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

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8-K - FORM 8-K - POST PROPERTIES INC	d63860d8k.htm
EX-99.1 - EXHIBIT 99.1 - POST PROPERTIES INC	d63860dex991.htm

Exhibit 99.2

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Third Quarter 2015

Supplemental Financial Data

Table of Contents


	Page

Consolidated Statements of Operations		3

Funds from Operations and Adjusted Funds From Operations		4

Consolidated Balance Sheets		5

Same Store Results		8

Debt Summary		11

Summary of Apartment Communities Under Development, Land Held for Future Investment and Acquisitions/Disposition Activity		14

Capitalized Costs Summary		15

Investments in Unconsolidated Real Estate Entities		16

Net Asset Value Supplemental Information		17

Non-GAAP Financial Measures and Other Defined Terms and 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, 2014 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; uncertainties associated with the timing and amount of asset sales, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited 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, 2014 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 September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Revenues
Rental	$	91,802	$	90,751	$	268,831	$	268,193
Other property revenues		5,628		5,476		16,874		16,130
Other		337		234		924		676


Total revenues		97,767		96,461		286,629		284,999


Expenses
Property operating and maintenance (exclusive of items shown separately below)		42,707		41,675		124,342		124,066
Depreciation		22,073		21,018		64,748		63,614
General and administrative		4,622		4,784		13,989		12,878
Investment and development (1)		73		555		583		2,160
Other investment costs (1)		165		224		453		707
Other expenses (2)		—		344		—		1,753


Total expenses		69,640		68,600		204,115		205,178


Operating income		28,127		27,861		82,514		79,821

Interest income		34		78		158		94
Interest expense		(7,927)		(9,858)		(23,773)		(31,535)
Amortization of deferred financing costs		(432)		(588)		(1,314)		(1,853)
Equity in income of unconsolidated real estate entities, net		603		422		1,568		1,408
Gains on sales of real estate assets, net (3)		—		152,785		1,475		189,687
Other income (expense), net		(215)		(195)		(605)		(586)
Net loss on extinguishment of indebtedness (4)		—		(14,070)		(197)		(18,357)


Net income		20,190		156,435		59,826		218,679
Noncontrolling interests - consolidated real estate entities		—		(22,416)		—		(22,554)
Noncontrolling interests - Operating Partnership		(43)		(313)		(126)		(464)


Net income available to the Company		20,147		133,706		59,700		195,661
Dividends to preferred shareholders		(922)		(922)		(2,766)		(2,766)


Net income available to common shareholders	$	19,225	$	132,784	$	56,934	$	192,895


Per common share data - Basic (5)
Net income available to common shareholders	$	0.35	$	2.44	$	1.04	$	3.55


Weighted average common shares outstanding - basic		54,326		54,301		54,409		54,233


Per common share data - Diluted (5)
Net income available to common shareholders	$	0.35	$	2.44	$	1.04	$	3.54


Weighted average common shares outstanding - diluted		54,342		54,373		54,425		54,336

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 available to common shareholders to funds from operations and adjusted funds from operations available to common shareholders and unitholders is provided below.


	Three months ended September 30,				Nine months ended September 30,
Funds From Operations	2015		2014		2015		2014
Net income available to common shareholders	$	19,225	$	132,784	$	56,934	$	192,895
Noncontrolling interests - Operating Partnership		43		313		126		464
Depreciation on consolidated real estate assets, net (6)		21,712		20,724		63,697		62,795
Depreciation on real estate assets held in unconsolidated entities		300		296		899		882
Gains on sales of depreciable real estate assets		-		(152,014)		(1,475)		(188,106)
Noncontrolling interest share of gains on sales of depreciable real estate assets		-		24,074		-		24,074


Funds from operations available to common shareholders and unitholders (A)	$	41,280	$	26,177	$	120,181	$	93,004


Funds from operations available to common shareholders and unitholders - core operations (B)	$	41,280	$	25,406	$	120,181	$	91,423
Funds from operations available to common shareholders and unitholders - condominiums		-		771		-		1,581


Funds from operations available to common shareholders and unitholders (A)	$	41,280	$	26,177	$	120,181	$	93,004


Adjusted Funds From Operations
Funds from operations available to common shareholders and unitholders (A)	$	41,280	$	26,177	$	120,181	$	93,004
Annually recurring capital expenditures		(5,406)		(3,911)		(11,545)		(10,126)
Periodically recurring capital expenditures		(2,003)		(1,443)		(4,526)		(6,052)
Non-cash straight-line adjustment for ground lease expenses		112		115		339		349
Net loss on early extinguishment of indebtedness		-		14,070		197		18,357
Noncontrolling interest share of net loss on early extinguishment of indebtedness		-		(1,737)		-		(1,737)


Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	33,983	$	33,271	$	104,646	$	93,795


Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D)	$	33,983	$	32,500	$	104,646	$	92,214
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7)		-		771		-		1,581


Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	33,983	$	33,271	$	104,646	$	93,795


Per Common Share Data - Diluted
Funds from operations per share or unit, as defined (A÷E)	$	0.76	$	0.48	$	2.20	$	1.70
Funds from operations per share or unit - core operations (B÷E)	$	0.76	$	0.47	$	2.20	$	1.67
Adjusted funds from operations per share or unit, as defined (7) (C÷E)	$	0.62	$	0.61	$	1.91	$	1.72
Adjusted funds from operations per share or unit - core operations (7) (D÷E)	$	0.62	$	0.59	$	1.91	$	1.69
Dividends declared	$	0.44	$	0.40	$	1.28	$	1.16
Weighted average shares outstanding (8)		54,478		54,502		54,556		54,460
Weighted average shares and units outstanding (8) (E)		54,599		54,632		54,677		54,593

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)


	September 30, 2015		December 31, 2014
	(Unaudited)
Assets
Real estate assets
Land	$	322,566	$	317,077
Building and improvements		2,398,476		2,323,626
Furniture, fixtures and equipment		323,775		304,534
Construction in progress		108,531		86,971
Land held for future investment		29,635		33,197


		3,182,983		3,065,405
Less: accumulated depreciation		(1,001,342)		(937,310)
Assets held for sale, net of accumulated depreciation of $207 at December 31, 2014		-		672


Total real estate assets		2,181,641		2,128,767
Investments in and advances to unconsolidated real estate entities		3,983		4,059
Cash and cash equivalents		62,959		140,512
Restricted cash		3,818		3,572
Deferred financing costs, net		7,432		5,117
Other assets		29,061		29,771


Total assets	$	2,288,894	$	2,311,798


Liabilities, redeemable common units and equity
Indebtedness	$	890,292	$	892,459
Accounts payable, accrued expenses and other		79,241		70,616
Investments in unconsolidated real estate entities		15,882		16,624
Dividends and distributions payable		23,868		21,852
Accrued interest payable		7,893		4,229
Security deposits and prepaid rents		14,492		12,972


Total liabilities		1,031,668		1,018,752


Redeemable common units		7,028		7,086


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 54,124 and 54,509 shares outstanding at September 30, 2015 and December 31, 2014, respectively		546		546
Additional paid-in-capital		1,118,534		1,114,851
Accumulated earnings		171,676		185,001
Accumulated other comprehensive income (loss)		(5,686)		(3,675)


		1,285,079		1,296,732
Less common stock in treasury, at cost, 594 and 207 shares at September 30, 2015 and December 31, 2014, respectively		(36,252)		(10,772)


Total Company shareholders’ equity		1,248,827		1,285,960
Noncontrolling interests - consolidated real estate entities		1,371		-


Total equity		1,250,198		1,285,960


Total liabilities, redeemable common units and equity	$	2,288,894	$	2,311,798


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AND RECONCILIATION OF FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands)

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

2)	Other expenses for the three months and nine months ended September 30, 2014 included $344 and $1,003, respectively, related to the upgrade of the Company’s operating and financial software systems. For the nine months ended September 30, 2014, other expenses also included casualty losses of $750.

3)	In February 2015, the Company sold its remaining ground-floor retail space at its former condominium community in Austin, Texas 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.

In 2014, the Company classified three communities, containing 645 units, as held for sale, including one community containing 308 units in Houston, Texas and two communities containing 337 units in New York, New York. These communities were sold in the second and third quarters of 2014, and the Company recognized gains on sales for the three and nine months ended September 30, 2014 of $151,733 ($127,659 net of noncontrolling interest) and $187,825 ($163,751 net of noncontrolling interest), respectively. The Company determined that these communities did not meet the criteria for discontinued operations reporting and, accordingly, the results of operations and gains on sales of the communities were included in continuing operations. The revenues, expenses and net income, including gains on sales of real estate assets, associated with these three communities, for the three and nine months ended September 30, 2014 were as follows:


	Three months ended September 30, 2014		Nine months ended September 30, 2014
Revenues
Rental	$	3,463	$	14,003
Other property revenues		15		165


Total revenues		3,478		14,168
Property operating and maintenance expenses		(1,667)		(7,011)


Net operating income		1,811		7,157
Other expenses
Depreciation		—		(1,239)
Interest		(1,070)		(3,474)
Amortization of deferred financing costs		(39)		(158)
Net loss on extinguishment of indebtedness		(14,070)		(14,070)


Total other expenses		(15,179)		(18,941)


Gains on sales of real estate assets		151,733		187,825


Net income	$	138,365	$	176,041


Net income, net of noncontrolling interest	$	115,918	$	153,456

For the three and nine months ended September 30, 2014, gains on sales of real estate assets also included $1,052 and $1,862, respectively, resulting from the gain on sale of a retail condominium of $281, reduction of warranty and related obligations of $771 and from the gain on sale of the final residential condominium unit of $810 at its former condominium community in Austin, Texas.

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. In 2014, the Company recognized extinguished losses of $14,070 and $18,357 for the three and nine months ended September 30, 2014, respectively, related to prepayment premiums and the write off of unamortized loans associated with the prepayment of secured mortgage indebtedness.


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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, 2015, there were 54,245 Operating Partnership units outstanding, of which 54,124, or 99.8%, were owned by the Company.

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

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 $400 and $1,913 for the three months and $942 and $3,600 for the nine months ended September 30, 2015 and 2014, 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 16 and 72 for the three months and 16 and 103 for the nine months ended September 30, 2015 and 2014, respectively. Additionally, basic and diluted weighted average shares and units include the impact of non-vested shares and units totaling 136 and 129 for the three months and 131 and 124 for the nine months ended September 30, 2015 and 2014, 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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SAME STORE RESULTS

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

Same Store Operating Results

The Company defines same store communities as those which have reached stabilization prior to the beginning of the previous calendar year. 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 50 communities containing 18,780 apartment units which were fully stabilized as of January 1, 2014, are summarized in the table below.


	Three months ended September 30,						Nine months ended September 30,
	2015		2014		% Change		2015		2014		% Change
Revenues:
Rental and other revenue	$	82,976	$	80,766		2.7%	$	244,974	$	238,616		2.7%
Utility reimbursements		2,749		2,605		5.5%		7,849		7,655		2.5%


Total rental and other revenues		85,725		83,371		2.8%		252,823		246,271		2.7%


Property operating and maintenance expenses:
Personnel expenses		6,836		6,810		0.4%		20,473		20,207		1.3%
Utility expense		4,618		4,647		(0.6)%		12,743		12,626		0.9%
Real estate taxes and fees		13,621		13,021		4.6%		41,004		38,770		5.8%
Insurance expenses		1,291		1,331		(3.0)%		3,838		3,989		(3.8)%
Building and grounds repairs and maintenance (1)		4,683		4,293		9.1%		14,073		13,830		1.8%
Ground lease expense		230		230		-		690		690		-
Other expenses		2,408		2,126		13.3%		6,652		5,953		11.7%


Total property operating and maintenance expenses (excluding depreciation and amortization)		33,687		32,458		3.8%		99,473		96,065		3.5%


Same store net operating income	$	52,038	$	50,913		2.2%	$	153,350	$	150,206		2.1%


Same store net operating income margin		60.7%		61.1%		(0.4)%		60.7%		61.0%		(0.3)%


Capital expenditures (2)
Annually recurring	$	5,210	$	3,676		41.7%	$	11,170	$	9,555		16.9%
Periodically recurring		1,585		866		83.0%		3,673		3,176		15.6%


Total capital expenditures (A)	$	6,795	$	4,542		49.6%	$	14,843	$	12,731		16.6%


Total capital expenditures per unit (A ÷ 18,780 units)	$	362	$	242		49.6%	$	790	$	678		16.5%


Average monthly rental rate per unit (3)	$	1,459	$	1,430		2.0%	$	1,449	$	1,417		2.3%


Gross turnover (4)		55.0%		62.4%		(7.4)%		52.0%		59.0%		(7.0)%


Net turnover (5)		50.1%		56.1%		(6.0)%		47.4%		52.2%		(4.8)%


Percentage rent increase - new leases (6)		1.2%		2.8%		(1.6)%		1.8%		2.4%		(0.6)%


Percentage rent increase - renewed leases (6)		5.1%		4.6%		0.5%		4.9%		4.6%		0.3%

1)	Building and ground repairs and maintenance includes $432 and $7 for the three months and $1,165 and $1,199 for the nine months ended September 30, 2015 and 2014, respectively, related to painting of communities.

2)	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.

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.

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.

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.


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SAME STORE RESULTS (CON’T)

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

Same Store Operating Results by Market - Comparison of Third Quarter 2015 to Third Quarter 2014

(Increase (decrease) between periods)


	Three months ended											Nine months ended
Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic Occupancy		Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic Occupancy
Atlanta		4.1%			0.3%			6.7%			0.1%		4.9%			2.6%			6.3%			(0.1)%
Dallas		3.9%			3.7%			4.1%			0.4%		3.3%			5.1%			2.0%			0.2%
Houston		(1.1)%			7.0%			(6.8)%			(0.5)%		(1.1)%			3.2%			(4.1)%			(3.3)%
Austin		0.5%			10.9%			(8.1)%			(0.2)%		(0.3)%			9.6%			(8.2)%			(0.8)%
Washington, D.C.		1.1%			11.8%			(4.6)%			3.7%		0.3%			6.2%			(2.9)%			1.8%
Tampa		2.7%			(2.5)%			5.6%			(0.8)%		2.8%			(5.7)%			8.1%			(0.2)%
Orlando		4.0%			2.1%			5.1%			0.9%		3.2%			3.3%			3.2%			0.6%
Charlotte		2.3%			0.5%			3.1%			(1.2)%		2.3%			5.0%			1.0%			(1.1)%


Total		2.8%			3.8%			2.2%			0.6%		2.7%			3.5%			2.1%			0.1%

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

Same Store Occupancy by Market


					Average Economic Occupancy (1)				Average Economic Occupancy (1)				Physical		Avg. Rental Rate Per Unit Three Months
	Apartment		% of NOI Three months ended		Three months ended September 30,				Nine months ended September 30,				Occupancy at September 30,		Ended September 30,
Market	Units		September 30, 2015		2015		2014		2015		2014		2015 (2)		2015 (3)
Atlanta		5,065		26.9%		97.5%		97.4%		96.9%		97.0%		96.1%	$	1,405
Dallas		4,725		20.6%		97.2%		96.8%		96.3%		96.1%		95.8%		1,289
Houston		653		3.2%		95.3%		95.8%		93.0%		96.3%		95.3%		1,496
Austin		935		4.3%		94.6%		94.8%		93.7%		94.5%		95.6%		1,583
Washington, D.C.		2,645		18.5%		97.1%		93.4%		95.0%		93.2%		96.3%		1,890
Tampa		2,111		12.1%		96.9%		97.7%		97.0%		97.2%		95.2%		1,478
Orlando		898		5.1%		98.3%		97.4%		97.4%		96.8%		95.8%		1,484
Charlotte		1,748		9.3%		96.4%		97.6%		95.4%		96.5%		94.5%		1,310


Total		18,780		100.0%		97.0%		96.4%		96.0%		95.9%		95.7%	$	1,459

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 96.6% and 95.8% for the three months and 95.5% and 95.2% for the nine months ended September 30, 2015 and 2014, respectively. For the three months ended September 30, 2015 and 2014, net concessions were $189 and $308, respectively, and employee discounts were $159 and $168, respectively. For the nine months ended September 30, 2015 and 2014, net concessions were $674 and $1,154, respectively, and employee discounts were $473 and $493, 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 Third Quarter of 2015 to Second Quarter of 2015


	Three months ended
	September 30, 2015		June 30, 2015		% Change
Revenues:
Rental and other revenue	$	82,976	$	81,860		1.4%
Utility reimbursements		2,749		2,541		8.2%


Total rental and other revenues		85,725		84,401		1.6%


Property operating and maintenance expenses:
Personnel expenses		6,836		6,738		1.5%
Utility expense		4,618		3,961		16.6%
Real estate taxes and fees		13,621		13,599		0.2%
Insurance expenses		1,291		1,279		0.9%
Building and grounds repairs and maintenance (1)		4,683		5,402		(13.3)%
Ground lease expense		230		230		0.0%
Other expenses		2,408		2,211		8.9%


Total property operating and maintenance expenses (excluding depreciation and amortization)		33,687		33,420		0.8%


Same store net operating income (2)	$	52,038	$	50,981		2.1%


Average economic occupancy		97.0%		96.0%		1.0%


Average monthly rental rate per unit	$	1,459	$	1,448		0.8%

1)	Building and grounds repairs and maintenance includes $432 and $599 for the three months ended September 30, 2015 and June 30, 2015, respectively, related to 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 Third Quarter of 2015 to Second Quarter of 2015

(Increase (decrease) between periods)


Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic Occupancy
Atlanta		1.1%			(3.9)%			4.5%			0.8%
Dallas		2.5%			(1.3)%			5.6%			1.0%
Houston		3.3%			13.9%			(3.9)%			3.7%
Austin		1.3%			4.5%			(1.8)%			0.6%
Washington, D.C.		1.2%			7.9%			(2.7)%			1.0%
Tampa		0.6%			0.4%			0.7%			0.0%
Orlando		2.7%			(1.8)%			5.5%			1.8%
Charlotte		1.7%			1.9%			1.6%			1.0%


Total		1.6%			0.8%			2.1%			1.0%

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


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DEBT SUMMARY

(In thousands) - (Unaudited)

Summary of Outstanding Debt at September 30, 2015 - Consolidated


			Percentage		Weighted Average
Type of Indebtedness	Balance		of Total Debt		Rate (1)
Unsecured fixed rate senior notes	$	400,000		44.9%		3.9%
Unsecured bank term loan		300,000		33.7%		2.7%
Secured fixed rate notes		190,292		21.4%		6.0%


	$	890,292		100.0%		3.9%


	Balance		Percentage of Total Debt		Weighted Average Maturity (2)
Total fixed rate debt	$	890,292		100.0%		4.5
Total variable rate debt - unhedged		-		0.0%		0.0


Total debt	$	890,292		100.0%		4.5

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)
Remainder of 2015	$	755		6.0%	$	-	$	-	-
2016		3,071		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		179,668	(3)	6.0%		51,000		17,850	3.5%
Thereafter		550,000	(4)	3.0%		-		-	-


	$	890,292		3.9%	$	177,723	$	49,531	5.0%

Debt Statistics


	Nine months ended September 30,
	2015	2014
Interest coverage ratio (5)(6)	6.1x	4.5x
Interest coverage ratio (including capitalized interest) (5)(6)	5.4x	4.2x

Fixed charge coverage ratio (5)(7)	5.5x	4.2x
Fixed charge coverage ratio (including capitalized interest) (5)(7)	4.9x	3.9x

Total debt to annualized income available for debt service ratio (8)	4.5x	4.7x

Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (9)	28.9%	30.3%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (9)	30.2%	31.7%

Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at September 30, 2015 are based on the debt outstanding at that date. Weighted average interest rate of the unsecured bank term loan represents the effective fixed interest rate based on outstanding borrowings as of September 30, 2015, 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 $0 outstanding on unsecured revolving lines of credit. At September 30, 2015, the Company’s lines of credit bear interest at LIBOR plus 1.05% and mature in 2019 with a one year extension option.

Includes an unsecured bank term loan that matures in January 2020. The blended effective 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 the interest rate swaps. Thereafter, the term loan bears interest at the stated rate of LIBOR plus 1.15%.

5)	Calculated for the nine months ended September 30, 2015 and 2014.

Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and interest expense to consolidated interest expense is included in Table 7 on page 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 and fixed charges to consolidated interest expense plus dividends to preferred shareholders is included in Table 7 on page 28.

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

9)	A computation of these debt ratios is included in Table 6 on page 27.


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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Senior Unsecured Public Notes Debt Ratings

Moody’s - Baa2 (stable)

Standard & Poor’s - BBB (stable)

Financial Debt Covenants - Senior Unsecured Public Notes


Covenant requirement (1)		As of September 30, 2015

Consolidated Debt to Total Assets cannot exceed 60%		27%
Secured Debt to Total Assets cannot exceed 40%		6%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		4.4x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		6.1x

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
	September 30, 2015
Consolidated debt, per balance sheet (A)	$	890,292


Total assets, as defined (B) (Table A)	$	3,277,437


Computed ratio (A÷B)		27%


Required ratio (cannot exceed)		60%


Ratio of Secured Debt to Total Assets

Total secured debt (C)	$	190,292


Computed ratio (C÷B)		6%


Required ratio (cannot exceed)		40%


Ratio of Total Unencumbered Assets to Unsecured Debt

Consolidated debt, per balance sheet (A)	$	890,292
Total secured debt (C)		(190,292)


Total unsecured debt (D)	$	700,000


Total unencumbered assets, as defined (E) (Table A)	$	3,062,052


Computed ratio (E÷D)		4.4x


Required minimum ratio		1.5x


Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge (Annualized)

Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	208,188


Annual Debt Service Charge, as defined (G) (Table B)	$	34,133


Computed ratio (F÷G)		6.1x


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
	September 30, 2015
Total real estate assets	$	2,181,641
Add:
Investments in and advances to unconsolidated real estate entities		3,983
Accumulated depreciation		1,001,342
Other tangible assets		90,471

Total assets for public debt covenant computations		3,277,437
Less:
Encumbered real estate assets		(211,402)
Investments in and advances to unconsolidated real estate entities		(3,983)

Total unencumbered assets for public debt covenant computations	$	3,062,052

Table B

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


	Nine months ended
Consolidated income available for debt service	September 30, 2015
Net income	$	59,826
Add:
Depreciation		64,748
Depreciation and amortization (company share) - unconsolidated entities		922
Amortization of deferred financing costs		1,314
Interest expense		23,773
Interest expense (company share) - unconsolidated entities		1,827
Other non-cash (income) expense, net		4,253
Income tax expense (benefit), net		756
Net loss on extinguishment of indebtedness		197
Less:
Gains on sales of real estate assets, net		(1,475)

Consolidated income available for debt service	$	156,141

Consolidated income available for debt service (annualized)	$	208,188


Annual debt service charge
Consolidated interest expense	$	23,773
Interest expense (company share) - unconsolidated entities		1,827

Debt service charge	$	25,600

Debt service charge (annualized)	$	34,133

1)	The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2015 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants.


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SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENT,

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)		9/30/15		Available		Occup. (4)		Leased (5)
Under construction
Post Afton Oaks™		Houston, TX		388		867		-	$	80.7	$	240	$	40.6		3Q 2016		4Q 2017		N/A
Post Parkside™ at Wade, II		Raleigh, NC		406		910		-		57.5		156		22.9		2Q 2016		3Q 2017		N/A
Post South Lamar™, II		Austin, TX		344		734		5,800		65.6		254		18.6		1Q 2017		2Q 2018		N/A
Post Millennium Midtown™		Atlanta, GA		356		864		-		90.6		295		7.7		2Q 2017		3Q 2018		N/A
Post River North™ (6)		Denver, CO		358		818		-		88.2		301		18.7		2Q 2017		3Q 2018		N/A


Total				1,852				5,800	$	382.6			$	108.5


Substantially complete, in lease-up
The High Rise at Post Alexander™		Atlanta, GA		340		830		-	$	75.5	$	268	$	73.5		2Q 2015		4Q 2016		36.5	%

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

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 30, 2015.

6)	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 September 30, 2015		Usable
Project	Metro Area	(in thousands)		Acreage
Centennial Park	Atlanta, GA	$	18,858		5.6
Frisco Bridges II	Dallas, TX		5,480		5.4
Wade	Raleigh, NC		2,510		5.4
Other land parcels	Atlanta, GA		2,787		10.2


Total Land Held for Future Investment		$	29,635		26.6

Acquisition/Disposition Activity


		Quarter		Est. Avg.		Year				Est. Total
		Acquired /		Unit Size	Retail	Completed/		Gross Price		Price Per		Cap
Property Name	Location	Disposed	Units	Sq. Ft. (1)	Sq. Ft.	Renovated		(thousands) (2)		Sq. Ft. (3)		Rate
Acquisitions
None
Dispositions
Post Rice Lofts™	Houston, TX	Q2 2014	308	904	44,734		1913 / 1998	$	71,750	$	222	5.3%(4)
Post Luminaria ^TM(5)	New York, NY	Q3 2014	138	721	9,386		2002		111,500	$	1,024	3.1%(4)
Post Toscana ^TM	New York, NY	Q3 2014	199	817	11,700		2003		158,500	$	909	2.7%(4)


								$	341,750

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

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

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

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

5)	The Company owned 68% of Post Luminaria™.


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CAPITALIZED COSTS SUMMARY

(In thousands) - (Unaudited)

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

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

A summary of community acquisition and development improvements and other capitalized expenditures for the three and nine months ended September 30, 2015 and 2014 is provided below.


	Three months ended				Nine months ended
	September 30,				September 30,
	2015		2014		2015		2014
New community development and acquisition activity (1)	$	41,593	$	15,321	$	93,500	$	48,968
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		3,707		2,223		7,653		5,561
Other community additions and improvements (3)		2,003		1,443		4,526		6,052
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		5,406		3,911		11,545		10,126
Corporate additions and improvements		400		1,913		942		3,600


	$	53,109	$	24,811	$	118,166	$	74,307


Other Data
Capitalized interest	$	1,109	$	745	$	3,328	$	2,345


Capitalized development and associated costs (5)	$	1,237	$	784	$	3,585	$	1,785

1)	Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years.

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

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

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

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


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INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

(In thousands) - (Unaudited)

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


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


Financial Data
	As of
	September 30, 2015
	Gross							Company’s
	Investment in		Mortgage			Entity		Equity
Joint Venture Property	Real Estate (6)		Notes Payable			Equity		Investment
Post Collier Hills^® (1)	$	57,651	$	39,565	(2)	$	9,115	$	(4,397)	(1)
Post Crest^® (1)		65,519		46,158	(2)		7,793		(7,311)	(1)
Post Lindbergh^® (1)		64,475		41,000	(3)		13,661		(4,174)	(1)
Post Massachusetts Avenue™		74,108		51,000	(4)		3,972		3,983


Total	$	261,753	$	177,723		$	34,541	$	(11,899)


	Three months ended							Nine months ended
	September 30, 2015							September 30, 2015
			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)	$	1,024	$	84				$	2,508	$	114
Post Crest^® (1)		980		46					2,786		106
Post Lindbergh^® (1)		878		34					2,516		76
Post Massachusetts Avenue™		1,886		439					5,435		1,272


Total	$	4,768	$	603	$	229	(5)	$	13,245	$	1,568	$	676	(5)

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

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

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

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

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

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


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NET ASSET VALUE SUPPLEMENTAL INFORMATION (1)

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

Financial Data


	Three months ended					As
Income Statement Data	September 30, 2015		Adjustments			Adjusted (3)
Rental revenues	$	91,802	$	44	(2)	$	91,846
Other property revenues		5,628		33	(2)		5,661


Total rental and other revenues (A)		97,430		77			97,507
Property operating & maintenance expenses
(excluding depreciation and amortization) (B)		42,707		(4,570)	(2)		38,137


Property net operating income (Table 1) (A-B)	$	54,723	$	4,647		$	59,370


Assumed property management fee
(calculated at 3% of revenues) (A x 3%)							(2,925)
Assumed property capital expenditure reserve
($300 per unit per year based on 20,454 units)							(1,534)


Adjusted property net operating income						$	54,911


Annualized property net operating income (C)						$	219,644


Apartment units represented (D)		23,723		(3,269)	(2)		20,454


Other Asset Data	As of September 30, 2015		Adjustments			As Adjusted
Cash & equivalents	$	62,959	$	-		$	62,959
Real estate assets under construction, at cost (4)		108,531		72,146	(4)		180,677
Land held for future investment		29,635		-			29,635
Investments in and advances to unconsolidated real estate entities (5)		3,983		(3,983)	(5)		-
Restricted cash and other assets		32,879		-			32,879
Cash & other assets of unconsolidated apartment entities (6)		6,513		(4,665)	(6)		1,848


Total (E)	$	244,500	$	63,498		$	307,998


Other Liability Data
Indebtedness	$	890,292	$	-		$	890,292
Investments in unconsolidated real estate entities (5)		15,882		(15,882)	(5)		-
Other liabilities (7)		125,494		(9,104)	(7)		116,390
Total liabilities of unconsolidated apartment entities (8)		180,258		(129,981)	(8)		50,277


Total (F)	$	1,211,926	$	(154,967)		$	1,056,959

Other Data


	As of September 30, 2015
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (G)					$	43,392


Common shares outstanding		54,124
Common units outstanding		121


Total (H)		54,245	$	58.29	$	3,161,941


Implied market value of Company gross real estate assets (I) = (F+G+H-E)					$	3,954,294


Implied Portfolio Capitalization Rate (C÷I)						5.6%

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 third quarter ended September 30, 2015, for properties stabilized as of July 1, 2015, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of July 1, 2015, 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.


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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 September 30, 2015, 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 (a)	$	(269)	$	(44)	$	(492)		(2,192)
Company share of unconsolidated entities		2,024		138		695		(1,077)
Corporate property management expenses		-		-		(3,152)		-
Corporate apartments and other		(1,711)		(61)		(1,621)		-


	$	44	$	33	$	(4,570)		(3,269	)

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, 2015:


	Rental and Other Revenues		Property Operating Maintenance Expenses (ex. Depr. and Amort.)		Property Net Operating Income (NOI)		Percentage of Total NOI			Apartment Units / Commercial Sq. Ft.
Atlanta	$	23,848	$	8,913	$	14,935		25.2	%		5,365
Dallas		19,013		8,281		10,732		18.1	%		4,725
Houston		4,041		1,788		2,253		3.8	%		895
Austin		4,452		2,230		2,222		3.7	%		935
Washington, D.C.		16,679		6,379		10,300		17.3	%		2,739
Tampa		10,899		3,859		7,040		11.9	%		2,342
Orlando		6,102		2,520		3,582		6.0	%		1,308
Charlotte		7,044		2,229		4,815		8.1	%		1,748
Raleigh		1,262		532		730		1.2	%		397
Commercial		4,167		1,406		2,761		4.7	%		—


Total	$	97,507	$	38,137	$	59,370		100.0	%		20,454


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 Alexander™	$	73,549
Post Parkside™ at Wade - Phase II		22,910
Post Afton Oaks™		40,565
Post South Lamar™ - Phase II		18,630
Post Millennium Midtown™		7,716
Post River North™ (a)		17,307


	$	180,677

(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 net operating income of such investments in unconsolidated entities is included in the adjusted net operating income reflected above.

The “As of September 30, 2015” 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.

The “As of September 30, 2015” 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 $9,104.

The “As of September 30, 2015” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partners’ respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.


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

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


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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 newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties in addition to same store information. Therefore, the Company believes that the Company’s presentation of same store annually recurring and periodically recurring capital expenditures is necessary to demonstrate same store replacement costs over time. The Company believes that the most directly comparable GAAP measure to same store annually recurring and periodically recurring capital expenditures is the line on the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating capital expenditures.

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

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

Property Operating Statistics - The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property operating performance. The Company defines average economic occupancy as gross potential rent 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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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						Nine months ended
	September 30,		September 30,		June 30,		September 30,		September 30,
	2015		2014		2015		2015		2014
Total same store NOI	$	52,038	$	50,913	$	50,981	$	153,350	$	150,206
Property NOI from other operating segments		2,685		3,639		2,664		8,013		10,051


Consolidated property NOI		54,723		54,552		53,645		161,363		160,257


Add (subtract):
Interest income		34		78		43		158		94
Other revenues		337		234		274		924		676
Depreciation		(22,073)		(21,018)		(21,418)		(64,748)		(63,614)
Interest expense		(7,927)		(9,858)		(7,753)		(23,773)		(31,535)
Amortization of deferred financing costs		(432)		(588)		(433)		(1,314)		(1,853)
General and administrative		(4,622)		(4,784)		(4,353)		(13,989)		(12,878)
Investment and development		(73)		(555)		(275)		(583)		(2,160)
Other investment costs		(165)		(224)		(154)		(453)		(707)
Other expenses		-		(344)		-		-		(1,753)
Equity in income of unconsolidated real estate entities, net		603		422		568		1,568		1,408
Gains on sales of real estate assets, net		-		152,785		(298)		1,475		189,687
Other income (expense), net		(215)		(195)		(195)		(605)		(586)
Net loss on extinguishment of indebtedness		-		(14,070)		-		(197)		(18,357)


Net income	$	20,190	$	156,435	$	19,651	$	59,826	$	218,679


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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						Q3 ‘15		Q3 ‘15		Q3 ‘15
	September 30,		September 30,		June 30,		vs. Q3 ‘14		vs. Q2 ‘15		% Same
	2015		2014		2015		% Change		% Change		Store NOI
Rental and other revenues
Atlanta	$	22,665	$	21,762	$	22,411		4.1%		1.1%
Dallas		19,013		18,297		18,555		3.9%		2.5%
Houston		2,949		2,983		2,856		(1.1)%		3.3%
Austin		4,452		4,429		4,395		0.5%		1.3%
Washington, D.C.		15,700		15,522		15,520		1.1%		1.2%
Tampa		9,701		9,449		9,643		2.7%		0.6%
Orlando		4,201		4,041		4,092		4.0%		2.7%
Charlotte		7,044		6,888		6,929		2.3%		1.7%


Total rental and other revenues		85,725		83,371		84,401		2.8%		1.6%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		8,621		8,597		8,971		0.3%		(3.9)%
Dallas		8,281		7,985		8,389		3.7%		(1.3)%
Houston		1,308		1,222		1,148		7.0%		13.9%
Austin		2,230		2,011		2,133		10.9%		4.5%
Washington, D.C.		6,089		5,444		5,645		11.8%		7.9%
Tampa		3,381		3,466		3,369		(2.5)%		0.4%
Orlando		1,548		1,516		1,577		2.1%		(1.8)%
Charlotte		2,229		2,217		2,188		0.5%		1.9%


Total		33,687		32,458		33,420		3.8%		0.8%


Net operating income
Atlanta		14,044		13,165		13,440		6.7%		4.5%		26.9%
Dallas		10,732		10,312		10,166		4.1%		5.6%		20.6%
Houston		1,641		1,761		1,708		(6.8)%		(3.9)%		3.2%
Austin		2,222		2,418		2,262		(8.1)%		(1.8)%		4.3%
Washington, D.C.		9,611		10,078		9,875		(4.6)%		(2.7)%		18.5%
Tampa		6,320		5,983		6,274		5.6%		0.7%		12.1%
Orlando		2,653		2,525		2,515		5.1%		5.5%		5.1%
Charlotte		4,815		4,671		4,741		3.1%		1.6%		9.3%


Total same store NOI	$	52,038	$	50,913	$	50,981		2.2%		2.1%		100.0%


Average rental rate per unit
Atlanta	$	1,405	$	1,347	$	1,391		4.3%		1.0%
Dallas		1,289		1,247		1,275		3.4%		1.1%
Houston		1,496		1,502		1,505		(0.4)%		(0.6)%
Austin		1,583		1,585		1,571		(0.1)%		0.8%
Washington, D.C.		1,890		1,950		1,893		(3.1)%		(0.2)%
Tampa		1,478		1,427		1,458		3.6%		1.4%
Orlando		1,484		1,438		1,462		3.2%		1.5%
Charlotte		1,310		1,267		1,297		3.4%		1.0%
Total average rental rate per unit		1,459		1,430		1,448		2.0%		0.8%


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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)


	Nine months ended
	September 30,		September 30,
	2015		2014		% Change
Rental and other revenues
Atlanta	$	67,018	$	63,915		4.9%
Dallas		55,883		54,075		3.3%
Houston		8,684		8,781		(1.1)%
Austin		13,137		13,173		(0.3)%
Washington, D.C.		46,175		46,048		0.3%
Tampa		28,845		28,049		2.8%
Orlando		12,352		11,967		3.2%
Charlotte		20,729		20,263		2.3%


Total rental and other revenues		252,823		246,271		2.7%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		26,124		25,454		2.6%
Dallas		24,737		23,531		5.1%
Houston		3,733		3,617		3.2%
Austin		6,428		5,867		9.6%
Washington, D.C.		17,110		16,113		6.2%
Tampa		10,019		10,630		(5.7)%
Orlando		4,590		4,443		3.3%
Charlotte		6,732		6,410		5.0%


Total		99,473		96,065		3.5%


Net operating income
Atlanta		40,894		38,461		6.3%
Dallas		31,146		30,544		2.0%
Houston		4,951		5,164		(4.1)%
Austin		6,709		7,306		(8.2)%
Washington, D.C.		29,065		29,935		(2.9)%
Tampa		18,826		17,419		8.1%
Orlando		7,762		7,524		3.2%
Charlotte		13,997		13,853		1.0%


Total same store NOI	$	153,350	$	150,206		2.1%


Average rental rate per unit
Atlanta	$	1,390	$	1,324		5.0%
Dallas		1,276		1,240		2.9%
Houston		1,505		1,472		2.2%
Austin		1,574		1,579		(0.3)%
Washington, D.C.		1,899		1,944		(2.3)%
Tampa		1,458		1,416		3.0%
Orlando		1,466		1,431		2.4%
Charlotte		1,298		1,256		3.3%
Total average rental rate per unit		1,449		1,417		2.3%


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Table 3 - Operating Community Table


Market / Submarket / Community	Yr. Completed / Yr. of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Q3 2015 Avg. Monthly Rent				Q3 2015 Average Economic Occ.
Market / Submarket / Community	Yr. Completed / Yr. of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Per Unit		Per Sq. Ft.		Q3 2015 Average Economic Occ.
Atlanta
Buckhead / Brookhaven
Post Alexander™	2008		307		1,015	$	1,818	$	1.79		95.4%
The High Rise at Post Alexander™ (3)	2015		340		830		1,984		2.39		12.5%
Post Brookhaven^®	1990-1992		735		933		1,267		1.36		98.4%
Post Chastain^®	1990, 2008		558		866		1,351		1.56		98.1%
Post Collier Hills^® (1)(2)	1997		396		948		1,267		1.34		96.8%
Post Gardens^®	1998		397		1,039		1,376		1.32		96.9%
Post Glen^® (2)	1997		314		1,076		1,433		1.33		97.9%
Post Lindbergh^® (1)(2)	1998		396		909		1,316		1.45		95.5%
Post Peachtree Hills^®	1992-1994, 2009		300		978		1,483		1.52		97.2%
Post Stratford^TM	2000		250		1,000		1,443		1.44		94.8%

Dunwoody
Post Crossing^® (2)	1995		354		1,036		1,281		1.24		99.0%

Emory Area
Post Briarcliff^TM (2)	1999		688		1,006		1,367		1.36		97.6%

Midtown
Post Parkside^TM	2000		188		886		1,636		1.85		97.9%

Northwest Atlanta
Post Crest^® (1)(2)	1996		410		1,033		1,192		1.15		97.2%
Post Riverside^®	1998		522		1,059		1,646		1.55		97.4%
Post Spring^TM	2000		452		977		1,125		1.15		97.6%

Dallas
North Dallas
Post Addison Circle^TM	1998-2000		1,334		846		1,157		1.37		97.5%
Post Eastside^TM	2008		435		912		1,259		1.38		96.7%
Post Legacy	2000		384		810		1,162		1.43		97.2%
Post Sierra at Frisco Bridges™	2009		268		896		1,190		1.33		97.3%

Uptown Dallas
Post Abbey^TM	1996		34		1,223		2,092		1.71		98.6%
Post Cole’s Corner^TM	1998		186		800		1,245		1.56		97.4%
Post Gallery^TM	1999		34		2,307		3,032		1.31		97.9%
Post Heights^TM	1998-1999, 2009		368		845		1,393		1.65		97.1%
Post Katy Trail™	2010		227		898		1,675		1.87		96.8%
Post Meridian^TM	1991		133		780		1,482		1.90		93.2%
Post Square^TM	1996		216		856		1,411		1.65		97.4%
Post Uptown Village^TM	1995-2000		496		736		1,191		1.62		97.3%
Post Vineyard^TM	1996		116		733		1,201		1.64		97.9%
Post Vintage^TM	1993		160		750		1,274		1.70		98.5%
Post Worthington^TM	1993, 2008		334		820		1,498		1.83		97.6%

Houston
Post 510™	2014		242		857		1,603		1.87		94.8%
Post Midtown Square^®	1999-2000, 2013		653		783		1,496		1.91		95.3%


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Table 3 (con’t) - Operating Community Table


Market / Submarket / Community	Yr. Completed / Yr. of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Q3 2015 Avg. Monthly Rent				Q3 2015 Average Economic Occ.
Market / Submarket / Community	Yr. Completed / Yr. of Substantial Renovations	No. of Units		Avg. Unit Size (Sq. Ft.)		Per Unit		Per Sq. Ft.		Q3 2015 Average Economic Occ.
Austin
Post Barton Creek™	1998		160		1,162	$	1,814	$	1.56		95.0%
Post Park Mesa™	1992		148		1,091		1,579		1.45		94.2%
Post South Lamar™	2012		298		853		1,582		1.85		93.0%
Post West Austin™	2009		329		889		1,474		1.66		96.2%

Washington D.C.
Maryland
Post Fallsgrove	2003		361		983		1,692		1.72		96.6%
Post Park^®	2010		396		975		1,653		1.70		96.5%

Virginia
Post Carlyle Square™	2006, 2013		549		890		2,264		2.54		97.2%
Post Corners at Trinity Centre (2)	1996		336		994		1,573		1.58		96.9%
Post Pentagon Row ^TM	2001		504		853		2,197		2.58		96.8%
Post Tysons Corner ^TM	1990		499		807		1,713		2.12		98.5%

Washington D.C.
Post Massachusetts Avenue ^TM (1)(2)	2002		269		883		3,282		3.72		96.6%

Tampa
Post Bay at Rocky Point™	1997		150		1,012		1,494		1.48		98.2%
Post Harbour Place^TM	1999-2002		578		920		1,600		1.74		96.5%
Post Hyde Park^® (2)	1996, 2008		467		1,011		1,556		1.54		98.6%
Post Rocky Point^®	1996-1998		916		1,031		1,359		1.32		96.1%
Post Soho Square™	2014		231		880		1,698		1.93		97.7%

Orlando
Post Lake^® at Baldwin Park	2004-2007		350		1,013		1,514		1.49		98.8%
Post Lake^® at Baldwin Park - Phase III	2013		410		960		1,559		1.62		96.2%
Post Lakeside™	2013		300		1,070		1,405		1.31		97.1%
Post Parkside^TM	1999		248		867		1,538		1.77		98.9%

Charlotte
Post Ballantyne	2004		323		1,252		1,261		1.01		98.5%
Post Gateway Place^TM	2000		436		804		1,174		1.46		95.3%
Post Park at Phillips Place^®	1998		402		1,101		1,456		1.32		95.9%
Post South End™	2009		360		847		1,414		1.67		96.3%
Post Uptown Place^TM	2000		227		800		1,215		1.52		96.7%

Raleigh
Post Parkside™ at Wade - Phase I	2013		397		875		1,077		1.23		95.5%

1)	Communities held in unconsolidated entities.

2)	Communities encumbered by secured mortgage indebtedness.

3)	During the period, this community, or portion thereof, was in lease-up.


Supplemental Financial Data		25 \| P a g e

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Table 4 - Year-to-Date Margin Analysis

(In thousands)


	Nine months ended September 30, 2015
	Rental and Other Property Revenues		Property Operating & Maintenance Expenses		Net Operating Income (“NOI”)		NOI Margin	Expense Margin
Same store communities	$	252,823	$	99,473	$	153,350	60.7%	39.3%
Newly stabilized communities		12,780		5,111		7,669	60.0%	40.0%
Lease-up communities		3,523		2,187		1,336	N/A	N/A
Other property segments:
Corporate apartments		4,490		3,991		499	11.1%	88.9%
Commercial		12,089		4,132		7,957	65.8%	34.2%
Corporate property management expenses (1)		-		9,448		(9,448)


	$	285,705	$	124,342


Consolidated property NOI (2)					$	161,363


Third-party management fees					$	676

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


Numerator:
Corporate property management expenses	$	9,448
Less: Third-party management fees		(676)


Net property management expenses	$	8,772


Denominator:
Total rental and other property revenues	$	285,705
Less: Corporate apartment revenues		(4,490)


Adjusted property revenues	$	281,215


Net property management expenses as a percentage of adjusted property revenues		3.1%

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


Supplemental Financial Data		26 \| P a g e

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

(In thousands)


	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Annually recurring capital expenditures by operating segment
Same store communities	$	5,210	$	3,676	$	11,170	$	9,555
Newly stabilized communities		8		10		15		19
Lease-up communities		3		30		6		34
Held for sale and sold communities		-		134		-		275
Commercial and other segments		185		61		354		243


Total annually recurring capital expenditures	$	5,406	$	3,911	$	11,545	$	10,126


Periodically recurring capital expenditures by operating segment
Same store communities	$	1,585	$	866	$	3,673	$	3,176
Newly stabilized communities		2		-		3		10
Lease-up communities		1		-		1		-
Held for sale and sold communities		-		175		-		614
Commercial and other segments		415		402		849		2,252


Total periodically recurring capital expenditures	$	2,003	$	1,443	$	4,526	$	6,052


Total revenue generating capital expenditures	$	3,707	$	2,223	$	7,653	$	5,561


Decrease (increase) in capital expenditure accruals	$	(759)	$	185	$	(1,057)	$	295


Total property capital expenditures per statements of cash flows	$	10,357	$	7,762	$	22,667	$	22,034

Table 6 - Computation of Debt Ratios

(In thousands)


	As of September 30,
	2015		2014

Total real estate assets per balance sheet	$	2,181,641	$	2,118,469
Plus:
Company share of real estate assets held in unconsolidated entities		57,461		57,421
Company share of accumulated depreciation - assets held in unconsolidated entities		15,388		13,790
Accumulated depreciation per balance sheet		1,001,342		916,555


Total undepreciated real estate assets (A)	$	3,255,832	$	3,106,235


Total debt per balance sheet	$	890,292	$	893,170
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531


Total debt (adjusted for joint venture partners’ share of debt) (B)	$	939,823	$	942,701


Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		28.9%		30.3%


Total debt per balance sheet	$	890,292	$	893,170
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531
Preferred shares at liquidation value		43,392		43,392


Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	983,215	$	986,093


Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		30.2%		31.7%


Supplemental Financial Data		27 \| P a g e

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Table 7 - Computation of Coverage Ratios

(In thousands)


	Nine months ended September 30,
	2015		2014
Net income	$	59,826	$	218,679
Other non-cash (income) expense, net		4,253		3,088
Income tax expense (benefit), net		756		586
Gains on sales of real estate assets, net		(1,475)		(189,687)
Net loss on extinguishment of indebtedness		197		18,357
Depreciation expense		64,748		63,614
Depreciation and amortization (company share) - unconsolidated entities		922		904
Interest expense		23,773		31,535
Interest expense (company share) - unconsolidated entities		1,827		1,827
Amortization of deferred financing costs		1,314		1,853


Income available for debt service (A)	$	156,141	$	150,756


Annualized income available for debt service (B)	$	208,188	$	201,008


Interest expense	$	23,773	$	31,535
Interest expense (company share) - unconsolidated entities		1,827		1,827


Adjusted interest expense (C)		25,600		33,362
Capitalized interest		3,328		2,345


Adjusted interest expense (including capitalized interest) (D)	$	28,928	$	35,707


Fixed charges for purposes of computation -
Adjusted interest expense	$	25,600	$	33,362
Dividends to preferred shareholders		2,766		2,766


Fixed charges (E)		28,366		36,128
Capitalized interest		3,328		2,345


Fixed charges (including capitalized interest) (F)	$	31,694	$	38,473


Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G)	$	939,823	$	942,701


Interest coverage ratio (A÷C)		6.1x		4.5x


Interest coverage ratio (including capitalized interest) (A÷D)		5.4x		4.2x


Fixed charge coverage ratio (A÷E)		5.5x		4.2x


Fixed charge coverage ratio (including capitalized interest) (A÷F)		4.9x		3.9x


Total debt to income available for debt service ratio (G÷B)		4.5x		4.7x

Table 8 - Calculation of Company Undepreciated Book Value Per Share

(In thousands, except per share data)


	September 30, 2015
Total Company shareholders’ equity per balance sheet	$	1,248,827
Plus:
Accumulated depreciation, per balance sheet		1,001,342
Noncontrolling interest of common unitholders - Operating Partnership		7,028
Less:
Deferred financing costs, net, per balance sheet		(7,432)
Preferred shares at liquidation value		(43,392)


Total undepreciated book value (A)	$	2,206,373


Total common shares and units (B)		54,245


Company undepreciated book value per share (A÷B)	$	40.67


Supplemental Financial Data		28 \| P a g e

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