POST PROPERTIES INC - FORM 8-K - EX-99.2

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8-K - 8-K - POST PROPERTIES INC	d296111d8k.htm
EX-99.1 - EX-99.1 - POST PROPERTIES INC	d296111dex991.htm

Exhibit 99.2

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Fourth Quarter 2011

Supplemental Financial Data

Table of Contents


	Page

Consolidated Statements of Operations		3

Funds from Operations and Adjusted Funds From Operations		4

Consolidated Balance Sheets		5

Same Store Results		7

Debt Summary		10

Summary of Communities Acquired, Communities Under Development, Land Held for Future Investment and Acquisition Activity		13

Summary of Condominium Projects		14

Capitalized Costs Summary		15

Investments in Unconsolidated Real Estate Entities		16

Net Asset Value Supplemental Information		17

Non-GAAP Financial Measures and Other Defined Terms and Property Tables		19

The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute “forward-looking statements” within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K for the year ended December 31, 2010 and in subsequent filings with the SEC; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; the effects on the financial markets of the economic stabilization actions of the U.S government, U.S. Treasury, Federal Reserve and other governmental and regulatory bodies; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; 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 effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including the timing and volume of condominium sales; 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 buyers of the Company’s for-sale condominium homes and development locations; the Company’s ability to renew leases or relet units as leases expire; 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 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. 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, 2010 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this document.

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CONSOLIDATED STATEMENTS OF OPERATIONS

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


	Three months ended December 31,				Year ended December 31,
	2011		2010		2011		2010
Revenues
Rental	$	73,319	$	68,193	$	286,518	$	268,090
Other property revenues		4,198		3,858		17,880		16,053
Other		232		218		918		995

Total revenues		77,749		72,269		305,316		285,138


Expenses
Property operating and maintenance (exclusive of items shown separately below)		31,969		31,014		132,410		131,378
Depreciation		18,880		18,760		75,263		74,497
General and administrative		3,768		3,873		16,100		16,443
Investment and development (1)		148		566		1,161		2,415
Other investment costs (1)		157		589		1,435		2,417
Impairment losses		-		-		-		35,091

Total expenses		54,922		54,802		226,369		262,241


Operating income		22,827		17,467		78,947		22,897

Interest income		39		86		1,021		841
Interest expense		(13,672)		(15,793)		(56,791)		(54,613)
Amortization of deferred financing costs		(712)		(890)		(2,797)		(2,987)
Net gains on condominium sales activities (2)		1,757		3,842		10,514		6,161
Equity in income (loss) of unconsolidated real estate entities, net		211		185		1,001		18,739
Other income (expense), net		389		(603)		619		(874)
Net gain (loss) on extinguishment of indebtedness (3)		(6,919)		-		(6,919)		2,845

Net income (loss)		3,920		4,294		25,595		(6,991)
Noncontrolling interests - consolidated real estate entities		(11)		27		(67)		(20)
Noncontrolling interests - Operating Partnership		(8)		(9)		(62)		51

Net income (loss) available to the Company		3,901		4,312		25,466		(6,960)
Dividends to preferred shareholders		(922)		(1,871)		(4,455)		(7,503)
Preferred stock redemption costs		-		-		(1,757)		(44)

Net income (loss) available to common shareholders	$	2,979	$	2,441	$	19,254	$	(14,507)


Per common share data - Basic (4)
Net income (loss) available to common shareholders	$	0.06	$	0.05	$	0.38	$	(0.30)

Weighted average common shares outstanding - basic		52,076		48,592		50,420		48,483

Per common share data - Diluted (4)
Net income (loss) available to common shareholders	$	0.06	$	0.05	$	0.38	$	(0.30)

Weighted average common shares outstanding - diluted		52,435		48,907		50,808		48,483

See Notes to Consolidated Financial Statements on page 6

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FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

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

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


	Three months ended December 31,				Year ended December 31,
	2011		2010		2011		2010
Net income (loss) available to common shareholders	$	2,979	$	2,441	$	19,254	$	(14,507)
Noncontrolling interests - Operating Partnership		8		9		62		(51)
Depreciation on consolidated real estate assets, net (5)		18,538		18,313		73,878		72,663
Depreciation on real estate assets held in unconsolidated entities		363		357		1,447		1,422
Gains on sales of condominiums		(1,757)		(3,842)		(10,514)		(6,161)
Incremental gains on residential condominium sales (6)		780		3,842		9,537		5,898

Funds from operations available to common shareholders and unitholders (A)	$	20,911	$	21,120	$	93,664	$	59,264


Funds from operations available to common shareholders and unitholders (A)	$	20,911	$	21,120	$	93,664	$	59,264
Annually recurring capital expenditures		(3,626)		(3,643)		(15,604)		(12,672)
Periodically recurring capital expenditures (7)		(3,009)		(2,237)		(8,452)		(4,595)
Non-cash straight-line adjustment for ground lease expenses		128		144		512		978
Non-cash impairment charges		-		-		-		40,583
Net (gain) loss on early extinguishment of indebtedness		6,919		-		6,919		(26,441)
Preferred stock redemption costs		-		-		1,757		44

Adjusted funds from operations available to common shareholders and unitholders (8) (B)	$	21,323	$	15,384	$	78,796	$	57,161


Per Common Share Data - Basic
Funds from operations per share or unit, as defined (A÷C)	$	0.40	$	0.43	$	1.85	$	1.21
Adjusted funds from operations per share or unit (8) (B÷C)	$	0.41	$	0.31	$	1.55	$	1.17
Dividends declared	$	0.22	$	0.20	$	0.84	$	0.80
Weighted average shares outstanding		52,238		48,802		50,582		48,690
Weighted average shares and units outstanding (C)		52,395		48,973		50,746		48,861

Per Common Share Data - Diluted
Funds from operations per share or unit, as defined (A÷D)	$	0.40	$	0.43	$	1.83	$	1.21
Adjusted funds from operations per share or unit (8) (B÷D)	$	0.40	$	0.31	$	1.54	$	1.17
Dividends declared	$	0.22	$	0.20	$	0.84	$	0.80
Weighted average shares outstanding (9)		52,597		49,117		50,970		48,839
Weighted average shares and units outstanding (9) (D)		52,754		49,288		51,134		49,010

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

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CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)


	December 31, 2011		December 31, 2010
	(Unaudited)
Assets
Real estate assets
Land	$	299,720	$	285,005
Building and improvements		2,085,929		2,028,580
Furniture, fixtures and equipment		251,663		240,614
Construction in progress		94,981		25,734
Land held for future development		55,396		72,697

		2,787,689		2,652,630
Less: accumulated depreciation		(767,017)		(692,514)
For-sale condominiums		54,845		82,259

Total real estate assets		2,075,517		2,042,375
Investments in and advances to unconsolidated real estate entities		7,344		7,671
Cash and cash equivalents		13,084		22,089
Restricted cash		5,126		5,134
Deferred financing costs, net		6,381		5,670
Other assets		31,612		31,840

Total assets	$	2,139,064	$	2,114,779


Liabilities and equity
Indebtedness	$	970,443	$	1,033,249
Accounts payable, accrued expenses and other		72,102		66,977
Investments in unconsolidated real estate entities		15,945		15,384
Dividends and distributions payable		11,692		9,814
Accrued interest payable		5,185		5,841
Security deposits and prepaid rents		9,334		10,027

Total liabilities		1,084,701		1,141,292


Redeembable common units		6,840		6,192


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
7 5/8% Series B Cumulative Redeemable Shares, liquidation preference $25 per share, 0 and 1,983 shares issued and outstanding at December 31, 2011 and 2010, respectively		-		20
Common stock, $.01 par value, 100,000 authorized:
53,002 and 48,926 shares issued and 52,988 and 48,913 shares outstanding at December 31, 2011 and 2010, respectively		530		489
Additional paid-in-capital		1,053,612		965,691
Accumulated earnings		-		4,577
Accumulated other comprehensive income (loss)		(2,633)		-

		1,051,518		970,786
Less common stock in treasury, at cost, 113 and 108 shares at December 31, 2011 and 2010, respectively		(4,000)		(3,696)

Total Company shareholders’ equity		1,047,518		967,090
Noncontrolling interests - consolidated property partnerships		5		205

Total equity		1,047,523		967,295

Total liabilities and equity	$	2,139,064	$	2,114,779

See Notes to Consolidated Financial Statements on page 6

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AND RECONCILIATION OF FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands)

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, as well as acquisition expenses of $137 and the write-off of development pursuit costs of $185 for the three months and year ended December 31, 2011.

2)	A summary of revenues and costs and expenses of condominium activities for the three months and year ended December 31, 2011 and 2010 is as follows:


	Three months ended December 31,				Year ended December 31,
	2011		2010		2011		2010
Residential condominium revenues	$	11,501	$	22,282	$	57,944	$	68,500
Residential condominium costs and expenses		(10,721)		(18,440)		(48,407)		(62,339)

Net gains on sales of residential condominiums		780		3,842		9,537		6,161
Net gain on sale of retail condominium		977		—		977		—

Net gains on sales of condominiums	$	1,757	$	3,842	$	10,514	$	6,161

In the three months and year ended December 31, 2011, the Company sold a retail condominium, representing a portion of the available retail space, at the Austin Condominium Project. The Company did not include this gain in FFO.

The net loss on early extinguishment of indebtedness of $6,919 for the three months and year ended December 31, 2011 relates to the payment of prepayment premiums and the write-off of unamortized deferred loan costs associated with the early extinguishment of $184,683 of secured mortgage indebtedness.

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 December 31, 2011, there were 53,144 units of the Operating Partnership outstanding, of which 52,988, or 99.7%, were owned by the Company.

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

For development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP. For conversion projects sold out in 2010, the Company recognized accounting gains under GAAP to the extent that net sales proceeds from the sale of condominium units exceeded the Company’s net GAAP basis and related expenses. For FFO purposes, the Company recognized incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeded the “transfer price.” The transfer price for purposes of computing incremental gains on condominium sales included in FFO at conversion projects reflected the greater of (1) the estimated fair value on the date the project was acquired by the Company’s taxable REIT subsidiary (as supported by independently-prepared, third-party appraisals) or (2) its net book value at that time.

7)	Excludes approximately $371 and $11,805 for the three months and year ended December 31, 2010, respectively, of periodically recurring capital expenditures related to the Company’s exterior remediation project that was completed in 2010.

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 $70 and $30 for the three months and $996 and $570 for the year ended December 31, 2011 and 2010, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.

Diluted weighted average shares and units include the impact of dilutive securities totaling 359 and 315 for the three months and 388 and 149 for the years ended December 31, 2011 and 2010, respectively. The dilutive securities for the year ended December 31, 2010 were antidilutive to the computation of income (loss) per share, as the Company reported a net loss attributable to common shareholders for this period under GAAP. Additionally, basic and diluted weighted average shares and units included the impact of non-vested shares and units totaling 162 and 211 for the three months and 162 and 206 for the years ended December 31, 2011 and 2010, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income (loss) per share computations under GAAP using the “two-class method.”

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SAME STORE RESULTS

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

Same Store Operating Results

The Company defines fully stabilized or same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by communities sold and classified as held for sale and communities under rehabilitation. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income and Table 4 on page 26 for a year-to-date margin analysis. The operating performance and capital expenditures of the 46 communities containing 16,688 apartment units which were fully stabilized as of January 1, 2010, are summarized in the table below.


	Three months ended December 31,						Year ended December 31,
	2011		2010		% Change		2011		2010		% Change
Revenues:
Rental and other revenue	$	64,852	$	60,383		7.4%	$	253,416	$	240,211		5.5%
Utility reimbursements		2,092		1,951		7.2%		8,438		7,645		10.4%

Total rental and other revenues	$	66,944	$	62,334		7.4%	$	261,854	$	247,856		5.6%


Property operating and maintenance expenses:
Personnel expenses		5,964		5,930		0.6%		24,426		24,452		(0.1)%
Utility expense		3,789		3,741		1.3%		15,864		15,053		5.4%
Real estate taxes and fees		8,400		7,414		13.3%		34,356		33,254		3.3%
Insurance expenses		808		819		(1.3)%		3,490		3,664		(4.7)%
Building and grounds repairs and maintenance (1)		3,620		3,843		(5.8)%		15,751		15,771		(0.1)%
Ground lease expense (2)		234		340		(31.2)%		1,068		2,011		(46.9)%
Other expenses		1,738		1,736		0.1%		7,354		7,479		(1.7)%

Total property operating and maintenance expenses (excluding depreciation and amortization)		24,553		23,823		3.1%		102,309		101,684		0.6%


Same store net operating income	$	42,391	$	38,511		10.1%	$	159,545	$	146,172		9.1%

Same store net operating income margin		63.3%		61.8%		1.5%		60.9%		59.0%		2.0%

Capital expenditures (3)
Annually recurring:
Carpet	$	701	$	662		5.9%	$	3,050	$	2,823		8.0%
Other		2,677		2,731		(2.0)%		11,788		9,327		26.4%

Total annually recurring		3,378		3,393		(0.4)%		14,838		12,150		22.1%
Periodically recurring (4)		2,446		2,162		13.1%		6,509		14,965		(56.5)%

Total capital expenditures (A)	$	5,824	$	5,555		4.8%	$	21,347	$	27,115		(21.3)%

Total capital expenditures per unit (A ÷ 16,688 units)	$	349	$	333		4.8%	$	1,279	$	1,625		(21.3)%

Average monthly rental rate per unit (5)	$	1,307	$	1,235		5.8%	$	1,275	$	1,224		4.2%

Gross turnover (6)		50.7%		48.7%		2.0%		57.2%		52.1%		5.1%

Net turnover (7)		45.5%		43.5%		2.0%		51.5%		46.4%		5.1%

1)	Building and grounds repairs and maintenance includes $21 and $254 for the three months and $537 and $798 for the year ended December 31, 2011 and 2010, respectively, related to exterior painting of communities.

2)	Ground lease expense reflects the cessation of ground lease expenses at the Company’s Pentagon Row™ community, effective October 1, 2010, and at the Company’s Post Renaissance^® community, effective July 1, 2011.

3)	See Table 5 on page 27 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.

Periodically recurring capital expenditures included $371 and $11,805 for the three months and year ended December 31, 2010, respectively, related to the Company’s exterior remediation project that was completed in 2010. Periodically recurring capital expenditures also included $196 and $150 for the three months and $652 and $449 for the year ended December 31, 2011 and 2010, respectively, related to the Company’s “resident design center” program.

5)	Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 2 on page 22 and Table 3 on page 24 for further information.

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

7)	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.

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SAME STORE RESULTS (CON’T)

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

Same Store Operating Results by Market - Comparison of Fourth Quarter of 2011 to Fourth Quarter of 2010

(Increase (decrease) between periods)


	Three months ended December 31, 2011											Year ended December 31, 2011
Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic Occupancy		Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic Occupancy
Atlanta		8.0%			4.7%			10.1%			0.9%		5.9%			1.2%			9.4%			0.6%
Washington, D.C.		4.4%			(6.6)%			9.7%			0.9%		3.9%			(9.1)%			10.9%			0.1%
Dallas		8.6%			7.0%			9.7%			1.7%		6.7%			3.2%			9.6%			1.1%
Tampa		7.0%			9.7%			5.6%			(0.2)%		5.0%			4.3%			5.4%			0.0%
Charlotte		9.7%			(4.6)%			18.0%			0.7%		6.6%			(2.8)%			12.9%			1.2%
New York		3.9%			(5.9)%			11.7%			0.3%		4.2%			3.8%			4.5%			(0.3)%
Houston		9.7%			8.3%			10.7%			2.9%		6.6%			4.3%			8.3%			3.0%
Orlando		6.5%			4.5%			7.7%			(0.2)%		6.3%			2.4%			8.9%			(0.3)%
Austin		13.7%			7.4%			18.2%			3.5%		7.5%			3.3%			10.8%			1.8%

Total		7.4%			3.1%			10.1%			1.0%		5.6%			0.6%			9.1%			0.7%

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

Same Store Occupancy by Market


	Apartment Units		% of NOI Three months ended December 31, 2011										Physical Occupancy at December 31, 2011 (2)		Average Rental Rate Per Unit Three Months Ended December 31, 2011 (3)
					Average Economic				Average Economic
					Occupancy (1)				Occupancy (1)
					Three months ended				Year ended
					December 31,				December 31,
Market					2011		2010		2011		2010
Atlanta		5,407		28.6%		96.4%		95.5%		96.4%		95.8%		95.9%	$	1,155
Washington, D.C.		1,905		18.2%		95.4%		94.5%		95.3%		95.2%		95.1%		1,883
Dallas		3,797		17.8%		95.8%		94.1%		95.1%		94.0%		95.1%		1,103
Tampa		2,111		12.6%		96.4%		96.6%		96.8%		96.8%		96.0%		1,281
Charlotte		1,388		7.4%		95.9%		95.2%		95.8%		94.6%		93.4%		1,091
New York		337		5.0%		95.1%		94.8%		94.5%		94.8%		94.7%		3,749
Houston		837		4.6%		96.9%		94.0%		96.0%		93.0%		95.9%		1,236
Orlando		598		3.9%		96.7%		96.9%		96.9%		97.2%		95.7%		1,405
Austin		308		1.9%		97.8%		94.3%		97.2%		95.4%		97.7%		1,414

Total		16,688		100.0%		96.1%		95.1%		95.9%		95.2%		95.4%	$	1,307

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 95.4% and 94.0% for the three months and 95.1% and 94.0% for the year ended December 31, 2011 and 2010, respectively. For the three months ended December 31, 2011 and 2010, net concessions were $289 and $469, respectively, and employee discounts were $182 and $185, respectively. For the year ended December 31, 2011 and 2010, net concessions were $1,338 and $2,383, respectively, and employee discounts were $732 and $739, respectively.

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

3)	Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 2 on page 22 and Table 3 on page 24 for further information.

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SAME STORE RESULTS (CON’T)

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

Sequential Same Store Operating Results - Comparison of Fourth Quarter of 2011 to Third Quarter of 2011


	Three months ended
	December 31, 2011		September 30, 2011		% Change
Rental and other revenue	$	64,852	$	64,708		0.2%
Utility reimbursements		2,092		2,265		(7.6)%

Total rental and other revenues	$	66,944	$	66,973		(0.0)%


Personnel expenses		5,964		6,202		(3.8)%
Utility expense		3,789		4,454		(14.9)%
Real estate taxes and fees		8,400		8,885		(5.5)%
Insurance expenses		808		857		(5.7)%
Building and grounds repairs and maintenance (1)		3,620		4,289		(15.6)%
Ground lease expense		234		234		0.0%
Other expenses		1,738		1,922		(9.6)%

Total property operating and maintenance expenses (excluding depreciation and amortization)		24,553		26,843		(8.5)%

Same store net operating income (2)	$	42,391	$	40,130		5.6%

Average economic occupancy		96.1%		96.7%		(0.6)%

Average monthly rental rate per unit	$	1,307	$	1,289		1.4%

1)	Building and grounds repairs and maintenance includes $21 and $188 for the three months ended December 31, 2011 and September 30, 2011, respectively, related to exterior painting of communities.

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

Sequential Same Store Operating Results by Market - Comparison of Fourth Quarter of 2011 to Third Quarter of 2011

(Increase (decrease) between periods)


Market	Revenues	(1)	Expenses	(1)	NOI	(1)	Average Economic Occupancy
Atlanta	0.2%		(4.8)%		3.6%		(0.8)%
Washington, D.C.	(1.5)%		(14.1)%		4.8%		(1.0)%
Dallas	(0.8)%		(9.9)%		6.7%		(0.3)%
Tampa	1.1%		(4.9)%		4.8%		(0.3)%
Charlotte	0.5%		(14.4)%		9.5%		(0.9)%
New York	0.1%		(6.9)%		5.5%		(0.5)%
Houston	1.7%		(10.9)%		11.7%		0.6%
Orlando	0.3%		(10.3)%		7.3%		(0.7)%
Austin	1.7%		(8.6)%		9.5%		0.4%

Total	(0.0)%		(8.5)%		5.6%		(0.6)%

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

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DEBT SUMMARY

(In thousands) - (Unaudited)

Summary of Outstanding Debt at December 31, 2011 - Consolidated


			Percentage	Weighted Average Rate (1) December 31,
Type of Indebtedness	Balance		of Total Debt	2011		2010
Unsecured fixed rate senior notes	$	375,775	38.7%		5.5%		5.5%
Secured fixed rate notes		459,668	47.4%		5.6%		5.7%
Unsecured lines of credit		135,000	13.9%		2.6%		-

	$	970,443	100.0%		5.1%		5.6%


	Balance		Percentage of Total Debt	Weighted Average Maturity of Total Debt (2) (3)
Total fixed rate debt	$	835,443	86.1%		4.4
Total variable rate debt		135,000	13.9%		2.1

Total debt	$	970,443	100.0%		4.1

Debt Maturities – Consolidated and Unconsolidated


	Consolidated				Unconsolidated Entities
Aggregate debt maturities by year	Amount			Weighted Avg. Rate on Debt Maturities (1)	Amount		Company Share		Weighted Avg. Rate on Debt Maturities (1)
2012	$	100,104		5.5%	$	-	$	-	-
2013		186,606		6.1%		79,772		27,920	5.8%
2014		138,961	(3)	2.7%		-		-	-
2015		124,205	(9)	4.9%		-		-	-
2016		4,418		5.9%		-		-	-
Thereafter		416,149		5.5%		126,723		31,681	5.7%

	$	970,443		5.1%	$	206,495	$	59,601	5.7%

Debt Statistics


	Year ended December 31,
	2011	2010
Interest coverage ratio (4)(5)	2.8x	2.5x
Interest coverage ratio (including capitalized interest) (4)(5)	2.6x	2.2x

Fixed charge coverage ratio (4)(6)	2.6x	2.2x
Fixed charge coverage ratio (including capitalized interest) (4)(6)	2.5x	2.0x

Total debt to annualized income available for debt service ratio (7)	6.2x	7.5x

Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)	35.2%	38.8%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)	36.7%	42.1%

1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at December 31, 2010 are based on the debt outstanding at that date.

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

3)	Includes $135,000 outstanding on unsecured lines of credit maturing in 2014. In January 2012, the lines of credit were refinanced and the maturity date was extended to 2016.

4)	Calculated for the year ended December 31, 2011 and 2010.

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 (loss) and interest expense to consolidated interest expense is included in Table 7 on page 28.

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 (loss) and fixed charges to consolidated interest expense plus dividends to preferred shareholders is included in Table 7 on page 28.

7)	A computation of this ratio is included in Table 7 on page 28.

8)	A computation of the debt ratios is included in Table 6 on page 27.

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

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Financial Debt Covenants - Senior Unsecured Public Notes


Covenant requirement (1)		As of December 31, 2011

Consolidated Debt to Total Assets cannot exceed 60%		34%
Secured Debt to Total Assets cannot exceed 40%		16%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		4.5x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		2.8x

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


Ratio of Consolidated Debt to Total Assets
	As of December 31, 2011
Consolidated debt, per balance sheet (A)	$	970,443

Total assets, as defined (B) (Table A)	$	2,890,425

Computed ratio (A÷B)		34%

Required ratio (cannot exceed)		60%


Ratio of Secured Debt to Total Assets

Total secured debt (C)	$	459,668

Computed ratio (C÷B)		16%

Required ratio (cannot exceed)		40%


Ratio of Total Unencumbered Assets to Unsecured Debt

Consolidated debt, per balance sheet (A)	$	970,443

Total secured debt (C)		(459,668)

Total unsecured debt (D)	$	510,775

Total unencumbered assets, as defined (E) (Table A)	$	2,278,224

Computed ratio (E÷D)		4.5x

Required minimum ratio		1.5x


Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge

Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	166,125

Annual Debt Service Charge, as defined (G) (Table B)	$	60,256

Computed ratio (F÷G)		2.8x

Required minimum ratio		1.5x

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Table A

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


	As of December 31, 2011
Total real estate assets	$	2,075,517
Add:
Investments in and advances to unconsolidated real estate entities		7,344
Accumulated depreciation		767,017
Other tangible assets		40,547

Total assets for public debt covenant computations		2,890,425
Less:
Encumbered real estate assets		(604,857)
Investments in and advances to unconsolidated real estate entities		(7,344)

Total unencumbered assets for public debt covenant computations	$	2,278,224

Table B

Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge


Consolidated income available for debt service	Year ended December 31, 2011
Net income	$	25,595
Add:
Depreciation		75,263
Depreciation (company share) of assets held in unconsolidated entities		1,447
Amortization of deferred financing costs		2,797
Interest expense		56,791
Interest expense (company share) of assets held in unconsolidated entities		3,465
Income tax expense, net		209
Other non-cash (income) expense, net		4,153
Net loss on early extinguishment of indebtedness		6,919
Less:
Gains on sales of real estate assets, net		(10,514)

Consolidated income available for debt service	$	166,125


Annual debt service charge
Consolidated interest expense	$	56,791
Interest expense (company share) of assets held in unconsolidated entities		3,465

Debt service charge	$	60,256

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SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENT,

LAND HELD FOR FUTURE INVESTMENT AND ACQUISITION ACTIVITY

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

Communities Under Development


Community	Location	Number of Units		Retail Sq. Ft. (1)		Estimated Total Cost		Costs Incurred as of 12/31/2011		Quarter of First Units Available	Estimated Quarter of Stabilized Occupancy (2)
Post Carlyle Square™ - Phase II	Wash. DC		344		-	$	95.0	$	53.2	2Q 2012	4Q 2013
Post South Lamar™	Austin, TX		298		8,555		41.7		14.7	3Q 2012	4Q 2013
Post Midtown Square^® - Phase III	Houston, TX		124		10,864		21.8		7.1	3Q 2012	4Q 2013
Post Lake^® at Baldwin Park - Phase III	Orlando, FL		410		-		58.6		13.0	1Q 2013	3Q 2014
Post Parkside™ at Wade - Phase I	Raleigh, NC		392		18,148		55.0		7.0	1Q 2013	3Q 2014

Total			1,568		37,567	$	272.1	$	95.0

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

2)	The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy on the first day of any month or (ii) one year after completion of construction.

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.


Project	Metro Area		Carrying Value At December 31, 2011 (in thousands)		Estimated Usable Acreage
Alexander		Atlanta, GA	$	6,652		2.5
Centennial Park		Atlanta, GA		18,858		5.6
Millennium		Atlanta, GA		2,775		1.0
Spring Hill		Atlanta, GA		2,023		9.1
Frisco Bridges II		Dallas, TX		5,480		5.4
Richmond		Houston, TX		4,420		2.1
Wade		Raleigh, NC		10,020		26.6
Soho Square		Tampa, FL		5,168		4.1

Total Land Held for Future Investment			$	55,396		56.4

Acquisition Activity

Property Name

Quarter Acquired

Units

Retail Sq. Ft.

Year Completed

Gross Price

(in thousands)

Cap Rate (1)

Post Katy Trail™

Q4 2011

227

9,080

2010

$ 48,500

5.0%

Dallas, TX

1)	Based on projected first twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit). Also assumes the Company will initially spend approximately $0.5 million relating to closing costs and other amounts it plans to spend to improve the community.

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SUMMARY OF CONDOMINIUM PROJECTS

(In thousands, except unit and square foot data) - (Unaudited)


	The Ritz-Carlton Residences, Atlanta Buckhead				Four Seasons Private Residences, Austin

*Project Data*
Location		Atlanta, GA				Austin, TX
Ownership interest		100%				100%
Residential square footage		245,539				292,741
Average unit square footage (1)		1,903				1,978
Quarter of first units available		3Q10				2Q10

Units as of 2/2/12 (2)
Closed		30				89
Under contract		11				4
Available for sale		88				55

Total		129				148


*Quarterly Data*			Per Sq. Ft.				Per Sq. Ft.
Balance Sheet/Cost Data as of 12/31/11
Condominium book value	$	19,306			$	35,539
Condominium estimated cost to complete	$	1,564			$	1,292
Estimated book value at completion	$	20,870	$	112	$	36,831	$	284
Projected total cost (before impairment losses)	$	112,000	$	456	$	138,500	$	473

Units Closed as of 12/31/11
Quarter		9				5
Year to date		25				33
Project to date		29				86

Square Footage of Units Closed as of 12/31/11 (1)
Quarter		19,676				5,938
Year to date		49,795				61,053
Project to date		58,482				163,273

Gross Revenue as of 12/31/11
Quarter	$	8,299	$	422	$	3,202	$	539
Year to date	$	20,203	$	406	$	37,741	$	618
Project to date	$	23,710	$	405	$	100,481	$	615

Cash flow from sales as of 12/31/11 (3)
Quarter	$	4,987	$	253	$	1,892	$	319
Year to date	$	11,074	$	222	$	28,745	$	471
Project to date	$	13,168	$	225	$	79,885	$	489

1)	Average square footage information is based on approximate amounts, and individual unit sizes may vary.

Units “under contract” includes all units currently under contract. However, the Company has experienced contract terminations in these and other condominium projects when units become available for delivery and may experience additional terminations in connection with existing projects. Accordingly, there can be no assurance that condominium units under contract will close.

3)	Amounts represent approximate cash flows from condominium activities beginning in the period of initial closings for each community.

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CAPITALIZED COSTS SUMMARY

(In thousands) - (Unaudited)

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

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

A summary of community acquisition and development improvements and other capitalized expenditures for the three months and year ended December 31, 2011 and 2010 is provided below.


	Three months ended December 31,				Year ended December 31,
	2011		2010		2011		2010
New community development and acquisition activity (1)	$	73,301	$	18,726	$	129,015	$	56,971
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		813		395		2,067		665
Other community additions and improvements (3) (6)		3,009		2,608		8,452		16,400
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		3,626		3,643		15,604		12,672
Corporate additions and improvements		70		30		996		570

	$	80,819	$	25,402	$	156,134	$	87,278


Other Data
Capitalized interest	$	1,108	$	535	$	3,000	$	6,927

Capitalized development and associated costs (5)	$	879	$	261	$	2,854	$	719

1)	Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years. Acquisition activity for the three months and year ended December 31, 2011 totaled $48,500.

2)	Represents expenditures for community rehabilitations and other unit upgrade costs that enhance the rental value of such units.

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

4)	Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis.

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

6)	Periodically recurring expenditures includes $371 and $11,805 for the three months and year ended December 31, 2010, respectively, related to the Company’s exterior remediation project that was completed in 2010.

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INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

(In thousands) - (Unaudited)

The Company holds investments in limited liability companies (the “Property LLCs”) with institutional investors and accounts for its investments in these Property LLCs using the equity method of accounting. A summary of non-financial and financial information for the Property LLCs is provided below.


Non-Financial Data
Joint Venture Property	Location	Property Type	# of Units	Ownership Interest
Post Collier Hills^® (1)	Atlanta, GA	Apartments	396	25%
Post Crest^® (1)	Atlanta, GA	Apartments	410	25%
Post Lindbergh^® (1)	Atlanta, GA	Apartments	396	25%
Post Biltmore™ (8)	Atlanta, GA	Apartments	276	35%
Post Massachusetts Avenue™	Washington, D.C.	Apartments	269	35%


Financial Data
	As of December 31, 2011										Three months ended December 31, 2011							Year ended December 31, 2011
Joint Venture Property	Gross Investment in Real Estate (7)		Mortgage Notes Payable			Entity Equity		Company’s Equity Investment			Entity NOI		Company's Equity in Income (Loss)		Mgmt. Fees & Other			Entity NOI		Company's Equity in Income (Loss)		Mgmt. Fees & Other
Post Collier Hills^® (1)	$	54,970	$	39,565	(2)	$	9,886	$	(4,564)	(1)	$	659	$	(10)				$	2,559	$	(57)
Post Crest^® (1)		64,319		46,158	(2)		11,452		(6,934)	(1)		772		(8)					3,029		(42)
Post Lindbergh^® (1)		60,628		41,000	(3)		14,498		(4,447)	(1)		706		(12)					2,780		(55)
Post Biltmore™ (8)		37,288		29,272	(4)		570		1,895			654		3					2,538		(9)
Post Massachusetts Avenue™		70,307		50,500	(5)		7,177		5,449			1,749		238					7,059		1,164

Total	$	287,512	$	206,495		$	43,583	$	(8,601)		$	4,540	$	211	$	219	(6)	$	17,965	$	1,001	$	865	(6)

The Company’s investment in the 25% owned Property LLC resulted from the transfer of three previously owned apartment communities to the Property LLC co-owned with an institutional investor. The assets, liabilities and members’ equity of the Property LLC were recorded at fair value based on agreed-upon amounts contributed to the venture. The credit investments in the Company’s 25% owned Property LLC resulted from financing proceeds distributed in excess of the Company’s historical cost-basis investment. These credit investments are reflected in consolidated liabilities on the Company’s consolidated balance sheet.

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

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

4)	This note bears interest at a fixed rate of 5.83%, requires monthly interest only payments and matures in September 2013. The note is prepayable without penalty.

This note bears interest at a fixed rate of 5.82%, requires monthly interest only payments and matures in September 2013. On January 31, 2012, the Property LLC refinanced this loan with a new $51,000 secured mortgage note bearing interest at 3.5%, requiring monthly interest only payments and that matures in February 2019. The note is prepayable without penalty beginning in February 2017.

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

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

In accordance with the special sales rights provisions of the applicable operating agreement, the entity that owns this asset initiated a marketing process in the fourth quarter of 2011 that could result in the sale of the apartment community. There can be no assurance that the process will result in the sale of the community.

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NET ASSET VALUE SUPPLEMENTAL INFORMATION (1)

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

Financial Data


Income Statement Data	Three months ended December 31, 2011		Adjustments			As Adjusted (3)
Rental revenues	$	73,319	$	(120)	(2)	$	73,199
Other property revenues		4,198		56	(2)		4,254

Total rental and other revenues (A)		77,517		(64)			77,453
Property operating & maintenance expenses
(excluding depreciation and amortization) (B)		31,969		(3,758)	(2)		28,211

Property net operating income (Table 1) (A-B)	$	45,548	$	3,694		$	49,242


Assumed property management fee
(calculated at 3% of revenues) (A x 3%)							(2,324)
Assumed property capital expenditure reserve
($300 per unit per year based on 18,563 units)							(1,392)

Adjusted property net operating income						$	45,526

Annualized property net operating income (C)						$	182,104


Apartment units represented (D)		21,658		(3,095)	(2)		18,563


Other Asset Data	As of December 31, 2011		Adjustments			As Adjusted
Cash & equivalents	$	13,084	$	-		$	13,084
Real estate assets acquired, at cost		-		48,500(10)			48,500
Real estate assets under construction, at cost (4)		94,981		-			94,981
Land held for future investment		55,396		-			55,396
For-sale condominiums		54,845		-			54,845
Investments in and advances to unconsolidated real estate entities (5)		7,344		(7,344)	(5)		-
Restricted cash and other assets		36,738		(821)	(10)		35,917
Cash & other assets of unconsolidated apartment entities (6)		6,526		(4,506)	(6)		2,020

Total (E)	$	268,914	$	35,829		$	304,743


Other Liability Data
Indebtedness (7)	$	970,443	$	(11,046)	(7)	$	959,397
Investments in unconsolidated real estate entities (5)		15,945		(15,945)	(5)		-
Other liabilities (including noncontrolling interests) (8)		98,313		(7,285)	(8)		91,028
Total liabilities of unconsolidated apartment entities (9)		209,232		(148,817)	(9)		60,415

Total (F)	$	1,293,933	$	(183,093)		$	1,110,840

Other Data


	As of December 31, 2011
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (G)					$	43,392


Common shares outstanding		52,988
Common units outstanding		156

Total (H)		53,144	$	43.72	$	2,323,456

Implied market value of Company gross real estate assets (I) = (F+G+H-E)					$	3,172,945


Implied Portfolio Capitalization Rate (C÷I)						5.7	%

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

The Company presents NOI for the quarter ended December 31, 2011 for properties stabilized as of October 1, 2011 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of October 1, 2011 are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.

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2)	The following table summarizes the adjustments made to the components of property net operating income for the three months ended December 31, 2011 to adjust property net operating income to the Company’s share for fully stabilized communities:


	Rental Revenue		Other Revenue		Expenses		Units
Communities acquired	$	(130)	$	-	$	(52)		(227)
Communities under construction		-		-		-		(1,568)
Company share of unconsolidated entities		2,094		144		760		(1,256)
Minority share of consolidated real estate entity		(510)		(2)		(231)		(44)
Corporate property management expenses		-		-		(2,736)		-
Corporate apartments and other		(1,574)		(86)		(1,499)		-

	$	(120)	$	56	$	(3,758)		(3,095)

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 December 31, 2011:


	Rental and Other Revenues		Property Operating & Maintenace Expenses (ex. Deprec. and Amort.)		Property Net Operating Income (NOI)		Percentage of Total NOI		Apartment Units / Commercial Sq. Ft.
Atlanta	$	21,044	$	7,969	$	13,075		26.5%		5,804
Washington DC		13,571		4,060		9,511		19.3%		2,395
Dallas		15,018		6,061		8,957		18.2%		4,500
Tampa		8,314		2,998		5,316		10.7%		2,111
Charlotte		4,618		1,481		3,137		6.4%		1,388
New York		3,073		1,223		1,850		3.8%		293
Houston		3,189		1,237		1,952		4.0%		837
Orlando		2,592		923		1,669		3.4%		598
Austin		2,630		1,022		1,608		3.3%		637
Commercial		3,404		1,237		2,167		4.4%		-

Total	$	77,453	$	28,211	$	49,242		100.0%		18,563


Approximate commercial Sq. Ft.										700,000

4)	The “As Adjusted” amount represents the CIP balance per the Company’s balance sheet consisting of the following:


Post Carlyle Square™ - Phase II	$ 53,175
Post South Lamar™		14,732
Post Midtown Square^® - Phase III		7,059
Post Parkside™ at Wade		6,997
Post Lake^® at Baldwin Park - Phase III		13,018

	$	94,981

5)	The adjustment reflects a reduction for the investments in unconsolidated entities for entities with operating real estate assets, as the Company’s respective share of net operating income of such investments is included in the adjusted net operating income reflected above.

The “As of December 31, 2011” amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment entities.

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

The “As of December 31, 2011” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses and security deposits and prepaid rents as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense of $7,336, offset by the addition of noncontrolling interests of consolidated real estate entities of $51.

The “As of December 31, 2011” amount represents total liabilities of unconsolidated apartment entities. The adjustments represent a reduction for the venture partners’ respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.

10)	The adjustment represents the undepreciated real estate assets for Post Katy Trail™ acquired during the fourth quarter of 2011 and which was excluded from adjusted net operating income reflected above. Certain assets acquired totaling $821 were reflected in other assets under GAAP.

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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 accompanying Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

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

Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance. In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income (loss) available to common shareholders” is the most directly comparable GAAP measure to FFO.

Adjusted Funds From Operations - The Company also uses adjusted funds from operations (“AFFO”) as an operating measure. AFFO is defined as FFO less operating capital expenditures after adjusting for the impact of non-cash straight-line long-term ground lease expense, non-cash impairment charges, debt extinguishment gains (losses) and preferred stock redemption costs. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund operating capital expenditures through earnings. In addition, since most equity REITs provide AFFO information to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income (loss) available to common shareholders” is the most directly comparable GAAP measure to AFFO.

Property Net Operating Income - The Company uses property NOI, including same store NOI and same store NOI by market, as an operating measure. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store groupings and individual properties. Additionally, the Company believes that NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income (loss)” is the most directly comparable GAAP measure to NOI.

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

Debt Statistics and Debt Ratios - The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.

The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should 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.

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

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RECONCILIATIONS OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES

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

(In thousands) - (Unaudited)


	Three months ended						Year ended
	December 31, 2011		December 31, 2010		September 30, 2011		December 31, 2011		December 31, 2010
Total same store NOI	$	42,391	$	38,511	$	40,130	$	159,545	$	146,172
Property NOI from other operating segments		3,157		2,526		3,621		12,443		6,593

Consolidated property NOI		45,548		41,037		43,751		171,988		152,765

Add (subtract):
Interest income		39		86		374		1,021		841
Other revenues		232		218		243		918		995
Depreciation		(18,880)		(18,760)		(18,823)		(75,263)		(74,497)
Interest expense		(13,672)		(15,793)		(14,207)		(56,791)		(54,613)
Amortization of deferred financing costs		(712)		(890)		(717)		(2,797)		(2,987)
General and administrative		(3,768)		(3,873)		(3,970)		(16,100)		(16,443)
Investment and development		(148)		(566)		(239)		(1,161)		(2,415)
Other investment costs		(157)		(589)		(329)		(1,435)		(2,417)
Impairment losses		-		-		-		-		(35,091)
Gains on condominium sales activities, net		1,757		3,842		2,581		10,514		6,161
Equity in income of unconsolidated real estate entities, net		211		185		235		1,001		18,739
Other income (expense), net		389		(603)		(71)		619		(874)
Net gain (loss) on extinguishment of indebtedness		(6,919)		-		-		(6,919)		2,845

Net income (loss)	$	3,920	$	4,294	$	8,828	$	25,595	$	(6,991)

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

(In thousands, except average rental rates)


	Three months ended						Q4 ‘11 vs. Q4 ‘10 % Change		Q4 ‘11 vs. Q3 ‘11 % Change		Q4 ‘11 % Same Store NOI
	December 31, 2011		December 31, 2010		September 30, 2011		Q4 ‘11 vs. Q4 ‘10 % Change		Q4 ‘11 vs. Q3 ‘11 % Change		Q4 ‘11 % Same Store NOI
Rental and other revenues
Atlanta	$	19,688	$	18,236	$	19,655		8.0%		0.2%
Washington, D.C.		10,867		10,408		11,033		4.4%		(1.5)%
Dallas		12,748		11,739		12,845		8.6%		(0.8)%
Tampa		8,314		7,768		8,226		7.0%		1.1%
Charlotte		4,618		4,211		4,594		9.7%		0.5%
New York		3,585		3,452		3,580		3.9%		0.1%
Houston		3,189		2,906		3,135		9.7%		1.7%
Orlando		2,592		2,433		2,584		6.5%		0.3%
Austin		1,343		1,181		1,321		13.7%		1.7%

Total rental and other revenues		66,944		62,334		66,973		7.4%		(0.0)%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		7,579		7,240		7,963		4.7%		(4.8)%
Washington, D.C.		3,161		3,383		3,681		(6.6)%		(14.1)%
Dallas		5,196		4,856		5,765		7.0%		(9.9)%
Tampa		2,998		2,734		3,153		9.7%		(4.9)%
Charlotte		1,481		1,552		1,730		(4.6)%		(14.4)%
New York		1,454		1,545		1,561		(5.9)%		(6.9)%
Houston		1,237		1,142		1,388		8.3%		(10.9)%
Orlando		923		883		1,029		4.5%		(10.3)%
Austin		524		488		573		7.4%		(8.6)%

Total		24,553		23,823		26,843		3.1%		(8.5)%

Net operating income
Atlanta		12,109		10,996		11,692		10.1%		3.6%		28.6%
Washington, D.C.		7,706		7,025		7,352		9.7%		4.8%		18.2%
Dallas		7,552		6,883		7,080		9.7%		6.7%		17.8%
Tampa		5,316		5,034		5,073		5.6%		4.8%		12.6%
Charlotte		3,137		2,659		2,864		18.0%		9.5%		7.4%
New York		2,131		1,907		2,019		11.7%		5.5%		5.0%
Houston		1,952		1,764		1,747		10.7%		11.7%		4.6%
Orlando		1,669		1,550		1,555		7.7%		7.3%		3.9%
Austin		819		693		748		18.2%		9.5%		1.9%

Total same store NOI	$	42,391	$	38,511	$	40,130		10.1%		5.6%		100.0%

Average rental rate per unit
Atlanta	$	1,155	$	1,085	$	1,139		6.5%		1.4%
Washington, D.C.		1,883		1,826		1,876		3.1%		0.4%
Dallas		1,103		1,035		1,083		6.6%		1.8%
Tampa		1,281		1,197		1,260		7.0%		1.7%
Charlotte		1,091		1,008		1,071		8.2%		1.9%
New York		3,749		3,660		3,715		2.4%		0.9%
Houston		1,236		1,172		1,218		5.5%		1.4%
Orlando		1,405		1,322		1,383		6.3%		1.6%
Austin		1,414		1,294		1,375		9.3%		2.8%
Total average rental rate per unit		1,307		1,235		1,289		5.8%		1.4%

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

(In thousands, except average rental rates)


	Year ended
	December 31, 2011		December 31, 2010		% Change
Rental and other revenues
Atlanta	$	76,782	$	72,479		5.9%
Washington, D.C.		43,013		41,406		3.9%
Dallas		49,905		46,765		6.7%
Tampa		32,514		30,965		5.0%
Charlotte		17,919		16,816		6.6%
New York		14,098		13,525		4.2%
Houston		12,306		11,546		6.6%
Orlando		10,167		9,565		6.3%
Austin		5,150		4,789		7.5%

Total rental and other revenues		261,854		247,856		5.6%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		31,259		30,880		1.2%
Washington, D.C.		13,239		14,566		(9.1)%
Dallas		21,660		20,998		3.2%
Tampa		12,202		11,701		4.3%
Charlotte		6,549		6,741		(2.8)%
New York		6,086		5,861		3.8%
Houston		5,213		4,996		4.3%
Orlando		3,935		3,844		2.4%
Austin		2,166		2,097		3.3%

Total		102,309		101,684		0.6%


Net operating income
Atlanta		45,523		41,599		9.4%
Washington, D.C.		29,774		26,840		10.9%
Dallas		28,245		25,767		9.6%
Tampa		20,312		19,264		5.4%
Charlotte		11,370		10,075		12.9%
New York		8,012		7,664		4.5%
Houston		7,093		6,550		8.3%
Orlando		6,232		5,721		8.9%
Austin		2,984		2,692		10.8%

Total same store NOI	$	159,545	$	146,172		9.1%


Average rental rate per unit
Atlanta	$	1,124	$	1,074		4.7%
Washington, D.C.		1,860		1,800		3.3%
Dallas		1,072		1,029		4.2%
Tampa		1,243		1,184		5.0%
Charlotte		1,055		1,011		4.4%
New York		3,705		3,617		2.4%
Houston		1,205		1,181		2.0%
Orlando		1,370		1,298		5.5%
Austin		1,353		1,284		5.4%
Total average rental rate per unit		1,275		1,224		4.2%

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Table 3 - Operating Community Table


Market / Submarket / Community	Year Completed/ Year of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Q4 2011 Avg. Monthly Rent				Q4 2011 Average Economic Occ.
Market / Submarket / Community	Year Completed/ Year of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Per Unit		Per Sq. Ft.		Q4 2011 Average Economic Occ.
Atlanta
Buckhead / Brookhaven
Post Alexander™	2008		307		1,016	$	1,567	$	1.54		95.4%
Post Brookhaven^®	1990-1992		735		933		975		1.05		96.1%
Post Chastain^®	1990/2008		558		866		1,107		1.28		95.4%
Post Collier Hills^® (1)(2)	1997		396		948		1,020		1.08		96.6%
Post Gardens^®	1998		397		1,039		1,179		1.13		95.8%
Post Glen^® (2)	1997		314		1,076		1,151		1.07		96.5%
Post Lindbergh^® (1)(2)	1998		396		910		1,061		1.17		96.3%
Post Peachtree Hills^®	1992-1994/2009		300		978		1,216		1.24		96.6%
Post Stratford^TM	2000		250		999		1,160		1.16		97.2%

Dunwoody
Post Crossing^® (2)	1995		354		1,036		1,058		1.02		97.9%

Emory Area
Post Briarcliff^TM (2)	1999		688		1,006		1,129		1.12		97.4%

Midtown
Post Biltmore^TM (1)(2)	2002		276		766		1,234		1.61		97.1%
Post Parkside^TM (2)	2000		188		885		1,337		1.51		98.3%
Post Renaissance^®	1992-1994		342		908		1,024		1.13		97.6%

Northwest Atlanta
Post Crest^® (1)(2)	1996		410		1,033		1,005		0.97		95.5%
Post Riverside^®	1998		522		1,062		1,421		1.34		96.2%
Post Spring^TM (2)	2000		452		977		1,003		1.03		94.9%

Dallas
North Dallas
Post Addison Circle^TM (2)	1998-2000		1,334		846		991		1.17		94.2%
Post Eastside^TM	2008		435		910		1,082		1.19		94.4%
Post Legacy (2)	2000		384		810		980		1.21		97.3%
Post Sierra at Frisco Bridges™	2009		268		896		1,060		1.18		95.5%

Uptown Dallas
Post Abbey^TM	1996		34		1,223		1,783		1.46		94.5%
Post Cole’s Corner^TM	1998		186		799		1,084		1.36		96.6%
Post Gallery^TM	1999		34		2,307		2,739		1.19		93.6%
Post Heights^TM	1998-1999/2009		368		845		1,239		1.47		97.0%
Post Katy Trail™ (4)	2010		227		898		N/A		N/A		N/A
Post Meridian^TM	1991		133		780		1,206		1.55		96.2%
Post Square^TM	1996		218		863		1,209		1.40		95.0%
Post Uptown Village^TM	1995-2000		496		735		1,015		1.38		96.6%
Post Vineyard^TM	1996		116		733		1,070		1.46		97.9%
Post Vintage^TM	1993		160		750		1,094		1.46		98.3%
Post Worthington^TM(2)	1993/2008		334		820		1,353		1.65		95.9%

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Table 3 (con’t) - Operating Community Table


Market / Submarket / Community	Year Completed/ Year of Substantial Renovations	No. of Units		Avg. Unit Size (Sq.2 Ft.)		Q4 2011 Avg. Monthly Rent				Q4 2011 Average Economic Occ.
						Per Unit		Per Sq. Ft.
						Per Unit		Per Sq. Ft.
Austin
Post Barton Creek™	1998		160		1,162	$	1,539	$	1.32		97.7	%
Post Park Mesa™	1992		148		1,091		1,279		1.17		97.9	%
Post West Austin™	2009		329		889		1,341		1.51		94.4	%
Houston
Post Midtown Square^®	1999-2000		529		759		1,145		1.51		96.7	%
Post Rice Lofts^TM	1998		308		906		1,393		1.54		97.3	%
Tampa
Post Bay at Rocky Point™	1997		150		1,012		1,309		1.29		98.2	%
Post Harbour Place^TM	1999-2002		578		920		1,397		1.52		98.4	%
Post Hyde Park^® (2)	1996-2008		467		1,011		1,359		1.34		96.9	%
Post Rocky Point^® (2)	1996-1998		916		1,031		1,163		1.13		94.2	%
Orlando
Post Lake^® at Baldwin Park	2004-2007		350		1,013		1,442		1.42		96.4	%
Post Parkside^TM	1999		248		852		1,352		1.59		97.2	%
Charlotte
Post Ballantyne (2)	2004		323		1,252		1,059		0.85		95.5	%
Post Gateway Place^TM(2)	2000		436		806		1,017		1.26		94.1	%
Post Park at Phillips Place^®	1998		402		1,099		1,230		1.12		96.9	%
Post Uptown Place^TM	2000		227		800		1,032		1.29		98.1	%
Washington D.C.
Maryland
Post Fallsgrove	2003		361		983		1,665		1.69		96.4	%
Post Park^®	2010		396		975		1,587		1.63		90.6	%
Virginia
Post Carlyle Square™	2006		205		861		2,412		2.80		95.6	%
Post Corners at Trinity Centre (2)	1996		336		994		1,545		1.55		95.8	%
Post Pentagon Row ^TM	2001		504		853		2,254		2.64		94.9	%
Post Tysons Corner ^TM	1990		499		810		1,675		2.07		95.2	%
Washington D.C.
Post Massachusetts Avenue ^TM (1)(2)	2002		269		884		2,996		3.39		95.2	%
New York City
Post Luminaria ^TM (2)(3)	2002		138		721		3,739		5.19		95.5	%
Post Toscana ^TM (2)	2003		199		817		3,755		4.60		94.8	%

1)	Communities held in unconsolidated entities.

2)	Communities encumbered by secured mortgage indebtedness.

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

4)	Community acquired in December 2011.

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Table 4 - Year-to-Date Margin Analysis

(In thousands)


	Year ended December 31, 2011
	Rental and Other Property Revenues		Property Operating & Maintenance Expenses		Net Operating Income (“NOI”)		NOI Margin	Expense Margin
Same store	$	261,854	$	102,309	$	159,545	60.9%	39.1%
Partially stabilized (1)		20,522		8,567		11,955	58.3%	41.7%
Acquired		117		47		70	59.8%	40.2%
Other property segments:
Corporate apartments		7,068		5,823		1,245	17.6%	82.4%
Commercial		14,837		5,006		9,831	66.3%	33.7%
Corporate property management expenses (2)		—		10,658		(10,658)

	$	304,398	$	132,410

Consolidated property NOI (3)					$	171,988

Third-party management fees					$	865

1)	Partially stabilized communities for 2011 include Post Eastside™, Post West Austin™, Post Park^® and Post Sierra at Frisco Bridges™. These properties will be included in the same store pool starting in 2012.

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


Numerator:
Corporate property management expenses	$	10,658
Less: Third-party management fees		(865)

Net property management expenses	$	9,793

Denominator:
Total rental and other property revenues	$	304,398
Less: Corporate apartment revenues	(7,068)

Adjusted property revenues	$	297,330

Net property management expenses as a percentage of adjusted property revenues		3.3%

3)	Consolidated property net operating income (“NOI”) is a non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of consolidated property NOI to GAAP net income (loss).

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

(In thousands)


	Three months ended December 31,				Year ended December 31,
	2011		2010		2011		2010
Annually recurring capital expenditures by operating segment
Fully stabilized	$	3,378	$	3,393	$	14,838	$	12,150
Communities stabilized during 2010		139		150		317		236
Other segments		109		100		449		286

Total annually recurring capital expenditures	$	3,626	$	3,643	$	15,604	$	12,672


Periodically recurring capital expenditures by operating segment
Fully stabilized	$	2,446	$	2,162	$	6,509	$	14,965
Communities stabilized during 2010		190		13		386		61
Other segments		373		433		1,557		1,374

Total periodically recurring capital expenditures (1)	$	3,009	$	2,608	$	8,452	$	16,400


Total revenue generating capital expenditures	$	813	$	395	$	2,067	$	665


Total property capital expenditures per statements of cash flows	$	7,448	$	6,646	$	26,123	$	29,737

1)	Includes approximately $371 and $11,805 for the three months and year ended December 31, 2010, respectively, of periodically recurring capital expenditures related to the Company’s exterior remediation project that was completed in 2010.

Table 6 - Computation of Debt Ratios

(In thousands)


	As of December 31,
	2011		2010

Total real estate assets per balance sheet	$	2,075,517	$	2,042,375
Plus:
Company share of real estate assets held in unconsolidated entities		70,065		71,306
Company share of accumulated depreciation - assets held in unconsolidated entities		12,573		10,908
Accumulated depreciation per balance sheet		767,017		692,514

Total undepreciated real estate assets (A)	$	2,925,172	$	2,817,103


Total debt per balance sheet	$	970,443	$	1,033,249
Plus:
Company share of third party debt held in unconsolidated entities		59,601		59,601

Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,030,044	$	1,092,850


Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		35.2%		38.8%


Total debt per balance sheet	$	970,443	$	1,033,249
Plus:
Company share of third party debt held in unconsolidated entities		59,601		59,601
Preferred shares at liquidation value		43,392		92,963

Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,073,436	$	1,185,813


Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		36.7%		42.1%

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Table 7 - Computation of Coverage Ratios

(In thousands)


	Year ended December 31,
	2011		2010
Net income (loss)	$	25,595	$	(6,991)
Other non-cash (income) expense, net		4,153		5,948
Income tax expense, net		209		829
Gains on sales of real estate assets, net		(10,514)		(6,161)
Depreciation expense		75,263		74,497
Depreciation (company share) of assets held in unconsolidated entities		1,447		1,422
Interest expense		56,791		54,613
Interest expense (company share) of assets held in unconsolidated entities		3,465		3,465
Amortization of deferred financing costs		2,797		2,987
Net gain on early extinguishment of indebtedness - unconsolidated entity		-		(23,596)
Net (gain) loss on early extinguishment of indebtedness - consolidated entities		6,919		(2,845)
Non-cash impairment charge - unconsolidated entity		-		5,492
Non-cash impairment charge - consolidated entities		-		35,091

Income available for debt service (A)	$	166,125	$	144,751


Interest expense	$	56,791	$	54,613
Interest expense (company share) of assets held in unconsolidated entities		3,465		3,465

Adjusted interest expense (C)		60,256		58,078
Capitalized interest		3,000		6,927

Adjusted interest expense (including capitalized interest) (D)	$	63,256	$	65,005


Adjusted interest expense	$	60,256	$	58,078
Dividends to preferred shareholders		4,455		7,503

Fixed charges (E)		64,711		65,581
Capitalized interest		3,000		6,927

Fixed charges (including capitalized interest) (F)	$	67,711	$	72,508


Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G)	$	1,030,044	$	1,092,850


Interest coverage ratio (A÷C)		2.8x		2.5x

Interest coverage ratio (including capitalized interest) (A÷D)		2.6x		2.2x

Fixed charge coverage ratio (A÷E)		2.6x		2.2x

Fixed charge coverage ratio (including capitalized interest) (A÷F)		2.5x		2.0x

Total debt to income available for debt service ratio (G÷A)		6.2x		7.5x

Table 8 - Calculation of Company Undepreciated Book Value Per Share

(In thousands, except per share data)


	December 31, 2011

Total Company shareholders’ equity per balance sheet	$	1,047,518
Plus:
Accumulated depreciation, per balance sheet		767,017
Noncontrolling interest of common unitholders in Operating Partnership, per balance sheet		6,840
Less:
Deferred financing costs, net, per balance sheet		(6,381)
Preferred shares at liquidation value		(43,392)

Total undepreciated book value (A)	$	1,771,602


Total common shares and units (B)		53,144


Company undepreciated book value per share (A÷B)	$	33.34

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