UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 31, 2016
POST PROPERTIES, INC.
POST APARTMENT HOMES, L.P.
(Exact name of Registrant as Specified in Its Charter)
Georgia (Post Properties, Inc.) Georgia (Post Apartment Homes, L.P.) |
1-12080 (Post Properties, Inc.) 0-28226 (Post Apartment Homes, L.P.) |
58-1550675 (Post Properties, Inc.) 58-2053632 (Post Apartment Homes, L.P.) |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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4401 Northside Parkway, Suite 800, Atlanta, Georgia |
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30327 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (404) 846-5000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02Results of Operations and Financial Condition.
On October 31, 2016, Post Properties, Inc. and Post Apartment Homes, L.P. (collectively referred to as the “Registrants”), issued an Earnings Release and Supplemental Financial Data announcing their financial results for the quarterly period ended September 30, 2016. The Earnings Release and Supplemental Financial Data contain information about the Registrants’ financial condition and results of operations for the quarterly period ended September 30, 2016. A copy of the Earnings Release is attached hereto as Exhibit 99.1 and is incorporated by reference herein in its entirety. A copy of the Supplemental Financial Data is attached hereto as Exhibit 99.2 and is incorporated by reference herein in its entirety
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
99.1 |
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Earning Release |
99.2 |
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Supplemental Financial Data |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
Date: October 31, 2016 |
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POST PROPERTIES, INC. |
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By: |
/s/ David P. Stockert |
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David P. Stockert |
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President and Chief Executive Officer |
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POST APARTMENT HOMES, L.P. |
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By: |
POST GP HOLDINGS, INC., |
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As General Partner |
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By: |
/s/ David P. Stockert |
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David P. Stockert |
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Chief Executive Officer |
Exhibit Number |
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Description |
99.1 |
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Earnings Release |
99.2 |
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Supplemental Financial Data
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Exhibit 99.1
Contact: Art Quirk Post Properties, Inc. (404) 846-5013
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Post Properties Announces Third Quarter 2016 Earnings
Investor/Analyst Conference Call Scheduled for Tuesday, November 1st at 10:00 a.m. ET
ATLANTA, Monday, October 31, 2016 – Post Properties, Inc. (NYSE: PPS) announced today net income available to common shareholders of $16.7 million, or $0.31 per diluted share, for the third quarter of 2016, compared to $19.2 million, or $0.35 per diluted share, for the third quarter of 2015.
Net income available to common shareholders for the nine months ended September 30, 2016, was $56.9 million, or $1.06 per diluted share, compared to $56.9 million, or $1.04 per diluted share, for the nine months ended September 30, 2015.
Net income for the three and nine months ended September 30, 2016 included merger-related expenses of $6.5 million, or $0.12 per diluted share. Net income for the nine months ended September 30, 2015 included a gain on the sale of real estate assets of $1.5 million, or $0.03 per diluted share.
Funds From Operations
The Company uses the National Association of Real Estate Investment Trusts (“NAREIT”) definition of Funds from Operations (“FFO”) as an operating measure of the Company’s financial performance. A reconciliation of FFO to GAAP net income is included in the financial data (Table 1) accompanying this press release.
FFO for the third quarter of 2016 was $40.4 million, or $0.75 per diluted share, compared to $41.3 million, or $0.76 per diluted share for the third quarter of 2015. FFO for the nine months ended September 30, 2016 was $126.2 million, or $2.35 per diluted share, compared to $120.2 million, or $2.20 per diluted share, for the nine months ended September 30, 2015.
FFO for the three and nine months ended September 30, 2016 included merger-related expenses of $6.5 million, or $0.12 per diluted share. FFO for the nine months ended September 30, 2015 included losses on extinguishment of indebtedness of $0.2 million, or less than $0.01 per diluted share.
Said Dave Stockert, Post’s CEO and President, “Funds from operations in the third quarter, before merger-related expenses, substantially exceeded our expectations on strong same-store net operating income. Good progress is being made toward the merger closing and subsequent integration, including identifying synergies and the go-forward organizational structure. We remain excited at the prospect of creating the leading Sunbelt apartment platform.”
Proposed Merger
As previously announced in August 2016, the Company entered into a merger agreement with Mid-America Apartment Communities, Inc. (“MAA”) The completion of proposed merger is subject to approval by the Company’s and MAA’s respective common shareholders at the meetings to be held on November 10, 2016. In connection with the proposed merger transaction, the Company incurred legal, investment banking and other transaction costs of $6.5 million for the three and nine months ended September 30, 2016. Assuming the affirmative vote of shareholders of both companies, the merger is currently scheduled to close on December 1, 2016.
Fully Stabilized (“Same Store”) Community Data
Total revenues at the Company’s 52 same store communities, containing 19,819 apartment units, increased 2.7% and total operating expenses decreased 3.5% during the third quarter of 2016, compared to the third quarter of 2015, producing a 6.7% increase in same store net operating income (“NOI”). The average monthly rental rate per unit increased 2.5% during the third quarter of 2016, compared to the third quarter of 2015. Average economic occupancy was 96.9% for the third quarter of 2016, compared to 97.0% for the third quarter of 2015.
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On a sequential basis, total revenues for the same store communities increased 1.0% and total operating expenses decreased 5.9%, resulting in a 5.7% increase in same store NOI for the third quarter of 2016, compared to the second quarter of 2016. On a sequential basis, the average monthly rental rate per unit increased 0.6%. For the third quarter of 2016, average economic occupancy at the same store communities was 96.9%, compared to 96.2% for the second quarter of 2016.
Total revenues for the same store communities increased 3.3% and total operating expenses increased 1.9% during the nine months of 2016, compared to the first nine months of 2015, producing a 4.2% increase in same store NOI. The average monthly rental rate per unit increased 2.5% for the nine months ended September 30, 2016, compared to the nine months ended September 30, 2015. For the nine months ended September 30, 2016, average economic occupancy at the Company’s same store communities was 96.4% compared to 96.0% for the nine months ended September 30, 2015.
Same store property operating expenses in the third quarter of 2016 benefitted from net refunds of prior year property taxes totaling $1.25 million.
The Company uses same store NOI as a measure of reportable segment operating performance. A reconciliation of same store NOI to GAAP net income is included in the financial data (Table 2) accompanying this press release. Information on same store NOI and average rental rate per unit by geographic market is also included in the financial data (Table 3) accompanying this press release.
Investment Activity
Development Activity
In the aggregate, the Company has 2,266 units in six apartment communities, and approximately 5,800 square feet of retail space, under development with a total estimated cost of $478.6 million, and a remaining funding requirement of $210.4 million. The Company believes it has adequate internal and external resources to fund its development commitments. The Company has commenced leasing of two communities under development. Post Parkside at Wade™, Phase II, located in Raleigh, North Carolina, was 49.0% leased as of October 29, 2016. Post Afton Oaks™, located in Houston, Texas, was 2.8% leased as of October 29, 2016.
During the third quarter, the Company achieved stabilized occupancy at The High Rise at Alexander™ - located in the Buckhead submarket of Atlanta, Georgia. As of October 29, 2016, this community was 97.6% leased.
Disposition Activity
In the third quarter of 2016, a joint venture in which the Company owns a 25% interest commenced the marketing for sale of its three apartment communities, located in Atlanta, Georgia. The sale of these three communities is currently under contract and is expected to be completed by the end of November, although there can be no assurance that the closing will occur. In connection with the proposed sale, the Company expects to incur its share of the costs associated with prepaying the mortgage loans encumbering the communities. The Company’s share of such prepayment costs is currently estimated to be approximately $1.1 million to $1.2 million.
Financing Activity
Leverage and Line of Credit Capacity
Total outstanding principal value of debt and liquidation value of preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of real estate assets and debt) was 30.3% at September 30, 2016.
As of October 29, 2016, the Company had outstanding borrowings of $95.4 million and letters of credit totaling $0.2 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities until 2017.
Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP measures in the Company’s financial statements are included in the financial data (Table 4) accompanying this press release.
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Due to the pending merger with MAA, the Company has discontinued the presentation of earnings and FFO guidance. Also as a result of the pending merger and associated costs, all previously issued earnings and FFO guidance should no longer be relied upon.
Supplemental Financial Data
The Company also produces Supplemental Financial Data that includes detailed information regarding the Company’s operating results, investment activity, financing activity, balance sheet and properties. This Supplemental Financial Data is considered an integral part of this earnings release and is available on the Company’s website. The Company’s Earnings Release and the Supplemental Financial Data are available through the Investors/Financial Reports/Quarterly and Other Reports section of the Company’s website at www.postproperties.com.
The ability to access the attachments on the Company’s website requires the Adobe Acrobat Reader, which may be downloaded at http://get.adobe.com/reader/.
Non-GAAP Financial Measures and Other Defined Terms
The Company uses certain non-GAAP financial measures and other defined terms in this press release and in its Supplemental Financial Data available on the Company’s website. The non-GAAP financial measures include Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), property net operating income, operating capital expenditures, and certain debt statistics and ratios. The definitions of non-GAAP financial measures are listed below and on page 20 of the Supplemental Financial Data. The Company uses these measures to monitor the operating and financial performance of the Company and believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.
Funds from Operations – The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (or losses) from extraordinary items and sales of depreciable operating property, plus depreciation and amortization of real estate assets, non-cash impairment charges on depreciable real estate, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO presented in the Company’s press release and Supplemental Financial Data is not necessarily comparable to FFO presented by other real estate companies because not all real estate companies use the same definition. The Company’s FFO is comparable to the FFO of real estate companies that use the current NAREIT definition.
Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance.
In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.
Adjusted Funds From Operations – The Company uses AFFO as a supplemental non-GAAP measure. AFFO is defined by the Company as FFO less operating capital expenditures and after adjusting for the impact of debt extinguishment losses, if any. AFFO is used as an additional measure in evaluating Company performance, as an indication of the REIT’s ability to fund its operating capital expenditures through earnings and in reviewing its common dividend policy over time. In addition, since other equity REITs provide AFFO, or similar supplemental measures, to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company’s calculation of AFFO is reconciled to the line on its consolidated statement of cash flows entitled “net cash flow provided by operating activities”, the comparable GAAP measure.
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Property Net Operating Income (“NOI”) – The Company uses property NOI, including same store NOI and same store NOI by market, as a reportable segment operating performance measures. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that property NOI is an important measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store segment groupings and individual properties. Additionally, the Company believes that property NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to property NOI (see Tables 2 and 3).
Operating Capital Expenditures – The Company uses aggregate Company and same store annually recurring and periodically recurring capital expenditures as cash flow measures. The Company believes that aggregate Company and same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its communities on an ongoing basis. Aggregate company annually recurring and periodically recurring capital expenditures include information with respect to the Company’s reportable operating segments consisting of fully stabilized (same store) communities, newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties. Aggregate company annually recurring and periodically recurring capital expenditures are reported on the line in the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating capital expenditures.
Debt Statistics and Debt Ratios – The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes and the Company’s unsecured line of credit agreements. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity, and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.
The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.
Property Operating Statistics – The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property operating performance. The Company defines average economic occupancy as gross potential rent plus other rental fees less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.
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The Company will hold its quarterly conference call on Tuesday, November 1, 2016 at 10:00 a.m. ET. The telephone numbers are 877-795-3638 for US and Canada callers and 719-325-4758 for international callers. The access code is 5778078. The conference call will be open to the public and can be listened to live on Post’s website at www.postproperties.com. Click Investors in the top menu, then select either Investor’s Overview or Events Calendar.
The replay will begin at 1:00 p.m. ET on Tuesday, November 1, and will be available until Tuesday, November 8, at 1:00 p.m. ET. Please click here to register for the replay. The replay access code is 5778078. A replay of the call also will be archived on Post’s website under Investors/Audio Archives.
About Post
Post Properties, founded 45 years ago, is a leading developer and operator of upscale multifamily communities. Operating as a real estate investment trust (“REIT”), the Company focuses on developing and managing Post® branded high density urban and resort-style garden apartments. Post Properties is headquartered in Atlanta, Georgia, and has operations in ten markets across the country.
Post Properties has interests in 24,138 apartment units in 61 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 2,266 apartment units in six communities currently under development or in lease-up.
Forward-Looking Statements
Certain statements made in this press release and other written or oral statements made by or on behalf of the Company, may constitute “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of such statements in this press release and in the Company’s outlook include expectations regarding apartment market conditions, expectations regarding future operating conditions, including the Company’s current outlook as to expected funds from operations, adjusted funds from operations, revenue, operating expenses, net operating income, capital expenditures, depreciation, gains on sales and net income, anticipated development activities (including projected construction expenditures and timing), expectations regarding apartment community sales and the use of proceeds thereof, expectations regarding use of proceeds from unsecured bank credit facilities, expectations regarding share repurchases, and expectations regarding offerings of the Company’s common stock and the use of proceeds thereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K for the year ended December 31, 2015 and in subsequent filings with the SEC; risks related to the Company’s proposed merger transaction, including the risk factors discussed in the Joint Proxy Statement/Prospectus dated September 30, 2016; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s prior condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for
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residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnerships in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; and any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company’s Joint Proxy Statement/Prospectus dated September 30, 2016 and may be discussed in subsequent filings with the SEC. The risk factors discussed in the Form 10-K under the caption “Risk Factors” and those discussed in the Joint Proxy Statement/Prospectus are specifically incorporated by reference into this press release.
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Financial Highlights
(Unaudited; in thousands, except per share and unit amounts)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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OPERATING DATA |
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Total revenues |
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$ |
101,589 |
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$ |
97,767 |
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$ |
299,777 |
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$ |
286,629 |
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Net income available to common shareholders |
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$ |
16,676 |
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$ |
19,225 |
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$ |
56,947 |
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$ |
56,934 |
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Funds from operations available to common |
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shareholders and unitholders (Table 1) |
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$ |
40,444 |
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$ |
41,280 |
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$ |
126,195 |
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$ |
120,181 |
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Weighted average shares outstanding - diluted |
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53,403 |
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54,342 |
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53,459 |
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54,425 |
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Weighted average shares and units outstanding - diluted |
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53,519 |
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54,463 |
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53,578 |
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54,546 |
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PER COMMON SHARE DATA - DILUTED |
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Net income available to common shareholders |
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$ |
0.31 |
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$ |
0.35 |
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$ |
1.06 |
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$ |
1.04 |
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Funds from operations available to common |
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shareholders and unitholders (Table 1) (1) |
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$ |
0.75 |
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$ |
0.76 |
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$ |
2.35 |
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$ |
2.20 |
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Dividends declared |
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$ |
0.47 |
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$ |
0.44 |
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$ |
1.41 |
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$ |
1.28 |
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1) |
Funds from operations available to common shareholders and unitholders per share is computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 19 and 16 for the three months and 17 and 16 for the nine months ended September 30, 2016 and 2015, respectively. Additionally, diluted weighted average shares and units include the impact of non-vested shares and units totaling 121 and 136 for the three months and 123 and 131 for the nine months ended September 30, 2016 and 2015, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.” |
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Table 1
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations Available to Common Shareholders and Unitholders
(Unaudited; in thousands, except per share and unit amounts)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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Net income available to common shareholders |
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$ |
16,676 |
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$ |
19,225 |
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$ |
56,947 |
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$ |
56,934 |
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Noncontrolling interests - operating partnership unitholders |
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37 |
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43 |
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126 |
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126 |
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Depreciation on consolidated real estate assets, net |
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23,580 |
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21,712 |
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68,367 |
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63,697 |
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Depreciation on real estate assets held in |
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unconsolidated entities |
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151 |
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300 |
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755 |
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899 |
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Gains on sales of depreciable real estate assets |
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- |
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- |
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- |
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(1,475 |
) |
Funds from operations available to common |
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|
|
shareholders and unitholders |
|
$ |
40,444 |
|
|
$ |
41,280 |
|
|
$ |
126,195 |
|
|
$ |
120,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations - per share and unit - diluted (1) |
|
$ |
0.75 |
|
|
$ |
0.76 |
|
|
$ |
2.35 |
|
|
$ |
2.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units outstanding - diluted (1) |
|
|
53,640 |
|
|
|
54,599 |
|
|
|
53,701 |
|
|
|
54,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 19 and 16 for the three months and 17 and 16 for the nine months ended September 30, 2016 and 2015, respectively. Additionally, diluted weighted average shares and units include the impact of non-vested shares and units totaling 121 and 136 for the three months and 123 and 131 for the nine months ended September 30, 2016 and 2015, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.” |
-8-
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Unaudited; In thousands)
|
|
Three months ended |
|
|
Nine months ended |
|
|
||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|||||
Total same store NOI |
|
$ |
58,064 |
|
|
$ |
54,418 |
|
|
$ |
54,949 |
|
|
$ |
167,763 |
|
|
$ |
161,019 |
|
|
Property NOI from other operating segments |
|
|
1,142 |
|
|
|
305 |
|
|
|
625 |
|
|
|
2,425 |
|
|
|
344 |
|
|
Consolidated property NOI |
|
|
59,206 |
|
|
|
54,723 |
|
|
|
55,574 |
|
|
|
170,188 |
|
|
|
161,363 |
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
|
|
34 |
|
|
|
- |
|
|
|
1 |
|
|
|
158 |
|
|
Other revenues |
|
|
273 |
|
|
|
337 |
|
|
|
283 |
|
|
|
828 |
|
|
|
924 |
|
|
Depreciation |
|
|
(23,949 |
) |
|
|
(22,073 |
) |
|
|
(22,794 |
) |
|
|
(69,452 |
) |
|
|
(64,748 |
) |
|
Interest expense |
|
|
(7,427 |
) |
|
|
(8,217 |
) |
|
|
(7,534 |
) |
|
|
(22,727 |
) |
|
|
(24,631 |
) |
|
General and administrative |
|
|
(4,474 |
) |
|
|
(4,622 |
) |
|
|
(3,761 |
) |
|
|
(13,121 |
) |
|
|
(13,989 |
) |
|
Investment and development |
|
|
(44 |
) |
|
|
(73 |
) |
|
|
(33 |
) |
|
|
(102 |
) |
|
|
(583 |
) |
|
Other investment costs |
|
|
(87 |
) |
|
|
(165 |
) |
|
|
(76 |
) |
|
|
(240 |
) |
|
|
(453 |
) |
|
Merger expenses |
|
|
(6,468 |
) |
|
|
- |
|
|
|
- |
|
|
|
(6,468 |
) |
|
|
- |
|
|
Other expenses |
|
|
- |
|
|
|
- |
|
|
|
(67 |
) |
|
|
(400 |
) |
|
|
- |
|
|
Equity in income of unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
real estate entities, net |
|
|
921 |
|
|
|
603 |
|
|
|
589 |
|
|
|
2,153 |
|
|
|
1,568 |
|
|
Gains on sales of real estate assets, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,475 |
|
|
Other income (expense), net |
|
|
(316 |
) |
|
|
(357 |
) |
|
|
(110 |
) |
|
|
(821 |
) |
|
|
(1,061 |
) |
|
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(197 |
) |
|
Net income |
|
$ |
17,635 |
|
|
$ |
20,190 |
|
|
$ |
22,071 |
|
|
$ |
59,839 |
|
|
$ |
59,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-9-
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
. |
|
Three months ended |
|
Q3 '16 |
|
Q3 '16 |
|
Q3 '16 |
||||
|
|
September 30, |
|
September 30, |
|
June 30, |
|
vs. Q3 '15 |
|
vs. Q2 '16 |
|
% Same |
|
|
2016 |
|
2015 |
|
2016 |
|
% Change |
|
% Change |
|
Store NOI |
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 23,533 |
|
$ 22,560 |
|
$ 23,124 |
|
4.3% |
|
1.8% |
|
|
Dallas |
|
19,569 |
|
19,013 |
|
19,155 |
|
2.9% |
|
2.2% |
|
|
Houston |
|
2,669 |
|
2,949 |
|
2,804 |
|
(9.5)% |
|
(4.8)% |
|
|
Austin |
|
4,577 |
|
4,452 |
|
4,536 |
|
2.8% |
|
0.9% |
|
|
Washington, D.C. Metro |
|
15,781 |
|
15,700 |
|
15,754 |
|
0.5% |
|
0.2% |
|
|
Tampa |
|
11,393 |
|
10,899 |
|
11,285 |
|
4.5% |
|
1.0% |
|
|
Orlando |
|
6,334 |
|
6,101 |
|
6,280 |
|
3.8% |
|
0.9% |
|
|
Charlotte |
|
7,176 |
|
7,044 |
|
7,132 |
|
1.9% |
|
0.6% |
|
|
Raleigh |
|
1,353 |
|
1,262 |
|
1,362 |
|
7.2% |
|
(0.7)% |
|
|
Total rental and other revenues |
|
92,385 |
|
89,980 |
|
91,432 |
|
2.7% |
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
expenses (exclusive of depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 7,495 |
|
$ 8,515 |
|
8,857 |
|
(12.0)% |
|
(15.4)% |
|
|
Dallas |
|
8,848 |
|
8,281 |
|
8,996 |
|
6.8% |
|
(1.6)% |
|
|
Houston |
|
1,236 |
|
1,308 |
|
1,275 |
|
(5.5)% |
|
(3.1)% |
|
|
Austin |
|
2,195 |
|
2,230 |
|
2,286 |
|
(1.6)% |
|
(4.0)% |
|
|
Washington, D.C. Metro |
|
5,722 |
|
6,089 |
|
5,647 |
|
(6.0)% |
|
1.3% |
|
|
Tampa |
|
3,762 |
|
3,859 |
|
4,190 |
|
(2.5)% |
|
(10.2)% |
|
|
Orlando |
|
2,215 |
|
2,519 |
|
2,368 |
|
(12.1)% |
|
(6.5)% |
|
|
Charlotte |
|
2,416 |
|
2,229 |
|
2,408 |
|
8.4% |
|
0.3% |
|
|
Raleigh |
|
432 |
|
532 |
|
456 |
|
(18.8)% |
|
(5.3)% |
|
|
Total |
|
34,321 |
|
35,562 |
|
36,483 |
|
(3.5)% |
|
(5.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
16,038 |
|
14,045 |
|
14,267 |
|
14.2% |
|
12.4% |
|
27.6% |
Dallas |
|
10,721 |
|
10,732 |
|
10,159 |
|
(0.1)% |
|
5.5% |
|
18.5% |
Houston |
|
1,433 |
|
1,641 |
|
1,529 |
|
(12.7)% |
|
(6.3)% |
|
2.5% |
Austin |
|
2,382 |
|
2,222 |
|
2,250 |
|
7.2% |
|
5.9% |
|
4.1% |
Washington, D.C. Metro |
|
10,059 |
|
9,611 |
|
10,107 |
|
4.7% |
|
(0.5)% |
|
17.3% |
Tampa |
|
7,631 |
|
7,040 |
|
7,095 |
|
8.4% |
|
7.6% |
|
13.1% |
Orlando |
|
4,119 |
|
3,582 |
|
3,912 |
|
15.0% |
|
5.3% |
|
7.1% |
Charlotte |
|
4,760 |
|
4,815 |
|
4,724 |
|
(1.1)% |
|
0.8% |
|
8.2% |
Raleigh |
|
921 |
|
730 |
|
906 |
|
26.2% |
|
1.7% |
|
1.6% |
Total same store NOI |
|
$ 58,064 |
|
$ 54,418 |
|
$ 54,949 |
|
6.7% |
|
5.7% |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 1,458 |
|
$ 1,405 |
|
$ 1,446 |
|
3.8% |
|
0.8% |
|
|
Dallas |
|
1,321 |
|
1,289 |
|
1,312 |
|
2.5% |
|
0.7% |
|
|
Houston |
|
1,438 |
|
1,496 |
|
1,475 |
|
(3.9)% |
|
(2.5)% |
|
|
Austin |
|
1,600 |
|
1,583 |
|
1,590 |
|
1.1% |
|
0.6% |
|
|
Washington, D.C. Metro |
|
1,901 |
|
1,890 |
|
1,895 |
|
0.6% |
|
0.3% |
|
|
Tampa |
|
1,567 |
|
1,500 |
|
1,547 |
|
4.5% |
|
1.3% |
|
|
Orlando |
|
1,563 |
|
1,508 |
|
1,555 |
|
3.6% |
|
0.5% |
|
|
Charlotte |
|
1,336 |
|
1,310 |
|
1,322 |
|
2.0% |
|
1.0% |
|
|
Raleigh |
|
1,101 |
|
1,077 |
|
1,093 |
|
2.2% |
|
0.7% |
|
|
Total average rental rate per unit |
|
1,492 |
|
1,456 |
|
1,483 |
|
2.5% |
|
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-10-
Table 3 (con’t)
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
|
|
Nine months ended |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
September 30, |
|
|
September 30, |
|
|
% |
|
|
|
|
|
|
|
|||
|
|
2016 |
|
|
2015 |
|
|
Change |
|
|
|
|
|
|||||
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
69,412 |
|
|
$ |
66,746 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
Dallas |
|
|
57,775 |
|
|
|
55,883 |
|
|
|
3.4 |
% |
|
|
|
|
|
|
Houston |
|
|
8,275 |
|
|
|
8,684 |
|
|
|
(4.7 |
)% |
|
|
|
|
|
|
Austin |
|
|
13,626 |
|
|
|
13,137 |
|
|
|
3.7 |
% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
|
46,976 |
|
|
|
46,175 |
|
|
|
1.7 |
% |
|
|
|
|
|
|
Tampa |
|
|
33,881 |
|
|
|
32,387 |
|
|
|
4.6 |
% |
|
|
|
|
|
|
Orlando |
|
|
18,831 |
|
|
|
17,913 |
|
|
|
5.1 |
% |
|
|
|
|
|
|
Charlotte |
|
|
21,290 |
|
|
|
20,729 |
|
|
|
2.7 |
% |
|
|
|
|
|
|
Raleigh |
|
|
3,993 |
|
|
|
3,677 |
|
|
|
8.6 |
% |
|
|
|
|
|
|
Total rental and other revenues |
|
|
274,059 |
|
|
|
265,331 |
|
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses (exclusive of depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
25,300 |
|
|
$ |
25,852 |
|
|
|
(2.1 |
)% |
|
|
|
|
|
|
Dallas |
|
|
26,386 |
|
|
|
24,737 |
|
|
|
6.7 |
% |
|
|
|
|
|
|
Houston |
|
|
3,772 |
|
|
|
3,733 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
Austin |
|
|
6,656 |
|
|
|
6,429 |
|
|
|
3.5 |
% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
|
16,875 |
|
|
|
17,110 |
|
|
|
(1.4 |
)% |
|
|
|
|
|
|
Tampa |
|
|
11,795 |
|
|
|
11,345 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
Orlando |
|
|
6,952 |
|
|
|
6,874 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
Charlotte |
|
|
7,121 |
|
|
|
6,732 |
|
|
|
5.8 |
% |
|
|
|
|
|
|
Raleigh |
|
|
1,439 |
|
|
|
1,500 |
|
|
|
(4.1 |
)% |
|
|
|
|
|
|
Total |
|
|
106,296 |
|
|
|
104,312 |
|
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
44,112 |
|
|
|
40,894 |
|
|
|
7.9 |
% |
|
|
|
|
|
|
Dallas |
|
|
31,389 |
|
|
|
31,146 |
|
|
|
0.8 |
% |
|
|
|
|
|
|
Houston |
|
|
4,503 |
|
|
|
4,951 |
|
|
|
(9.0 |
)% |
|
|
|
|
|
|
Austin |
|
|
6,970 |
|
|
|
6,708 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
|
30,101 |
|
|
|
29,065 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
Tampa |
|
|
22,086 |
|
|
|
21,042 |
|
|
|
5.0 |
% |
|
|
|
|
|
|
Orlando |
|
|
11,879 |
|
|
|
11,039 |
|
|
|
7.6 |
% |
|
|
|
|
|
|
Charlotte |
|
|
14,169 |
|
|
|
13,997 |
|
|
|
1.2 |
% |
|
|
|
|
|
|
Raleigh |
|
|
2,554 |
|
|
|
2,177 |
|
|
|
17.3 |
% |
|
|
|
|
|
|
Total same store NOI |
|
$ |
167,763 |
|
|
$ |
161,019 |
|
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,445 |
|
|
$ |
1,390 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
Dallas |
|
|
1,312 |
|
|
|
1,275 |
|
|
|
2.9 |
% |
|
|
|
|
|
|
Houston |
|
|
1,467 |
|
|
|
1,505 |
|
|
|
(2.5 |
)% |
|
|
|
|
|
|
Austin |
|
|
1,591 |
|
|
|
1,574 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
|
1,894 |
|
|
|
1,899 |
|
|
|
(0.3 |
)% |
|
|
|
|
|
|
Tampa |
|
|
1,549 |
|
|
|
1,478 |
|
|
|
4.8 |
% |
|
|
|
|
|
|
Orlando |
|
|
1,550 |
|
|
|
1,490 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
Charlotte |
|
|
1,324 |
|
|
|
1,298 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
Raleigh |
|
|
1,092 |
|
|
|
1,070 |
|
|
|
2.1 |
% |
|
|
|
|
|
|
Total average rental rate per unit |
|
|
1,482 |
|
|
|
1,446 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-11-
Computation of Debt Ratios
(In thousands)
|
|
As of September 30, |
|
|||||
|
|
2016 |
|
|
2015 |
|
||
Total real estate assets per balance sheet |
|
$ |
2,282,016 |
|
|
$ |
2,181,641 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,433 |
|
|
|
57,461 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
16,777 |
|
|
|
15,388 |
|
Accumulated depreciation per balance sheet |
|
|
1,091,705 |
|
|
|
1,001,342 |
|
Total undepreciated real estate assets (A) |
|
$ |
3,447,931 |
|
|
$ |
3,255,832 |
|
|
|
|
|
|
|
|
|
|
Outstanding principal value of total consolidated debt |
|
$ |
951,124 |
|
|
$ |
890,292 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of outstanding principal value of debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Total outstanding principal value of debt (adjusted for joint venture partners' share of debt) (B) |
|
$ |
1,000,655 |
|
|
$ |
939,823 |
|
|
|
|
|
|
|
|
|
|
Total outstanding principal value of debt as a % of undepreciated real estate assets |
|
|
|
|
|
|
|
|
(adjusted for joint venture partners' share of debt) (B÷A) |
|
|
29.0 |
% |
|
|
28.9 |
% |
|
|
|
|
|
|
|
|
|
Outstanding principal value of total consolidated debt |
|
$ |
951,124 |
|
|
$ |
890,292 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of outstanding principal value of debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Preferred shares at liquidation value |
|
|
43,392 |
|
|
|
43,392 |
|
Total outstanding principal value of debt and liquidation value of preferred equity (adjusted |
|
|
|
|
|
|
|
|
for joint venture partners' share of debt) (C) |
|
$ |
1,044,047 |
|
|
$ |
983,215 |
|
|
|
|
|
|
|
|
|
|
Total outstanding principal value of debt and liquidation value preferred equity as a % of |
|
|
|
|
|
|
|
|
undepreciated real estate assets (adjusted for joint venture partners' share of real estate assets |
|
|
|
|
|
|
|
|
and debt) (C÷A) |
|
|
30.3 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
|
|
|
-12-
|
Exhibit 99.2 |
3rd Quarter 2016 |
|
Third Quarter 2016
Supplemental Financial Data
Table of Contents
|
Page |
Consolidated Statements of Operations |
3 |
Funds from Operations and Adjusted Funds From Operations |
4 |
Consolidated Balance Sheets |
5 |
Fully Stabilized (“Same Store”) Results |
7 |
Operating Community Data |
10 |
Debt Summary |
12 |
Summary of Apartment Communities Under Development, Land Held |
14 |
Capitalized Costs Summary |
15 |
Investments in Unconsolidated Real Estate Entities |
16 |
Net Asset Value Supplemental Information |
17 |
Margin Analysis and Company Undepreciated Book Value per Share |
19 |
Non-GAAP Financial Measures and Other Defined Terms and Tables |
20 |
The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute "forward-looking statements" within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K for the year ended December 31, 2015 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount; risk factors related to the Company’s proposed merger, including the risk factors discussed in the Joint Proxy Statement/Prospectus dated September 30, 2016; of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s prior condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; uncertainties associated with the timing and amount of asset sales, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnerships in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; or any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company’s Joint Proxy Statement/Prospectus dated September 30, 2016 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” and those discussed in the Joint Proxy Statement/Prospectus are specifically incorporated by reference into this document.
Supplemental Financial Data |
Page 2 |
3rd Quarter 2016 |
|
Consolidated Statements Of Operations
(In thousands, except per share data) - (Unaudited)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
95,330 |
|
|
$ |
91,802 |
|
|
$ |
281,298 |
|
|
$ |
268,831 |
|
Other property revenues |
|
|
5,986 |
|
|
|
5,628 |
|
|
|
17,651 |
|
|
|
16,874 |
|
Other |
|
|
273 |
|
|
|
337 |
|
|
|
828 |
|
|
|
924 |
|
Total revenues |
|
|
101,589 |
|
|
|
97,767 |
|
|
|
299,777 |
|
|
|
286,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance (exclusive of items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shown separately below) |
|
|
42,110 |
|
|
|
42,707 |
|
|
|
128,761 |
|
|
|
124,342 |
|
Depreciation |
|
|
23,949 |
|
|
|
22,073 |
|
|
|
69,452 |
|
|
|
64,748 |
|
General and administrative |
|
|
4,474 |
|
|
|
4,622 |
|
|
|
13,121 |
|
|
|
13,989 |
|
Investment and development (1) |
|
|
44 |
|
|
|
73 |
|
|
|
102 |
|
|
|
583 |
|
Other investment costs (1) |
|
|
87 |
|
|
|
165 |
|
|
|
240 |
|
|
|
453 |
|
Merger expenses (2) |
|
|
6,468 |
|
|
|
- |
|
|
|
6,468 |
|
|
|
- |
|
Other expenses (3) |
|
|
- |
|
|
|
- |
|
|
|
400 |
|
|
|
- |
|
Total expenses |
|
|
77,132 |
|
|
|
69,640 |
|
|
|
218,544 |
|
|
|
204,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
24,457 |
|
|
|
28,127 |
|
|
|
81,233 |
|
|
|
82,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
|
|
34 |
|
|
|
1 |
|
|
|
158 |
|
Interest expense |
|
|
(7,427 |
) |
|
|
(8,217 |
) |
|
|
(22,727 |
) |
|
|
(24,631 |
) |
Equity in income of unconsolidated real estate entities, net |
|
|
921 |
|
|
|
603 |
|
|
|
2,153 |
|
|
|
1,568 |
|
Gains on sales of real estate assets, net (4) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,475 |
|
Other income (expense), net |
|
|
(316 |
) |
|
|
(357 |
) |
|
|
(821 |
) |
|
|
(1,061 |
) |
Net loss on extinguishment of indebtedness (5) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(197 |
) |
Net income |
|
|
17,635 |
|
|
|
20,190 |
|
|
|
59,839 |
|
|
|
59,826 |
|
Noncontrolling interests - Operating Partnership |
|
|
(37 |
) |
|
|
(43 |
) |
|
|
(126 |
) |
|
|
(126 |
) |
Net income available to the Company |
|
|
17,598 |
|
|
|
20,147 |
|
|
|
59,713 |
|
|
|
59,700 |
|
Dividends to preferred shareholders |
|
|
(922 |
) |
|
|
(922 |
) |
|
|
(2,766 |
) |
|
|
(2,766 |
) |
Net income available to common shareholders |
|
$ |
16,676 |
|
|
$ |
19,225 |
|
|
$ |
56,947 |
|
|
$ |
56,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data - Basic (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
1.06 |
|
|
$ |
1.04 |
|
Weighted average common shares outstanding - basic |
|
|
53,384 |
|
|
|
54,326 |
|
|
|
53,442 |
|
|
|
54,409 |
|
Per common share data - Diluted (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
1.06 |
|
|
$ |
1.04 |
|
Weighted average common shares outstanding - diluted |
|
|
53,403 |
|
|
|
54,342 |
|
|
|
53,459 |
|
|
|
54,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financial Statements on page 6
Supplemental Financial Data |
Page 3 |
3rd Quarter 2016 |
|
Funds From Operations And Adjusted Funds From Operations
(In thousands, except per share data) - (Unaudited)
Funds From Operations
A reconciliation of net income available to common shareholders to funds from operations available to common shareholders and unitholders is provided below.
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
Funds From Operations (9) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
Net income available to common shareholders |
|
$ |
16,676 |
|
|
$ |
19,225 |
|
|
$ |
56,947 |
|
|
$ |
56,934 |
|
Noncontrolling interests - operating partnership unitholders |
|
|
37 |
|
|
|
43 |
|
|
|
126 |
|
|
|
126 |
|
Depreciation on consolidated real estate assets, net |
|
|
23,580 |
|
|
|
21,712 |
|
|
|
68,367 |
|
|
|
63,697 |
|
Depreciation on real estate assets held in unconsolidated entities |
|
|
151 |
|
|
|
300 |
|
|
|
755 |
|
|
|
899 |
|
Gains on sales of depreciable real estate assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,475 |
) |
Funds from operations available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and unitholders (9) (A) |
|
$ |
40,444 |
|
|
$ |
41,280 |
|
|
$ |
126,195 |
|
|
$ |
120,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share/Unit Data - Diluted (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per share or unit, as defined (A÷B) |
|
$ |
0.75 |
|
|
$ |
0.76 |
|
|
$ |
2.35 |
|
|
$ |
2.20 |
|
Dividends declared |
|
$ |
0.47 |
|
|
$ |
0.44 |
|
|
$ |
1.41 |
|
|
$ |
1.28 |
|
Weighted average shares outstanding (7) |
|
|
53,524 |
|
|
|
54,478 |
|
|
|
53,582 |
|
|
|
54,556 |
|
Weighted average shares and units outstanding (7) (B) |
|
|
53,640 |
|
|
|
54,599 |
|
|
|
53,701 |
|
|
|
54,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Funds From Operations
The Company uses adjusted funds from operations as a supplemental non-GAAP measure. The Company defines adjusted funds from operations as funds from operations less operating capital expenditures and after adjusting for the impact of debt extinguishment losses, if any. A reconciliation of adjusted funds from operations to the line on the Company’s consolidated statement of cash flows entitled, “net cash provided by operating activities,” the comparable GAAP measure, is included in Table 1 on page 22.
|
|
Three months ended |
|
Nine months ended |
||||
|
|
September 30, |
|
September 30, |
||||
Adjusted Funds From Operations (8) (9) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Funds from operations available to common |
|
|
|
|
|
|
|
|
shareholders and unitholders |
|
$ 40,444 |
|
$ 41,280 |
|
$ 126,195 |
|
$ 120,181 |
Annually recurring capital expenditures |
|
(5,122) |
|
(5,406) |
|
(14,786) |
|
(11,545) |
Periodically recurring capital expenditures |
|
(1,354) |
|
(2,003) |
|
(4,470) |
|
(4,526) |
Net loss on early extinguishment of indebtedness |
|
- |
|
- |
|
- |
|
197 |
Adjusted funds from operations available to common |
|
|
|
|
|
|
|
|
shareholders and unitholders (8) (9) |
|
$ 33,968 |
|
$ 33,871 |
|
$ 106,939 |
|
$ 104,307 |
See Notes to Funds from Operations and Adjusted Funds from Operations on page 6
Supplemental Financial Data |
Page 4 |
3rd Quarter 2016 |
|
(In thousands, except per share data) - (Unaudited)
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2016 |
|
|
2015 |
|
||
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate assets |
|
|
|
|
|
|
|
|
Land |
|
$ |
325,842 |
|
|
$ |
322,566 |
|
Building and improvements |
|
|
2,436,953 |
|
|
|
2,406,425 |
|
Furniture, fixtures and equipment |
|
|
350,862 |
|
|
|
329,854 |
|
Construction in progress |
|
|
243,334 |
|
|
|
151,270 |
|
Land held for future investment |
|
|
16,730 |
|
|
|
16,730 |
|
|
|
|
3,373,721 |
|
|
|
3,226,845 |
|
Less: accumulated depreciation |
|
|
(1,091,705 |
) |
|
|
(1,023,652 |
) |
Total real estate assets |
|
|
2,282,016 |
|
|
|
2,203,193 |
|
Investments in and advances to unconsolidated real estate entities |
|
|
3,645 |
|
|
|
3,856 |
|
Cash and cash equivalents |
|
|
5,060 |
|
|
|
28,611 |
|
Restricted cash |
|
|
4,039 |
|
|
|
3,881 |
|
Other assets |
|
|
30,943 |
|
|
|
27,708 |
|
Total assets |
|
$ |
2,325,703 |
|
|
$ |
2,267,249 |
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable common units and equity |
|
|
|
|
|
|
|
|
Indebtedness |
|
$ |
947,376 |
|
|
$ |
884,954 |
|
Accounts payable, accrued expenses and other |
|
|
112,321 |
|
|
|
74,855 |
|
Investments in unconsolidated real estate entities |
|
|
15,509 |
|
|
|
15,873 |
|
Dividends and distributions payable |
|
|
25,202 |
|
|
|
23,819 |
|
Accrued interest payable |
|
|
7,962 |
|
|
|
4,051 |
|
Security deposits and prepaid rents |
|
|
14,629 |
|
|
|
13,537 |
|
Total liabilities |
|
|
1,122,999 |
|
|
|
1,017,089 |
|
|
|
|
|
|
|
|
|
|
Redeemable common units |
|
|
7,477 |
|
|
|
7,133 |
|
|
|
|
|
|
|
|
|
|
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 54,632 shares issued and 53,509 and 54,012 shares outstanding at September 30, 2016 and December 31, 2015, respectively |
|
|
546 |
|
|
|
546 |
|
Additional paid-in-capital |
|
|
1,120,204 |
|
|
|
1,117,627 |
|
Accumulated earnings |
|
|
148,149 |
|
|
|
167,791 |
|
Accumulated other comprehensive income (loss) |
|
|
(5,227 |
) |
|
|
(3,356 |
) |
|
|
|
1,263,681 |
|
|
|
1,282,617 |
|
Less common stock in treasury, at cost, 1,207 and 706 shares at September 30, 2016 and December 31, 2015, respectively |
|
|
(70,760 |
) |
|
|
(41,135 |
) |
Total Company shareholders' equity |
|
|
1,192,921 |
|
|
|
1,241,482 |
|
Noncontrolling interests - consolidated real estate entities |
|
|
2,306 |
|
|
|
1,545 |
|
Total equity |
|
|
1,195,227 |
|
|
|
1,243,027 |
|
Total liabilities, redeemable common units and equity |
|
$ |
2,325,703 |
|
|
$ |
2,267,249 |
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 5 |
3rd Quarter 2016 |
|
Notes to Consolidated Financial Statements
And Reconciliation of Funds From Operations and Adjusted Funds From Operations
(In thousands)
1) |
Investment and development expenses include investment group expenses, development personnel and associated costs not allocable to development projects. Other investment costs primarily include land carry costs, principally property taxes and assessments. |
2) |
In connection with the proposed merger transaction with MAA, the Company incurred legal, investment banking and other transaction costs (“Merger expenses”) totaling $6,468 for the three and nine months ended September 30, 2016. |
3) |
Other expenses for the nine months ended September 30, 2016 included $150 related to the upgrade of the Company’s human resources information system and $250 of casualty losses related to extreme weather conditions in one of the Company’s Texas markets. |
4) |
In 2015, the Company sold its remaining condominium retail asset and recognized a gain of $1,773. Additionally in 2015, gains on sales of real estate assets included state tax expense of $298 related to an asset sale. |
5) |
In January 2015, the Company refinanced its unsecured lines of credit and term loan facilities. In connection with the refinancing, the Company recognized an extinguishment loss of $197 related to the write-off of a portion of unamortized deferred loan costs. |
6) |
Post Properties, Inc., through its wholly-owned subsidiaries, is the sole general partner, a limited partner and owns a majority interest in Post Apartment Homes, L.P., the Operating Partnership, through which the Company conducts its operations. As of September 30, 2016, there were 53,622 Operating Partnership units outstanding, of which 53,509, or 99.8%, were owned by the Company. |
7) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 19 and 16 for the three months and 17 and 16 for the nine months ended September 30, 2016 and 2015, respectively. Additionally, diluted weighted average shares and units include the impact of non-vested shares and units totaling 121 and 136 for the three months and 123 and 131 for the nine months ended September 30, 2016 and 2015, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.” |
8) |
Since the Company does not add back the depreciation of non-real estate assets in its calculation of FFO, non-real estate related capital expenditures of $304 and $400 for the three months and $1,158 and $942 for the nine months ended September 30, 2016 and 2015, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders. |
Previously reported adjusted funds from operations included an adjustment to add back non-cash, straight-line ground rent. Non-cash, straight-line ground rent was $112 and $339 for the three and nine months ended September 30, 2015, respectively.
9) |
FFO and AFFO for the three and nine months ended September 30, 2016 included merger-related expenses of $6,468, or $0.12 per diluted share. |
Supplemental Financial Data |
Page 6 |
3rd Quarter 2016 |
|
Fully Stabilized (“Same Store”) Results
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results
The Company defines same store communities as those communities which have reached stabilization prior to the beginning of the previous calendar year. Same store net operating income is a supplemental non-GAAP financial measure. See Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 52 communities containing 19,819 apartment units which were fully stabilized as of January 1, 2015, are summarized in the table below.
|
|
Three months ended |
|
|
|
Nine months ended |
|
|
||||
|
|
September 30, |
|
% |
|
September 30, |
|
% |
||||
|
|
2016 |
|
2015 |
|
Change |
|
2016 |
|
2015 |
|
Change |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other revenue |
|
$ 89,429 |
|
$ 87,233 |
|
2.5% |
|
$ 265,515 |
|
$ 257,440 |
|
3.1% |
Utility reimbursements |
|
2,956 |
|
2,747 |
|
7.6% |
|
8,544 |
|
7,891 |
|
8.3% |
Total rental and other revenues |
|
92,385 |
|
89,980 |
|
2.7% |
|
274,059 |
|
265,331 |
|
3.3% |
Property operating and maintenance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
7,041 |
|
7,187 |
|
(2.0)% |
|
21,648 |
|
21,566 |
|
0.4% |
Utility expense |
|
4,895 |
|
4,717 |
|
3.8% |
|
13,160 |
|
13,034 |
|
1.0% |
Real estate taxes and fees |
|
13,118 |
|
14,575 |
|
(10.0)% |
|
43,097 |
|
43,162 |
|
(0.2)% |
Insurance expenses |
|
1,462 |
|
1,371 |
|
6.6% |
|
4,388 |
|
4,075 |
|
7.7% |
Building and grounds repairs and maintenance (1) |
|
5,096 |
|
4,943 |
|
3.1% |
|
15,871 |
|
14,769 |
|
7.5% |
Ground lease expense |
|
230 |
|
230 |
|
- |
|
690 |
|
690 |
|
- |
Other expenses |
|
2,479 |
|
2,539 |
|
(2.4)% |
|
7,442 |
|
7,016 |
|
6.1% |
Total property operating and maintenance expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(excluding depreciation and amortization) |
|
34,321 |
|
35,562 |
|
(3.5)% |
|
106,296 |
|
104,312 |
|
1.9% |
Same store net operating income |
|
$ 58,064 |
|
$ 54,418 |
|
6.7% |
|
$ 167,763 |
|
$ 161,019 |
|
4.2% |
Same store net operating income margin |
|
62.9% |
|
60.5% |
|
2.4% |
|
61.2% |
|
60.7% |
|
0.5% |
Capital expenditures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Annually recurring |
|
$ 4,927 |
|
$ 5,218 |
|
(5.6)% |
|
$ 14,380 |
|
$ 11,185 |
|
28.6% |
Periodically recurring |
|
789 |
|
1,587 |
|
(50.3)% |
|
2,929 |
|
3,676 |
|
(20.3)% |
Total capital expenditures (A) |
|
$ 5,716 |
|
$ 6,805 |
|
(16.0)% |
|
$ 17,309 |
|
$ 14,861 |
|
16.5% |
Total capital expenditures per unit |
|
|
|
|
|
|
|
|
|
|
|
|
(A ÷ 19,819 units) |
|
$ 288 |
|
$ 343 |
|
(16.0)% |
|
$ 873 |
|
$ 750 |
|
16.4% |
Average monthly rental rate per unit (3) |
|
$ 1,492 |
|
$ 1,456 |
|
2.5% |
|
$ 1,482 |
|
$ 1,446 |
|
2.5% |
Gross turnover (4) |
|
54.5% |
|
55.0% |
|
(0.5)% |
|
52.2% |
|
51.8% |
|
0.4% |
Net turnover (5) |
|
50.2% |
|
50.2% |
|
- |
|
47.9% |
|
47.2% |
|
0.7% |
Percentage rent increase - new leases (6) |
|
1.1% |
|
1.2% |
|
(0.1)% |
|
1.2% |
|
1.4% |
|
(0.2)% |
Percentage rent increase - renewed leases (6) |
|
4.5% |
|
4.7% |
|
(0.2)% |
|
4.7% |
|
4.3% |
|
0.4% |
1) |
Building and ground repairs and maintenance includes $103 and $432 for the three months ended and $754 and $1,165 for the nine months ended September 30, 2016 and 2015, respectively, related to painting of communities. |
2) |
See Table 7 on page 30 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital expenditures and total periodically recurring capital expenditures as presented in the consolidated cash flow statements prepared under GAAP. |
3) |
Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 3 on page 24 for further information. |
4) |
Gross turnover represents the percentage of leases expiring during the period that are not renewed by the existing resident(s). |
5) |
Net turnover is gross turnover decreased by the percentage of expiring leases where the resident(s) transfer to a new apartment unit in the same community or in another Post® community. |
6) |
Percentage change is calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit. Accordingly, these percentage changes may differ from the change in the average monthly rental rate per unit due to the timing of move-ins and/or the term of the respective leases. |
Supplemental Financial Data |
Page 7 |
3rd Quarter 2016 |
|
Fully Stabilized (“Same Store”) Results (con’t)
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results by Market - Comparison of Third Quarter 2016 to Third Quarter 2015 (1)
(Increase (decrease) between periods)
|
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
September 30, 2016 |
|
September 30, 2016 |
||||||||||||
Market |
|
Revenues |
|
Expenses |
|
NOI |
|
Average Economic Occupancy |
|
Revenues |
|
Expenses |
|
NOI |
|
Average Economic Occupancy |
Atlanta |
|
4.3% |
|
(12.0)% |
|
14.2% |
|
0.1% |
|
4.0% |
|
(2.1)% |
|
7.9% |
|
(0.3)% |
Dallas |
|
2.9% |
|
6.8% |
|
(0.1)% |
|
0.2% |
|
3.4% |
|
6.7% |
|
0.8% |
|
0.5% |
Houston |
|
(9.5)% |
|
(5.5)% |
|
(12.7)% |
|
(5.7)% |
|
(4.7)% |
|
1.0% |
|
(9.0)% |
|
(2.1)% |
Austin |
|
2.8% |
|
(1.6)% |
|
7.2% |
|
1.6% |
|
3.7% |
|
3.5% |
|
3.9% |
|
2.1% |
Wash. DC Metro |
|
0.5% |
|
(6.0)% |
|
4.7% |
|
(0.4)% |
|
1.7% |
|
(1.4)% |
|
3.6% |
|
1.4% |
Tampa |
|
4.5% |
|
(2.5)% |
|
8.4% |
|
0.5% |
|
4.6% |
|
4.0% |
|
5.0% |
|
0.0% |
Orlando |
|
3.8% |
|
(12.1)% |
|
15.0% |
|
(0.5)% |
|
5.1% |
|
1.1% |
|
7.6% |
|
0.1% |
Charlotte |
|
1.9% |
|
8.4% |
|
(1.1)% |
|
(0.2)% |
|
2.7% |
|
5.8% |
|
1.2% |
|
0.6% |
Raleigh |
|
7.2% |
|
(18.8)% |
|
26.2% |
|
2.9% |
|
8.6% |
|
(4.1)% |
|
17.3% |
|
2.9% |
Total |
|
2.7% |
|
(3.5)% |
|
6.7% |
|
(0.1)% |
|
3.3% |
|
1.9% |
|
4.2% |
|
0.4% |
1) |
See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income. |
Same Store Occupancy by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. Rental |
|
|
|
|
% of NOI |
|
Average Economic |
|
Average Economic |
|
|
|
Rate Per Unit |
||||
|
|
|
|
Three months |
|
Occupancy (1) |
|
Occupancy (1) |
|
Physical |
|
Three months |
||||
|
|
|
|
ended |
|
Three months ended |
|
Nine months ended |
|
Occupancy at |
|
ended |
||||
|
|
Apartment |
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||
Market |
|
Units |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 (2) |
|
2016 (3) |
Atlanta |
|
5,065 |
|
27.6% |
|
97.6% |
|
97.5% |
|
96.6% |
|
96.9% |
|
96.1% |
|
$ 1,458 |
Dallas |
|
4,726 |
|
18.5% |
|
97.4% |
|
97.2% |
|
96.8% |
|
96.3% |
|
96.0% |
|
1,321 |
Houston |
|
653 |
|
2.5% |
|
89.6% |
|
95.3% |
|
90.9% |
|
93.0% |
|
88.8% |
|
1,438 |
Austin |
|
935 |
|
4.1% |
|
96.2% |
|
94.6% |
|
95.8% |
|
93.7% |
|
95.4% |
|
1,600 |
Wash. DC Metro |
|
2,645 |
|
17.3% |
|
96.7% |
|
97.1% |
|
96.4% |
|
95.0% |
|
96.5% |
|
1,901 |
Tampa |
|
2,342 |
|
13.1% |
|
97.5% |
|
97.0% |
|
97.2% |
|
97.2% |
|
95.7% |
|
1,567 |
Orlando |
|
1,308 |
|
7.1% |
|
97.1% |
|
97.6% |
|
96.8% |
|
96.7% |
|
95.2% |
|
1,563 |
Charlotte |
|
1,748 |
|
8.2% |
|
96.2% |
|
96.4% |
|
96.0% |
|
95.4% |
|
94.6% |
|
1,336 |
Raleigh |
|
397 |
|
1.6% |
|
98.4% |
|
95.5% |
|
96.6% |
|
93.7% |
|
96.7% |
|
1,101 |
Total |
|
19,819 |
|
100.0% |
|
96.9% |
|
97.0% |
|
96.4% |
|
96.0% |
|
95.6% |
|
$ 1,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Average economic occupancy is defined as gross potential rent plus other rental fees less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts, would have been 96.5% and 96.5% for the three months and 96.0% and 95.4% for the nine months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016 and 2015, net concessions were $226 and $280, respectively, and employee discounts were $185 and $161, respectively. For the nine months ended September 30, 2016 and 2015, net concessions were $651 and $1,037, respectively, and employee discounts were $554 and $482, respectively. |
2) |
Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage. |
3) |
Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 3 on page 24 for further information. |
Supplemental Financial Data |
Page 8 |
3rd Quarter 2016 |
|
Fully Stabilized (“Same Store”) Results (con’t)
(In thousands, except per unit data) - (Unaudited)
Sequential Same Store Operating Results – Comparison of Third Quarter 2016 to Second Quarter 2016
|
|
Three months ended |
|
|
||
|
|
September 30, |
|
June 30, |
|
% |
|
|
2016 |
|
2016 |
|
Change |
Revenues: |
|
|
|
|
|
|
Rental and other revenue |
|
$ 89,429 |
|
$ 88,653 |
|
0.9% |
Utility reimbursements |
|
2,956 |
|
2,779 |
|
6.4% |
Total rental and other revenues |
|
92,385 |
|
91,432 |
|
1.0% |
Property operating and maintenance expenses: |
|
|
|
|
|
|
Personnel expenses |
|
7,041 |
|
7,150 |
|
(1.5)% |
Utility expense |
|
4,895 |
|
4,161 |
|
17.6% |
Real estate taxes and fees |
|
13,118 |
|
14,959 |
|
(12.3)% |
Insurance expenses |
|
1,462 |
|
1,464 |
|
(0.1)% |
Building and grounds repairs and maintenance (1) |
|
5,096 |
|
5,936 |
|
(14.2)% |
Ground lease expense |
|
230 |
|
230 |
|
0.0% |
Other expenses |
|
2,479 |
|
2,583 |
|
(4.0)% |
Total property operating and maintenance expenses |
|
|
|
|
|
|
(excluding depreciation and amortization) |
|
34,321 |
|
36,483 |
|
(5.9)% |
Same store net operating income (2) |
|
$ 58,064 |
|
$ 54,949 |
|
5.7% |
Average economic occupancy |
|
96.9% |
|
96.2% |
|
0.7% |
Average monthly rental rate per unit |
|
$ 1,492 |
|
$ 1,483 |
|
0.6% |
1) |
Building and grounds repairs and maintenance includes $103 and $326 for the three months ended September 30, 2016 and June 30, 2016, respectively, related to painting of communities. |
2) |
See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income. |
Sequential Same Store Operating Results by Market - Comparison of Third Quarter of 2016 to Second Quarter of 2016 (1)
(Increase (decrease) between periods)
Market |
|
Revenues |
|
Expenses |
|
NOI |
|
Average Economic Occupancy |
Atlanta |
|
1.8% |
|
(15.4)% |
|
12.4% |
|
1.5% |
Dallas |
|
2.2% |
|
(1.6)% |
|
5.5% |
|
1.3% |
Houston |
|
(4.8)% |
|
(3.1)% |
|
(6.3)% |
|
(2.2)% |
Austin |
|
0.9% |
|
(4.0)% |
|
5.9% |
|
0.9% |
Washington, D.C. Metro |
|
0.2% |
|
1.3% |
|
(0.5)% |
|
(0.2)% |
Tampa |
|
1.0% |
|
(10.2)% |
|
7.6% |
|
0.8% |
Orlando |
|
0.9% |
|
(6.5)% |
|
5.3% |
|
0.9% |
Charlotte |
|
0.6% |
|
0.3% |
|
0.8% |
|
(0.2)% |
Raleigh |
|
(0.7)% |
|
(5.3)% |
|
1.7% |
|
1.7% |
Total |
|
1.0% |
|
(5.9)% |
|
5.7% |
|
0.7% |
1) |
See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income. |
Supplemental Financial Data |
Page 9 |
3rd Quarter 2016 |
|
Operating Community Data
(Unaudited)
|
|
|
|
|
|
|
|
Avg. |
|
|
Q3 2016 |
|
|
Q3 2016 |
||||||
Market / |
|
Yr. Completed / |
|
|
|
|
|
Unit |
|
|
Avg. Monthly Rent |
|
|
Average |
||||||
Submarket / |
|
Yr. of Substantial |
|
No. of |
|
|
Size |
|
|
Per |
|
|
Per |
|
|
Economic |
||||
Community |
|
Renovations |
|
Units |
|
|
(Sq. Ft.) |
|
|
Unit |
|
|
Sq. Ft. |
|
|
Occ. |
||||
Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buckhead / Brookhaven |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Alexander ReserveTM |
|
2008 |
|
307 |
|
|
|
1,015 |
|
|
$ |
1,803 |
|
|
$ |
1.78 |
|
|
98.0% |
|
The High Rise at Post AlexanderTM (3) |
|
2015 |
|
340 |
|
|
|
830 |
|
|
|
1,951 |
|
|
|
2.35 |
|
|
84.3% |
|
Post Brookhaven® |
|
1990-1992 |
|
735 |
|
|
|
933 |
|
|
|
1,332 |
|
|
|
1.43 |
|
|
98.2% |
|
Post Chastain® |
|
1990 / 2008 |
|
558 |
|
|
|
866 |
|
|
|
1,400 |
|
|
|
1.62 |
|
|
98.0% |
|
Post Collier Hills® (1)(2) |
|
1997 |
|
396 |
|
|
|
948 |
|
|
|
1,329 |
|
|
|
1.40 |
|
|
95.5% |
|
Post Gardens® |
|
1998 |
|
397 |
|
|
|
1,039 |
|
|
|
1,421 |
|
|
|
1.37 |
|
|
97.1% |
|
Post Glen® (2) |
|
1997 |
|
314 |
|
|
|
1,076 |
|
|
|
1,494 |
|
|
|
1.39 |
|
|
98.4% |
|
Post Lindbergh® (1)(2) |
|
1998 |
|
396 |
|
|
|
909 |
|
|
|
1,375 |
|
|
|
1.51 |
|
|
97.1% |
|
Post Peachtree Hills® |
|
1992-1994 / 2009 |
|
300 |
|
|
|
978 |
|
|
|
1,506 |
|
|
|
1.54 |
|
|
97.7% |
|
Post StratfordTM |
|
2000 |
|
250 |
|
|
|
1,000 |
|
|
|
1,458 |
|
|
|
1.46 |
|
|
94.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dunwoody |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crossing® (2) |
|
1995 |
|
354 |
|
|
|
1,036 |
|
|
|
1,370 |
|
|
|
1.32 |
|
|
97.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emory Area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post BriarcliffTM (2) |
|
1999 |
|
688 |
|
|
|
1,006 |
|
|
|
1,435 |
|
|
|
1.43 |
|
|
97.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midtown |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post ParksideTM |
|
2000 |
|
188 |
|
|
|
886 |
|
|
|
1,669 |
|
|
|
1.88 |
|
|
96.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crest® (1)(2) |
|
1996 |
|
410 |
|
|
|
1,033 |
|
|
|
1,263 |
|
|
|
1.22 |
|
|
97.6% |
|
Post Riverside® |
|
1998 |
|
522 |
|
|
|
1,059 |
|
|
|
1,714 |
|
|
|
1.62 |
|
|
97.7% |
|
Post SpringTM |
|
2000 |
|
452 |
|
|
|
977 |
|
|
|
1,199 |
|
|
|
1.23 |
|
|
97.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Addison CircleTM |
|
1998-2000 |
|
|
1,334 |
|
|
|
846 |
|
|
|
1,212 |
|
|
|
1.43 |
|
|
98.0% |
Post EastsideTM |
|
2008 |
|
435 |
|
|
|
912 |
|
|
|
1,298 |
|
|
|
1.42 |
|
|
98.3% |
|
Post Legacy |
|
2000 |
|
384 |
|
|
|
810 |
|
|
|
1,207 |
|
|
|
1.49 |
|
|
96.6% |
|
Post Sierra at Frisco BridgesTM |
|
2009 |
|
268 |
|
|
|
896 |
|
|
|
1,225 |
|
|
|
1.37 |
|
|
96.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uptown Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post AbbeyTM |
|
1996 |
|
34 |
|
|
|
1,223 |
|
|
|
2,095 |
|
|
|
1.71 |
|
|
93.8% |
|
Post Cole’s CornerTM |
|
1998 |
|
186 |
|
|
|
800 |
|
|
|
1,260 |
|
|
|
1.58 |
|
|
97.7% |
|
Post GalleryTM |
|
1999 |
|
34 |
|
|
|
2,307 |
|
|
|
3,091 |
|
|
|
1.34 |
|
|
97.1% |
|
Post HeightsTM |
|
1998 -1999 / 2009 |
|
368 |
|
|
|
845 |
|
|
|
1,406 |
|
|
|
1.66 |
|
|
97.7% |
|
Post Katy TrailTM |
|
2010 |
|
227 |
|
|
|
898 |
|
|
|
1,699 |
|
|
|
1.89 |
|
|
96.4% |
|
Post MeridianTM |
|
1991 |
|
133 |
|
|
|
780 |
|
|
|
1,565 |
|
|
|
2.01 |
|
|
96.9% |
|
Post SquareTM |
|
1996 |
|
217 |
|
|
|
856 |
|
|
|
1,435 |
|
|
|
1.68 |
|
|
96.6% |
|
Post Uptown VillageTM |
|
1995-2000 |
|
496 |
|
|
|
736 |
|
|
|
1,193 |
|
|
|
1.62 |
|
|
98.0% |
|
Post VineyardTM |
|
1996 |
|
116 |
|
|
|
733 |
|
|
|
1,228 |
|
|
|
1.67 |
|
|
97.5% |
|
Post VintageTM |
|
1993 |
|
160 |
|
|
|
750 |
|
|
|
1,292 |
|
|
|
1.72 |
|
|
97.9% |
|
Post WorthingtonTM |
|
1993 / 2008 |
|
334 |
|
|
|
820 |
|
|
|
1,487 |
|
|
|
1.81 |
|
|
96.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post 510TM |
|
2014 |
|
242 |
|
|
|
857 |
|
|
|
1,515 |
|
|
|
1.77 |
|
|
97.4% |
|
Post Midtown Square® |
|
1999-2000, 2013 |
|
653 |
|
|
|
783 |
|
|
|
1,438 |
|
|
|
1.84 |
|
|
89.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 10 |
3rd Quarter 2016 |
|
Operating Community Data (con’t)
(Unaudited)
|
|
|
|
|
|
|
|
Avg. |
|
|
Q3 2016 |
|
|
Q3 2016 |
||||||
Market / |
|
Yr. Completed / |
|
|
|
|
|
Unit |
|
|
Avg. Monthly Rent |
|
|
Average |
||||||
Submarket / |
|
Yr. of Substantial |
|
No. of |
|
|
Size |
|
|
Per |
|
|
Per |
|
|
Economic |
||||
Community |
|
Renovations |
|
Units |
|
|
(Sq. Ft.) |
|
|
Unit |
|
|
Sq. Ft. |
|
|
Occ. |
||||
Austin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Barton CreekTM |
|
1998 |
|
|
160 |
|
|
|
1,162 |
|
|
$ |
1,849 |
|
|
$ |
1.59 |
|
|
96.1% |
Post Park MesaTM |
|
1992 |
|
|
148 |
|
|
|
1,091 |
|
|
|
1,580 |
|
|
|
1.45 |
|
|
95.3% |
Post South LamarTM |
|
2012 |
|
|
298 |
|
|
|
853 |
|
|
|
1,574 |
|
|
|
1.85 |
|
|
97.0% |
Post West AustinTM |
|
2009 |
|
329 |
|
|
|
889 |
|
|
|
1,511 |
|
|
|
1.70 |
|
|
95.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington D.C. Metro |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Fallsgrove |
|
2003 |
|
361 |
|
|
|
983 |
|
|
|
1,709 |
|
|
|
1.74 |
|
|
96.4% |
|
Post Park® |
|
2010 |
|
396 |
|
|
|
975 |
|
|
|
1,671 |
|
|
|
1.71 |
|
|
94.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Carlyle SquareTM |
|
2006, 2013 |
|
549 |
|
|
|
890 |
|
|
|
2,247 |
|
|
|
2.52 |
|
|
95.1% |
|
Post Corners at Trinity Centre (2) |
|
1996 |
|
336 |
|
|
|
994 |
|
|
|
1,599 |
|
|
|
1.61 |
|
|
98.3% |
|
Post Pentagon RowTM |
|
2001 |
|
504 |
|
|
|
853 |
|
|
|
2,222 |
|
|
|
2.61 |
|
|
97.8% |
|
Post Tysons CornerTM |
|
1990 |
|
499 |
|
|
|
807 |
|
|
|
1,719 |
|
|
|
2.13 |
|
|
98.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington D.C. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Massachusetts AvenueTM (1)(2) |
|
2002 |
|
269 |
|
|
|
883 |
|
|
|
3,358 |
|
|
|
3.80 |
|
|
96.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tampa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Bay at Rocky PointTM |
|
1997 |
|
150 |
|
|
|
1,012 |
|
|
|
1,577 |
|
|
|
1.56 |
|
|
98.9% |
|
Post Harbour PlaceTM |
|
1999-2002 |
|
578 |
|
|
|
920 |
|
|
|
1,653 |
|
|
|
1.80 |
|
|
97.5% |
|
Post Hyde Park® (2) |
|
1996, 2008 |
|
467 |
|
|
|
1,011 |
|
|
|
1,614 |
|
|
|
1.60 |
|
|
98.0% |
|
Post Rocky Point® |
|
1996-1998 |
|
916 |
|
|
|
1,031 |
|
|
|
1,417 |
|
|
|
1.37 |
|
|
96.6% |
|
Post Soho SquareTM |
|
2014 |
|
231 |
|
|
|
880 |
|
|
|
1,844 |
|
|
|
2.10 |
|
|
98.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orlando |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Lake® at Baldwin Park |
|
2004-2007, 2013 |
|
760 |
|
|
|
1,013 |
|
|
|
1,596 |
|
|
|
1.58 |
|
|
97.6% |
|
Post LakesideTM |
|
2013 |
|
300 |
|
|
|
1,070 |
|
|
|
1,445 |
|
|
|
1.35 |
|
|
96.6% |
|
Post ParksideTM |
|
1999 |
|
248 |
|
|
|
867 |
|
|
|
1,603 |
|
|
|
1.85 |
|
|
96.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charlotte |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Ballantyne |
|
2004 |
|
323 |
|
|
|
1,252 |
|
|
|
1,277 |
|
|
|
1.02 |
|
|
96.3% |
|
Post Gateway PlaceTM |
|
2000 |
|
436 |
|
|
|
804 |
|
|
|
1,182 |
|
|
|
1.47 |
|
|
95.7% |
|
Post Park at Phillips Place® |
|
1998 |
|
402 |
|
|
|
1,101 |
|
|
|
1,495 |
|
|
|
1.36 |
|
|
96.2% |
|
Post South EndTM |
|
2009 |
|
360 |
|
|
|
847 |
|
|
|
1,453 |
|
|
|
1.72 |
|
|
97.0% |
|
Post Uptown PlaceTM |
|
2000 |
|
227 |
|
|
|
800 |
|
|
|
1,246 |
|
|
|
1.56 |
|
|
95.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raleigh |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Parkside at WadeTM - Phase I |
|
2013 |
|
397 |
|
|
|
875 |
|
|
|
1,101 |
|
|
|
1.26 |
|
|
98.5% |
|
Post Parkside at WadeTM - Phase II (3) |
|
2016 |
|
406 |
|
|
910 |
|
|
|
1,174 |
|
|
|
1.29 |
|
|
16.6% |
|
1) |
Communities held in unconsolidated entities. |
|
2) |
Communities encumbered by secured mortgage indebtedness. |
|
3) |
During the period, these communities or portions thereof, were in lease-up. |
Supplemental Financial Data |
Page 11 |
3rd Quarter 2016 |
|
(In thousands) - (Unaudited)
Summary of Outstanding Debt at September 30, 2016 - Consolidated
|
|
|
|
|
|
Percentage |
|
|
Weighted Average |
|
||
Type of Indebtedness |
|
Balance |
|
|
of Total Debt |
|
|
Stated Rate (1) |
|
|||
Unsecured fixed rate senior notes |
|
$ |
400,000 |
|
|
|
42.1% |
|
|
|
3.9% |
|
Unsecured bank term loan |
|
|
300,000 |
|
|
|
31.5% |
|
|
|
2.7% |
|
Secured fixed rate notes |
|
|
187,267 |
|
|
|
19.7% |
|
|
|
6.0% |
|
Unsecured revolving lines of credit |
|
|
63,857 |
|
|
|
6.7% |
|
|
|
1.6% |
|
Total principal outstanding |
|
$ |
951,124 |
|
|
|
100.0% |
|
|
|
3.8% |
|
Less: debt issuance costs |
|
|
(3,748 |
) |
|
|
|
|
|
|
|
|
Total indebtedness |
|
$ |
947,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
Weighted Average |
|
||
|
|
Balance |
|
|
of Total Debt |
|
|
Maturity (2) |
|
|||
Total fixed rate debt |
|
$ |
887,267 |
|
|
|
93.3% |
|
|
|
3.5 |
|
Total variable rate debt - unhedged |
|
|
63,857 |
|
|
|
6.7% |
|
|
|
2.3 |
|
Total principal outstanding |
|
$ |
951,124 |
|
|
|
100.0% |
|
|
|
3.4 |
|
Less: debt issuance costs |
|
|
(3,748 |
) |
|
|
|
|
|
|
|
|
Total indebtedness |
|
$ |
947,376 |
|
|
|
|
|
|
|
|
|
Debt Maturities – Consolidated and Unconsolidated
|
|
Consolidated |
|
|
Unconsolidated Entities |
|
||||||||||||||
|
|
|
|
|
|
Weighted Avg. |
|
|
|
|
|
|
Company |
|
|
Weighted Avg. |
|
|||
Aggregate debt maturities by year |
|
Balance |
|
|
Stated Rate (1) |
|
|
Balance |
|
|
Share |
|
|
Stated Rate (1) |
|
|||||
Remainder of 2016 |
|
$ |
801 |
|
|
|
6.0% |
|
|
$ |
- |
|
|
$ |
- |
|
|
- |
|
|
2017 |
|
|
153,296 |
|
|
|
4.8% |
|
|
|
85,723 |
|
|
|
21,431 |
|
|
|
5.6% |
|
2018 |
|
|
3,502 |
|
|
|
6.0% |
|
|
|
41,000 |
|
|
|
10,250 |
|
|
|
5.7% |
|
2019 |
|
|
243,525 |
|
(3) |
|
4.8% |
|
|
|
51,000 |
|
|
|
17,850 |
|
|
|
3.5% |
|
2020 |
|
|
300,000 |
|
(4) |
|
2.7% |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
Thereafter |
|
|
250,000 |
|
|
|
3.4% |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
Total principal outstanding |
|
$ |
951,124 |
|
|
|
3.8% |
|
|
$ |
177,723 |
|
|
$ |
49,531 |
|
|
|
5.0% |
|
1) |
Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at September 30, 2016 are based on the debt outstanding at that date. The weighted average interest rate of the unsecured bank term loan represents the effective stated fixed interest rate based on outstanding borrowings as of September 30, 2016, after considering the impact of interest rate swap arrangements that hedge this debt. |
2) |
Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above. |
3) |
Includes $63,857 outstanding on unsecured revolving lines of credit. At September 30, 2016, the Company’s lines of credit bear interest at LIBOR plus 1.05% and mature in 2019 with a one year extension option. |
4) |
Includes an unsecured bank term loan that matures in January 2020. The blended effective stated interest rate, after considering the impact of interest rate swap arrangements that hedge this debt, is 2.69% through January 2018, the termination date of four interest rate swaps. From January 2018 to January 2020, the term loan is swapped to an effective stated interest rate of 2.52%. The underlying term loan bears interest at the stated rate of LIBOR plus 1.15%. |
Supplemental Financial Data |
Page 12 |
3rd Quarter 2016 |
|
(In thousands) - (Unaudited)
Debt Statistics |
|
Nine months ended |
|
|||||
|
|
September 30, |
|
|||||
|
|
2016 |
|
|
2015 |
|
||
Interest coverage ratio (1) |
|
7.0x |
|
|
6.1x |
|
||
Interest coverage ratio (including capitalized interest) (1) |
|
5.7x |
|
|
5.4x |
|
||
Fixed charge coverage ratio (2) |
|
6.2x |
|
|
5.5x |
|
||
Fixed charge coverage ratio (including capitalized interest) (2) |
|
5.2x |
|
|
4.9x |
|
||
Total debt to annualized income available for debt service ratio (3) |
|
4.5x |
|
|
4.5x |
|
||
Total debt as a % of undepreciated real estate assets |
|
|
|
|
|
|
|
|
(adjusted for joint venture partner's share of debt) (4) |
|
|
29.0% |
|
|
|
28.9% |
|
Total debt and preferred equity as a % of undepreciated real |
|
|
|
|
|
|
|
|
estate assets (adjusted for joint venture partner's share of debt) (4) |
|
|
30.3% |
|
|
|
30.2% |
|
1) |
Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income, and interest expense to adjusted interest expense is included in Table 6 on page 29. |
2) |
Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders. The calculation of the fixed charge coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and fixed charges to adjusted interest expense plus dividends to preferred shareholders is included in Table 6 on page 29. |
3) |
A computation of this ratio is included in Table 6 on page 29. |
4) |
A computation of these debt ratios is included in Table 5 on page 28. |
Senior Unsecured Public Notes Debt Ratings
Moody’s – Baa2 (stable)
Standard & Poor’s – BBB (stable)
Financial Debt Covenants - Senior Unsecured Public Notes
|
|
As of |
|
|
Covenant requirements, as defined (1) |
|
September 30, 2016 |
|
|
Consolidated Debt to Total Assets cannot exceed 60% |
|
|
28% |
|
Secured Debt to Total Assets cannot exceed 40% |
|
|
5% |
|
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1 |
|
4.2x |
|
|
Consolidated Income Available for Debt Service Charge must be at least 1.5/1 |
|
7.0x |
|
1) |
A summary of the public debt covenant calculations and reconciliations of the financial components used in the public debt covenant calculations to the most comparable GAAP financial measures is detailed in Table 4 on page 26. |
Supplemental Financial Data |
Page 13 |
3rd Quarter 2016 |
|
Summary Of Apartment Communities Under Development,
Land Held For Future Investment and acquisitions/disposition activity
(In millions, except units, square footage and acreage) – (Unaudited)
Communities Under Development
|
|
|
|
|
|
|
|
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) |
|
|
9/30/2016 |
|
|
Available |
|
Occup. (4) |
|
Leased (5) |
||||||
Under construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Parkside at WadeTM, II |
|
Raleigh, NC |
|
|
406 |
|
|
|
910 |
|
|
|
- |
|
|
$ |
58.3 |
|
|
$ |
158 |
|
|
$ |
52.6 |
|
|
2Q 2016 |
|
3Q 2017 |
|
49.0% |
Post Afton OaksTM |
|
Houston, TX |
|
|
388 |
|
|
|
867 |
|
|
|
- |
|
|
|
79.9 |
|
|
|
238 |
|
|
|
72.3 |
|
|
4Q 2016 |
|
1Q 2018 |
|
2.8% |
Post South LamarTM, II |
|
Austin, TX |
|
|
344 |
|
|
|
734 |
|
|
|
5,800 |
|
|
|
65.6 |
|
|
|
254 |
|
|
|
39.5 |
|
|
2Q 2017 |
|
3Q 2018 |
|
N/A |
Post Millennium MidtownTM (6) |
|
Atlanta, GA |
|
|
332 |
|
|
|
926 |
|
|
|
- |
|
|
|
90.6 |
|
|
|
295 |
|
|
|
36.4 |
|
|
3Q 2017 |
|
4Q 2018 |
|
N/A |
Post River NorthTM (7) |
|
Denver, CO |
|
|
358 |
|
|
|
818 |
|
|
|
- |
|
|
|
88.2 |
|
|
|
301 |
|
|
|
39.2 |
|
|
3Q 2017 |
|
4Q 2018 |
|
N/A |
Post Centennial ParkTM |
|
Atlanta, GA |
|
|
438 |
|
|
|
808 |
|
|
|
- |
|
|
|
96.0 |
|
|
|
271 |
|
|
|
28.2 |
|
|
1Q 2018 |
|
2Q 2019 |
|
N/A |
Total |
|
|
|
|
2,266 |
|
|
|
|
|
|
|
5,800 |
|
|
$ |
478.6 |
|
|
|
|
|
|
$ |
268.2 |
|
|
|
|
|
|
|
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 October 29, 2016. |
6) |
Unit count for Post Millennium Midtown™ was reduced from 356 units to 332 units and the estimated average unit size was increased from 864 square feet to 926 square feet resulting from unit combinations to incorporate larger floor plans in the community based on market demand. |
7) |
The Company owns a 92.5% interest in an entity which is developing Post River North™. Total estimated cost represents aggregate costs of the joint venture and excludes any future promoted interest to the developer. |
Land Held for Future Investment
The following are land positions (including pre-development costs incurred to date) that the Company currently holds. There can be no assurance that projects held for future investment will be developed in the future or at all.
|
|
|
|
Carrying Value |
|
|
Estimated |
|
||
|
|
|
|
at Sept. 30, 2016 |
|
|
Usable |
|
||
Project |
|
Metro Area |
|
(in thousands) |
|
|
Acreage |
|
||
Centennial Park II |
|
Atlanta, GA |
|
$ |
5,953 |
|
|
|
1.7 |
|
Frisco Bridges II |
|
Dallas, TX |
|
|
5,480 |
|
|
|
5.4 |
|
Wade III |
|
Raleigh, NC |
|
|
2,510 |
|
|
|
5.4 |
|
Other land parcels |
|
Atlanta, GA |
|
|
2,787 |
|
|
|
10.2 |
|
Total Land Held for Future Investment |
|
|
|
$ |
16,730 |
|
|
|
22.7 |
|
Acquisition/Disposition Activity - Current and Prior Year
None
Supplemental Financial Data |
Page 14 |
3rd Quarter 2016 |
|
(In thousands) - (Unaudited)
The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development, construction and rehabilitation of apartment communities. In addition, the Company capitalizes expenditures that enhance the value of existing assets and expenditures that substantially extend the life of existing assets. All other expenditures necessary to maintain a community in ordinary operating condition are expensed as incurred.
The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment communities under development, construction, and major rehabilitation. The internal personnel and associated costs are capitalized to the projects under development based upon the effort identifiable with such projects. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the commencement of leasing activities, interest and other construction costs are capitalized and are reflected on the balance sheet as construction in progress. The Company ceases the capitalization of such costs as the residential units in a community become substantially complete and available for occupancy. This results in a proration of these costs between amounts that are capitalized and expensed as the residential units in a development community become available for occupancy. In addition, prior to the completion of units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing and property management and leasing personnel expenses) of such communities.
A summary of community acquisition and development improvements and other capitalized expenditures for the three and nine months ended September 30, 2016 and 2015 is provided below.
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
New community development and acquisition activity (1) |
|
$ |
42,502 |
|
|
$ |
38,908 |
|
|
$ |
104,881 |
|
|
$ |
87,453 |
|
Periodically recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community rehabilitation and other revenue generating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
improvements (2) |
|
|
3,416 |
|
|
|
3,707 |
|
|
|
9,388 |
|
|
|
7,653 |
|
Other community additions and improvements (3) |
|
|
1,354 |
|
|
|
2,003 |
|
|
|
4,470 |
|
|
|
4,526 |
|
Annually recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carpet replacements and other community additions and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
improvements (4) |
|
|
5,122 |
|
|
|
5,406 |
|
|
|
14,786 |
|
|
|
11,545 |
|
Corporate additions and improvements |
|
|
304 |
|
|
|
400 |
|
|
|
1,158 |
|
|
|
942 |
|
|
|
$ |
52,698 |
|
|
$ |
50,424 |
|
|
$ |
134,683 |
|
|
$ |
112,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized interest |
|
$ |
2,064 |
|
|
$ |
1,109 |
|
|
$ |
5,463 |
|
|
$ |
3,328 |
|
Capitalized development and associated costs (5) |
|
$ |
1,394 |
|
|
$ |
1,237 |
|
|
$ |
4,221 |
|
|
$ |
3,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Reflects aggregate community acquisition and new community development costs. |
|
|
2) |
Represents expenditures for community rehabilitations and other unit upgrade costs that enhance the rental value of such units. |
|
|
3) |
Represents community improvement expenditures that generally occur less frequently than on an annual basis. Amounts include second generation leasing costs on commercial properties of $100 and $87 for the three months and $438 and $250 for the nine months ended September 30, 2016 and 2015, respectively. |
|
|
4) |
Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis. |
|
|
5) |
Reflects internal personnel and associated costs capitalized to construction and development activities. |
|
Supplemental Financial Data |
Page 15 |
3rd Quarter 2016 |
|
Investments In Unconsolidated Real Estate Entities
(In thousands) - (Unaudited)
The Company holds investments in limited liability companies (the “Property LLCs”) with institutional investors and accounts for its investments in these Property LLCs using the equity method of accounting. A summary of non-financial and financial information for the Property LLCs is provided below.
Non-Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership |
|
|
|
|
|
|
|
|
Joint Venture Property |
|
Location |
|
|
# of Units |
|
|
Interest |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Collier Hills® (1) |
|
Atlanta, GA |
|
|
396 |
|
|
|
25% |
|
|
|
|
|
|
|
||
Post Crest® (1) |
|
Atlanta, GA |
|
|
410 |
|
|
|
25% |
|
|
|
|
|
|
|
||
Post Lindbergh® (1) |
|
Atlanta, GA |
|
|
396 |
|
|
|
25% |
|
|
|
|
|
|
|
||
Post Massachusetts AvenueTM |
|
Washington, D.C. |
|
|
269 |
|
|
|
35% |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
||||||||||||||
|
|
September 30, 2016 |
|
|
||||||||||||||
|
|
Gross |
|
|
|
|
|
|
|
|
|
|
|
Company's |
|
|
||
|
|
Investment in |
|
|
Mortgage |
|
|
Entity |
|
|
|
Equity |
|
|
||||
Joint Venture Property |
|
Real Estate (6) |
|
|
Notes Payable |
|
|
Equity |
|
|
|
Investment |
|
|
||||
Post Collier Hills® (1) |
|
$ |
59,188 |
|
|
$ |
39,552 |
|
(2) |
$ |
9,262 |
|
|
|
$ |
(4,268 |
) |
(1) |
Post Crest® (1) |
|
|
66,000 |
|
|
|
46,145 |
|
(2) |
|
7,358 |
|
|
|
|
(7,302 |
) |
(1) |
Post Lindbergh® (1) |
|
|
66,022 |
|
|
|
40,972 |
|
(3) |
|
14,107 |
|
|
|
|
(3,939 |
) |
(1) |
Post Massachusetts AvenueTM |
|
|
75,449 |
|
|
|
50,913 |
|
(4) |
|
3,268 |
|
|
|
|
3,645 |
|
|
Total |
|
$ |
266,659 |
|
|
$ |
177,582 |
|
|
$ |
33,995 |
|
|
|
$ |
(11,864 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
Nine months ended |
|
|
||||||||||||||||||
|
|
September 30, 2016 |
|
|
|
September 30, 2016 |
|
|
||||||||||||||||||
|
|
|
|
|
|
Company's |
|
|
Mgmt. |
|
|
|
|
|
|
|
Company's |
|
|
Mgmt. |
|
|
||||
|
|
Entity |
|
|
Equity in |
|
|
Fees & |
|
|
|
Entity |
|
|
Equity in |
|
|
Fees & |
|
|
||||||
Joint Venture Property |
|
NOI |
|
|
Income (Loss) |
|
|
Other |
|
|
|
NOI |
|
|
Income (Loss) |
|
|
Other |
|
|
||||||
Post Collier Hills® (1) |
|
$ |
1,158 |
|
|
$ |
166 |
|
|
|
|
|
|
|
$ |
2,843 |
|
|
$ |
247 |
|
|
|
|
|
|
Post Crest® (1) |
|
|
1,070 |
|
|
|
120 |
|
|
|
|
|
|
|
|
2,992 |
|
|
|
208 |
|
|
|
|
|
|
Post Lindbergh® (1) |
|
|
1,151 |
|
|
|
158 |
|
|
|
|
|
|
|
|
2,883 |
|
|
|
224 |
|
|
|
|
|
|
Post Massachusetts AvenueTM |
|
|
1,907 |
|
|
|
477 |
|
|
|
|
|
|
|
|
5,743 |
|
|
|
1,474 |
|
|
|
|
|
|
Total |
|
$ |
5,286 |
|
|
$ |
921 |
|
|
$ |
239 |
|
(5) |
|
$ |
14,461 |
|
|
$ |
2,153 |
|
|
$ |
705 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The Company’s investment in the 25% owned Property LLC resulted from the transfer of three previously owned apartment communities to the Property LLC co-owned with an institutional investor. The assets, liabilities and members’ equity of the Property LLC were recorded at fair value based on agreed-upon amounts contributed to the venture. The credit investments in the Company’s 25% owned Property LLC resulted from financing proceeds distributed in excess of the Company’s historical cost-basis investment. These credit investments are reflected in consolidated liabilities on the Company’s consolidated balance sheet. At September 30, 2016, these apartment communities are currently under contract to be sold. There can be no assurance that any sales will close. |
2) |
These mortgage notes have a combined outstanding principal value of $85,723, bear interest at a stated fixed rate of 5.63% and mature in June 2017. |
3) |
This mortgage note has an outstanding principal value of $41,000, bears interest at a stated fixed rate of 5.71% and matures in January 2018, at which time it will be automatically extended for a one-year term at a variable interest rate. |
4) |
This note has an outstanding principal value of $51,000, bears interest at a stated fixed rate of 3.5% and matures in February 2019. The note is prepayable without penalty beginning in February 2017. |
5) |
Amounts include net property and asset management fees to the Company included in “Other Revenues” in the Company’s consolidated statements of operations. |
6) |
Represents GAAP basis net book value plus accumulated depreciation. |
Supplemental Financial Data |
Page 16 |
3rd Quarter 2016 |
|
Net Asset Value Supplemental Information (1)
(In thousands, except unit data, commercial square feet and stock price) - (Unaudited)
Financial Data
|
|
Three months ended |
|
|
|
|
|
|
As |
|
||
Income Statement Data |
|
September 30, 2016 |
|
|
Adjustments |
|
|
Adjusted (3) |
|
|||
Rental revenues |
|
$ |
95,330 |
|
|
$ |
(1,510 |
) |
(2) |
$ |
93,820 |
|
Other property revenues |
|
|
5,986 |
|
|
|
(104 |
) |
(2) |
|
5,882 |
|
Total rental and other revenues (A) |
|
|
101,316 |
|
|
|
(1,614 |
) |
|
|
99,702 |
|
Property operating & maintenance expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(excluding depreciation and amortization) (B) |
|
|
42,110 |
|
|
|
(5,196 |
) |
(2) |
|
36,914 |
|
Property net operating income (1) (A-B) |
|
$ |
59,206 |
|
|
$ |
3,582 |
|
|
$ |
62,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed property management fee |
|
|
|
|
|
|
|
|
|
|
|
|
(calculated at 3% of revenues) (A x 3%) |
|
|
|
|
|
|
|
|
|
|
(2,991 |
) |
Assumed property capital expenditure reserve |
|
|
|
|
|
|
|
|
|
|
|
|
($300 per unit per year based on 20,455 units) |
|
|
|
|
|
|
|
|
|
|
(1,534 |
) |
Adjusted property net operating income |
|
|
|
|
|
|
|
|
|
$ |
58,263 |
|
Annualized property net operating income (C) |
|
|
|
|
|
|
|
|
|
$ |
233,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment units represented (D) |
|
|
24,138 |
|
|
|
(3,683 |
) |
(2) |
|
20,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
As |
|
||
Other Asset Data |
|
September 30, 2016 |
|
|
Adjustments |
|
|
Adjusted |
|
|||
Cash & equivalents |
|
$ |
5,060 |
|
|
$ |
- |
|
|
$ |
5,060 |
|
Real estate assets under construction, at cost (4) |
|
|
243,334 |
|
|
|
96,416 |
|
(4) |
|
339,750 |
|
Land held for future investment |
|
|
16,730 |
|
|
|
- |
|
|
|
16,730 |
|
Investments in and advances to unconsolidated real |
|
|
|
|
|
|
|
|
|
|
|
|
estate entities (5) |
|
|
3,645 |
|
|
|
(3,645 |
) |
(5) |
|
- |
|
Restricted cash and other assets (6) |
|
|
34,982 |
|
|
|
(1,786 |
) |
(6) |
|
33,196 |
|
Cash & other assets of unconsolidated apartment entities (7) |
|
|
7,110 |
|
|
|
(5,190 |
) |
(7) |
|
1,920 |
|
Total (E) |
|
$ |
310,861 |
|
|
$ |
85,795 |
|
|
$ |
396,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liability Data |
|
|
|
|
|
|
|
|
|
|
|
|
Indebtedness (8) |
|
$ |
947,376 |
|
|
$ |
3,748 |
|
(8) |
$ |
951,124 |
|
Investments in unconsolidated real estate entities (5) |
|
|
15,509 |
|
|
|
(15,509 |
) |
(5) |
|
- |
|
Other liabilities (9) |
|
|
160,114 |
|
|
|
(9,545 |
) |
(9) |
|
150,569 |
|
Total liabilities of unconsolidated apartment entities (10) |
|
|
181,431 |
|
|
|
(130,860 |
) |
(10) |
|
50,571 |
|
Total (F) |
|
$ |
1,304,430 |
|
|
$ |
(152,166 |
) |
|
$ |
1,152,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
As of September 30, 2016 |
|
|||||||||
|
|
# Shares/Units |
|
|
Stock Price |
|
|
Implied Value |
|
|||
Liquidation value of preferred shares (G) |
|
|
|
|
|
|
|
|
|
$ |
43,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
53,509 |
|
|
|
|
|
|
|
|
|
Common units outstanding |
|
|
113 |
|
|
|
|
|
|
|
|
|
Total (H) |
|
|
53,622 |
|
|
$ |
66.13 |
|
|
$ |
3,546,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied market value of Company gross real estate |
|
|
|
|
|
|
|
|
|
|
|
|
assets (I) = (F+G+H-E) |
|
|
|
|
|
|
|
|
|
$ |
4,345,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied Portfolio Capitalization Rate (C÷I) |
|
|
|
|
|
|
|
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income (“NOI”), which is a supplemental non-GAAP financial measure that the Company uses internally to calculate Net Asset Value (“NAV”). These measures, as adjusted, are also non-GAAP financial measures. With the exception of NOI, the most comparable GAAP measure for each of the non-GAAP measures presented below in the “As Adjusted” column is the corresponding number presented in the first column listed below. See Table 2 on page 23 for a reconciliation of NOI to consolidated net income. |
Supplemental Financial Data |
Page 17 |
3rd Quarter 2016 |
|
The Company presents NOI for the third quarter ended September 30, 2016, for properties stabilized as of July 1, 2016, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of July 1, 2016, are presented at full undepreciated cost. Other tangible assets and total liabilities are presented at book value. The liquidation value of preferred shares is also presented.
2) |
The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2016, to adjust property net operating income to the Company’s share for fully stabilized communities: |
|
|
Rental Revenue |
|
|
Other Revenue |
|
|
Expenses |
|
|
Units |
|
||||
Communities in lease-up / development |
|
$ |
(1,906 |
) |
|
$ |
(179 |
) |
|
$ |
(1,065 |
) |
|
|
(2,606 |
) |
Company share of unconsolidated entities |
|
|
2,102 |
|
|
|
143 |
|
|
|
643 |
|
|
|
(1,077 |
) |
Corporate property management expenses |
|
|
- |
|
|
|
- |
|
|
|
(3,058 |
) |
|
|
- |
|
Corporate apartments and other |
|
|
(1,706 |
) |
|
|
(68 |
) |
|
|
(1,716 |
) |
|
|
- |
|
|
|
$ |
(1,510 |
) |
|
$ |
(104 |
) |
|
$ |
(5,196 |
) |
|
|
(3,683 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3) |
The following table summarizes the Company’s share of the “As Adjusted” components of property net operating income, apartment units and commercial square feet by market for the three months ended September 30, 2016: |
|
|
|
|
|
|
Property Operating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance |
|
|
Property Net |
|
|
Percentage |
|
|
|
|
|
|||
|
|
Rental and |
|
|
Expenses (ex. Depr. |
|
|
Operating |
|
|
of |
|
|
Apartment Units / |
|
|||||
|
|
Other Revenues |
|
|
and Amort.) |
|
|
Income (NOI) |
|
|
Total NOI |
|
|
Commercial Sq. Ft. |
|
|||||
Atlanta |
|
$ |
24,782 |
|
|
$ |
7,729 |
|
|
$ |
17,053 |
|
|
|
27.1 |
% |
|
|
5,365 |
|
Dallas |
|
|
19,569 |
|
|
|
8,848 |
|
|
|
10,721 |
|
|
|
17.0 |
% |
|
|
4,726 |
|
Houston |
|
|
3,769 |
|
|
|
1,774 |
|
|
|
1,995 |
|
|
|
3.2 |
% |
|
|
895 |
|
Austin |
|
|
4,577 |
|
|
|
2,195 |
|
|
|
2,382 |
|
|
|
3.8 |
% |
|
|
935 |
|
Wash. DC Metro |
|
|
16,776 |
|
|
|
6,021 |
|
|
|
10,755 |
|
|
|
17.1 |
% |
|
|
2,739 |
|
Tampa |
|
|
11,393 |
|
|
|
3,762 |
|
|
|
7,631 |
|
|
|
12.2 |
% |
|
|
2,342 |
|
Orlando |
|
|
6,334 |
|
|
|
2,215 |
|
|
|
4,119 |
|
|
|
6.6 |
% |
|
|
1,308 |
|
Charlotte |
|
|
7,176 |
|
|
|
2,416 |
|
|
|
4,760 |
|
|
|
7.6 |
% |
|
|
1,748 |
|
Raleigh |
|
|
1,353 |
|
|
|
432 |
|
|
|
921 |
|
|
|
1.5 |
% |
|
|
397 |
|
Commercial |
|
|
3,973 |
|
|
|
1,522 |
|
|
|
2,451 |
|
|
|
3.9 |
% |
|
|
- |
|
Total |
|
$ |
99,702 |
|
|
$ |
36,914 |
|
|
$ |
62,788 |
|
|
|
100.0 |
% |
|
|
20,455 |
|
Approximate commercial Sq. Ft. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
689,000 |
|
4) |
The “As Adjusted” amount represents the CIP balance, adjusted for costs of completed apartment units, as follows: |
|
|
|
|
|
The High Rise at Post AlexanderTM |
|
$ |
74,558 |
|
Post Parkside at WadeTM - Phase II |
|
|
52,543 |
|
Post Afton OaksTM |
|
|
72,279 |
|
Post South LamarTM - Phase II |
|
|
39,464 |
|
Post Millennium MidtownTM |
|
|
36,381 |
|
Post Centennial ParkTM |
|
|
28,243 |
|
Post River NorthTM (a) |
|
|
36,282 |
|
|
|
$ |
339,750 |
|
|
(a) |
The Company owns 92.5% of the consolidated real estate entity that owns this community. The amount above represents 92.5% |
of the consolidated CIP balance for this community.
5) |
The adjustments reflect reductions for investments in unconsolidated entities, as the net operating income of the Company’s respective share of such investments in unconsolidated entities is included in the adjusted net operating income reflected above. |
6) |
This adjustment reflects a reduction to other assets for the net debt issuance costs related to the Company’s lines of credit. |
7) |
The “As of September 30, 2016” amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment entities. |
8) |
The adjustment reflects an addition of the debt issuance costs related to consolidated indebtedness. The “As Adjusted” column represents the outstanding principal value of consolidated indebtedness. |
9) |
The “As of September 30, 2016” amount represents of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses and security deposits and prepaid rents as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense. |
10) |
The “As of September 30, 2016” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partners’ respective share of liabilities and an adjustment to reflect the Company’s share of the outstanding principal value of mortgage indebtedness. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities. |
Supplemental Financial Data |
Page 18 |
3rd Quarter 2016 |
|
Margin Analysis and Company Undepreciated Book Value Per Share
(In thousands, except per unit data) - (Unaudited)
Margin Analysis
|
|
Nine months ended September 30, 2016 |
|
|
|||||||||||||||||
|
|
|
|
|
|
Property |
|
|
Net |
|
|
|
|
|
|
|
|
|
|
||
|
|
Rental and |
|
|
Operating & |
|
|
Operating |
|
|
|
|
|
|
|
|
|
|
|||
|
|
Other Property |
|
|
Maintenance |
|
|
Income |
|
|
NOI |
|
|
Expense |
|
|
|||||
|
|
Revenues |
|
|
Expenses |
|
|
("NOI") |
|
|
Margin |
|
|
Margin |
|
|
|||||
Same store communities |
|
$ |
274,059 |
|
|
$ |
106,296 |
|
|
$ |
167,763 |
|
|
|
61.2% |
|
|
|
38.8% |
|
|
Newly stabilized communities |
|
|
3,278 |
|
|
|
1,583 |
|
|
|
1,695 |
|
|
|
51.7% |
|
|
|
48.3% |
|
|
Lease-up communities |
|
|
4,447 |
|
|
|
2,536 |
|
|
|
1,911 |
|
|
N/A |
|
|
N/A |
|
|
||
Other property segments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate apartments |
|
|
5,031 |
|
|
|
4,493 |
|
|
|
538 |
|
|
|
10.7% |
|
|
|
89.3% |
|
|
Commercial |
|
|
12,134 |
|
|
|
4,341 |
|
|
|
7,793 |
|
|
|
64.2% |
|
|
|
35.8% |
|
|
Corporate property management expenses (1) |
|
|
- |
|
|
|
9,512 |
|
|
|
(9,512 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
298,949 |
|
|
$ |
128,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI (2) |
|
|
|
|
|
|
|
|
|
$ |
170,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party management fees |
|
|
|
|
|
|
|
|
|
$ |
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The following table summarizes the Company’s net property management expense as a percentage of adjusted property revenues: |
Numerator: |
|
|
|
|
Corporate property management expenses |
|
$ |
9,512 |
|
Less: Third-party management fees |
|
|
(705 |
) |
Net property management expenses |
|
$ |
8,807 |
|
|
|
|
|
|
Denominator: |
|
|
|
|
Total rental and other property revenues |
|
$ |
298,949 |
|
Less: Corporate apartment revenues |
|
|
(5,031 |
) |
Adjusted property revenues |
|
$ |
293,918 |
|
|
|
|
|
|
Net property management expenses as a |
|
|
|
|
percentage of adjusted property revenues |
|
|
3.0 |
% |
|
|
|
|
|
|
2) |
Consolidated property NOI is a non-GAAP financial measure. See Table 2 on page 23 for a reconciliation of consolidated property NOI to GAAP net income. |
Calculation of Company Undepreciated Book Value Per Share
|
|
September 30, 2016 |
|
|
Total Company shareholders' equity per balance sheet |
|
$ |
1,192,921 |
|
Plus: |
|
|
|
|
Accumulated depreciation, per balance sheet |
|
|
1,091,705 |
|
Noncontrolling interest of common unitholders - Operating Partnership |
|
|
7,477 |
|
Less: |
|
|
|
|
Preferred shares at liquidation value |
|
|
(43,392 |
) |
Total undepreciated book value (A) |
|
$ |
2,248,711 |
|
Total common shares and units (B) |
|
|
53,622 |
|
Company undepreciated book value per share and unit (A÷B) |
|
$ |
41.94 |
|
|
|
|
|
|
Supplemental Financial Data |
Page 19 |
3rd Quarter 2016 |
|
Non-Gaap Financial Measures And Other Defined Terms
Definitions of Supplemental Non-GAAP Financial Measures and Other Defined Terms
The Company uses certain non-GAAP financial measures and other defined terms in this Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, property net operating income, operating capital expenditures and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below. The Company uses these measures to monitor the operating and financial performance of the Company and believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.
Funds from Operations - The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (or losses) from extraordinary items and sales of depreciable operating property, plus depreciation and amortization of real estate assets, non-cash impairment charges on depreciable real estate, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO presented in the Company’s press release and Supplemental Financial Data is not necessarily comparable to FFO presented by other real estate companies because not all real estate companies use the same definition. The Company’s FFO is comparable to the FFO of real estate companies that use the current NAREIT definition.
Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance.
In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.
Adjusted Funds From Operations - The Company uses AFFO as a supplemental non-GAAP measure. AFFO is defined by the Company as FFO less operating capital expenditures and after adjusting for the impact of debt extinguishment gains (losses), if any. AFFO is used as an additional measure in evaluating Company performance, as an indication of the REIT’s ability to fund its operating capital expenditures through earnings and in reviewing its common dividend policy over time. In addition, since other equity REITs provide AFFO, or similar supplemental measures, to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company’s calculation of AFFO is reconciled to the line on its consolidated statement of cash flows entitled “net cash provided by operating activities”, the comparable GAAP measure (see Table 1).
Property Net Operating Income (“NOI”) - The Company uses property NOI, including same store NOI and same store NOI by market, as a reportable segment operating performance measures. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that property NOI is an important measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store segment groupings and individual properties. Additionally, the Company believes that property NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to property NOI (see Tables 2 and 3).
Supplemental Financial Data |
Page 20 |
3rd Quarter 2016 |
|
Operating Capital Expenditures - The Company uses aggregate Company and same store annually recurring and periodically recurring capital expenditures as cash flow measures. The Company believes that aggregate Company and same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its communities on an ongoing basis. Aggregate company annually recurring and periodically recurring capital expenditures include information with respect to the Company’s reportable operating segments consisting of fully stabilized (same store) communities, newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties. Aggregate company annually recurring and periodically recurring capital expenditures are reported on the line in the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating capital expenditures (see Table 7).
Debt Statistics and Debt Ratios - The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure (see Tables 4, 5 and 6). These debt statistics and ratios include: (1) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes and the Company’s unsecured line of credit agreements. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity, and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.
The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.
Property Operating Statistics – The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property operating performance. The Company defines average economic occupancy as gross potential rent plus other rental fees less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.
Supplemental Financial Data |
Page 21 |
3rd Quarter 2016 |
|
Reconciliations Of Supplemental Non-Gaap Financial Measures
Table 1 - Reconciliation of Adjusted Funds From Operations to GAAP Net Cash Flow Provided by Operating Activities
(In thousands) - (Unaudited)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
Net cash provided by operating activities |
|
$ |
63,851 |
|
|
$ |
45,771 |
|
|
$ |
157,392 |
|
|
$ |
133,646 |
|
Changes in components of working capital |
|
|
(21,545 |
) |
|
|
(2,066 |
) |
|
|
(24,043 |
) |
|
|
(4,810 |
) |
Dividends to preferred shareholders |
|
|
(922 |
) |
|
|
(922 |
) |
|
|
(2,766 |
) |
|
|
(2,766 |
) |
Non-cash expenses |
|
|
(1,075 |
) |
|
|
(1,597 |
) |
|
|
(4,154 |
) |
|
|
(5,605 |
) |
Distributions from unconsolidated entities |
|
|
(568 |
) |
|
|
(448 |
) |
|
|
(2,057 |
) |
|
|
(1,503 |
) |
Equity in earnings of unconsolidated entities, net of depreciation |
|
|
1,072 |
|
|
|
903 |
|
|
|
2,908 |
|
|
|
2,467 |
|
Corporate depreciation |
|
|
(369 |
) |
|
|
(361 |
) |
|
|
(1,085 |
) |
|
|
(1,051 |
) |
Annually and periodically recurring property capital expenditures |
|
|
(6,476 |
) |
|
|
(7,409 |
) |
|
|
(19,256 |
) |
|
|
(16,071 |
) |
Adjusted funds from operations available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and unitholders |
|
$ |
33,968 |
|
|
$ |
33,871 |
|
|
$ |
106,939 |
|
|
$ |
104,307 |
|
A summary of net cash provided by (used in) operating, investing and financing activities from the Company’s statements of cash flows is detailed below.
|
|
|
|
|
|
Nine months ended |
|
|||||
|
|
|
|
|
|
September 30, |
|
|||||
|
|
|
|
|
|
2016 |
|
|
2015 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
$ |
157,392 |
|
|
$ |
133,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
|
|
$ |
(134,417 |
) |
|
$ |
(107,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
|
|
|
$ |
(46,526 |
) |
|
$ |
(103,751 |
) |
Supplemental Financial Data |
Page 22 |
3rd Quarter 2016 |
|
Table 2 - Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(In thousands) - (Unaudited)
|
|
Three months ended |
|
|
Nine months ended |
|
|
||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|||||
Total same store NOI |
|
$ |
58,064 |
|
|
$ |
54,418 |
|
|
$ |
54,949 |
|
|
$ |
167,763 |
|
|
$ |
161,019 |
|
|
Property NOI from other operating segments |
|
|
1,142 |
|
|
|
305 |
|
|
|
625 |
|
|
|
2,425 |
|
|
|
344 |
|
|
Consolidated property NOI |
|
|
59,206 |
|
|
|
54,723 |
|
|
|
55,574 |
|
|
|
170,188 |
|
|
|
161,363 |
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
|
|
34 |
|
|
|
- |
|
|
|
1 |
|
|
|
158 |
|
|
Other revenues |
|
|
273 |
|
|
|
337 |
|
|
|
283 |
|
|
|
828 |
|
|
|
924 |
|
|
Depreciation |
|
|
(23,949 |
) |
|
|
(22,073 |
) |
|
|
(22,794 |
) |
|
|
(69,452 |
) |
|
|
(64,748 |
) |
|
Interest expense |
|
|
(7,427 |
) |
|
|
(8,217 |
) |
|
|
(7,534 |
) |
|
|
(22,727 |
) |
|
|
(24,631 |
) |
|
General and administrative |
|
|
(4,474 |
) |
|
|
(4,622 |
) |
|
|
(3,761 |
) |
|
|
(13,121 |
) |
|
|
(13,989 |
) |
|
Investment and development |
|
|
(44 |
) |
|
|
(73 |
) |
|
|
(33 |
) |
|
|
(102 |
) |
|
|
(583 |
) |
|
Other investment costs |
|
|
(87 |
) |
|
|
(165 |
) |
|
|
(76 |
) |
|
|
(240 |
) |
|
|
(453 |
) |
|
Merger expenses |
|
|
(6,468 |
) |
|
|
- |
|
|
|
- |
|
|
|
(6,468 |
) |
|
|
- |
|
|
Other expenses |
|
|
- |
|
|
|
- |
|
|
|
(67 |
) |
|
|
(400 |
) |
|
|
- |
|
|
Equity in income of unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
real estate entities, net |
|
|
921 |
|
|
|
603 |
|
|
|
589 |
|
|
|
2,153 |
|
|
|
1,568 |
|
|
Gains on sales of real estate assets, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,475 |
|
|
Other income (expense), net |
|
|
(316 |
) |
|
|
(357 |
) |
|
|
(110 |
) |
|
|
(821 |
) |
|
|
(1,061 |
) |
|
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(197 |
) |
|
Net income |
|
$ |
17,635 |
|
|
$ |
20,190 |
|
|
$ |
22,071 |
|
|
$ |
59,839 |
|
|
$ |
59,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 23 |
3rd Quarter 2016 |
|
Table 3 - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
. |
|
Three months ended |
|
Q3 '16 |
|
Q3 '16 |
|
Q3 '16 |
||||
|
|
September 30, |
|
September 30, |
|
June 30, |
|
vs. Q3 '15 |
|
vs. Q2 '16 |
|
% Same |
|
|
2016 |
|
2015 |
|
2016 |
|
% Change |
|
% Change |
|
Store NOI |
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 23,533 |
|
$ 22,560 |
|
$ 23,124 |
|
4.3% |
|
1.8% |
|
|
Dallas |
|
19,569 |
|
19,013 |
|
19,155 |
|
2.9% |
|
2.2% |
|
|
Houston |
|
2,669 |
|
2,949 |
|
2,804 |
|
(9.5)% |
|
(4.8)% |
|
|
Austin |
|
4,577 |
|
4,452 |
|
4,536 |
|
2.8% |
|
0.9% |
|
|
Washington, D.C. Metro |
|
15,781 |
|
15,700 |
|
15,754 |
|
0.5% |
|
0.2% |
|
|
Tampa |
|
11,393 |
|
10,899 |
|
11,285 |
|
4.5% |
|
1.0% |
|
|
Orlando |
|
6,334 |
|
6,101 |
|
6,280 |
|
3.8% |
|
0.9% |
|
|
Charlotte |
|
7,176 |
|
7,044 |
|
7,132 |
|
1.9% |
|
0.6% |
|
|
Raleigh |
|
1,353 |
|
1,262 |
|
1,362 |
|
7.2% |
|
(0.7)% |
|
|
Total rental and other revenues |
|
92,385 |
|
89,980 |
|
91,432 |
|
2.7% |
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
expenses (exclusive of depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 7,495 |
|
$ 8,515 |
|
8,857 |
|
(12.0)% |
|
(15.4)% |
|
|
Dallas |
|
8,848 |
|
8,281 |
|
8,996 |
|
6.8% |
|
(1.6)% |
|
|
Houston |
|
1,236 |
|
1,308 |
|
1,275 |
|
(5.5)% |
|
(3.1)% |
|
|
Austin |
|
2,195 |
|
2,230 |
|
2,286 |
|
(1.6)% |
|
(4.0)% |
|
|
Washington, D.C. Metro |
|
5,722 |
|
6,089 |
|
5,647 |
|
(6.0)% |
|
1.3% |
|
|
Tampa |
|
3,762 |
|
3,859 |
|
4,190 |
|
(2.5)% |
|
(10.2)% |
|
|
Orlando |
|
2,215 |
|
2,519 |
|
2,368 |
|
(12.1)% |
|
(6.5)% |
|
|
Charlotte |
|
2,416 |
|
2,229 |
|
2,408 |
|
8.4% |
|
0.3% |
|
|
Raleigh |
|
432 |
|
532 |
|
456 |
|
(18.8)% |
|
(5.3)% |
|
|
Total |
|
34,321 |
|
35,562 |
|
36,483 |
|
(3.5)% |
|
(5.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
16,038 |
|
14,045 |
|
14,267 |
|
14.2% |
|
12.4% |
|
27.6% |
Dallas |
|
10,721 |
|
10,732 |
|
10,159 |
|
(0.1)% |
|
5.5% |
|
18.5% |
Houston |
|
1,433 |
|
1,641 |
|
1,529 |
|
(12.7)% |
|
(6.3)% |
|
2.5% |
Austin |
|
2,382 |
|
2,222 |
|
2,250 |
|
7.2% |
|
5.9% |
|
4.1% |
Washington, D.C. Metro |
|
10,059 |
|
9,611 |
|
10,107 |
|
4.7% |
|
(0.5)% |
|
17.3% |
Tampa |
|
7,631 |
|
7,040 |
|
7,095 |
|
8.4% |
|
7.6% |
|
13.1% |
Orlando |
|
4,119 |
|
3,582 |
|
3,912 |
|
15.0% |
|
5.3% |
|
7.1% |
Charlotte |
|
4,760 |
|
4,815 |
|
4,724 |
|
(1.1)% |
|
0.8% |
|
8.2% |
Raleigh |
|
921 |
|
730 |
|
906 |
|
26.2% |
|
1.7% |
|
1.6% |
Total same store NOI |
|
$ 58,064 |
|
$ 54,418 |
|
$ 54,949 |
|
6.7% |
|
5.7% |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 1,458 |
|
$ 1,405 |
|
$ 1,446 |
|
3.8% |
|
0.8% |
|
|
Dallas |
|
1,321 |
|
1,289 |
|
1,312 |
|
2.5% |
|
0.7% |
|
|
Houston |
|
1,438 |
|
1,496 |
|
1,475 |
|
(3.9)% |
|
(2.5)% |
|
|
Austin |
|
1,600 |
|
1,583 |
|
1,590 |
|
1.1% |
|
0.6% |
|
|
Washington, D.C. Metro |
|
1,901 |
|
1,890 |
|
1,895 |
|
0.6% |
|
0.3% |
|
|
Tampa |
|
1,567 |
|
1,500 |
|
1,547 |
|
4.5% |
|
1.3% |
|
|
Orlando |
|
1,563 |
|
1,508 |
|
1,555 |
|
3.6% |
|
0.5% |
|
|
Charlotte |
|
1,336 |
|
1,310 |
|
1,322 |
|
2.0% |
|
1.0% |
|
|
Raleigh |
|
1,101 |
|
1,077 |
|
1,093 |
|
2.2% |
|
0.7% |
|
|
Total average rental rate per unit |
|
1,492 |
|
1,456 |
|
1,483 |
|
2.5% |
|
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 24 |
3rd Quarter 2016 |
|
Table 3 (con’t) - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
|
|
Nine months ended |
|
|
|
|
|
|
|
|
||
|
|
September 30, |
|
September 30, |
|
% |
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Change |
|
|
|
|
||
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 69,412 |
|
$ 66,746 |
|
4.0% |
|
|
|
|
|
|
Dallas |
|
57,775 |
|
55,883 |
|
3.4% |
|
|
|
|
|
|
Houston |
|
8,275 |
|
8,684 |
|
(4.7)% |
|
|
|
|
|
|
Austin |
|
13,626 |
|
13,137 |
|
3.7% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
46,976 |
|
46,175 |
|
1.7% |
|
|
|
|
|
|
Tampa |
|
33,881 |
|
32,387 |
|
4.6% |
|
|
|
|
|
|
Orlando |
|
18,831 |
|
17,913 |
|
5.1% |
|
|
|
|
|
|
Charlotte |
|
21,290 |
|
20,729 |
|
2.7% |
|
|
|
|
|
|
Raleigh |
|
3,993 |
|
3,677 |
|
8.6% |
|
|
|
|
|
|
Total rental and other revenues |
|
274,059 |
|
265,331 |
|
3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
expenses (exclusive of depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 25,300 |
|
$ 25,852 |
|
(2.1)% |
|
|
|
|
|
|
Dallas |
|
26,386 |
|
24,737 |
|
6.7% |
|
|
|
|
|
|
Houston |
|
3,772 |
|
3,733 |
|
1.0% |
|
|
|
|
|
|
Austin |
|
6,656 |
|
6,429 |
|
3.5% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
16,875 |
|
17,110 |
|
(1.4)% |
|
|
|
|
|
|
Tampa |
|
11,795 |
|
11,345 |
|
4.0% |
|
|
|
|
|
|
Orlando |
|
6,952 |
|
6,874 |
|
1.1% |
|
|
|
|
|
|
Charlotte |
|
7,121 |
|
6,732 |
|
5.8% |
|
|
|
|
|
|
Raleigh |
|
1,439 |
|
1,500 |
|
(4.1)% |
|
|
|
|
|
|
Total |
|
106,296 |
|
104,312 |
|
1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
44,112 |
|
40,894 |
|
7.9% |
|
|
|
|
|
|
Dallas |
|
31,389 |
|
31,146 |
|
0.8% |
|
|
|
|
|
|
Houston |
|
4,503 |
|
4,951 |
|
(9.0)% |
|
|
|
|
|
|
Austin |
|
6,970 |
|
6,708 |
|
3.9% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
30,101 |
|
29,065 |
|
3.6% |
|
|
|
|
|
|
Tampa |
|
22,086 |
|
21,042 |
|
5.0% |
|
|
|
|
|
|
Orlando |
|
11,879 |
|
11,039 |
|
7.6% |
|
|
|
|
|
|
Charlotte |
|
14,169 |
|
13,997 |
|
1.2% |
|
|
|
|
|
|
Raleigh |
|
2,554 |
|
2,177 |
|
17.3% |
|
|
|
|
|
|
Total same store NOI |
|
$ 167,763 |
|
$ 161,019 |
|
4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ 1,445 |
|
$ 1,390 |
|
4.0% |
|
|
|
|
|
|
Dallas |
|
1,312 |
|
1,275 |
|
2.9% |
|
|
|
|
|
|
Houston |
|
1,467 |
|
1,505 |
|
(2.5)% |
|
|
|
|
|
|
Austin |
|
1,591 |
|
1,574 |
|
1.1% |
|
|
|
|
|
|
Washington, D.C. Metro |
|
1,894 |
|
1,899 |
|
(0.3)% |
|
|
|
|
|
|
Tampa |
|
1,549 |
|
1,478 |
|
4.8% |
|
|
|
|
|
|
Orlando |
|
1,550 |
|
1,490 |
|
4.0% |
|
|
|
|
|
|
Charlotte |
|
1,324 |
|
1,298 |
|
2.0% |
|
|
|
|
|
|
Raleigh |
|
1,092 |
|
1,070 |
|
2.1% |
|
|
|
|
|
|
Total average rental rate per unit |
|
1,482 |
|
1,446 |
|
2.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 25 |
3rd Quarter 2016 |
|
Table 4 – Financial Debt Covenant Calculations – Senior Unsecured Public Notes
Ratio of Consolidated Debt to Total Assets |
|
|
|
|
|
|
As of |
|
|
|
|
September 30, 2016 |
|
|
Outstanding principal value of consolidated debt (A) |
|
$ |
951,124 |
|
Total assets, as defined (B) (1) |
|
$ |
3,408,594 |
|
Computed ratio (A÷B) |
|
|
28 |
% |
Required ratio (cannot exceed) |
|
|
60 |
% |
|
|
|
|
|
Ratio of Secured Debt to Total Assets |
|
|
|
|
|
|
|
|
|
Outstanding principal value of secured debt (C) |
|
$ |
187,267 |
|
Computed ratio (C÷B) |
|
|
5 |
% |
Required ratio (cannot exceed) |
|
|
40 |
% |
|
|
|
|
|
Ratio of Total Unencumbered Assets to Unsecured Debt |
|
|
|
|
|
|
|
|
|
Outstanding principal value of consolidated debt (A) |
|
$ |
951,124 |
|
Outstanding principal value of secured debt (C) |
|
|
(187,267 |
) |
Outstanding principal value of unsecured debt (D) |
|
$ |
763,857 |
|
Total unencumbered assets, as defined (E) (1) |
|
$ |
3,188,881 |
|
Computed ratio (E÷D) |
|
4.2x |
|
|
Required minimum ratio |
|
1.5x |
|
|
|
|
|
|
|
Ratio of Consolidated Income Available for Debt Service to Annual |
|
|
|
|
Debt Service Charge (Annualized) |
|
|
|
|
|
|
|
|
|
Consolidated Income Available for Debt Service, as defined (F) (2) |
|
$ |
219,989 |
|
Annual Debt Service Charge, as defined (G) (2) |
|
$ |
31,633 |
|
Computed ratio (F÷G) |
|
7.0x |
|
|
Required minimum ratio |
|
1.5x |
|
|
|
|
|
|
|
1) |
The Calculation of Total Assets and Total Unencumbered Assets for Public Debt Covenant Computations, as defined, is detailed below. |
|
|
As of |
|
|
|
|
September 30, 2016 |
|
|
Total real estate assets |
|
$ |
2,282,016 |
|
Add: |
|
|
|
|
Investments in and advances to unconsolidated real estate entities |
|
|
3,645 |
|
Accumulated depreciation |
|
|
1,091,705 |
|
Other tangible assets |
|
|
31,228 |
|
Total assets for public debt covenant computations |
|
|
3,408,594 |
|
Less: |
|
|
|
|
Encumbered real estate assets |
|
|
(216,068 |
) |
Investments in and advances to unconsolidated real estate entities |
|
|
(3,645 |
) |
Total unencumbered assets for public debt covenant computations |
|
$ |
3,188,881 |
|
|
|
|
|
|
Supplemental Financial Data |
Page 26 |
3rd Quarter 2016 |
|
Table 4 (con’t) – Financial Debt Covenant Calculations – Senior Unsecured Public Notes
2) |
The Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge, as defined, is detailed below. |
The computation below reflects annualized 2016 results for comparison and presentation purposes. The actual calculation of these ratios requires the use of annual trailing financial data. The computations using annual trailing financial data for the year ended December 21, 2015, reflected compliance with the debt covenants.
|
|
Nine months ended |
|
|
Consolidated income available for debt service, as defined |
|
September 30, 2016 |
|
|
Net income |
|
$ |
59,839 |
|
Add: |
|
|
|
|
Depreciation |
|
|
69,452 |
|
Depreciation (company share) - unconsolidated entities |
|
|
755 |
|
Interest expense: |
|
|
|
|
Interest expense, excluding debt cost amortization |
|
|
21,892 |
|
Debt cost amortization |
|
|
835 |
|
Interest expense (company share) - unconsolidated entities: |
|
|
|
|
Interest expense, excluding debt cost amortization |
|
|
1,833 |
|
Debt cost amortization |
|
|
22 |
|
Other non-cash (income) expense, net (a) |
|
|
3,468 |
|
Merger expenses |
|
|
6,468 |
|
Income tax expense (benefit), net |
|
|
428 |
|
Consolidated income available for debt service |
|
$ |
164,992 |
|
Consolidated income available for debt service (annualized) |
|
$ |
219,989 |
|
|
|
|
|
|
Annual debt service charge, as defined |
|
|
|
|
Interest expense, excluding debt cost amortization |
|
$ |
21,892 |
|
Interest expense, excluding debt cost amortization - unconsolidated entities |
|
|
1,833 |
|
Annual debt service charge |
|
$ |
23,725 |
|
Annual debt service charge (annualized) |
|
$ |
31,633 |
|
|
|
|
|
|
a) |
Includes debt cost amortization of $579 relating to the Company’s unsecured revolving lines of credit. |
Supplemental Financial Data |
Page 27 |
3rd Quarter 2016 |
|
Table 5 – Computation of Debt Statistics
(In thousands)
|
|
As of September 30, |
|
|||||
|
|
2016 |
|
|
2015 |
|
||
Total real estate assets per balance sheet |
|
$ |
2,282,016 |
|
|
$ |
2,181,641 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,433 |
|
|
|
57,461 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
16,777 |
|
|
|
15,388 |
|
Accumulated depreciation per balance sheet |
|
|
1,091,705 |
|
|
|
1,001,342 |
|
Total undepreciated real estate assets (A) |
|
$ |
3,447,931 |
|
|
$ |
3,255,832 |
|
|
|
|
|
|
|
|
|
|
Outstanding principal value of total consolidated debt |
|
$ |
951,124 |
|
|
$ |
890,292 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of outstanding principal value of debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Total outstanding principal value of debt (adjusted for joint venture partners' share of debt) (B) |
|
$ |
1,000,655 |
|
|
$ |
939,823 |
|
|
|
|
|
|
|
|
|
|
Total outstanding principal value of debt as a % of undepreciated real estate assets |
|
|
|
|
|
|
|
|
(adjusted for joint venture partners' share of debt) (B÷A) |
|
|
29.0 |
% |
|
|
28.9 |
% |
|
|
|
|
|
|
|
|
|
Outstanding principal value of total consolidated debt |
|
$ |
951,124 |
|
|
$ |
890,292 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of outstanding principal value of debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Preferred shares at liquidation value |
|
|
43,392 |
|
|
|
43,392 |
|
Total outstanding principal value of debt and liquidation value of preferred equity (adjusted |
|
|
|
|
|
|
|
|
for joint venture partners' share of debt) (C) |
|
$ |
1,044,047 |
|
|
$ |
983,215 |
|
|
|
|
|
|
|
|
|
|
Total outstanding principal value of debt and liquidation value preferred equity as a % of |
|
|
|
|
|
|
|
|
undepreciated real estate assets (adjusted for joint venture partners' share of real estate assets |
|
|
|
|
|
|
|
|
and debt) (C÷A) |
|
|
30.3 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 28 |
3rd Quarter 2016 |
|
Table 6 - Computation of Debt Coverage Ratios
(In thousands)
|
|
Nine months ended |
|
|||||
|
|
September 30, |
|
|||||
|
|
2016 |
|
|
2015 |
|
||
Net income |
|
$ |
59,839 |
|
|
$ |
59,826 |
|
Other non-cash (income) expense, net (1) |
|
|
3,468 |
|
|
|
4,709 |
|
Income tax expense (benefit), net |
|
|
428 |
|
|
|
756 |
|
Gains on sales of real estate assets, net |
|
|
- |
|
|
|
(1,475 |
) |
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
197 |
|
Merger expenses |
|
|
6,468 |
|
|
|
- |
|
Depreciation expense |
|
|
69,452 |
|
|
|
64,748 |
|
Depreciation (company share) - unconsolidated entities |
|
|
755 |
|
|
|
900 |
|
Interest expense: |
|
|
|
|
|
|
|
|
Interest expense, excluding debt cost amortization |
|
|
21,892 |
|
|
|
23,773 |
|
Debt cost amortization |
|
|
835 |
|
|
|
858 |
|
Interest expense (company share) - unconsolidated entities: |
|
|
|
|
|
|
|
|
Interest expense, excluding debt cost amortization |
|
|
1,833 |
|
|
|
1,827 |
|
Debt cost amortization |
|
|
22 |
|
|
|
22 |
|
Income available for debt service, as defined (A) |
|
$ |
164,992 |
|
|
$ |
156,141 |
|
Annualized income available for debt service, as defined (B) |
|
$ |
219,989 |
|
|
$ |
208,188 |
|
|
|
|
|
|
|
|
|
|
Interest expense, excluding debt cost amortization |
|
$ |
21,892 |
|
|
$ |
23,773 |
|
Interest expense, excluding debt cost amortization - unconsolidated entities |
|
|
1,833 |
|
|
|
1,827 |
|
Adjusted interest expense, as defined (C) |
|
|
23,725 |
|
|
|
25,600 |
|
Capitalized interest |
|
|
5,463 |
|
|
|
3,328 |
|
Adjusted interest expense, as defined (including capitalized interest) (D) |
|
$ |
29,188 |
|
|
$ |
28,928 |
|
|
|
|
|
|
|
|
|
|
Fixed charges for purposes of computation - |
|
|
|
|
|
|
|
|
Adjusted interest expense |
|
$ |
23,725 |
|
|
$ |
25,600 |
|
Dividends to preferred shareholders |
|
|
2,766 |
|
|
|
2,766 |
|
Fixed charges (E) |
|
|
26,491 |
|
|
|
28,366 |
|
Capitalized interest |
|
|
5,463 |
|
|
|
3,328 |
|
Fixed charges (including capitalized interest) (F) |
|
$ |
31,954 |
|
|
$ |
31,694 |
|
|
|
|
|
|
|
|
|
|
Total outstanding principal value of debt (adjusted for joint venture partners' share of debt) (see Table 5) (G) |
|
$ |
1,000,655 |
|
|
$ |
939,823 |
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio (A÷C) |
|
7.0x |
|
|
6.1x |
|
||
Interest coverage ratio (including capitalized interest) (A÷D) |
|
5.7x |
|
|
5.4x |
|
||
Fixed charge coverage ratio (A÷E) |
|
6.2x |
|
|
5.5x |
|
||
Fixed charge coverage ratio (including capitalized interest) (A÷F) |
|
5.2x |
|
|
4.9x |
|
||
Total outstanding principal value of debt to annualized income available for debt service ratio (G÷B) |
|
4.5x |
|
|
4.5x |
|
||
|
|
|
|
|
|
|
|
|
1) |
Includes debt cost amortization of $579 and $456 for the nine months ended September 30, 2016 and 2015, respectively, related to the Company’s unsecured revolving lines of credit. |
Supplemental Financial Data |
Page 29 |
3rd Quarter 2016 |
|
Table 7 – Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(In thousands)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
Annually recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
4,927 |
|
|
$ |
5,218 |
|
|
$ |
14,380 |
|
|
$ |
11,185 |
|
Newly stabilized communities |
|
|
- |
|
|
|
3 |
|
|
|
6 |
|
|
|
6 |
|
Lease-up communities |
|
|
1 |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
Commercial and other segments |
|
|
194 |
|
|
|
185 |
|
|
|
395 |
|
|
|
354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total annually recurring capital expenditures |
|
$ |
5,122 |
|
|
$ |
5,406 |
|
|
$ |
14,786 |
|
|
$ |
11,545 |
|
Periodically recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
789 |
|
|
$ |
1,587 |
|
|
$ |
2,929 |
|
|
$ |
3,676 |
|
Newly stabilized communities |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
Lease-up communities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial and other segments |
|
|
565 |
|
|
|
415 |
|
|
|
1,541 |
|
|
|
849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total periodically recurring capital expenditures |
|
$ |
1,354 |
|
|
$ |
2,003 |
|
|
$ |
4,470 |
|
|
$ |
4,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue generating capital expenditures |
|
$ |
3,416 |
|
|
$ |
3,707 |
|
|
$ |
9,388 |
|
|
$ |
7,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in capital expenditure accruals, net of commercial leasing costs |
|
$ |
119 |
|
|
$ |
(759 |
) |
|
$ |
(82 |
) |
|
$ |
(1,057 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property capital expenditures per statements of cash flows |
|
$ |
10,011 |
|
|
$ |
10,357 |
|
|
$ |
28,562 |
|
|
$ |
22,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
Page 30 |