	)	$	(12,631	)

(1) At March 31, 2014 and December 31, 2013, the Company’s equity investment includes its credit investments of $16,830 and $16,687, respectively, discussed above.

Schedule of Operation for Apartment LLCs

	Three months ended
	March 31,
Apartment LLCs - Income Statement Data	2014		2013
Revenues
Rental	$	6,485	$	6,285
Other property revenues		439		446
Total revenues		6,924		6,731
Expenses
Property operating and maintenance		2,751		2,651
Depreciation and amortization		1,376		1,340
Interest		2,238		2,238
Total expenses		6,365		6,229
Net income	$	559	$	502
Company’s share of net income in Apartment LLCs	$	485	$	478

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Company Earnings Per Share - Additional Information (Detail) (Gross Antidilutive [Member]) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Gross Antidilutive [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock options to purchase common stock	216	58

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Investments in Unconsolidated Real Estate Entities - Schedule of Operation for Apartment LLCs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues
Rental	$ 88,028	$ 81,326
Other property revenues	5,265	4,818
Total revenues	93,512	86,358
Expenses
Property operating and maintenance	40,596	37,284
Interest	11,244	11,052
Total expenses	68,482	63,267
Net income	14,236	20,342
Company's share of net income in Apartment LLCs	485	478
Unconsolidated Properties [Member]
Revenues
Rental	6,485	6,285
Other property revenues	439	446
Total revenues	6,924	6,731
Expenses
Property operating and maintenance	2,751	2,651
Depreciation and amortization	1,376	1,340
Interest	2,238	2,238
Total expenses	6,365	6,229
Net income	559	502
Company's share of net income in Apartment LLCs	$ 485	$ 478

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Real Estate Activity - Summary of Revenues and Expenses of Income from Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 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

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Operating Partnership Earnings Per Share - Additional Information (Detail) (Gross Antidilutive [Member]) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock options to purchase common stock	216	58
Post Apartment Homes, L.P. [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock options to purchase common stock	216	58

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Stock-Based Compensation Plans - Summary of Stock Option Activity Under All Plans (Detail) (Equity Option [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, beginning of period, Shares	539	685
Granted, Shares	35	29
Exercised, Shares	(73)	(29)
Options outstanding, end of period, Shares	501	685
Options exercisable, end of period, Shares	439	628
Options vested and expected to vest, end of period, Shares	498	682
Weighted average fair value of options granted during the period	$ 15.21	$ 17.26
Options outstanding, beginning of period, Exercise Price	$ 36	$ 34
Granted, Exercise Price	$ 47	$ 50
Exercised, Exercise Price	$ 29	$ 28
Options outstanding, end of period, Exercise Price	$ 38	$ 35
Options exercisable, end of period, Exercise Price	$ 37	$ 34
Options vested and expected to vest, end of period, Exercise Price	$ 38	$ 35

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Equity and Noncontrolling Interests - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2012	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014 At-The-Market Common Equity Sales Program [Member]	Mar. 31, 2013 At-The-Market Common Equity Sales Program [Member]	May 31, 2012 At-The-Market Common Equity Sales Program [Member]
Equity And Noncontrolling Interests [Line Items]
Common stock, shares authorized		100,000		100,000			4,000
Sale of common stock, shares					0	0
Stock repurchase program, authorized amount	$ 200,000
Repurchased shares of common stock, shares		0	550
Repurchased shares of common stock, aggregate cost			24,800
Repurchased shares of common stock, average gross price			$ 45.08
Redeemable common units		6,645		6,121
Noncontrolling interests in the Operating Partnership, net book value		$ 2,786		$ 2,792

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Organization and Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization

Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise.

The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Internal Revenue Code of 1986, as amended.

At March 31, 2014, the Company had 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. At March 31, 2014, approximately 28.9%, 21.8%, 13.4% and 9.7% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively.

At March 31, 2014, the Company had outstanding 54,339 shares of common stock and owned the same number of units of common limited partnership interests (“Common Units”) in the Operating Partnership, representing a 99.8% ownership interest in the Operating Partnership. Common Units held by persons other than the Company totaled 135 at March 31, 2014 and represented a 0.2% common minority interest in the Operating Partnership. Each Common Unit may be redeemed by the holder thereof for either one share of Company common stock or cash equal to the fair market value thereof at the time of redemption, at the option, but outside the control, of the Operating Partnership. The Operating Partnership presently anticipates that it will cause shares of common stock to be issued in connection with each such redemption rather than paying cash (as has been done in all redemptions to date). With each redemption of outstanding Common Units for Company common stock, the Company’s percentage ownership interest in the Operating Partnership will increase. In addition, whenever the Company issues shares of common stock, the Company will contribute any net proceeds therefrom to the Operating Partnership and the Operating Partnership will issue an equivalent number of Common Units to the Company. The Company’s weighted average common ownership interest in the Operating Partnership was 99.8% and 99.7% for the three months ended March 31, 2014 and 2013, respectively.

Basis of presentation

The accompanying unaudited financial statements have been prepared by the Company’s management in accordance with generally accepted accounting principles for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2013.

The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries. The Company also consolidates other entities in which it has a controlling financial interest or entities where it is determined to be the primary beneficiary under ASC Topic 810, “Consolidation.” Under ASC Topic 810, variable interest entities (“VIEs”) are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The application of ASC Topic 810 requires management to make significant estimates and judgments about the Company’s and its other partners’ rights, obligations and economic interests in such entities. For entities in which the Company has less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, the Company’s share of the net earnings or losses of these entities is included in consolidated net income. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company’s noncontrolling interest of common unitholders (also referred to as “Redeemable Common Units”) in the operations of the Operating Partnership is calculated based on the weighted average unit ownership during the period.

Revenue recognition

Residential properties are leased under operating leases with terms of generally one year or less. Rental revenues from residential leases are recognized on the straight-line method over the approximate life of the leases, which is generally one year. The recognition of rental revenues from residential leases when earned has historically not been materially different from rental revenues recognized on a straight-line basis.

Under the terms of residential leases, the residents of the Company’s residential communities are obligated to reimburse the Company for certain utility usage, water and electricity (at selected properties), where the Company is the primary obligor to the public utility entity. These utility reimbursements from residents are reflected as other property revenues in the consolidated statements of operations.

Sales and the associated gains or losses of real estate assets and for-sale condominiums were recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment – Real Estate Sales.” In periods through March 31, 2014, the Company accounted for condominium projects under the deposit method based on an evaluation of the factors specified in ASC Topic 360-20. As of March 31, 2014, the Company has no remaining investments in condominium communities. Under ASC Topic 360-20, the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. In subsequent periods, cumulative project cost of sale allocations and the resulting profits were adjusted to reflect changes in the actual and estimated costs and revenues of each project.

Cost capitalization

For communities under development or construction, the Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs associated with the development and construction activity. Interest is capitalized to projects under development or construction based upon the weighted average cumulative project costs for each month multiplied by the Company’s weighted average borrowing costs, expressed as a percentage. Weighted average borrowing costs include the costs of the Company’s fixed rate secured and unsecured borrowings and the variable rate unsecured borrowings under its line of credit facilities. The weighted average borrowing costs, expressed as a percentage, was 4.6% for the three months ended March 31, 2014 and 2013. Aggregate interest costs capitalized to projects under development or construction were $846 and $1,004 for the three months ended March 31, 2014 and 2013, respectively. Internal development and construction personnel and associated costs are capitalized to projects under development or construction based upon the effort associated with such projects. Aggregate internal development and construction personnel and associated costs capitalized to projects under development or construction were $489 and $756 for the three months ended March 31, 2014 and 2013, respectively. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the completion of rental and condominium units, interest and other construction costs are capitalized and 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 or sale. This results in a proration of costs between amounts that are capitalized and expensed as the residential units in apartment and condominium development communities become available for occupancy or sale. In addition, prior to the completion of rental units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing as well as property management and leasing personnel expenses) of such rental communities. Prior to the completion and closing of condominium units, the Company expenses all sales and marketing costs related to such units.

Real estate assets, depreciation and impairment

Real estate assets are stated at the lower of depreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and components—40 years; other building and land improvements—20 years; furniture, fixtures and equipment – 5-10 years).

The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment.” Factors considered by management in evaluating impairment of its existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value.

The Company periodically classifies real estate assets as held for sale. An asset is classified as held for sale after the approval of the Company’s board of directors and after an active program to sell the asset has commenced. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the accompanying consolidated balance sheets. Upon a decision to no longer market an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. As of March 31, 2014, the Company had three apartment communities classified as held for sale on the consolidated balance sheet.

For condominium communities, the operating results and associated gains and losses are reflected on the consolidated statement of operations in the caption titles “Net gains on condominium sales activities” (see discussion under “revenue recognition” above), and the net book value of the condominium assets is reflected separately on the consolidated balance sheet in the caption titled, “For-sale condominiums.”

Derivative financial instruments

The Company accounts for derivative financial instruments at fair value under the provisions of ASC Topic 815, “Derivatives and Hedging.” The Company measures derivative financial instruments subject to master netting agreements on a net basis. The Company uses derivative financial instruments, primarily interest rate swap arrangements to manage or hedge its exposure to interest rate changes. Under ASC Topic 815, derivative instruments qualifying as hedges of specific cash flows are recorded on the balance sheet at fair value with an offsetting increase or decrease to accumulated other comprehensive income, an equity account, until the hedged transactions are recognized in earnings. Quarterly, the Company evaluates the effectiveness of its cash flow hedges. Any ineffective portion of cash flow hedges is recognized immediately in earnings.

Fair value measurements

The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets recorded at fair value, if any, to its impairment valuation analysis of real estate assets, to its disclosure of the fair value of financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 are summarized in note 8 utilizing the following hierarchy:

• Level 1 – Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

• Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

• Level 3 – Unobservable inputs for the assets or liability.

Recently issued and adopted accounting pronouncements (discontinued operations)

In April 2014, Accounting Standards Update No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity” was issued. This guidance amends ASC Topics 360 and 205 and changes the requirements for reporting discontinued operations. Under the new guidance, a disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The new guidance also modifies the disclosure requirements for disposal groups reported as discontinued operations and for other significant disposal groups not reported as discontinued operations. Generally, the new guidance will result in fewer asset disposal groups being reported as discontinued operations in the Company’s financial statements. ASU 2014-08 is to be applied prospectively for periods on or after December 31, 2014 with early adoption permitted, but only for assets held for sale or sold that have not been reported in previously issued financial statements. The Company early adopted ASU 2014-08, effective as of January 1, 2014 (see note 2).

Supplemental cash flow information

Supplemental cash flow information for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014			2013
Interest paid, including interest capitalized	$	8,205		$	8,388
Income tax payments, net		7			—
Non-cash investing and financing activities:
Dividends and distributions payable		19,611			13,682
Common stock 401k matching contribution		658			670
Construction and property capital expenditure cost accruals, increase (decrease)		(2,395	)		2,261
Adjustments to equity related to redeemable common units, net increase (decrease)		(538	)		427

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Stock-Based Compensation Plans - Summary of Stock Option Activity Under All Plans (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Aggregate intrinsic value of stock options outstanding	$ 5,662
Aggregate intrinsic value of stock options exercisable	5,540
Aggregate intrinsic values of stock options expected to vest	$ 5,656
Weighted average remaining contractual lives of stock options outstanding, years	4 years 2 months 12 days
Weighted average remaining contractual lives of stock options exercisable, years	3 years 6 months
Weighted average remaining contractual lives of stock options expected to vest, years	4 years 2 months 12 days

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Indebtedness - Schedule of Indebtedness (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total	$ 1,097,709	$ 1,098,734
Senior Notes [Member]
Debt Instrument [Line Items]
Payment Terms	Int.
Interest Rate, minimum	3.375%
Interest Rate, maximum	4.75%
Unsecured debt	400,000	400,000
Unsecured Bank Term Loan [Member]
Debt Instrument [Line Items]
Payment Terms	Int.
Interest Rate, spread over LIBOR	1.70%
Debt instrument, Maturity Date	2018
Unsecured debt	300,000	300,000
Secured Mortgage Notes [Member]
Debt Instrument [Line Items]
Payment Terms	Prin. and Int.
Interest Rate, minimum	4.88%
Interest Rate, maximum	5.99%
Secured debt	$ 397,709	$ 398,734
Minimum [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2017
Minimum [Member] | Secured Mortgage Notes [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2015
Maximum [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2022
Maximum [Member] | Secured Mortgage Notes [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2019

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Fair Value Measures and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Effect of Interest Rate Swaps Designated as Cash Flow Hedges

The following table summarizes the effect of these Interest Rate Swaps (designated as cash flow hedges) on the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013:

	Three months ended
	December 31,
Interest Rate Swap / Cash Flow Hedging Instruments	2014			2013
Gain (loss) recognized in other comprehensive income	$	(1,010	)	$	(73	)
Loss reclassified from accumulated other comprehensive income into interest expense	$	(1,029	)	$	(997	)

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Company Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Computation of Basic and Diluted Net Income Per Share

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per share was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common shareholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Noncontrolling interests—Operating Partnership		(33	)		(50	)
Preferred stock dividends		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common shareholders	$	13,287		$	18,950
Common shares (denominator):
Weighted average shares outstanding—basic		54,175			54,437
Dilutive shares from stock options		116			202
Weighted average shares outstanding—diluted		54,291			54,639
Per-share amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

Post Apartment Homes, L.P. [Member]

Schedule of Computation of Basic and Diluted Net Income Per Share

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per unit was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common unitholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Preferred unit distributions		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common unitholders	$	13,320		$	19,000
Common units (denominator):
Weighted average units outstanding—basic		54,310			54,580
Dilutive units from stock options		116			202
Weighted average units outstanding—diluted		54,426			54,782
Per-unit amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

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Segment Information - Schedule of Segment's Contribution to Consolidated Revenues and Net Operating Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Other	$ 219	$ 214
Revenues	93,512	86,358
Consolidated property net operating income	52,697	48,860
Interest income	12	36
Other revenues	219	214
Depreciation	(21,767)	(20,944)
Interest expense	(11,244)	(11,052)
Amortization of deferred financing costs	(645)	(624)
General and administrative	(4,128)	(4,245)
Investment and development	(811)	(489)
Other investment costs	(273)	(305)
Other expenses	(907)
Gains on condominium sales activities, net	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
Income from discontinued operations		433
Net income	14,253	20,390
Fully Stabilized Communities [Member]
Segment Reporting Information [Line Items]
Revenues	75,272	73,512
Consolidated property net operating income	46,318	45,580
Communities Stabilized During 2013 [Member]
Segment Reporting Information [Line Items]
Revenues	4,306	2,171
Consolidated property net operating income	2,673	673
Lease Up Communities [Member]
Segment Reporting Information [Line Items]
Revenues	1,879	24
Consolidated property net operating income	679	(29)
Acquired Communities [Member]
Segment Reporting Information [Line Items]
Revenues	1,210
Consolidated property net operating income	754
Held For Sale Communities [Member]
Segment Reporting Information [Line Items]
Revenues	5,871	5,602
Consolidated property net operating income	2,773	3,127
Other Property Segments, Including Corporate Management Expenses [Member]
Segment Reporting Information [Line Items]
Revenues	4,755	4,835
Consolidated property net operating income	$ (500)	$ (491)

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Indebtedness - Schedule of Indebtedness (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2014
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2014
Senior Unsecured Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2017
Senior Unsecured Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, Maturity Date	2022
Unsecured Bank Term Loan [Member]
Debt Instrument [Line Items]
Effective blended interest rate	3.24%

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Schedule of Segment's Contribution to Consolidated Revenues and Net Operating Income

The following table reflects each segment’s contribution to consolidated revenues and NOI together with a reconciliation of segment contribution to property NOI to consolidated net income for the three months ended March 31, 2014 and 2013. Additionally, substantially all of the Company’s assets relate to the Company’s property rental operations. Asset cost, depreciation and amortization by segment are not presented because such information at the segment level is not reported internally.

	Three months ended March 31,
	2014			2013
Revenues
Fully stabilized communities	$	75,272		$	73,512
Newly stabilized communities		4,306			2,171
Lease-up communities		1,879			24
Acquired communities		1,210			—
Held for sale communities		5,871			5,602
Other property segments		4,755			4,835
Other		219			214
Consolidated revenues	$	93,512		$	86,358
Contribution to Property Net Operating Income
Fully stabilized communities	$	46,318		$	45,580
Newly stabilized communities		2,673			673
Lease-up communities		679			(29	)
Acquired communities		754			—
Held for sale communities		2,773			3,127
Other property segments, including corporate management expenses		(500	)		(491	)
Consolidated property net operating income		52,697			48,860
Interest income		12			36
Other revenues		219			214
Depreciation		(21,767	)		(20,944	)
Interest expense		(11,244	)		(11,052	)
Amortization of deferred financing costs		(645	)		(624	)
General and administrative		(4,128	)		(4,245	)
Investment and development		(811	)		(489	)
Other investment costs		(273	)		(305	)
Other expenses		(907	)		—
Gains on condominium sales activities, net		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
Income from discontinued operations		—			433
Net income	$	14,253		$	20,390

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2014

Postemployment Benefits [Abstract]

Schedule of Assumptions Used in Black-Scholes Option-Pricing Model

Compensation costs for stock options have been estimated on the grant date using the Black-Scholes option-pricing method. The weighted average assumptions used in the Black-Scholes option-pricing model are as follows:

	Three months ended March 31,
	2014			2013
Dividend yield		2.8	%		2.0	%
Expected volatility		43.0	%		43.1	%
Risk-free interest rate		1.8	%		1.1	%
Expected option term (years)		6.0 years			6.0 years

Summary of Activity Related to Company's Restricted Stock

A summary of the activity related to the Company’s restricted stock for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended March 31,
	2014				2013
	Shares		Weighted-Avg. Grant-Date Fair Value		Shares		Weighted-Avg. Grant-Date Fair Value
Unvested shares, beginning of period		75	$	48		65	$	42
Granted (1)		55		47		65		50
Unvested shares, end of period		130		47		130		46

(1) The total value of the restricted share grants for the three months ended March 31, 2014 and 2013 was $2,566 and $3,271, respectively.

Summary of Stock Option Activity Under All Plans

A summary of stock option activity under all plans for the three months ended March 31, 2014 and 2013, is presented below:

	Three months ended March 31,
	2014					2013
				Exercise					Exercise
	Shares			Price		Shares			Price
Options outstanding, beginning of period		539		$	36		685		$	34
Granted		35			47		29			50
Exercised		(73	)		29		(29	)		28
Options outstanding, end of period (1)		501			38		685			35
Options exercisable, end of period (1)		439			37		628			34
Options vested and expected to vest, end of period (1)		498			38		682			35
Weighted average fair value of options granted during the period	$	15.21				$	17.26

(1) At March 31, 2014, the aggregate intrinsic value of stock options outstanding, exercisable and vested/expected to vest was $5,662, $5,540 and $5,656, respectively. At that same date, the weighted average remaining contractual lives of stock options outstanding, exercisable and vested/expected to vest was 4.2 years, 3.5 years and 4.2 years, respectively.

Schedule of Outstanding Options into Two Ranges, Based on Exercise Prices

At March 31, 2014, the Company segregated its outstanding options into two ranges, based on exercise prices, as follows:

	Options Outsanding						Options Exercisable
Option Ranges	Shares		Weighted Avg. Exercise Price		Weighted Avg. Life (Years)		Shares		Weighted Avg. Exercise Price
$12.22—$40.15		265	$	29		3.4		265	$	29
$44.05—$50.30		236		47		5.1		174		47
Total		501		38		4.2		439		37

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows From Operating Activities
Net income	$ 14,253	$ 20,390
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	21,767	21,121
Amortization of deferred financing costs	645	624
Net gains on sales of real estate assets	(810)	(8,194)
Other, net	271	700
Equity in income of unconsolidated entities, net	(485)	(478)
Distributions of earnings of unconsolidated entities	622	675
Stock-based compensation	948	824
Changes in assets, decrease (increase) in:
Other assets	1,078	(393)
Changes in liabilities, increase (decrease) in:
Accrued interest payable	3,885	3,758
Accounts payable and accrued expenses	(9,718)	(6,299)
Security deposits and prepaid rents	(1,104)	149
Net cash provided by operating activities	31,352	32,877
Cash Flows From Investing Activities
Development and construction of real estate assets	(16,907)	(32,313)
Proceeds from sales of real estate assets	2,442	19,500
Capitalized interest	(846)	(1,004)
Property capital expenditures	(5,893)	(7,801)
Corporate additions and improvements	(128)	(340)
Other investments	(29)
Net cash used in investing activities	(21,361)	(21,958)
Cash Flows From Financing Activities
Payments on indebtedness	(1,025)	(969)
Payments of financing costs and other	(102)	(265)
Proceeds from employee stock purchase and stock options plans	2,311	1,104
Distributions to noncontrolling interests - real estate entities	(39)	(57)
Distributions to noncontrolling interests - common unitholders	(45)	(36)
Dividends paid to preferred shareholders	(922)	(922)
Dividends paid to common shareholders	(17,883)	(13,618)
Net cash used in financing activities	(17,705)	(14,763)
Net decrease in cash and cash equivalents	(7,714)	(3,844)
Cash and cash equivalents, beginning of period	82,110	118,698
Cash and cash equivalents, end of period	74,396	114,854
Post Apartment Homes, L.P. [Member]
Cash Flows From Operating Activities
Net income	14,253	20,390
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	21,767	21,121
Amortization of deferred financing costs	645	624
Net gains on sales of real estate assets	(810)	(8,194)
Other, net	271	700
Equity in income of unconsolidated entities, net	(485)	(478)
Distributions of earnings of unconsolidated entities	622	675
Stock-based compensation	948	824
Changes in assets, decrease (increase) in:
Other assets	1,078	(393)
Changes in liabilities, increase (decrease) in:
Accrued interest payable	3,885	3,758
Accounts payable and accrued expenses	(9,718)	(6,299)
Security deposits and prepaid rents	(1,104)	149
Net cash provided by operating activities	31,352	32,877
Cash Flows From Investing Activities
Development and construction of real estate assets	(16,907)	(32,313)
Proceeds from sales of real estate assets	2,442	19,500
Capitalized interest	(846)	(1,004)
Property capital expenditures	(5,893)	(7,801)
Corporate additions and improvements	(128)	(340)
Other investments	(29)
Net cash used in investing activities	(21,361)	(21,958)
Cash Flows From Financing Activities
Payments on indebtedness	(1,025)	(969)
Payments of financing costs and other	(102)	(265)
Proceeds from employee stock purchase and stock options plans	2,311	1,104
Distributions to noncontrolling interests - real estate entities	(39)	(57)
Distributions to noncontrolling interests - common unitholders	(45)	(36)
Dividends paid to preferred shareholders	(922)	(922)
Dividends paid to common shareholders	(17,883)	(13,618)
Net cash used in financing activities	(17,705)	(14,763)
Net decrease in cash and cash equivalents	(7,714)	(3,844)
Cash and cash equivalents, beginning of period	82,110	118,698
Cash and cash equivalents, end of period	$ 74,396	$ 114,854

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Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Apartment Property	Mar. 31, 2013	Dec. 31, 2013
Real Estate Properties [Line Items]
Number of units in real estate property	22,516
Number of real estate properties	60
Common stock, shares outstanding	54,339,000		54,191,000
Common units, shares outstanding	135,000
Ownership interest percentage in Operating Partnership	99.80%	99.70%
Common units held by persons other than the Company	135,000
Noncontrolling interest, ownership percentage by noncontrolling owners	0.20%
Number of shares for redemption of each common unit	1
Operating leases term (in years)	1 year
Revenue recognized lease (in years)	1 year
Investments in condominium communities	$ 0		$ 1,122
Development or construction costs	489	756
Aggregate interest costs capitalized to projects under development or construction	$ 846	$ 1,004
Held for Sale [Member]
Real Estate Properties [Line Items]
Number of real estate properties	3
Unconsolidated Properties [Member]
Real Estate Properties [Line Items]
Number of units in real estate property	1,471
Number of real estate properties	4
Under Development [Member]
Real Estate Properties [Line Items]
Number of units in real estate property	1,620
Number of real estate properties	5
Cost Capitalization [Member]
Real Estate Properties [Line Items]
Weighted average borrowing costs, percentage	4.60%	4.60%
Operating Communities [Member] | Atlanta, Georgia [Member]
Real Estate Properties [Line Items]
Concentration of location for communities, percentage	28.90%
Operating Communities [Member] | Dallas, Texas [Member]
Real Estate Properties [Line Items]
Concentration of location for communities, percentage	21.80%
Operating Communities [Member] | Washington, D.C. [Member]
Real Estate Properties [Line Items]
Concentration of location for communities, percentage	13.40%
Operating Communities [Member] | Tampa, Florida [Member]
Real Estate Properties [Line Items]
Concentration of location for communities, percentage	9.70%
Buildings and Components [Member]
Real Estate Properties [Line Items]
Estimated useful life (in years)	40 years
Other Building and Land Improvements [Member]
Real Estate Properties [Line Items]
Estimated useful life (in years)	20 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Real Estate Properties [Line Items]
Estimated useful life (in years)	5 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Real Estate Properties [Line Items]
Estimated useful life (in years)	10 years

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Investments in Unconsolidated Real Estate Entities - Summary of Financial Information for Apartment LLCs (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Real Estate Properties [Line Items]
Real estate assets, net of accumulated depreciation of $45,000 and $43,649 at March 31, 2014 and December 31, 2013, respectively	$ 2,248,691	$ 2,251,139
Total assets	2,370,358	2,381,677
Total liabilities	1,213,881	1,222,825
Members' equity	1,149,832	1,152,731	1,129,299	1,119,620
Total liabilities and equity	2,370,358	2,381,677
Unconsolidated Properties [Member]
Real Estate Properties [Line Items]
Real estate assets, net of accumulated depreciation of $45,000 and $43,649 at March 31, 2014 and December 31, 2013, respectively	208,067	209,132
Cash and other	5,092	4,978
Total assets	213,159	214,110
Mortgage notes payable	177,723	177,723
Other liabilities	2,613	2,673
Total liabilities	180,336	180,396
Members' equity	32,823	33,714
Total liabilities and equity	213,159	214,110
Company's equity investment in Apartment LLCs	$ (12,791)	$ (12,631)

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Fair Value Measures and Other Financial Instruments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2013 Fair Value, Inputs, Level 2 [Member]	Mar. 31, 2014 Three Interest Rate Swap [Member]	Mar. 31, 2014 Fourth Interest Rate Swap [Member]	Mar. 31, 2014 Interest Rate Swap [Member] Agreement	Mar. 31, 2014 Fixed Rate Debt [Member]	Dec. 31, 2013 Fixed Rate Debt [Member]	Mar. 31, 2014 Variable Rate Debt [Member]	Dec. 31, 2013 Variable Rate Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment charges
Number of interest rate swap agreements							3
Notional amounts					230,000	70,000
Derivative, fixed interest rate					1.55%	1.50%
LIBOR rate					One-month LIBOR rate	One-month LIBOR rate
Reduction in blended interest rate	3.24%
Derivative maturity period	2018-01
Net liabilities			3,408	3,428
Accumulated comprehensive income to interest expense, future periods	4,103
Termination payment	3,422
Fair value of debt								828,538	816,582	305,883	305,653
Carrying value of debt								$ 797,709	$ 798,734	$ 305,653	$ 300,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
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
Real estate assets, total	2,982,330	3,163,035
Less: accumulated depreciation	(875,069)	(913,018)
For-sale condominiums	0	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
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	1,112,829	1,111,861
Accumulated earnings	58,225	66,138
Accumulated other comprehensive income (loss)	(3,399)	(3,419)
Stockholders Equity Subtotal Before Treasury Stock	1,168,210	1,175,135
Less common stock in treasury, at cost, 375 and 519 shares at March 31, 2014 and December 31, 2013, respectively	(18,107)	(22,188)
Total Company shareholders' equity	1,150,103	1,152,947
Accumulated other comprehensive income (loss)	(3,399)	(3,419)
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
Post Apartment Homes, L.P. [Member]
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
Real estate assets, total	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
Company shareholders' equity
Preferred units	43,392	43,392
Accumulated other comprehensive income (loss)	(3,399)	(3,419)
Total Company shareholders' equity	1,150,103	1,152,947
General partner	12,691	12,715
Limited partner	1,097,419	1,100,259
Accumulated other comprehensive income (loss)	(3,399)	(3,419)
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

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Indebtedness - Schedule of Aggregate Maturities of Indebtedness (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Remainder of 2014	$ 2,936
2015	124,205
2016	4,418
2017	154,736
2018	350,958
Thereafter	460,456
Total aggregate maturities of indebtedness	$ 1,097,709	$ 1,098,734

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Consolidated Statements of Equity and Accumulated Earnings (USD $) In Thousands	Total	Post Apartment Homes, L.P. [Member]	Post Apartment Homes, L.P. [Member] General Partner [Member]	Post Apartment Homes, L.P. [Member] Limited Partners [Member]	Preferred Stock [Member]	Preferred Stock [Member] Post Apartment Homes, L.P. [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Post Apartment Homes, L.P. [Member]	Treasury Stock [Member]	Total Company Equity [Member]	Total Company Equity [Member] Post Apartment Homes, L.P. [Member]	Noncontrolling Interests - Consolidated Real Estate Entities [Member]	Noncontrolling Interests - Consolidated Real Estate Entities [Member] Post Apartment Homes, L.P. [Member]
Beginning Balance at Dec. 31, 2012	$ 1,119,620	$ 1,119,620	$ 12,477	$ 1,075,524	$ 9	$ 43,392	$ 545	$ 1,107,354	$ 27,266	$ (11,679)	$ (11,679)	$ (3,781)	$ 1,119,714	$ 1,119,714	$ (94)	$ (94)
Comprehensive income	21,262	21,262	195	19,225		922			20,342	923	923		21,265	21,265	(3)	(3)
Contributions from the Company related to employee stock purchase, stock option and other plans	1,794	1,794	18	1,776			1	1,212				581	1,794	1,794
Adjustment for ownership interest of redeemable common units	(5)	(5)		(5)				(5)					(5)	(5)
Equity-based compensation	822	822	8	814				822					822	822
Distributions to preferred unitholders	(922)	(922)				(922)			(922)				(922)	(922)
Distributions to common unitholders ($0.25 per unit)	(13,647)	(13,647)	(137)	(13,510)					(13,647)				(13,647)	(13,647)
Distributions to noncontrolling interests - consolidated real estate entities	(57)	(57)													(57)	(57)
Adjustment to redemption value of redeemable common units	432	432		432					432				432	432
Ending Balance at Mar. 31, 2013	1,129,299	1,129,299	12,561	1,084,256	9	43,392	546	1,109,383	33,471	(10,756)	(10,756)	(3,200)	1,129,453	1,129,453	(154)	(154)
Beginning Balance at Dec. 31, 2013	1,152,731	1,152,731	12,715	1,100,259	9	43,392	546	1,111,861	66,138	(3,419)	(3,419)	(22,188)	1,152,947	1,152,947	(216)	(216)
Comprehensive income	14,240	14,240	133	13,181		922			14,236	20	20		14,256	14,256	(16)	(16)
Contributions from the Company related to employee stock purchase, stock option and other plans	2,976	2,976	30	2,946				29	(1,134)			4,081	2,976	2,976
Adjustment for ownership interest of redeemable common units	(7)	(7)		(7)				(7)					(7)	(7)
Equity-based compensation	946	946	9	937				946					946	946
Distributions to preferred unitholders	(922)	(922)				(922)			(922)				(922)	(922)
Distributions to common unitholders ($0.25 per unit)	(19,562)	(19,562)	(196)	(19,366)					(19,562)				(19,562)	(19,562)
Distributions to noncontrolling interests - consolidated real estate entities	(39)	(39)													(39)	(39)
Adjustment to redemption value of redeemable common units	(531)	(531)		(531)					(531)				(531)	(531)
Ending Balance at Mar. 31, 2014	$ 1,149,832	$ 1,149,832	$ 12,691	$ 1,097,419	$ 9	$ 43,392	$ 546	$ 1,112,829	$ 58,225	$ (3,399)	$ (3,399)	$ (18,107)	$ 1,150,103	$ 1,150,103	$ (271)	$ (271)

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Stock-Based Compensation Plans - Summary of Activity Related to Company's Restricted Stock (Detail) (Restricted Stock [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares, beginning of period	75	65
Granted, Shares	55	65
Unvested shares, end of period	130	130
Weighted-Avg. Grant-Date Fair Value, beginning of period, Unvested Shares	$ 48	$ 42
Weighted-Avg. Grant-Date Fair Value, Granted	$ 47	$ 50
Weighted-Avg. Grant-Date Fair Value, end of period, Unvested Shares	$ 47	$ 46

XML

Real Estate Activity - Carrying Amount of Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Land	$ 307,390	$ 327,270
Building and improvements	2,257,267	2,408,906
Furniture, fixtures and equipment	283,343	291,027
Less: accumulated depreciation	(875,069)	(913,018)
Assets held for sale, net of accumulated depreciation	141,430
Assets Held-for-sale [Member]
Property, Plant and Equipment [Line Items]
Land	22,542
Building and improvements	166,715
Furniture, fixtures and equipment	11,336
Less: accumulated depreciation	(59,163)
Assets held for sale, net of accumulated depreciation	141,430
Secured indebtedness	$ 83,212

XML

Other Expense - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Component Of Operating Cost And Expense [Line Items]
Other expense	$ 907
Software Systems [Member]
Component Of Operating Cost And Expense [Line Items]
Other expense	157
Natural Disasters and Other Casualty Events [Member]
Component Of Operating Cost And Expense [Line Items]
Other expense	$ 750

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Organization and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Organization

Organization

Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise.

The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Internal Revenue Code of 1986, as amended.

At March 31, 2014, the Company had 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. At March 31, 2014, approximately 28.9%, 21.8%, 13.4% and 9.7% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively.

At March 31, 2014, the Company had outstanding 54,339 shares of common stock and owned the same number of units of common limited partnership interests (“Common Units”) in the Operating Partnership, representing a 99.8% ownership interest in the Operating Partnership. Common Units held by persons other than the Company totaled 135 at March 31, 2014 and represented a 0.2% common minority interest in the Operating Partnership. Each Common Unit may be redeemed by the holder thereof for either one share of Company common stock or cash equal to the fair market value thereof at the time of redemption, at the option, but outside the control, of the Operating Partnership. The Operating Partnership presently anticipates that it will cause shares of common stock to be issued in connection with each such redemption rather than paying cash (as has been done in all redemptions to date). With each redemption of outstanding Common Units for Company common stock, the Company’s percentage ownership interest in the Operating Partnership will increase. In addition, whenever the Company issues shares of common stock, the Company will contribute any net proceeds therefrom to the Operating Partnership and the Operating Partnership will issue an equivalent number of Common Units to the Company. The Company’s weighted average common ownership interest in the Operating Partnership was 99.8% and 99.7% for the three months ended March 31, 2014 and 2013, respectively.

Basis of Presentation

Basis of presentation

The accompanying unaudited financial statements have been prepared by the Company’s management in accordance with generally accepted accounting principles for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2013.

The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries. The Company also consolidates other entities in which it has a controlling financial interest or entities where it is determined to be the primary beneficiary under ASC Topic 810, “Consolidation.” Under ASC Topic 810, variable interest entities (“VIEs”) are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The application of ASC Topic 810 requires management to make significant estimates and judgments about the Company’s and its other partners’ rights, obligations and economic interests in such entities. For entities in which the Company has less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, the Company’s share of the net earnings or losses of these entities is included in consolidated net income. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company’s noncontrolling interest of common unitholders (also referred to as “Redeemable Common Units”) in the operations of the Operating Partnership is calculated based on the weighted average unit ownership during the period.

Revenue Recognition

Revenue recognition

Residential properties are leased under operating leases with terms of generally one year or less. Rental revenues from residential leases are recognized on the straight-line method over the approximate life of the leases, which is generally one year. The recognition of rental revenues from residential leases when earned has historically not been materially different from rental revenues recognized on a straight-line basis.

Under the terms of residential leases, the residents of the Company’s residential communities are obligated to reimburse the Company for certain utility usage, water and electricity (at selected properties), where the Company is the primary obligor to the public utility entity. These utility reimbursements from residents are reflected as other property revenues in the consolidated statements of operations.

Sales and the associated gains or losses of real estate assets and for-sale condominiums were recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment – Real Estate Sales.” In periods through March 31, 2014, the Company accounted for condominium projects under the deposit method based on an evaluation of the factors specified in ASC Topic 360-20. As of March 31, 2014, the Company has no remaining investments in condominium communities. Under ASC Topic 360-20, the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. In subsequent periods, cumulative project cost of sale allocations and the resulting profits were adjusted to reflect changes in the actual and estimated costs and revenues of each project.

Cost Capitalization

Cost capitalization

For communities under development or construction, the Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs associated with the development and construction activity. Interest is capitalized to projects under development or construction based upon the weighted average cumulative project costs for each month multiplied by the Company’s weighted average borrowing costs, expressed as a percentage. Weighted average borrowing costs include the costs of the Company’s fixed rate secured and unsecured borrowings and the variable rate unsecured borrowings under its line of credit facilities. The weighted average borrowing costs, expressed as a percentage, was 4.6% for the three months ended March 31, 2014 and 2013. Aggregate interest costs capitalized to projects under development or construction were $846 and $1,004 for the three months ended March 31, 2014 and 2013, respectively. Internal development and construction personnel and associated costs are capitalized to projects under development or construction based upon the effort associated with such projects. Aggregate internal development and construction personnel and associated costs capitalized to projects under development or construction were $489 and $756 for the three months ended March 31, 2014 and 2013, respectively. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the completion of rental and condominium units, interest and other construction costs are capitalized and 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 or sale. This results in a proration of costs between amounts that are capitalized and expensed as the residential units in apartment and condominium development communities become available for occupancy or sale. In addition, prior to the completion of rental units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing as well as property management and leasing personnel expenses) of such rental communities. Prior to the completion and closing of condominium units, the Company expenses all sales and marketing costs related to such units.

Real Estate Assets, Depreciation and Impairment

Real estate assets, depreciation and impairment

Real estate assets are stated at the lower of depreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and components—40 years; other building and land improvements—20 years; furniture, fixtures and equipment – 5-10 years).

The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment.” Factors considered by management in evaluating impairment of its existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value.

The Company periodically classifies real estate assets as held for sale. An asset is classified as held for sale after the approval of the Company’s board of directors and after an active program to sell the asset has commenced. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the accompanying consolidated balance sheets. Upon a decision to no longer market an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. As of March 31, 2014, the Company had three apartment communities classified as held for sale on the consolidated balance sheet.

For condominium communities, the operating results and associated gains and losses are reflected on the consolidated statement of operations in the caption titles “Net gains on condominium sales activities” (see discussion under “revenue recognition” above), and the net book value of the condominium assets is reflected separately on the consolidated balance sheet in the caption titled, “For-sale condominiums.”

Derivative Financial Instruments

Derivative financial instruments

The Company accounts for derivative financial instruments at fair value under the provisions of ASC Topic 815, “Derivatives and Hedging.” The Company measures derivative financial instruments subject to master netting agreements on a net basis. The Company uses derivative financial instruments, primarily interest rate swap arrangements to manage or hedge its exposure to interest rate changes. Under ASC Topic 815, derivative instruments qualifying as hedges of specific cash flows are recorded on the balance sheet at fair value with an offsetting increase or decrease to accumulated other comprehensive income, an equity account, until the hedged transactions are recognized in earnings. Quarterly, the Company evaluates the effectiveness of its cash flow hedges. Any ineffective portion of cash flow hedges is recognized immediately in earnings.

Fair Value Measurements

Fair value measurements

The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets recorded at fair value, if any, to its impairment valuation analysis of real estate assets, to its disclosure of the fair value of financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 are summarized in note 8 utilizing the following hierarchy:

• Level 1 – Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

• Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

• Level 3 – Unobservable inputs for the assets or liability.

Discontinued Operations

Recently issued and adopted accounting pronouncements (discontinued operations)

In April 2014, Accounting Standards Update No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity” was issued. This guidance amends ASC Topics 360 and 205 and changes the requirements for reporting discontinued operations. Under the new guidance, a disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The new guidance also modifies the disclosure requirements for disposal groups reported as discontinued operations and for other significant disposal groups not reported as discontinued operations. Generally, the new guidance will result in fewer asset disposal groups being reported as discontinued operations in the Company’s financial statements. ASU 2014-08 is to be applied prospectively for periods on or after December 31, 2014 with early adoption permitted, but only for assets held for sale or sold that have not been reported in previously issued financial statements. The Company early adopted ASU 2014-08, effective as of January 1, 2014 (see note 2).

XML

Real Estate Activity - Net Income Attributable to Noncontrolling Interest (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Loss From Operations Net Of Non Controlling Interest [Line Items]
Net income	$ 14,253	$ 20,390
Net income, net of noncontrolling interest	14,236	20,342
Assets Held-for-sale [Member]
Income Loss From Operations Net Of Non Controlling Interest [Line Items]
Net income	138	500
Net income, net of noncontrolling interest	$ 154	$ 503

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Real Estate Activities (Tables)

3 Months Ended

Mar. 31, 2014

Real Estate [Abstract]

Carrying Amount of Assets and Liabilities

The carrying amount of the major components of assets and liabilities of these communities were as follows:

	March 31, 2014
Land	$	22,542
Building and improvements		166,715
Furniture, fixtures and equipment		11,336
Less: accumulated depreciation		(59,163	)
Assets held for sale, net of accumulated depreciation	$	141,430
Secured indebtedness	$	83,212

Net Income Attributable to Noncontrolling Interest

The net income and net income attributable to the Company related to these communities for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014		2013
Net income	$	138	$	500
Net income, net of noncontrolling interest	$	154	$	503

Summary of Revenues and Expenses of Income from Discontinued Operations

For the three months ended March 31, 2013, income from discontinued operations included the results of operations of one apartment community, containing 342 units, through its sale date 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

Revenues Costs and Expenses Associated with Consolidated Condominium Activities

The revenues, costs and expenses associated with consolidated condominium activities for the three months ended March 31, 2014 and 2013 were 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

XML

Consolidated Statements of Equity and Accumulated Earnings (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Dividend to common shareholders, per share	$ 0.36	$ 0.25
Post Apartment Homes, L.P. [Member]
Dividend to common shareholders, per share	$ 0.36	$ 0.25

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Accumulated depreciation, assets held for sale	$ 875,069	$ 913,018
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000	20,000
Preferred stock, liquidation preference	$ 50	$ 50
Preferred stock, shares issued	868	868
Preferred stock, shares outstanding	868	868
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	100,000	100,000
Common stock, shares issued	54,632	54,629
Common stock, shares outstanding	54,339	54,191
Common stock in treasury, shares	375	519
Assets Held-for-sale [Member]
Accumulated depreciation, assets held for sale	59,163
Indebtedness, secured by assets held for sale	83,212
Post Apartment Homes, L.P. [Member]
Accumulated depreciation, assets held for sale	875,069	913,018
Post Apartment Homes, L.P. [Member] | Assets Held-for-sale [Member]
Accumulated depreciation, assets held for sale	59,163
Indebtedness, secured by assets held for sale	$ 83,212

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2014

Postemployment Benefits [Abstract]

Stock-Based Compensation Plans

10. STOCK-BASED COMPENSATION PLANS

As the primary operating subsidiary of the Company, the Operating Partnership participates in and bears the compensation expenses associated with the Company’s stock-based compensation plans. The information discussed below relating to the Company’s stock-based compensation plans is also applicable for the Operating Partnership.

Incentive stock plans

Incentive stock awards are granted under the Company’s 2003 Incentive Stock Plan, as amended and restated in October 2008 (the “2003 Stock Plan”). Under the 2003 Stock Plan, an aggregate of 3,469 shares of common stock were reserved for issuance. Of this amount, stock grants count against the total shares available under the 2003 Stock Plan as 2.7 shares for every one share issued, while options (and stock appreciation rights (“SAR”) settled in shares) count against the total shares available as one share for every one share issued on the exercise of an option (or SAR). The exercise price of each option granted under the 2003 Stock Plan may not be less than the market price of the Company’s common stock on the date of the option grant and all options may have a maximum life of ten years. Participants receiving restricted stock grants are generally eligible to vote such shares and receive dividends on such shares. Substantially all stock option and restricted stock grants are subject to annual vesting provisions (generally three to five years) as determined by the compensation committee overseeing the 2003 Stock Plan.

Compensation costs for stock options have been estimated on the grant date using the Black-Scholes option-pricing method. The weighted average assumptions used in the Black-Scholes option-pricing model are as follows:

	Three months ended March 31,
	2014			2013
Dividend yield		2.8	%		2.0	%
Expected volatility		43.0	%		43.1	%
Risk-free interest rate		1.8	%		1.1	%
Expected option term (years)		6.0 years			6.0 years

The Company’s assumptions were derived from the methodologies discussed herein. The expected dividend yield reflects the Company’s current historical yield, which was expected to approximate the future yield at the date of grant. Expected volatility was based on the historical volatility of the Company’s common stock. The risk-free interest rate for the expected life of the options was based on the implied yields on the U.S. Treasury yield curve at the date of grant. The weighted average expected option term was based on the Company’s historical data for prior period stock option exercise and forfeiture activity.

Restricted stock

Compensation cost for restricted stock is amortized ratably into compensation expense over the applicable vesting periods. Total compensation expense related to restricted stock was $770 and $671 for the three months ended March 31, 2014 and 2013, respectively. At March 31, 2014, there was $4,911 of unrecognized compensation cost related to restricted stock. This cost is expected to be recognized over a weighted average period of 2.1 years.

A summary of the activity related to the Company’s restricted stock for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended March 31,
	2014				2013
	Shares		Weighted-Avg. Grant-Date Fair Value		Shares		Weighted-Avg. Grant-Date Fair Value
Unvested shares, beginning of period		75	$	48		65	$	42
Granted (1)		55		47		65		50
Unvested shares, end of period		130		47		130		46

(1) The total value of the restricted share grants for the three months ended March 31, 2014 and 2013 was $2,566 and $3,271, respectively.

Stock options

Compensation cost for stock options is amortized ratably into compensation expense over the applicable vesting periods. The Company recorded compensation expense related to stock options of $139 and $116 for the three months ended March 31, 2014 and 2013, respectively, recognized under the fair value method. At March 31, 2014, there was $829 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of 2.1 years.

A summary of stock option activity under all plans for the three months ended March 31, 2014 and 2013, is presented below:

	Three months ended March 31,
	2014					2013
				Exercise					Exercise
	Shares			Price		Shares			Price
Options outstanding, beginning of period		539		$	36		685		$	34
Granted		35			47		29			50
Exercised		(73	)		29		(29	)		28
Options outstanding, end of period (1)		501			38		685			35
Options exercisable, end of period (1)		439			37		628			34
Options vested and expected to vest, end of period (1)		498			38		682			35
Weighted average fair value of options granted during the period	$	15.21				$	17.26

(1) At March 31, 2014, the aggregate intrinsic value of stock options outstanding, exercisable and vested/expected to vest was $5,662, $5,540 and $5,656, respectively. At that same date, the weighted average remaining contractual lives of stock options outstanding, exercisable and vested/expected to vest was 4.2 years, 3.5 years and 4.2 years, respectively.

Upon the exercise of stock options, the Company issues shares of common stock from treasury shares or, to the extent treasury shares are not available, from authorized common shares. The total intrinsic value of stock options exercised for the three months ended March 31, 2014 and 2013 was $1,292 and $614, respectively.

At March 31, 2014, the Company segregated its outstanding options into two ranges, based on exercise prices, as follows:

	Options Outsanding						Options Exercisable
Option Ranges	Shares		Weighted Avg. Exercise Price		Weighted Avg. Life (Years)		Shares		Weighted Avg. Exercise Price
$12.22—$40.15		265	$	29		3.4		265	$	29
$44.05—$50.30		236		47		5.1		174		47
Total		501		38		4.2		439		37

Employee stock purchase plan

The Company maintains an Employee Stock Purchase Plan (the “ESPP”) approved by Company shareholders in 2005. The maximum number of shares issuable under the ESPP is 300. The purchase price of shares of common stock under the ESPP is equal to 85% of the lesser of the closing price per share of common stock on the first or last day of the trading period, as defined. The Company records the aggregate cost of the ESPP (generally the 15% discount on the share purchases) as a period expense. Total compensation expense relating to the ESPP was $39 and $37 for the three months ended March 31, 2014 and 2013, respectively.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	POST PROPERTIES INC
Entity Central Index Key	0000903127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		54,339,043
Post Apartment Homes, L.P. [Member]
Document Information [Line Items]
Entity Registrant Name	POST APARTMENT HOMES LP
Entity Central Index Key	0001012271
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer

XML

Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

11. INCOME TAXES

The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Company must distribute annually at least 90% of its adjusted taxable income, as defined in the Code, to its shareholders and satisfy certain other organizational and operating requirements. It is management’s current intention to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to federal income tax at the corporate level on the taxable income it distributes to its shareholders. Should the Company fail to qualify as a REIT in any tax year, it may be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. The Company may be subject to certain state and local taxes on its income and property, and to federal income taxes and excise taxes on its undistributed taxable income.

The Operating Partnership files tax returns as a limited partnership under the Code. As a partnership, the income and losses of the Operating Partnership are allocated to its partners, including the Company, for inclusion in their respective income tax returns. Accordingly, no provision or benefit for income taxes has been included in the accompanying financial statements. The Operating Partnership intends to make sufficient cash distributions to the Company to enable it to meet its annual REIT distribution requirements.

In the preparation of income tax returns in federal and state jurisdictions, the Company, the Operating Partnership and their taxable REIT subsidiaries assert certain tax positions based on their understanding and interpretation of the income tax law. The taxing authorities may challenge such positions and the resolution of such matters could result in the payment and recognition of additional income tax expense. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company, the Operating Partnership and their subsidiaries’ (including the taxable REIT subsidiaries (“TRSs”)) income tax returns are subject to examination by federal and state tax jurisdictions for years 2010 through 2012. Net income tax loss carryforwards and other tax attributes generated in years prior to 2010 are also subject to challenge in any examination of the 2010 to 2012 tax years.

As of March 31, 2014 and December 31, 2013, the Company’s TRSs had unrecognized tax benefits of approximately $797 which primarily related to uncertainty regarding the sustainability of certain deductions taken on prior year income tax returns of the TRS with respect to the amortization of certain intangible assets. The uncertainty surrounding this unrecognized tax benefit will generally be clarified in future periods as income tax loss carryforwards are utilized. To the extent these unrecognized tax benefits are ultimately recognized, they may affect the effective tax rate in a future period. The Company’s policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense. Accrued interest and penalties for the three months ended March 31, 2014 and 2013 were not material to the Company’s results of operations, cash flows or financial position.

The TRSs are utilized principally to perform such non-REIT activities as asset and property management, for-sale housing (condominiums) sales and other services. These TRSs are subject to federal and state income taxes. The TRSs recorded no net income tax expense (benefit) for federal income taxes for the three months ended March 31, 2014 and 2013, as a result of the ability to offset book and taxable income (loss), if any, through the use of offsetting valuation allowances resulting from the inability to recognize net deferred tax assets in the current or prior year as discussed below.

The Company’s net deferred tax assets primarily reflect real estate asset basis differences between carrying amounts for financial and income tax reporting purposes, income tax loss carryforwards and the timing of income and expense recognition for certain accrued liabilities and transactions. At December 31, 2013, net deferred tax assets approximately totaled $25,166. At December 31, 2013, management had established valuation allowances to offset such net deferred tax assets due primarily to historical losses at the TRSs in prior years and the variability of the income (loss) of these subsidiaries. The tax benefits associated with such unused valuation allowances may be recognized in future periods, if the TRSs generate sufficient taxable income to utilize such amounts or if the TRSs determine that it is more likely than not that the related deferred tax assets are realizable. For the three months ended March 31, 2014, changes to the components of net deferred tax assets were offset by changes to deferred tax asset valuation allowances.

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 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	811	489
Other investment costs	273	305
Other expenses	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	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
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
Distributions to preferred	(922)	(922)
Net income available to common shareholders	13,314	19,420
Per common share data - Basic
Income from continuing operations (net of preferred distributions)	$ 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
Income from continuing operations (net of preferred distributions)	$ 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
Post Apartment Homes, L.P. [Member]
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	811	489
Other investment costs	273	305
Other expenses	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	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
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
Net income available to the Company	14,269	20,393
Distributions to preferred	(922)	(922)
Net income available to common shareholders	$ 13,347	$ 19,471
Per common share data - Basic
Income from continuing operations (net of preferred distributions)	$ 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	54,310	54,580
Per common share data - Diluted
Income from continuing operations (net of preferred distributions)	$ 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	54,426	54,782

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Indebtedness

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Indebtedness

4. INDEBTEDNESS

At March 31, 2014 and December 31, 2013, the Company’s indebtedness consists of the following:

	Payment			Maturity			March 31,		December 31,
Description	Terms		Interest Rate	Date			2014		2013
Senior Unsecured Notes		Int.	3.375%—4.75%		2017—2022	(1)	$	400,000	$	400,000
Unsecured Bank Term Loan		Int.	LIBOR + 1.70%(2)		2018			300,000		300,000
Secured Mortgage Notes		Prin. and Int.	4.88%—5.99%		2015—2019	(4)		397,709		398,734
Total							$	1,097,709	$	1,098,734

(1) There are no maturities of senior unsecured notes in 2014. The remaining unsecured notes mature between 2017 and 2022.

(2) Represents stated rate at March 31, 2014. As discussed below, the Company has entered into interest rate swap arrangements that effectively fix the interest rate under this facility. At March 31, 2014, the effective blended interest rate under the Term Loan was 3.24%.

(3) Represents stated rate at March 31, 2014.

(4) There are no maturities of secured notes in 2014. These notes mature between 2015 and 2019.

Debt maturities

The aggregate maturities of the Company’s indebtedness are as follows:

Remainder of 2014	$	2,936
2015		124,205
2016		4,418
2017		154,736
2018		350,958
Thereafter		460,456
	$	1,097,709

Debt issuances and retirements

There were no issuances or retirements of indebtedness for the three months ended March 31, 2014. In May 2014, the Company prepaid $120,000 of secured mortgage indebtedness using available cash and line of credit borrowings, which were largely repaid from the net proceeds of an apartment community sale (see note 2). The indebtedness was scheduled to initially mature in February 2015, and the stated rate on the indebtedness was 4.88%. In conjunction with the prepayment, the Company expects to recognize an extinguishment loss of approximately $4,300 related to the payment of prepayment premiums and the write-off of unamortized deferred loan costs.

Unsecured lines of credit

At March 31, 2014, the Company had a $300,000 syndicated unsecured revolving line of credit (the “Syndicated Line”). At March 31, 2014, the Syndicated Line had a stated interest rate of LIBOR plus 1.225%, was provided by a syndicate of eleven financial institutions and required the payment of annual facility fees of 0.225% of the aggregate loan commitments. The Syndicated Line matures in January 2016 and may be extended for an additional year at the Company’s option, subject to the satisfaction of certain conditions. The Syndicated Line provides for the interest rate and facility fee rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The components of the interest rate and the facility fee rate that are based on the Company’s credit ratings range from 1.00% to 1.80% and from 0.15% to 0.40%, respectively. The Syndicated Line also includes a competitive bid option for borrowings up to 50% of the loan commitments, which may result in interest rates for such borrowings below the stated interest rates for the Syndicated Line, depending on market conditions. The credit agreement for the Syndicated Line contains customary restrictions, representations, covenants and events of default, including minimum fixed charge coverage, minimum unsecured interest coverage, and maximum leverage ratios. The Syndicated Line also restricts the amount of capital the Company can invest in specific categories of assets, such as improved land, properties under construction, condominium properties, non-multifamily properties, debt or equity securities, notes receivable and unconsolidated affiliates. The Syndicated Line prohibits the Company from investing further capital in condominium assets and certain mixed-use projects, as defined. At March 31, 2014, letters of credit to third parties totaling $420 had been issued for the account of the Company under this facility.

Additionally, at March 31, 2014, the Company had a $30,000 unsecured line of credit (the “Cash Management Line”). The Cash Management Line matures in January 2016, includes a one-year extension option, and carries pricing and terms, including financial covenants, substantially consistent with the Syndicated Line.

Unsecured term loan

At March 31, 2014, the Company had outstanding a $300,000 unsecured bank term loan facility provided by a syndicate of eight financial institutions (the “Term Loan”). As of March 31, 2014, the Term Loan carried a stated interest rate of LIBOR plus 1.70%. The Term Loan provides for the stated interest rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The component of the interest rate based on the Company’s credit ratings ranges from 1.50% to 2.30%. The Term Loan matures in January 2018, includes two six-month extension options, and carries other terms, including financial covenants, substantially consistent with the Syndicated Line discussed above. As discussed in note 8, the Company entered into interest rate swap arrangements to serve as cash flow hedges of amounts outstanding under the Term Loan. The interest rate swap arrangements effectively fix the LIBOR component of the interest rate paid under the Term Loan at a blended rate of approximately 1.54%. As a result, the effective blended interest rate on the Term Loan was 3.24% as of March 31, 2014 (subject to any adjustment based on subsequent changes in the Company’s credit ratings).

Debt compliance and other

The Company’s Syndicated Line, Cash Management Line, Term Loan and senior unsecured notes contain customary restrictions, representations, covenants and events of default and require the Company to meet certain financial covenants. Debt service and fixed charge coverage covenants require the Company to maintain coverages of a minimum of 1.5 to 1.0, as defined in applicable debt arrangements. Additionally, the Company’s ratio of unencumbered adjusted property-level net operating income to unsecured interest expense may not be less than 2.0 to 1.0, as defined in the applicable debt arrangements. Leverage covenants generally require the Company to maintain calculated covenants above/below minimum/maximum thresholds. The primary leverage ratios under these arrangements include total debt to total asset value (maximum of 60%), total secured debt to total asset value (maximum of 40%) and unencumbered assets to unsecured debt (minimum of 1.5 to 1.0), as defined in the applicable debt arrangements. The Company believes it met these financial covenants at March 31, 2014.

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Investments in Unconsolidated Real Estate Entities

3 Months Ended

Mar. 31, 2014

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate Entities

3. INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

At March 31, 2014, the Company held investments in two individual limited liability companies (the “Apartment LLCs”) with institutional investors that own four apartment communities, including three communities located in Atlanta, Georgia and one community located in Washington, D.C. The Company has a 25% and 35% equity interest in these Apartment LLCs.

The Company accounts for its investments in the Apartment LLCs using the equity method of accounting. At March 31, 2014 and December 31, 2013, the Company’s investment in the 35% owned Apartment LLC totaled $4,039 and $4,056, respectively, excluding the credit investments discussed below. The Company’s investment in the 25% owned Apartment LLC at March 31, 2014 and December 31, 2013 reflects a credit investment of $16,830 and $16,687, respectively. These credit balances resulted from distribution of financing proceeds in excess of the Company’s historical cost upon the formation of the Apartment LLC and are reflected in consolidated liabilities on the Company’s consolidated balance sheet. The operating results of the Company include its allocable share of net income from the investments in the Apartment LLCs. The Company provides property and asset management services to the Apartment LLCs for which it earns fees.

A summary of financial information for the Apartment LLCs in the aggregate is as follows:

	March 31,			December 31,
Apartment LLCs—Balance Sheet Data	2014			2013
Real estate assets, net of accumulated depreciation of $45,000 and $43,649 at March 31, 2014 and December 31, 2013, respectively	$	208,067		$	209,132
Cash and other		5,092			4,978
Total assets	$	213,159		$	214,110
Mortgage notes payable	$	177,723		$	177,723
Other liabilities		2,613			2,673
Total liabilities		180,336			180,396
Members’ equity		32,823			33,714
Total liabilities and members’ equity	$	213,159		$	214,110
Company’s equity investment in Apartment LLCs (1)	$	(12,791	)	$	(12,631	)

(1) At March 31, 2014 and December 31, 2013, the Company’s equity investment includes its credit investments of $16,830 and $16,687, respectively, discussed above.

	Three months ended
	March 31,
Apartment LLCs—Income Statement Data	2014		2013
Revenues
Rental	$	6,485	$	6,285
Other property revenues		439		446
Total revenues		6,924		6,731
Expenses
Property operating and maintenance		2,751		2,651
Depreciation and amortization		1,376		1,340
Interest		2,238		2,238
Total expenses		6,365		6,229
Net income	$	559	$	502
Company’s share of net income in Apartment LLCs	$	485	$	478

At March 31, 2014, mortgage notes payable included four mortgage notes. The first $51,000 mortgage note bears interest at 3.50%, requires monthly interest only payments and matures in 2019. The second and third mortgage notes total $85,724, bear interest at 5.63%, require interest only payments and mature in 2017. The fourth mortgage note totals $41,000, bears interest at 5.71%, requires interest only payments, and matures in January 2018 with a one-year automatic extension at a variable interest rate.

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Organization and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Supplemental Cash Flow Information

Supplemental cash flow information for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014			2013
Interest paid, including interest capitalized	$	8,205		$	8,388
Income tax payments, net		7			—
Non-cash investing and financing activities:
Dividends and distributions payable		19,611			13,682
Common stock 401k matching contribution		658			670
Construction and property capital expenditure cost accruals, increase (decrease)		(2,395	)		2,261
Adjustments to equity related to redeemable common units, net increase (decrease)		(538	)		427

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Other Expenses

3 Months Ended

Mar. 31, 2014

Other Income And Expenses [Abstract]

Other Expenses

12. OTHER EXPENSES

Other expenses in 2014 included 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 primarily related to extreme winter weather conditions in many of the Company’s markets, and due to fire damage at one of the Company’s Atlanta, Georgia communities.

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Fair Value Measures and Other Financial Instruments

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measures and Other Financial Instruments

8. FAIR VALUE MEASURES AND OTHER FINANCIAL INSTRUMENTS

From time to time, the Company records certain assets and liabilities at fair value. Real estate assets may be stated at fair value if they become impaired in a given period and may be stated at fair value if they are held for sale and the fair value of such assets is below historical cost. Additionally, the Company records derivative financial instruments at fair value. The Company also uses fair value metrics to evaluate the carrying values of its real estate assets and for the disclosure of certain financial instruments. Fair value measurements were determined by management using available market information and appropriate valuation methodologies available to management at March 31, 2014. Considerable judgment is necessary to interpret market data and estimate fair value. Accordingly, there can be no assurance that the estimates discussed herein, using Level 2 and 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate assets or other financial instruments. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts.

Real estate assets

The Company periodically reviews its real estate assets, including operating assets, construction in progress and land held for future investment, for impairment purposes using Level 3 inputs, primarily comparable sales and market data, independent valuations and discounted cash flow models. For the three months ended March 31, 2014 and 2013, the Company did not recognize any impairment charges related to its real estate assets.

Derivatives and other financial instruments

The Company manages its exposure to interest rate changes through the use of derivative financial instruments, primarily interest rate swap arrangements. At March 31, 2014, the Company had outstanding three interest rate swap arrangements with substantially similar terms and conditions. These arrangements have an aggregate notional amount of $230,000 and require the Company to pay a blended fixed rate of approximately 1.55% (with the counterparties paying the Company the floating one-month LIBOR rate). Additionally, the Company had outstanding a fourth interest rate swap arrangement with a notional amount of $70,000 and it requires the Company to pay a fixed rate of approximately 1.50% (with the counterparty paying the Company the floating one-month LIBOR rate) (together, the “Interest Rate Swaps”). The Interest Rate Swaps serve as cash flow hedges of amounts outstanding under the Company’s variable rate Term Loan (see note 4) and provide for an effective blended fixed rate for the corresponding amount of Term Loan borrowings, of approximately 3.24% at March 31, 2014 (subject to an adjustment based on subsequent changes in the Company’s credit ratings). The Interest Rate Swaps terminate in January 2018.

The Interest Rate Swaps are measured and accounted for at fair value on a recurring basis. The Interest Rate Swaps outstanding at March 31, 2014 and December 31, 2013 were valued as net liabilities of $3,408 and $3,428, respectively, primarily using level 2 inputs, as substantially all of the fair value was determined using widely accepted discounted cash flow valuation techniques along with observable market-based inputs for similar types of arrangements. The Company reflects both the respective counterparty’s nonperformance risks and its own nonperformance risks in its fair value measurements using unobservable inputs. However, the impact of such risks was not considered material to the overall fair value measurements of the derivatives. These liabilities are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Under ASC Topic 815, a corresponding amount is included in accumulated other comprehensive income (loss), an equity account, until the hedged transactions are recognized in earnings. The following table summarizes the effect of these Interest Rate Swaps (designated as cash flow hedges) on the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013:

	Three months ended
	December 31,
Interest Rate Swap / Cash Flow Hedging Instruments	2014			2013
Gain (loss) recognized in other comprehensive income	$	(1,010	)	$	(73	)
Loss reclassified from accumulated other comprehensive income into interest expense	$	(1,029	)	$	(997	)

The amounts reported in accumulated other comprehensive income as of March 31, 2014 will be reclassified to interest expense as interest payments are made under the hedged indebtedness. Over the next year, the Company estimates that $4,103 will be reclassified from accumulated comprehensive income to interest expense.

As part of the Company’s on-going procedures, the Company monitors the credit worthiness of its financial institution counterparties and its exposure to any single entity, which it believes minimizes credit risk concentration. The Company believes the likelihood of realized losses from counterparty non-performance is remote. The Interest Rate Swaps are cross defaulted with the Company’s Term Loan and Syndicated Line (see note 4) and contain certain provisions consistent with these types of arrangements. If the Company was required to terminate the Interest Rate Swaps and settle the obligations thereunder as of March 31, 2014, the termination payment by the Company would have been approximately $3,422.

Other financial instruments

Cash equivalents, rents and accounts receivables, accounts payable, accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values because of the short-term nature of these instruments. At March 31, 2014, the fair value of fixed rate debt was approximately $828,538 (carrying value of $797,709) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $305,883 (carrying value of $300,000). At December 31, 2013, the fair value of fixed rate debt was approximately $816,582 (carrying value of $798,734) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $305,653 (carrying value of $300,000). Long-term indebtedness was valued using Level 2 inputs, primarily market prices of comparable debt instruments.

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Stock-Based Compensation Plans - Summary of Activity Related to Company's Restricted Stock (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total value of the restricted share grants	$ 2,566	$ 3,271

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Equity and Noncontrolling Interests

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Equity and Noncontrolling Interests

5. EQUITY AND NONCONTROLLING INTERESTS

Common stock

In May 2012, the Company adopted an at-the-market (“ATM”) common equity sales program for the sale of up to 4,000 shares of common stock. At March 31, 2014, the Company had not used this program and had 4,000 shares remaining for issuance. There were no sales of common stock for the three months ended March 31, 2014 or 2013 under this program. In future periods, the Company and the Operating Partnership may use the proceeds from this program for general corporate purposes.

In December 2012, the Company’s board of directors adopted a stock and unsecured note repurchase program under which the Company and the Operating Partnership may repurchase up to $200,000 of common and preferred stock and unsecured notes through December 2014. There were no shares of common stock repurchased for the three months ended March 31, 2014 under this stock repurchase program. For the year ended December 31, 2013, the Company repurchased 550 shares of common stock at an aggregate cost of $24,800 and at an average gross price per share of $45.08.

Noncontrolling interests

In accordance with ASC Topic 810, the Company and the Operating Partnership determined that the noncontrolling interests related to the common units of the Operating Partnership, held by persons other than the Company, met the criterion to be classified and accounted for as “temporary” equity (reflected outside of total equity as “Redeemable Common Units”). At March 31, 2014, the aggregate redemption value of the noncontrolling interests in the Operating Partnership of $6,645 was in excess of its net book value of $2,786. At December 31, 2013, the aggregate redemption value of the noncontrolling interests in the Operating Partnership of $6,121 was in excess of its net book value of $2,792. The Company further determined that the noncontrolling interests in its consolidated real estate entities met the criterion to be classified and accounted for as a component of permanent equity.

A roll-forward of activity relating to the Company’s Redeemable Common Units for the nine months ended March 31, 2014 and 2013 was as follows:

	Three months ended
	March 31,
	2014			2013
Redeemable common units, beginning of period	$	6,121		$	7,159
Comprehensive income		33			53
Adjustment for ownership interest of redeemable common units		7			5
Stock-based compensation		2			2
Distributions to common unitholders		(49	)		(36	)
Adjustment to redemption value of redeemable common units		531			(432	)
Redeemable common units, end of period	$	6,645		$	6,751

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Company Earnings Per Share

3 Months Ended

Mar. 31, 2014

Company Earnings Per Share

6. COMPANY EARNINGS PER SHARE

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per share was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common shareholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Noncontrolling interests—Operating Partnership		(33	)		(50	)
Preferred stock dividends		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common shareholders	$	13,287		$	18,950
Common shares (denominator):
Weighted average shares outstanding—basic		54,175			54,437
Dilutive shares from stock options		116			202
Weighted average shares outstanding—diluted		54,291			54,639
Per-share amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

Stock options to purchase 216 and 58 shares of common stock for the three months ended March 31, 2014 and 2013, respectively, were excluded from the computation of diluted income from continuing operations per common share as these stock options were antidilutive.

Post Apartment Homes, L.P. [Member]

Company Earnings Per Share

7. OPERATING PARTNERSHIP EARNINGS PER UNIT

For the three months ended March 31, 2014 and 2013, a reconciliation of the numerator and denominator used in the computation of basic and diluted income from continuing operations per unit was as follows:

	Three months ended
	March 31,
	2014			2013
Income from continuing operations available to common unitholders (numerator):
Income from continuing operations	$	14,253		$	19,957
Noncontrolling interests—consolidated real estate entities		16			3
Preferred unit distributions		(922	)		(922	)
Unvested restricted stock (allocation of earnings)		(27	)		(38	)
Income from continuing operations available to common unitholders	$	13,320		$	19,000
Common units (denominator):
Weighted average units outstanding—basic		54,310			54,580
Dilutive units from stock options		116			202
Weighted average units outstanding—diluted		54,426			54,782
Per-unit amount:
Basic	$	0.25		$	0.35
Diluted	$	0.24		$	0.35

Stock options to purchase 216 and 58 shares of common stock for the three months ended March 31, 2014 and 2013, respectively, were excluded from the computation of diluted income from continuing operations per common unit as these stock options were antidilutive.

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

9. SEGMENT INFORMATION

Segment description

In accordance with ASC Topic 280, “Segment Reporting,” the Company presents segment information based on the way that management organizes the segments within the enterprise for making operating decisions and assessing performance. The segment information is prepared on the same basis as the internally reported information used by the Company’s chief operating decision makers to manage the business.

The Company’s chief operating decision makers focus on the Company’s primary sources of income from apartment community rental operations. Apartment community rental operations are generally broken down into segments based on the various stages in the apartment community ownership lifecycle. These segments are described below. All commercial properties and other ancillary service and support operations are combined in the line item “other property segments” in the accompanying segment information. The segment information presented below reflects the segment categories based on the lifecycle status of each community as of January 1, 2013. The segment information for the three months ended March 31, 2014 and 2013 has been adjusted to reflect the impact of reclassifying, from the fully stabilized community segment to the held for sale community segment, the operating results of three apartment communities designated as held for sale in the three months ended March 31, 2014 described below.

• Fully stabilized communities – those apartment communities which have been stabilized (the earlier of the point at which a property reaches 95% occupancy or one year after completion of construction) for both 2014 and 2013.

• Newly stabilized communities – those apartment communities which reached stabilized occupancy in 2013.

• Lease-up communities – those apartment communities that are under development and lease-up but were not stabilized by the beginning of 2014, including communities that stabilized in 2014.

• Acquired communities – those communities acquired in 2014 or 2013.

• Held for sale communities – those apartment and mixed-use communities classified as held for sale in 2014 (see note 2).

Segment performance measure

Management uses contribution to consolidated property net operating income (“NOI”) as the performance measure for its operating segments. The Company uses NOI, including NOI of stabilized communities, as an operating measure. NOI is defined as rental and other property revenue from real estate operations less total property and maintenance expenses from real estate operations (excluding 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 operating segment 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 the Company’s consolidated statement of operations entitled “net income (loss)” is the most directly comparable GAAP measure to NOI.

Segment information

The following table reflects each segment’s contribution to consolidated revenues and NOI together with a reconciliation of segment contribution to property NOI to consolidated net income for the three months ended March 31, 2014 and 2013. Additionally, substantially all of the Company’s assets relate to the Company’s property rental operations. Asset cost, depreciation and amortization by segment are not presented because such information at the segment level is not reported internally.

	Three months ended March 31,
	2014			2013
Revenues
Fully stabilized communities	$	75,272		$	73,512
Newly stabilized communities		4,306			2,171
Lease-up communities		1,879			24
Acquired communities		1,210			—
Held for sale communities		5,871			5,602
Other property segments		4,755			4,835
Other		219			214
Consolidated revenues	$	93,512		$	86,358
Contribution to Property Net Operating Income
Fully stabilized communities	$	46,318		$	45,580
Newly stabilized communities		2,673			673
Lease-up communities		679			(29	)
Acquired communities		754			—
Held for sale communities		2,773			3,127
Other property segments, including corporate management expenses		(500	)		(491	)
Consolidated property net operating income		52,697			48,860
Interest income		12			36
Other revenues		219			214
Depreciation		(21,767	)		(20,944	)
Interest expense		(11,244	)		(11,052	)
Amortization of deferred financing costs		(645	)		(624	)
General and administrative		(4,128	)		(4,245	)
Investment and development		(811	)		(489	)
Other investment costs		(273	)		(305	)
Other expenses		(907	)		—
Gains on condominium sales activities, net		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
Income from discontinued operations		—			433
Net income	$	14,253		$	20,390

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Income Tax Contingency [Line Items]
Minimum annual distribution of adjusted taxable income for REIT qualification	90.00%
Subsequent taxable years	4 years
Net deferred tax assets		$ 25,166
Internal Revenue Service (IRS) [Member]
Income Tax Contingency [Line Items]
Unrecognized tax benefits, increases resulting from prior period tax positions	$ 797	$ 797

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Subsequent Events - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified				1 Months Ended
	Mar. 31, 2014 Apartment	Mar. 31, 2014 Assets Held-for-sale [Member] Apartment	Mar. 31, 2014 Assets Held-for-sale [Member] Houston, Texas [Member] Apartment	May 31, 2014 Subsequent Event [Member]	May 31, 2014 Subsequent Event [Member] Assets Held-for-sale [Member] Houston, Texas [Member] Apartment
Subsequent Event [Line Items]
Number of units	22,516	645	308		308
Net gain on sale of apartment community					$ 36,000
Apartment community sold approximately for gross proceeds					71,750
Secured mortgage indebtedness				120,000
Stated rate on the indebtedness	4.88%			4.88%
Net gain (loss) on extinguishment of indebtedness				$ 4,300

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Stock-Based Compensation Plans - Schedule of Outstanding Options into Two Ranges, Based on Exercise Prices (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices remaining contractual life, outstanding	4 years 2 months 12 days
Range of exercise prices shares, outstanding	501
Range of exercise prices weighted average exercise price, outstanding	$ 38
Range of exercise prices shares, exercisable	439
Options Exercisable, Weighted Avg. Exercise Price	$ 37
Outstanding Options with Range Based Exercise Prices Set One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit	$ 12.22
Exercise price range, upper range limit	$ 40.15
Range of exercise prices remaining contractual life, outstanding	3 years 4 months 24 days
Range of exercise prices shares, outstanding	265
Range of exercise prices weighted average exercise price, outstanding	$ 29
Range of exercise prices shares, exercisable	265
Options Exercisable, Weighted Avg. Exercise Price	$ 29
Outstanding Options with Range Based Exercise Prices Set Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit	$ 44.05
Exercise price range, upper range limit	$ 50.30
Range of exercise prices remaining contractual life, outstanding	5 years 1 month 6 days
Range of exercise prices shares, outstanding	236
Range of exercise prices weighted average exercise price, outstanding	$ 47
Range of exercise prices shares, exercisable	174
Options Exercisable, Weighted Avg. Exercise Price	$ 47

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Real Estate Activity - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended							1 Months Ended
	Mar. 31, 2014 Home Property Apartment	Mar. 31, 2013 Home	Mar. 31, 2013 Discontinued Operations [Member] Apartment	Mar. 31, 2014 For-Sale Condominium Homes [Member] Property	Mar. 31, 2014 Assets Held-for-sale [Member] Apartment	Mar. 31, 2014 New York [Member] Assets Held-for-sale [Member] Apartment	Mar. 31, 2014 Houston, Texas [Member] Assets Held-for-sale [Member] Apartment	May 31, 2014 Houston, Texas [Member] Assets Held-for-sale [Member] Subsequent Event [Member] Apartment	Mar. 31, 2014 Austin Condominium Project [Member] For-Sale Condominium Homes [Member] Property	Mar. 31, 2014 Atlanta Condominium Project [Member] For-Sale Condominium Homes [Member] Property
Real Estate Properties [Line Items]
Number of real estate properties	60			2	3	2	1		1	1
Number of units in real estate property	22,516		342		645	337	308	308
Assets held for sale, net of accumulated depreciation	$ 141,430				$ 141,430
Apartment community sold approximately for gross proceeds								$ 71,750
Condominium homes sold	1	20

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Operating Partnership Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Income from continuing operations	$ 14,253	$ 19,957
Noncontrolling interests - consolidated real estate entities	16	3
Preferred unit distributions	(922)	(922)
Income from continuing operations available to common unitholders	13,287	18,950
Weighted average units outstanding-basic	54,175	54,437
Dilutive units from stock options	116	202
Weighted average units outstanding-diluted	54,291	54,639
Basic	$ 0.25	$ 0.35
Diluted	$ 0.24	$ 0.35
Post Apartment Homes, L.P. [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Income from continuing operations	14,253	19,957
Noncontrolling interests - consolidated real estate entities	16	3
Preferred unit distributions	(922)	(922)
Unvested restricted stock (allocation of earnings)	(27)	(38)
Income from continuing operations available to common unitholders	$ 13,320	$ 19,000
Weighted average units outstanding-basic	54,310	54,580
Dilutive units from stock options	116	202
Weighted average units outstanding-diluted	54,426	54,782
Basic	$ 0.25	$ 0.35
Diluted	$ 0.24	$ 0.35

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Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

14. SUBSEQUENT EVENTS

The Company evaluated the accounting and disclosure requirements for subsequent events reporting through the issuance date of the financial statements. In May 2014, the Company completed the sale of an apartment community, containing 308 units, located in Houston, Texas for gross proceeds of approximately $71,750. The Company expects to recognize a net gain on the sale of approximately $36,000 in the second quarter of 2014. In May 2014, the Company prepaid $120,000 of secured mortgage indebtedness using available cash and line of credit borrowings, which were largely repaid from the net proceeds of the apartment community sale. The indebtedness was scheduled to initially mature in February 2015, and the stated rate on the indebtedness was 4.88%. In conjunction with the prepayment, the Company expects to recognize an extinguishment loss of approximately $4,300 related to the payment of prepayment premiums and the write-off of unamortized deferred loan costs.

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Indebtedness (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Indebtedness

At March 31, 2014 and December 31, 2013, the Company’s indebtedness consists of the following:

	Payment			Maturity			March 31,		December 31,
Description	Terms		Interest Rate	Date			2014		2013
Senior Unsecured Notes		Int.	3.375%—4.75%		2017—2022	(1)	$	400,000	$	400,000
Unsecured Bank Term Loan		Int.	LIBOR + 1.70%(2)		2018			300,000		300,000
Secured Mortgage Notes		Prin. and Int.	4.88%—5.99%		2015—2019	(4)		397,709		398,734
Total							$	1,097,709	$	1,098,734

(1) There are no maturities of senior unsecured notes in 2014. The remaining unsecured notes mature between 2017 and 2022.

(2) Represents stated rate at March 31, 2014. As discussed below, the Company has entered into interest rate swap arrangements that effectively fix the interest rate under this facility. At March 31, 2014, the effective blended interest rate under the Term Loan was 3.24%.

(3) Represents stated rate at March 31, 2014.

(4) There are no maturities of secured notes in 2014. These notes mature between 2015 and 2019.

Schedule of Aggregate Maturities of Indebtedness

The aggregate maturities of the Company’s indebtedness are as follows:

Remainder of 2014	$	2,936
2015		124,205
2016		4,418
2017		154,736
2018		350,958
Thereafter		460,456
	$	1,097,709

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Company Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income from continuing operations	$ 14,253	$ 19,957
Noncontrolling interests - consolidated real estate entities	16	3
Noncontrolling interests-Operating Partnership	(33)	(51)
Distributions to preferred	(922)	(922)
Unvested restricted stock (allocation of earnings)	(27)	(38)
Income from continuing operations available to common shareholders	13,287	18,950
Weighted average shares outstanding-basic	54,175	54,437
Dilutive shares from stock options	116	202
Weighted average shares outstanding-diluted	54,291	54,639
Basic	$ 0.25	$ 0.35
Diluted	$ 0.24	$ 0.35
Noncontrolling Interests - Operating Partnership [Member]
Noncontrolling interests-Operating Partnership	$ (33)	$ (50)

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Investments in Unconsolidated Real Estate Entities - Summary of Financial Information for Apartment LLCs (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Real Estate Properties [Line Items]
Real estate assets, accumulated depreciation	$ 875,069	$ 913,018
Investments in unconsolidated real estate entities	16,830	16,687
Unconsolidated Properties [Member]
Real Estate Properties [Line Items]
Real estate assets, accumulated depreciation	45,000	43,649
Investments in unconsolidated real estate entities	$ 16,830	$ 16,687

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Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 14,253	$ 20,390
Net change in derivative financial instruments	20	925
Total comprehensive income	14,273	21,315
Comprehensive income attributable to noncontrolling interests:
Consolidated real estate entities	16	3
Operating Partnership	(33)	(53)
Total Company comprehensive income	14,256	21,265
Post Apartment Homes, L.P. [Member]
Net income	14,253	20,390
Net change in derivative financial instruments	20	925
Total comprehensive income	14,273	21,315
Comprehensive income attributable to noncontrolling interests:
Consolidated real estate entities	16	3
Total Operating Partnership comprehensive income	$ 14,289	$ 21,318

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Real Estate Activities

3 Months Ended

Mar. 31, 2014

Real Estate [Abstract]

Real Estate Activities

2. REAL ESTATE ACTIVITY

Dispositions

In the three months ended March 31, 2014, the Company classified three apartment communities, containing 645 units, as held for sale. Two of the communities, containing 337 units are located in New York, New York and the additional community, containing 308 units, is located in Houston, Texas. This disposition activity is part of the Company’s on-going investment strategy of recycling investment capital to fund investment and development of apartment communities. These real estate assets classified as held for sale are reported separately on the accompanying consolidated balance sheet at $141,430, which represents the lower of their depreciated cost or fair value less costs to sell. The carrying amount of the major components of assets and liabilities of these communities were as follows:

	March 31, 2014
Land	$	22,542
Building and improvements		166,715
Furniture, fixtures and equipment		11,336
Less: accumulated depreciation		(59,163	)
Assets held for sale, net of accumulated depreciation	$	141,430
Secured indebtedness	$	83,212

In May 2014, one of these apartment communities, containing 308 units, was subsequently sold for gross proceeds of approximately $71,750 (see note 14). The additional apartment communities are expected to be sold later in 2014.

Assets held for sale subsequent to January 1, 2014

Subsequent to the adoption of ASU 2014-08 (see note 1), an amendment to ASC Topic 360, and as of January 1, 2014, the Company determined that the three apartment communities classified as held for sale did not meet the criteria requiring separate reporting as discontinued operations. As a result, the operations of these communities and any resulting gains (losses) on sales of the communities will continue to be reported in continuing operations for all periods presented. Total revenues and property net operating income of these assets is included in the segment information in note 9 under the segment caption titled, “held for sale communities.” The net income and net income attributable to the Company related to these communities for the three months ended March 31, 2014 and 2013 is as follows:

	Three months ended
	March 31,
	2014		2013
Net income	$	138	$	500
Net income, net of noncontrolling interest	$	154	$	503

Assets held for sale/sold prior to January 1, 2014

In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale and sold were reported in discontinued operations in the consolidated statement of operations for all periods presented. Additionally, all gains and 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 results of operations of one apartment community, containing 342 units, through its sale date 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

Condominium activities

In 2013 and through March 31, 2014, the Company was selling condominium homes at two wholly owned condominium communities, one in Atlanta, Georgia (the “Atlanta Condominium Project”) and one in Austin, Texas (the “Austin Condominium Project”). The Austin Condominium Project completed its sell-out in the second quarter of 2013, and the Atlanta Condominium Project completed the sale of its final unit in March 2014. The revenues, costs and expenses associated with consolidated condominium activities for the three months ended March 31, 2014 and 2013 were 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

For the three months ended March 31, 2014 and 2013, the Company closed one and 20 condominium homes, respectively, at these condominium communities.

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Stock-Based Compensation Plans - Schedule of Assumptions Used in Black-Scholes Option-Pricing Model (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend yield	2.80%	2.00%
Expected volatility	43.00%	43.10%
Risk-free interest rate	1.80%	1.10%
Expected option term (years)	6 years	6 years

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Equity and Noncontrolling Interests (Tables)

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Schedule of Redeemable Common Units

A roll-forward of activity relating to the Company’s Redeemable Common Units for the nine months ended March 31, 2014 and 2013 was as follows:

	Three months ended
	March 31,
	2014			2013
Redeemable common units, beginning of period	$	6,121		$	7,159
Comprehensive income		33			53
Adjustment for ownership interest of redeemable common units		7			5
Stock-based compensation		2			2
Distributions to common unitholders		(49	)		(36	)
Adjustment to redemption value of redeemable common units		531			(432	)
Redeemable common units, end of period	$	6,645		$	6,751

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Real Estate Activity - Revenues Costs and Expenses Associated with Consolidated Condominium Activities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Real Estate [Abstract]
Condominium revenues	$ 2,442	$ 17,475
Condominium costs and expenses	(1,632)	(9,281)
Net gains on sales of condominiums	$ 810	$ 8,194

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Legal Proceedings, Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Legal Proceedings, Commitments and Contingencies

13. LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES

In September 2010, the United States Department of Justice (the “DOJ”) filed a lawsuit against the Company in the United States District Court for the Northern District of Georgia. The suit alleges various violations of the Fair Housing Act (“FHA”) and the Americans with Disabilities Act (“ADA”) at properties designed, constructed or operated by the Company in the District of Columbia, Virginia, Florida, Georgia, New York, North Carolina and Texas. The plaintiff seeks statutory damages and a civil penalty in unspecified amounts, as well as injunctive relief that includes retrofitting apartments and public use areas to comply with the FHA and the ADA and prohibiting construction or sale of noncompliant units or complexes. The Company filed a motion to transfer the case to the United States District Court for the District of Columbia, where a previous civil case involving alleged violations of the FHA and ADA by the Company was filed and ultimately dismissed. On October 29, 2010, the United States District Court for the Northern District of Georgia issued an opinion finding that the complaint shows that the DOJ’s claims are essentially the same as the previous civil case, and, therefore, granted the Company’s motion and transferred the DOJ’s case to the United States District Court for the District of Columbia. Under the Court’s scheduling orders, the deadline for completion of discovery was November 2013 and briefing of any dispositive motions is to be accomplished by April 2014. Until such time as the court issues rulings on the application of the law to the facts of this case, it is not possible to predict or determine the outcome of the legal proceeding, nor is it possible to estimate the amount of loss, if any, that would be associated with an adverse decision.

The Company is involved in various other legal proceedings incidental to their business from time to time, some of which are expected to be covered by liability or other insurance. Management of the Company believes that any resolution of pending proceedings or liability to the Company which may arise as a result of these various other legal proceedings will not have a material effect on the Company’s results of operations, cash flows or financial position.