POST PROPERTIES INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL DATA

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8-K - FORM 8-K - POST PROPERTIES INC	d387237d8k.htm
EX-99.1 - EARNINGS RELEASE - POST PROPERTIES INC	d387237dex991.htm

Exhibit 99.2

Second Quarter 2012

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 Apartment Communities Under Development, Land Held for Future Investment and Acquisition/Disposition 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, 2011 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 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 compete for limited investment opportunities; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnership in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this document.


Supplemental Financial Data		2 \| Page

CONSOLIDATED STATEMENTS OF OPERATIONS

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


	Three months ended June 30,								Six months ended June 30,
	2012				2011				2012				2011
Revenues
Rental		$	77,081			$	70,499			$	152,736			$	139,592
Other property revenues			4,873				4,698				9,272				8,920
Other			206				227				428				443

Total revenues			82,160				75,424				162,436				148,955

Expenses
Property operating and maintenance (exclusive of items shown separately below)			35,231				33,206				69,868				65,823
Depreciation			19,497				18,808				38,838				37,560
General and administrative			3,883				4,246				8,168				8,362
Investment and development (1)			322				296				802				774
Other investment costs (1)			306				455				612				949

Total expenses			59,239				57,011				118,288				113,468

Operating income			22,921				18,413				44,148				35,487
Interest income			288				516				339				608
Interest expense			(11,103	)			(14,437	)			(22,748	)			(28,912	)
Amortization of deferred financing costs			(698	)			(721	)			(1,359	)			(1,368	)
Net gains on condominium sales activities (2)			8,530				5,432				15,434				6,176
Equity in income of unconsolidated real estate entities, net (3)			495				346				6,941				555
Other income, net			737				285				581				301
Net loss on extinguishment of indebtedness (4)			—				—				(301	)			—

Net income			21,170				9,834				43,035				12,847
Noncontrolling interests - consolidated real estate entities			(35	)			(58	)			(41	)			(47	)
Noncontrolling interests - Operating Partnership			(56	)			(30	)			(115	)			(29	)

Net income available to the Company			21,079				9,746				42,879				12,771
Dividends to preferred shareholders			(922	)			(922	)			(1,844	)			(2,611	)
Preferred stock redemption costs			—				—				—				(1,757	)

Net income available to common shareholders		$	20,157			$	8,824			$	41,035			$	8,403


Per common share data - Basic (5)
Net income available to common shareholders		$	0.37			$	0.18			$	0.77			$	0.17

Weighted average common shares outstanding - basic			53,773				49,875				53,430				49,460

Per common share data - Diluted (5)
Net income available to common shareholders		$	0.37			$	0.17			$	0.76			$	0.17

Weighted average common shares outstanding - diluted			54,096				50,266				53,799				49,854

See Notes to Consolidated Financial Statements on page 6


Supplemental Financial Data		3 \| Page

FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

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

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


	Three months ended June 30,								Six months ended June 30,
Funds From Operations	2012				2011				2012				2011
Net income available to common shareholders		$	20,157			$	8,824			$	41,035			$	8,403
Noncontrolling interests - Operating Partnership			56				30				115				29
Depreciation on consolidated real estate assets, net (6)			19,156				18,461				38,159				36,864
Depreciation on real estate assets held in unconsolidated entities			285				362				623				722
Gains on sales of depreciable real estate assets - unconsolidated entities			—				—				(6,055	)			—

Funds from operations available to common shareholders and unitholders (A)		$	39,654			$	27,677			$	73,877			$	46,018

Funds from operations available to common shareholders and unitholders - core operations (B)		$	31,124			$	22,245			$	58,443			$	39,842
Funds from operations available to common shareholders and unitholders - condominiums			8,530				5,432				15,434				6,176

Funds from operations available to common shareholders and unitholders (A)		$	39,654			$	27,677			$	73,877			$	46,018


Adjusted Funds From Operations
Funds from operations available to common shareholders and unitholders (A)		$	39,654			$	27,677			$	73,877			$	46,018
Annually recurring capital expenditures			(4,538	)			(4,393	)			(7,480	)			(6,521	)
Periodically recurring capital expenditures			(2,146	)			(2,275	)			(3,523	)			(3,568	)
Non-cash straight-line adjustment for ground lease expenses			118				128				246				256
Net loss on early extinguishment of indebtedness			—				—				301				—
Preferred stock redemption costs			—				—				—				1,757

Adjusted funds from operations available to common shareholders and unitholders (7) (C)		$	33,088			$	21,137			$	63,421			$	37,942

Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D)		$	24,558			$	15,705			$	47,987			$	31,766
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7)			8,530				5,432				15,434				6,176

Adjusted funds from operations available to common shareholders and unitholders (7) (C)		$	33,088			$	21,137			$	63,421			$	37,942


Per Common Share Data - Diluted
Funds from operations per share or unit, as defined (A÷E)		$	0.73			$	0.55			$	1.37			$	0.92
Funds from operations per share or unit - core operations (B÷E)		$	0.57			$	0.44			$	1.08			$	0.79
Adjusted funds from operations per share or unit, as defined (7) (C÷E)		$	0.61			$	0.42			$	1.17			$	0.76
Adjusted funds from operations per share or unit - core operations (7) (D÷E)		$	0.45			$	0.31			$	0.89			$	0.63
Dividends declared		$	0.25			$	0.20			$	0.47			$	0.40
Weighted average shares outstanding (8)			54,225				50,435				53,923				50,015
Weighted average shares and units outstanding (8) (E)			54,376				50,604				54,074				50,185

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


Supplemental Financial Data		4 \| Page

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)


	June 30, 2012				December 31, 2011
	(Unaudited)
Assets
Real estate assets
Land		$	302,392			$	299,720
Building and improvements			2,138,643				2,085,929
Furniture, fixtures and equipment			259,542				251,663
Construction in progress			112,466				94,981
Land held for future development			51,088				55,396

			2,864,131				2,787,689
Less: accumulated depreciation			(805,129	)			(767,017	)
For-sale condominiums			40,353				54,845

Total real estate assets			2,099,355				2,075,517
Investments in and advances to unconsolidated real estate entities			5,593				7,344
Cash and cash equivalents			51,628				13,084
Restricted cash			6,335				5,126
Deferred financing costs, net			9,982				6,381
Other assets			31,952				31,612

Total assets		$	2,204,845			$	2,139,064


Liabilities and equity
Indebtedness		$	967,582			$	970,443
Accounts payable, accrued expenses and other			90,105				72,102
Investments in unconsolidated real estate entities			16,125				15,945
Dividends and distributions payable			13,563				11,692
Accrued interest payable			5,289				5,185
Security deposits and prepaid rents			10,292				9,334

Total liabilities			1,102,956				1,084,701


Redeemable common units			7,016				6,840


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:
54,109 and 53,002 shares issued and 54,109 and 52,988 shares outstanding at June 30, 2012 and December 31, 2011, respectively			541				530
Additional paid-in-capital			1,092,014				1,053,612
Accumulated earnings			15,349				—
Accumulated other comprehensive income (loss)			(9,879	)			(2,633	)

			1,098,034				1,051,518
Less common stock in treasury, at cost, 93 and 113 shares at June 30, 2012 and December 31, 2011, respectively			(3,089	)			(4,000	)

Total Company shareholders’ equity			1,094,945				1,047,518
Noncontrolling interests - consolidated property partnerships			(72	)			5

Total equity			1,094,873				1,047,523

Total liabilities and equity		$	2,204,845			$	2,139,064

See Notes to Consolidated Financial Statements on page 6


Supplemental Financial Data		5 \| Page

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)	A summary of revenues and costs and expenses of condominium activities for the three and six months ended June 30, 2012 and 2011 is as follows:


	Three months ended June 30,								Six months ended June 30,
	2012				2011				2012				2011
Condominium revenues		$	22,945			$	19,090			$	40,526			$	32,765
Condominium costs and expenses			(14,415	)			(13,658	)			(25,704	)			(26,589	)

Gains on sales of condominiums, before income taxes			8,530				5,432				14,822				6,176
Income tax benefit			—				—				612				—

Net gains on sales of condominiums		$	8,530			$	5,432			$	15,434			$	6,176

3)	Equity in earnings of unconsolidated entities for the six months ended June 30, 2012 includes the Company’s $6,055 share of the gain on the sale of Post Biltmore™, previously owned by a 35% owned unconsolidated entity.

4)	The net loss on early extinguishment of indebtedness of $301 for the six months ended June 30, 2012 represents the write-off of a portion of the Company’s unamortized deferred loan costs associated with the refinancing of the Company’s lines of credit.

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 June 30, 2012, there were 54,252 units of the Operating Partnership outstanding, of which 54,109, or 99.7%, 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 $366 and $336 for the three months and $445 and $486 for the six months ended June 30, 2012 and 2011, 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 323 and 391 for the three months and 369 and 394 for the six months ended June 30, 2012 and 2011, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 130 and 169 for the three months and 124 and 161 for the six months ended June 30, 2012 and 2011, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”


Supplemental Financial Data		6 \| Page

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 18,114 apartment units which were fully stabilized as of January 1, 2011, are summarized in the table below.


	Three months ended										Six months ended
	June 30,										June 30,
	2012				2011				% Change		2012				2011				% Change
Revenues:
Rental and other revenue		$	72,868			$	67,516			7.9%		$	143,972			$	133,368			8.0%
Utility reimbursements			2,261				2,187			3.4%			4,477				4,353			2.8%

Total rental and other revenues		$	75,129			$	69,703			7.8%		$	148,449			$	137,721			7.8%

Property operating and maintenance expenses:
Personnel expenses			6,611				6,526			1.3%			13,429				13,266			1.2%
Utility expense			4,039				3,986			1.3%			7,907				8,252			(4.2)%
Real estate taxes and fees			10,603				9,270			14.4%			20,991				18,506			13.4%
Insurance expenses			1,026				920			11.5%			2,145				1,981			8.3%
Building and grounds repairs and maintenance (1)			4,473				4,777			(6.4)%			8,471				8,552			(0.9)%
Ground lease expense (2)			227				301			(24.6)%			460				600			(23.3)%
Other expenses			1,948				2,073			(6.0)%			3,778				4,088			(7.6)%

Total property operating and maintenance expenses (excluding depreciation and amortization)			28,927				27,853			3.9%			57,181				55,245			3.5%

Same store net operating income		$	46,202			$	41,850			10.4%		$	91,268			$	82,476			10.7%

Same store net operating income margin			61.5	%			60.0	%		1.5%			61.5	%			59.9	%		1.6%

Capital expenditures (3)
Annually recurring:
Carpet		$	886			$	779			13.7%		$	1,582			$	1,423			11.2%
Other			3,286				3,522			(6.7)%			5,395				4,907			9.9%

Total annually recurring			4,172				4,301			(3.0)%			6,977				6,330			10.2%
Periodically recurring (3)			1,896				1,992			(4.8)%			2,427				2,909			(16.6)%

Total capital expenditures (A)		$	6,068			$	6,293			(3.6)%		$	9,404			$	9,239			1.8%

Total capital expenditures per unit
(A ÷ 18,114 units)		$	335			$	347			(3.5)%		$	519			$	510			1.8%

Average monthly rental rate per unit (4)		$	1,341			$	1,259			6.5%		$	1,330			$	1,251			6.3%

Gross turnover (5)			62.4	%			63.2	%		(0.8)%			55.6	%			55.0	%		0.6%

Net turnover (6)			56.0	%			56.7	%		(0.7)%			49.4	%			49.0	%		0.4%

Percentage rent increase - new leases (7)			7.2	%			6.6	%		0.6%			6.5	%			6.3	%		0.2%

Percentage rent increase - renewed leases (7)			6.5	%			5.8	%		0.7%			6.7	%			5.2	%		1.5%

1)	Building and grounds repairs and maintenance includes $292 and $328 for the three months and $437 and $328 for the six months ended June 30, 2012 and 2011, respectively, related to exterior painting of communities.

2)	Ground lease expense reflects the cessation of ground lease expenses at the Company’s Post Renaissance® community, effective July 1, 2011.

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 includes $143 and $185 for the three months and $267 and $273 for the six months ended June 30, 2012 and 2011, respectively, related to the Company’s “resident design center” program.

4)	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.

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

6)	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.


Supplemental Financial Data		7 \| Page

SAME STORE RESULTS (CON’T)

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

Same Store Operating Results by Market - Comparison of Second Quarter and Year to Date 2012 to Second Quarter and Year to Date 2011

(Increase (decrease) between periods)


	Three months ended								Six months ended
	June 30, 2012								June 30, 2012
							Average								Average
							Economic								Economic
Market	Revenues (1)		Expenses (1)		NOI (1)		Occupancy		Revenues (1)		Expenses (1)		NOI (1)		Occupancy
Atlanta		7.4%		2.4%		10.9%		0.0%		7.6%		1.2%		12.3%		0.3%
Washington, D.C.		5.9%		0.5%		8.4%		1.8%		6.3%		3.5%		7.5%		1.8%
Dallas		9.0%		4.5%		12.6%		1.7%		8.3%		3.9%		12.0%		1.2%
Tampa		7.2%		5.2%		8.4%		0.0%		7.3%		6.2%		7.9%		(0.3)%
Charlotte		9.1%		0.2%		14.9%		0.8%		9.2%		0.7%		14.5%		0.9%
New York		4.2%		5.7%		3.1%		1.3%		4.9%		7.2%		3.0%		2.2%
Houston		11.3%		15.0%		8.7%		2.4%		10.4%		2.2%		16.7%		1.6%
Orlando		8.0%		(0.1)%		13.3%		1.1%		7.7%		1.0%		12.0%		0.8%
Austin		13.6%		13.4%		13.8%		1.3%		13.7%		13.7%		13.8%		1.4%

Total		7.8%		3.9%		10.4%		1.0%		7.8%		3.5%		10.7%		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.

Same Store Occupancy by Market


	Apartment Units		% of NOI Three months ended June 30, 2012										Physical Occupancy at June 30, 2012 (2)		Average Rental Rate Per Unit Three Months Ended June 30, 2012 (3)
					Average Economic				Average Economic
					Occupancy (1)				Occupancy (1)
					Three months ended				Six months ended
					June 30,				June 30,
Market					2012		2011		2012		2011
Atlanta		5,407		26.5%		96.1%		96.1%		96.3%		96.0%		96.2%		$	1,187
Washington, D.C.		2,301		19.8%		95.7%		93.9%		95.2%		93.4%		95.9%			1,859
Dallas		4,559		19.6%		95.7%		94.0%		95.1%		93.9%		96.7%			1,121
Tampa		2,111		11.6%		96.3%		96.3%		96.7%		97.0%		95.6%			1,321
Charlotte		1,388		6.7%		96.5%		95.7%		96.1%		95.2%		96.4%			1,129
New York		337		4.5%		96.1%		94.8%		95.9%		93.7%		97.3%			3,777
Houston		837		4.2%		97.4%		95.0%		97.0%		95.4%		96.7%			1,292
Orlando		598		3.7%		97.3%		96.2%		97.5%		96.7%		96.2%			1,447
Austin		576		3.4%		96.7%		95.4%		96.4%		95.0%		96.9%			1,572

Total		18,114		100.0%		96.1%		95.1%		96.0%		95.0%		96.3%		$	1,341

Average economic occupancy is defined as gross potential rent less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts, would have been 95.4% and 93.9% for the three months and 95.2% and 93.7% for the six months ended June 30, 2012 and 2011, respectively. For the three months ended June 30, 2012 and 2011, net concessions were $299 and $633, respectively, and employee discounts were $215 and $200, respectively. For the six months ended June 30, 2012 and 2011, net concessions were $634 and $1,430, respectively, and employee discounts were $424 and $399, 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.


Supplemental Financial Data		8 \| Page

SAME STORE RESULTS (CON’T)

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

Sequential Same Store Operating Results – Comparison of Second Quarter of 2012 to First Quarter of 2012


	Three months ended
	June 30,			March 31,
	2012			2012			% Change
Rental and other revenue	$	72,868		$	71,104			2.5%
Utility reimbursements		2,261			2,216			2.0%

Total rental and other revenues	$	75,129		$	73,320			2.5%


Personnel expenses		6,611			6,818			(3.0)%
Utility expense		4,039			3,868			4.4%
Real estate taxes and fees		10,603			10,388			2.1%
Insurance expenses		1,026			1,120			(8.4)%
Building and grounds repairs and maintenance (1)		4,473			4,000			11.8%
Ground lease expense		227			234			(3.0)%
Other expenses		1,948			1,826			6.7%

Total property operating and maintenance expenses (excluding depreciation and amortization)		28,927			28,254			2.4%

Same store net operating income (2)	$	46,202		$	45,066			2.5%

Average economic occupancy		96.1	%		95.8	%		0.3%

Average monthly rental rate per unit	$	1,341		$	1,320			1.6%

1)	Building and grounds repairs and maintenance includes $292 and $145 for the three months ended June 30, 2012 and March 31, 2012, 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 Second Quarter of 2012 to First Quarter of 2012

(Increase (decrease) between periods)


							Average Economic Occupancy

Market	Revenues (1)		Expenses (1)		NOI (1)
Atlanta		1.8%		3.5%		0.6%		(0.5)%
Washington, D.C.		2.0%		(1.9)%		3.8%		0.9%
Dallas		3.9%		2.0%		5.5%		1.2%
Tampa		1.4%		2.7%		0.6%		(0.7)%
Charlotte		3.9%		7.5%		2.0%		0.7%
New York		1.8%		(4.7)%		7.6%		0.4%
Houston		3.5%		19.4%		(5.9)%		0.7%
Orlando		1.8%		(0.2)%		3.1%		(0.3)%
Austin		2.9%		(0.8)%		5.9%		0.7%

Total		2.5%		2.4%		2.5%		0.3%

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


Supplemental Financial Data		9 \| Page

DEBT SUMMARY

(In thousands) - (Unaudited)

Summary of Outstanding Debt at June 30, 2012 - Consolidated


Type of Indebtedness	Balance			Percentage of Total Debt		Weighted Average Rate (1) June 30,
						Weighted Average Rate (1) June 30,
						2012		2011
Unsecured fixed rate senior notes		$	280,091		28.9%		5.5%		5.5%
Unsecured bank term loan			230,000		23.8%		3.5%		—
Secured fixed rate notes			457,491		47.3%		5.6%		5.7%

		$	967,582		100.0%		5.0%		5.6%


	Balance			Percentage of Total Debt		Weighted Average Maturity of Total Debt (2)
	Balance			Percentage of Total Debt		Weighted Average Maturity of Total Debt (2)
Total fixed rate debt		$	967,582		100.0%		4.7
Total variable rate debt - unhedged			—		—		—

Total debt		$	967,582		100.0%		4.7

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 2012		$	2,242			5.8	%		$	—		$	—		—
2013			186,606			6.1	%			—			—		—
2014			3,961			5.9	%			—			—		—
2015			124,205	(9)		4.9	%			—			—		—
2016			4,419	(3)		5.9	%			—			—		—
Thereafter			646,149			4.8	%			177,723			49,531		5.0	%

		$	967,582			5.0	%		$	177,723		$	49,531		5.0	%

Debt Statistics


	Six months ended June 30,
	2012			2011
Interest coverage ratio (4)(5)		3.7x			2.6x
Interest coverage ratio (including capitalized interest) (4)(5)		3.3x			2.5x
Fixed charge coverage ratio (4)(6)		3.4x			2.4x
Fixed charge coverage ratio (including capitalized interest) (4)(6)		3.1x			2.3x
Total debt to annualized income available for debt service ratio (7)		5.7x			6.9x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		34.2	%		38.5	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		35.7	%		40.0	%

Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at June 30, 2011 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 June 30, 2012, 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 maturing in 2016.

4)	Calculated for the six months ended June 30, 2012 and 2011.

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.

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

8)	A computation of this debt ratio 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.


Supplemental Financial Data		10 \| Page

DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Financial Debt Covenants - Senior Unsecured Public Notes


Covenant requirement (1)	As of June 30, 2012
Consolidated Debt to Total Assets cannot exceed 60%		32%
Secured Debt to Total Assets cannot exceed 40%		15%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		4.7x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		3.7x

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 June 30, 2012
Consolidated debt, per balance sheet (A)	$	967,582

Total assets, as defined (B) (Table A)	$	2,992,123

Computed ratio (A÷B)		32%

Required ratio (cannot exceed)		60%


Ratio of Secured Debt to Total Assets
Total secured debt (C)	$	457,491

Computed ratio (C÷B)		15%

Required ratio (cannot exceed)		40%


Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	967,582
Total secured debt (C)		(457,491)

Total unsecured debt (D)	$	510,091

Total unencumbered assets, as defined (E) (Table A)	$	2,379,204

Computed ratio (E÷D)		4.7x

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)	$	178,326

Annual Debt Service Charge, as defined (G) (Table B)	$	48,208

Computed ratio (F÷G)		3.7x

Required minimum ratio		1.5x


Supplemental Financial Data		11 \| Page

DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Table A

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


	As of June 30, 2012
Total real estate assets	$	2,099,355
Add:
Investments in and advances to unconsolidated real estate entities		5,593
Accumulated depreciation		805,129
Other tangible assets		82,046


Total assets for public debt covenant computations		2,992,123
Less:
Encumbered real estate assets		(607,326	)
Investments in and advances to unconsolidated real estate entities		(5,593	)

Total unencumbered assets for public debt covenant computations	$	2,379,204

Table B

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


Consolidated income available for debt service	Six months ended June 30, 2012
Net income	$	43,035
Add:
Depreciation		38,838
Depreciation (company share) of assets held in unconsolidated entities		623
Amortization of deferred financing costs		1,359
Interest expense		22,748
Interest expense (company share) of assets held in unconsolidated entities		1,356
Income tax expense, net		304
Other non-cash (income) expense, net		2,088
Net loss on early extinguishment of indebtedness		301
Less:
Gain on sale of real estate assets - unconsolidated entity, net		(6,055	)
Gains on sales of real estate assets, net		(15,434	)

Consolidated income available for debt service	$	89,163

Consolidated income available for debt service (annualized)	$	178,326


Annual debt service charge
Consolidated interest expense	$	22,748
Interest expense (company share) of assets held in unconsolidated entities		1,356

Debt service charge	$	24,104

Debt service charge (annualized)	$	48,208

1)	The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2012 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants.


Supplemental Financial Data		12 \| Page

SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENT,

LAND HELD FOR FUTURE INVESTMENT AND ACQUISITION/DISPOSITION 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 (2)		Costs Incurred as of 06/30/2012		Quarter of First Units Available	Estimated Quarter of Stabilized Occupancy (3)	Percent Leased (4)
Post Carlyle Square™ - Phase II	Wash. DC		344		—	$	89.0	$	77.7	2Q 2012	4Q 2013	20.0%
Post South Lamar™	Austin, TX		298		8,555		41.7		27.4	3Q 2012	4Q 2013	N/A
Post Midtown Square® - Phase III	Houston, TX		124		10,864		21.8		14.2	3Q 2012	4Q 2013	N/A
Post Lake® at Baldwin Park - Phase III	Orlando, FL		410		—		58.6		17.9	1Q 2013	3Q 2014	N/A
Post Parkside™ at Wade - Phase I	Raleigh, NC		392		18,148		55.0		17.4	1Q 2013	3Q 2014	N/A
Post Richmond Avenue™	Houston, TX		242		—		34.3		7.8	3Q 2013	4Q 2014	N/A

Total			1,810		37,567	$	300.4	$	162.4

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

2)	To the extent that developments contain a retail component, total estimated cost includes estimated first generation tenant improvements and leasing commissions.

3)	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.

4)	Represents unit status as of July 27, 2012.

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 June 30, 2012 (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
Wade	Raleigh, NC		10,132		26.6
Soho Square	Tampa, FL		5,168		4.1

Total Land Held for Future Investment		$	51,088		54.3

Acquisition/Disposition Activity


Property Name	Location	Quarter Acquired / Disposed	Units	Retail Sq. Ft.	Year Completed	Gross Price (in thousands)	Cap Rate	Company’s Ownership %
Acquisitions
Post Katy Trail™	Dallas, TX	Q4 2011	227	9,080	2010	$ 48,500	5.0%(1)	100%
Post South End™	Charlotte, NC	Q3 2012	360	7,612	2009	$ 74,000	5.0%(1)	100%
Dispositions
Post Biltmore™	Atlanta, GA	Q1 2012	276	—	2002	$ 51,075	4.8%(2)	35%

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.

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


Supplemental Financial Data		13 \| Page

SUMMARY OF CONDOMINIUM PROJECTS

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


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

*Project Data*
Location		Atlanta, GA				Austin, TX
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 7/27/12 (2)
Closed		55				109
Under contract		18				6
Available for sale		56				33

Total		129				148


			Per Sq. Ft.				Per Sq. Ft.
*Quarterly Data*
Balance Sheet/Cost Data as of 6/30/12
Condominium book value	$	13,397			$	26,956
Condominium estimated cost to complete	$	2,239			$	1,283
Estimated book value at completion	$	15,636	$	112	$	28,239	$	300
Projected total cost (before impairment losses)	$	112,700	$	459	$	138,500	$	473

Units Closed as of 6/30/12
Quarter		13				13
Year to date		23				22
Project to date		52				108

Square Footage of Units Closed as of 6/30/12 (1)
Quarter		26,860				20,716
Year to date		47,679				35,303
Project to date		106,161				198,576

Gross Revenue as of 6/30/12
Quarter	$	10,324	$	384	$	12,621	$	609
Year to date	$	18,593	$	390	$	21,933	$	621
Project to date	$	42,303	$	398	$	122,414	$	616

Cash flow from sales as of 6/30/12 (3)
Quarter	$	6,889	$	256	$	10,349	$	500
Year to date	$	12,249	$	257	$	17,804	$	504
Project to date	$	25,417	$	239	$	97,689	$	492

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.


Supplemental Financial Data		14 \| Page

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 and six months ended June 30, 2012 and 2011 is provided below.


	Three months ended				Six months ended
	June 30,				June 30,
	2012		2011		2012		2011
New community development and acquisition activity (1)	$	43,135	$	20,652	$	74,366	$	34,539
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		599		585		1,310		723
Other community additions and improvements (3)		2,146		2,275		3,523		3,568
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		4,538		4,393		7,480		6,521
Corporate additions and improvements		366		336		445		486

	$	50,784	$	28,241	$	87,124	$	45,837


Other Data
Capitalized interest	$	1,679	$	574	$	3,000	$	1,006

Capitalized development and associated costs (5)	$	913	$	627	$	1,719	$	1,096

1)	Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years. There was no acquisition activity for the three or six months ended June 30, 2012 or 2011.

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.


Supplemental Financial Data		15 \| Page

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										Three months ended							Six months ended
	June 30, 2012										June 30, 2012							June 30, 2012
	Gross							Company’s					Company’s			Mgmt.				Company’s			Mgmt.
Joint Venture Property	Investment in Real Estate (6)		Mortgage Notes Payable			Entity Equity		Equity Investment			Entity NOI		Equity in Income (Loss)			Fees & Other		Entity NOI		Equity in Income (Loss)			Fees & Other
Post Collier Hills® (1)	$	55,030	$	39,565	(2)	$	9,390	$	(4,624	) (1)	$	699	$	2				$	1,389	$	1
Post Crest® (1)		64,397		46,158	(2)		10,850		(6,994	) (1)		769		(7	)				1,510		(21	)
Post Lindbergh® (1)		60,720		41,000	(3)		13,986		(4,507	) (1)		745		—					1,458		(9	)
Post Biltmore™ (7)		—		—			1,677		737			—		—					—		6,034
Post Massachusetts Avenue™		70,564		51,000	(4)		5,613		4,856			1,885		500					3,691		936

Total	$	250,711	$	177,723		$	41,516	$	(10,532	)	$	4,098	$	495		$	203 (5)	$	8,048	$	6,941		$	415 (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.

The unconsolidated entity that owned this apartment community sold it to a third party for gross proceeds of approximately $51,075 in February 2012. The mortgage note of $29,272 was repaid in full upon the sale of the apartment community, and the cash proceeds were distributed to its members. The Company recognized its share of the gain on the sale of this community of $6,055 in its equity in earnings of unconsolidated entities on the consolidated statement of operations for the six months ended June 30, 2012. Entity NOI through the date of sale was excluded from the above table since amounts are reported as discontinued operations at the unconsolidated entity level.


Supplemental Financial Data		16 \| Page

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 June 30, 2012		Adjustments			As Adjusted (3)
Rental revenues	$	77,081	$	(570	) (2)	$	76,511
Other property revenues		4,873		24	(2)		4,897

Total rental and other revenues (A)		81,954		(546	)		81,408
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		35,231		(4,197	) (2)		31,034

Property net operating income (Table 1) (A-B)	$	46,723	$	3,651		$	50,374


Assumed property management fee (calculated at 3% of revenues) (A x 3%)							(2,442	)
Assumed property capital expenditure reserve ($300 per unit per year based on 18,691 units)							(1,402	)

Adjusted property net operating income						$	46,530

Annualized property net operating income (C)						$	186,120


Apartment units represented (D)		21,622		(2,931	) (2)		18,691


Other Asset Data	As of June 30, 2012		Adjustments			As Adjusted
Cash & equivalents	$	51,628	$	—		$	51,628
Real estate assets under construction, at cost (4)		112,466		49,920			162,386
Land held for future investment		51,088		—			51,088
For-sale condominiums		40,353		—			40,353
Investments in and advances to unconsolidated real estate entities (5)		5,593		(5,593	) (5)		—
Restricted cash and other assets		38,287		—			38,287
Cash & other assets of unconsolidated apartment entities (6)		7,117		(5,013	) (6)		2,104

Total (E)	$	306,532	$	39,314		$	345,846


Other Liability Data
Indebtedness (7)	$	967,582	$	(10,976	) (7)	$	956,606
Investments in unconsolidated real estate entities (5)		16,125		(16,125	) (5)		—
Other liabilities (including noncontrolling interests) (8)		119,249		(7,531	) (8)		111,718
Total liabilities of unconsolidated apartment entities (9)		181,023		(130,578	) (9)		50,445

Total (F)	$	1,283,979	$	(165,210	)	$	1,118,769


Other Data	As of June 30, 2012
	# Shares/Units		Stock Price			Implied Value
Liquidation value of preferred shares (G)						$	43,392


Common shares outstanding		54,109
Common units outstanding		143

Total (H)		54,252	$	48.95		$	2,655,635


Implied market value of Company gross real estate assets (I) = (F+G+H-E)						$	3,471,950


Implied Portfolio Capitalization Rate (C÷I)							5.4	%

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 June 30, 2012, for properties stabilized as of April 1, 2012, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of April 1, 2012, are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.


Supplemental Financial Data		17 \| Page

2)	The following table summarizes the adjustments made to the components of property net operating income for the three months ended June 30, 2012, 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	$	(60	)	$	(17	)	$	(238	)		(1,810	)
Company share of unconsolidated entities		1,785			141			633			(1,077	)
Minority share of consolidated real estate entity		(524	)		(4	)		(225	)		(44	)
Corporate property management expenses		—			—			(2,748	)		—
Corporate apartments and other		(1,771	)		(96	)		(1,619	)		—

	$	(570	)	$	24		$	(4,197	)		(2,931	)

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 June 30, 2012:


	Rental and Other Revenues		Property Operating & Maintenance Expenses (ex. Deprec. and Amort.)		Property Net Operating Income (NOI)		Percentage of Total NOI			Apartment Units / Commercial Sq. Ft.
Atlanta	$	21,327	$	8,372	$	12,955		25.7	%		5,707
Washington DC		14,027		4,177		9,850		19.5	%		2,395
Dallas		16,811		7,163		9,648		19.2	%		4,786
Tampa		8,628		3,257		5,371		10.7	%		2,111
Charlotte		4,845		1,742		3,103		6.2	%		1,388
New York		3,140		1,382		1,758		3.5	%		293
Houston		3,359		1,439		1,920		3.8	%		837
Orlando		2,711		1,001		1,710		3.4	%		598
Austin		2,770		1,193		1,577		3.1	%		576
Commercial		3,790		1,308		2,482		4.9	%		—

Total	$	81,408	$	31,034	$	50,374		100.0	%		18,691


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	$	77,743
Post South Lamar™		27,386
Post Midtown Square® - Phase III		14,198
Post Parkside™ at Wade		17,412
Post Lake® at Baldwin Park - Phase III		17,854
Post Richmond Avenue™		7,793

	$	162,386

5)	The adjustment reflects a reduction for the investments in unconsolidated entities, 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 June 30, 2012” 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 June 30, 2012” 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 $7,582, offset by the addition of noncontrolling interests of consolidated real estate entities of $51.

The “As of June 30, 2012” 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.


Supplemental Financial Data		18 \| Page

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.


Supplemental Financial Data		19 \| Page

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 not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.

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


Supplemental Financial Data		20 \| Page

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												Six months ended
	June 30, 2012				June 30, 2011				March 31, 2012				June 30, 2012				June 30, 2011
Total same store NOI		$	46,202			$	41,850			$	45,066			$	91,268			$	82,476
Property NOI from other operating segments			521				141				351				872				213

Consolidated property NOI			46,723				41,991				45,417				92,140				82,689

Add (subtract):
Interest income			288				516				51				339				608
Other revenues			206				227				222				428				443
Depreciation			(19,497	)			(18,808	)			(19,341	)			(38,838	)			(37,560	)
Interest expense			(11,103	)			(14,437	)			(11,645	)			(22,748	)			(28,912	)
Amortization of deferred financing costs			(698	)			(721	)			(661	)			(1,359	)			(1,368	)
General and administrative			(3,883	)			(4,246	)			(4,285	)			(8,168	)			(8,362	)
Investment and development			(322	)			(296	)			(480	)			(802	)			(774	)
Other investment costs			(306	)			(455	)			(306	)			(612	)			(949	)
Gains on condominium sales activities, net			8,530				5,432				6,904				15,434				6,176
Equity in income of unconsolidated real estate entities, net			495				346				6,446				6,941				555
Other income (expense), net			737				285				(156	)			581				301
Net loss on extinguishment of indebtedness			—				—				(301	)			(301	)			—


Net income		$	21,170			$	9,834			$	21,865			$	43,035			$	12,847


Supplemental Financial Data		21 \| Page

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									Q2 ‘12 vs. Q2 ‘11 % Change		Q2 ‘12 vs. Q1 ‘12 % Change		Q2 ‘12 % Same Store NOI
	June 30, 2012			June 30, 2011			March 31, 2012			Q2 ‘12 vs. Q2 ‘11 % Change		Q2 ‘12 vs. Q1 ‘12 % Change		Q2 ‘12 % Same Store NOI
Rental and other revenues
Atlanta		$	20,320		$	18,927		$	19,970		7.4%		1.8%
Washington, D.C.			13,108			12,377			12,854		5.9%		2.0%
Dallas			15,720			14,420			15,123		9.0%		3.9%
Tampa			8,628			8,052			8,509		7.2%		1.4%
Charlotte			4,845			4,440			4,663		9.1%		3.9%
New York			3,668			3,520			3,602		4.2%		1.8%
Houston			3,359			3,018			3,245		11.3%		3.5%
Orlando			2,711			2,511			2,662		8.0%		1.8%
Austin			2,770			2,438			2,692		13.6%		2.9%

Total rental and other revenues			75,129			69,703			73,320		7.8%		2.5%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta			8,087			7,896			7,816		2.4%		3.5%
Washington, D.C.			3,946			3,927			4,024		0.5%		(1.9)%
Dallas			6,655			6,369			6,527		4.5%		2.0%
Tampa			3,257			3,096			3,170		5.2%		2.7%
Charlotte			1,742			1,739			1,620		0.2%		7.5%
New York			1,607			1,521			1,686		5.7%		(4.7)%
Houston			1,439			1,251			1,205		15.0%		19.4%
Orlando			1,001			1,002			1,003		(0.1)%		(0.2)%
Austin			1,193			1,052			1,203		13.4%		(0.8)%

Total			28,927			27,853			28,254		3.9%		2.4%


Net operating income
Atlanta			12,233			11,031			12,154		10.9%		0.6%		26.5%
Washington, D.C.			9,162			8,450			8,830		8.4%		3.8%		19.8%
Dallas			9,065			8,051			8,596		12.6%		5.5%		19.6%
Tampa			5,371			4,956			5,339		8.4%		0.6%		11.6%
Charlotte			3,103			2,701			3,043		14.9%		2.0%		6.7%
New York			2,061			1,999			1,916		3.1%		7.6%		4.5%
Houston			1,920			1,767			2,040		8.7%		(5.9)%		4.2%
Orlando			1,710			1,509			1,659		13.3%		3.1%		3.7%
Austin			1,577			1,386			1,489		13.8%		5.9%		3.4%

Total same store NOI		$	46,202		$	41,850		$	45,066		10.4%		2.5%		100.0%


Average rental rate per unit
Atlanta		$	1,187		$	1,108		$	1,168		7.1%		1.6%
Washington, D.C.			1,859			1,804			1,843		3.0%		0.9%
Dallas			1,121			1,042			1,101		7.6%		1.8%
Tampa			1,321			1,227			1,297		7.7%		1.8%
Charlotte			1,129			1,039			1,105		8.7%		2.2%
New York			3,777			3,685			3,744		2.5%		0.9%
Houston			1,292			1,190			1,264		8.6%		2.2%
Orlando			1,447			1,355			1,424		6.8%		1.6%
Austin			1,572			1,449			1,548		8.5%		1.6%
Total average rental rate per unit			1,341			1,259			1,320		6.5%		1.6%


Supplemental Financial Data		22 \| Page

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

(In thousands, except average rental rates)


	Six months ended
	June 30, 2012			June 30, 2011			% Change
Rental and other revenues
Atlanta		$	40,291		$	37,440		7.6%
Washington, D.C.			25,962			24,426		6.3%
Dallas			30,842			28,467		8.3%
Tampa			17,137			15,973		7.3%
Charlotte			9,508			8,707		9.2%
New York			7,270			6,933		4.9%
Houston			6,604			5,982		10.4%
Orlando			5,373			4,991		7.7%
Austin			5,462			4,802		13.7%

Total rental and other revenues			148,449			137,721		7.8%


Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta			15,903			15,718		1.2%
Washington, D.C.			7,969			7,696		3.5%
Dallas			13,182			12,693		3.9%
Tampa			6,428			6,050		6.2%
Charlotte			3,363			3,338		0.7%
New York			3,293			3,071		7.2%
Houston			2,644			2,588		2.2%
Orlando			2,004			1,984		1.0%
Austin			2,395			2,107		13.7%

Total			57,181			55,245		3.5%


Net operating income
Atlanta			24,388			21,722		12.3%
Washington, D.C.			17,993			16,730		7.5%
Dallas			17,660			15,774		12.0%
Tampa			10,709			9,923		7.9%
Charlotte			6,145			5,369		14.5%
New York			3,977			3,862		3.0%
Houston			3,960			3,394		16.7%
Orlando			3,369			3,007		12.0%
Austin			3,067			2,695		13.8%

Total same store NOI		$	91,268		$	82,476		10.7%


Average rental rate per unit
Atlanta		$	1,177		$	1,100		7.0%
Washington, D.C.			1,851			1,795		3.1%
Dallas			1,111			1,037		7.1%
Tampa			1,309			1,216		7.6%
Charlotte			1,117			1,029		8.6%
New York			3,760			3,679		2.2%
Houston			1,278			1,182		8.1%
Orlando			1,436			1,346		6.7%
Austin			1,560			1,437		8.6%
Total average rental rate per unit			1,330			1,251		6.3%


Supplemental Financial Data		23 \| Page

Table 3 - Operating Community Table


	Year Completed/			Avg.		Q2 2012						Q2 2012
Market /	Year of			Unit		Avg. Monthly Rent						Average
Submarket /	Substantial	No. of		Size		Per			Per			Economic
Community	Renovations	Units		(Sq. Ft.)		Unit			Sq. Ft.			Occ.
Atlanta
Buckhead / Brookhaven
Post Alexander™	2008		307		1,016		$	1,605		$	1.58		95.6%
Post Brookhaven^®	1990-1992		735		933			1,007			1.08		96.7%
Post Chastain^®	1990/2008		558		866			1,132			1.31		96.4%
Post Collier Hills^® (1)(2)	1997		396		948			1,042			1.10		97.2%
Post Gardens^®	1998		397		1,039			1,211			1.17		95.4%
Post Glen^® (2)	1997		314		1,076			1,195			1.11		96.9%
Post Lindbergh^® (1)(2)	1998		396		910			1,090			1.20		96.0%
Post Peachtree Hills^®	1992-1994/2009		300		978			1,274			1.30		93.4%
Post Stratford^TM	2000		250		999			1,215			1.22		96.6%

Dunwoody
Post Crossing^® (2)	1995		354		1,036			1,081			1.04		97.4%

Emory Area
Post Briarcliff^TM (2)	1999		688		1,006			1,163			1.16		95.4%

Midtown
Post Parkside^TM (2)	2000		188		885			1,384			1.56		97.3%
Post Renaissance^®	1992-1994		342		908			1,037			1.14		96.1%

Northwest Atlanta
Post Crest^® (1)(2)	1996		410		1,033			1,023			0.99		97.6%
Post Riverside^®	1998		522		1,062			1,441			1.36		96.7%
Post Spring^TM (2)	2000		452		977			1,020			1.04		95.8%

Dallas
North Dallas
Post Addison Circle^TM (2)	1998-2000		1,334		846			1,025			1.21		94.8%
Post Eastside^TM	2008		435		910			1,120			1.23		94.2%
Post Legacy (2)	2000		384		810			1,006			1.24		97.1%
Post Sierra at Frisco Bridges™	2009		268		896			1,084			1.21		96.9%

Uptown Dallas
Post Abbey^TM	1996		34		1,223			1,821			1.49		98.4%
Post Cole’s Corner^TM	1998		186		799			1,121			1.40		96.9%
Post Gallery^TM	1999		34		2,307			2,782			1.21		96.1%
Post Heights^TM	1998-1999/2009		368		845			1,288			1.52		96.3%
Post Katy Trail™	2010		227		898			1,596			1.78		96.9%
Post Meridian^TM	1991		133		780			1,255			1.61		95.1%
Post Square^TM	1996		218		863			1,245			1.44		96.4%
Post Uptown Village^TM	1995-2000		496		735			1,059			1.44		97.1%
Post Vineyard^TM	1996		116		733			1,112			1.52		97.0%
Post Vintage^TM	1993		160		750			1,136			1.51		95.7%
Post Worthington^TM(2)	1993/2008		334		820			1,405			1.71		94.2%


Supplemental Financial Data		24 \| Page

Table 3 (con’t) - Operating Community Table


	Year Completed/			Avg.		Q2 2012						Q2 2012
Market /	Year of			Unit		Avg. Monthly Rent						Average
Submarket /	Substantial	No. of		Size		Per			Per			Economic
Community	Renovations	Units		(Sq. Ft.)		Unit			Sq. Ft.			Occ.
Austin
Post Barton Creek™	1998		160		1,162		$	1,599		$	1.38		96.1%
Post Park Mesa™	1992		148		1,091			1,325			1.21		97.2%
Post West Austin™	2009		329		889			1,378			1.55		96.8%

Houston
Post Midtown Square^®	1999-2000		529		759			1,205			1.59		98.3%
Post Rice Lofts^TM	1998		308		906			1,441			1.59		96.0%

Tampa
Post Bay at Rocky Point™	1997		150		1,012			1,360			1.34		97.3%
Post Harbour Place^TM	1999-2002		578		920			1,438			1.56		97.4%
Post Hyde Park^® (2)	1996-2008		467		1,011			1,394			1.38		96.8%
Post Rocky Point^® (2)	1996-1998		916		1,031			1,204			1.17		95.0%

Orlando
Post Lake^® at Baldwin Park	2004-2007		350		1,013			1,489			1.47		96.2%
Post Parkside^TM	1999		248		852			1,388			1.63		98.9%

Charlotte
Post Ballantyne (2)	2004		323		1,252			1,084			0.87		95.5%
Post Gateway Place^TM(2)	2000		436		806			1,046			1.30		96.0%
Post Park at Phillips Place^®	1998		402		1,099			1,283			1.17		96.6%
Post Uptown Place^TM	2000		227		800			1,080			1.35		98.4%

Washington D.C.
Maryland
Post Fallsgrove	2003		361		983			1,705			1.73		97.2%
Post Park^®	2010		396		975			1,585			1.63		95.5%

Virginia
Post Carlyle Square™	2006		205		861			2,420			2.81		98.1%
Post Corners at Trinity Centre (2)	1996		336		994			1,572			1.58		95.6%
Post Pentagon Row ^TM	2001		504		853			2,298			2.69		94.5%
Post Tysons Corner ^TM	1990		499		810			1,705			2.10		94.9%

Washington D.C.
Post Massachusetts Avenue ^TM (1)(2)	2002		269		884			3,052			3.45		96.9%

New York City
Post Luminaria ^TM (2)(3)	2002		138		721			3,764			5.22		97.1%
Post Toscana ^TM (2)	2003		199		817			3,786			4.63		95.4%

1)	Communities held in unconsolidated entities.

2)	Communities encumbered by secured mortgage indebtedness.

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


Supplemental Financial Data		25 \| Page

Table 4 - Year-to-Date Margin Analysis

(In thousands)


	Six months ended June 30, 2012
	Rental and Other Property Revenues			Property Operating & Maintenance Expenses			Net Operating Income (“NOI”)				NOI Margin		Expense Margin
Same store communities		$	148,449		$	57,181		$	91,268			61.5%		38.5%
Development and lease-up communities (2)(6)			77			238			(161	)		N/A		N/A
Acquired communities			2,149			981			1,168			54.4%		45.6%
Other property segments:
Corporate apartments			3,574			3,065			509			14.2%		85.8%
Commercial			7,759			2,694			5,065			65.3%		34.7%
Corporate property management expenses (1)			—			5,709			(5,709	)

		$	162,008		$	69,868

Consolidated property NOI (2)								$	92,140


Third-party management fees								$	415

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


	Numerator:
Corporate property management expenses		$	5,709
	Less: Third-party management fees		(415	)

	Net property management expenses	$	5,294


	Denominator:
	Total rental and other property revenues	$	162,008
	Less: Corporate apartment revenues		(3,574	)

	Adjusted property revenues	$	158,434


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

2)	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).


Supplemental Financial Data		26 \| Page

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

(In thousands)


	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Annually recurring capital expenditures by operating segment
Same store communities		$	4,172		$	4,301		$	6,977		$	6,330
Development and lease-up			—			—			—			—
Acquired communities			9			—			34			—
Other segments			357			92			469			191

Total annually recurring capital expenditures		$	4,538		$	4,393		$	7,480		$	6,521


Periodically recurring capital expenditures by operating segment
Same store communities		$	1,896		$	1,992		$	2,427		$	2,909
Development and lease-up			—			—			—			—
Acquired communities			—			—			—			—
Other segments			250			283			1,096			659

Total periodically recurring capital expenditures		$	2,146		$	2,275		$	3,523		$	3,568


Total revenue generating capital expenditures		$	599		$	585		$	1,310		$	723


Total property capital expenditures per statements of cash flows		$	7,283		$	7,253		$	12,313		$	10,812

Table 6 - Computation of Debt Ratios

(In thousands)


	As of June 30,
	2012				2011
Total real estate assets per balance sheet		$	2,099,355			$	2,025,740
Plus:
Company share of real estate assets held in unconsolidated entities			59,450				70,828
Company share of accumulated depreciation - assets held in unconsolidated entities			10,284				11,611
Accumulated depreciation per balance sheet			805,129				729,759

Total undepreciated real estate assets (A)		$	2,974,218			$	2,837,938


Total debt per balance sheet		$	967,582			$	1,031,878
Plus:
Company share of third party debt held in unconsolidated entities			49,531				59,601

Total debt (adjusted for joint venture partners’ share of debt) (B)		$	1,017,113			$	1,091,479


Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)			34.2	%			38.5	%


Total debt per balance sheet		$	967,582			$	1,031,878
Plus:
Company share of third party debt held in unconsolidated entities			49,531				59,601
Preferred shares at liquidation value			43,392				43,392

Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)		$	1,060,505			$	1,134,871


Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)			35.7	%			40.0	%


Supplemental Financial Data		27 \| Page

Table 7 - Computation of Coverage Ratios

(In thousands)


	Six months ended June 30,
	2012				2011
Net income (loss)		$	43,035			$	12,847
Other non-cash (income) expense, net			2,088				1,939
Income tax expense, net			304				427
Gains on sales of real estate assets, net			(15,434	)			(6,176	)
Gain on sale of real estate assets - unconsolidated entity, net			(6,055	)			—
Net loss on early extinguishment of indebtedness			301				—
Depreciation expense			38,838				37,560
Depreciation (company share) of assets held in unconsolidated entities			623				722
Interest expense			22,748				28,912
Interest expense (company share) of assets held in unconsolidated entities			1,356				1,718
Amortization of deferred financing costs			1,359				1,368

Income available for debt service (A)		$	89,163			$	79,317

Annualized income available for debt service (B)		$	178,326			$	158,634


Interest expense		$	22,748			$	28,912
Interest expense (company share) of assets held in unconsolidated entities			1,356				1,718

Adjusted interest expense (C)			24,104				30,630
Capitalized interest			3,000				1,006

Adjusted interest expense (including capitalized interest) (D)		$	27,104			$	31,636


Adjusted interest expense		$	24,104			$	30,630
Dividends to preferred shareholders			1,844				2,611

Fixed charges (E)			25,948				33,241
Capitalized interest			3,000				1,006

Fixed charges (including capitalized interest) (F)		$	28,948			$	34,247


Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G)		$	1,017,113			$	1,091,479


Interest coverage ratio (A÷C)			3.7x				2.6x

Interest coverage ratio (including capitalized interest) (A÷D)			3.3x				2.5x

Fixed charge coverage ratio (A÷E)			3.4x				2.4x

Fixed charge coverage ratio (including capitalized interest) (A÷F)			3.1x				2.3x

Total debt to annualized income available for debt service ratio (G÷B)			5.7x				6.9x

Table 8 - Calculation of Company Undepreciated Book Value Per Share

(In thousands, except per share data)


	June 30, 2012
Total Company shareholders’ equity per balance sheet		$	1,094,945
Plus:
Accumulated depreciation, per balance sheet			805,129
Noncontrolling interest of common unitholders in Operating Partnership, per balance sheet			7,016
Less:
Deferred financing costs, net, per balance sheet			(9,982	)
Preferred shares at liquidation value			(43,392	)

Total undepreciated book value (A)		$	1,853,716

Total common shares and units (B)			54,252

Company undepreciated book value per share (A÷B)		$	34.17


Supplemental Financial Data		28 \| Page

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