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

Attached files

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EX-99.1 - EX-99.1 - POST PROPERTIES INC	pps-ex991_7.htm
8-K - 8-K - POST PROPERTIES INC	pps-8k_20161031.htm


	Exhibit 99.2
3^rd Quarter 2016

Third Quarter 2016

Supplemental Financial Data

Table of Contents


	Page
Consolidated Statements of Operations	3
Funds from Operations and Adjusted Funds From Operations	4
Consolidated Balance Sheets	5
Fully Stabilized (“Same Store”) Results	7
Operating Community Data	10
Debt Summary	12
Summary of Apartment Communities Under Development, Land Held 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
Margin Analysis and Company Undepreciated Book Value per Share	19
Non-GAAP Financial Measures and Other Defined Terms and Tables	20

The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute "forward-looking statements" within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K for the year ended December 31, 2015 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount; risk factors related to the Company’s proposed merger, including the risk factors discussed in the Joint Proxy Statement/Prospectus dated September 30, 2016; of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s prior condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; uncertainties associated with the timing and amount of asset sales, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnerships in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; or any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company’s Joint Proxy Statement/Prospectus dated September 30, 2016 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” and those discussed in the Joint Proxy Statement/Prospectus are specifically incorporated by reference into this document.


Supplemental Financial Data	Page 2


3^rd Quarter 2016

Consolidated Statements Of Operations

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

	Three months ended						Nine months ended
	September 30,						September 30,
	2016			2015			2016			2015

Revenues
Rental	$	95,330		$	91,802		$	281,298		$	268,831
Other property revenues		5,986			5,628			17,651			16,874
Other		273			337			828			924
Total revenues		101,589			97,767			299,777			286,629

Expenses
Property operating and maintenance (exclusive of items
shown separately below)		42,110			42,707			128,761			124,342
Depreciation		23,949			22,073			69,452			64,748
General and administrative		4,474			4,622			13,121			13,989
Investment and development (1)		44			73			102			583
Other investment costs (1)		87			165			240			453
Merger expenses (2)		6,468			-			6,468			-
Other expenses (3)		-			-			400			-
Total expenses		77,132			69,640			218,544			204,115

Operating income		24,457			28,127			81,233			82,514

Interest income		-			34			1			158
Interest expense		(7,427	)		(8,217	)		(22,727	)		(24,631	)
Equity in income of unconsolidated real estate entities, net		921			603			2,153			1,568
Gains on sales of real estate assets, net (4)		-			-			-			1,475
Other income (expense), net		(316	)		(357	)		(821	)		(1,061	)
Net loss on extinguishment of indebtedness (5)		-			-			-			(197	)
Net income		17,635			20,190			59,839			59,826
Noncontrolling interests - Operating Partnership		(37	)		(43	)		(126	)		(126	)
Net income available to the Company		17,598			20,147			59,713			59,700
Dividends to preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available to common shareholders	$	16,676		$	19,225		$	56,947		$	56,934

Per common share data - Basic (6)
Net income available to common shareholders	$	0.31		$	0.35		$	1.06		$	1.04
Weighted average common shares outstanding - basic		53,384			54,326			53,442			54,409
Per common share data - Diluted (6)
Net income available to common shareholders	$	0.31		$	0.35		$	1.06		$	1.04
Weighted average common shares outstanding - diluted		53,403			54,342			53,459			54,425

See Notes to Consolidated Financial Statements on page 6


Supplemental Financial Data	Page 3


3^rd Quarter 2016

Funds From Operations And Adjusted Funds From Operations

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

Funds From Operations

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

	Three months ended				Nine months ended
	September 30,				September 30,
Funds From Operations (9)	2016		2015		2016		2015
Net income available to common shareholders	$	16,676	$	19,225	$	56,947	$	56,934
Noncontrolling interests - operating partnership unitholders		37		43		126		126
Depreciation on consolidated real estate assets, net		23,580		21,712		68,367		63,697
Depreciation on real estate assets held in unconsolidated entities		151		300		755		899
Gains on sales of depreciable real estate assets		-		-		-		(1,475	)
Funds from operations available to common
shareholders and unitholders (9) (A)	$	40,444	$	41,280	$	126,195	$	120,181

Per Common Share/Unit Data - Diluted (9)
Funds from operations per share or unit, as defined (A÷B)	$	0.75	$	0.76	$	2.35	$	2.20
Dividends declared	$	0.47	$	0.44	$	1.41	$	1.28
Weighted average shares outstanding (7)		53,524		54,478		53,582		54,556
Weighted average shares and units outstanding (7) (B)		53,640		54,599		53,701		54,677

Adjusted Funds From Operations

The Company uses adjusted funds from operations as a supplemental non-GAAP measure. The Company defines adjusted funds from operations as funds from operations less operating capital expenditures and after adjusting for the impact of debt extinguishment losses, if any. A reconciliation of adjusted funds from operations to the line on the Company’s consolidated statement of cash flows entitled, “net cash provided by operating activities,” the comparable GAAP measure, is included in Table 1 on page 22.

	Three months ended		Nine months ended
	September 30,		September 30,
Adjusted Funds From Operations (8) (9)	2016	2015	2016	2015
Funds from operations available to common
shareholders and unitholders	$ 40,444	$ 41,280	$ 126,195	$ 120,181
Annually recurring capital expenditures	(5,122)	(5,406)	(14,786)	(11,545)
Periodically recurring capital expenditures	(1,354)	(2,003)	(4,470)	(4,526)
Net loss on early extinguishment of indebtedness	-	-	-	197
Adjusted funds from operations available to common
shareholders and unitholders (8) (9)	$ 33,968	$ 33,871	$ 106,939	$ 104,307

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


Supplemental Financial Data	Page 4


3^rd Quarter 2016

Consolidated Balance Sheets

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

	September 30,			December 31,
	2016			2015

Assets
Real estate assets
Land	$	325,842		$	322,566
Building and improvements		2,436,953			2,406,425
Furniture, fixtures and equipment		350,862			329,854
Construction in progress		243,334			151,270
Land held for future investment		16,730			16,730
		3,373,721			3,226,845
Less: accumulated depreciation		(1,091,705	)		(1,023,652	)
Total real estate assets		2,282,016			2,203,193
Investments in and advances to unconsolidated real estate entities		3,645			3,856
Cash and cash equivalents		5,060			28,611
Restricted cash		4,039			3,881
Other assets		30,943			27,708
Total assets	$	2,325,703		$	2,267,249

Liabilities, redeemable common units and equity
Indebtedness	$	947,376		$	884,954
Accounts payable, accrued expenses and other		112,321			74,855
Investments in unconsolidated real estate entities		15,509			15,873
Dividends and distributions payable		25,202			23,819
Accrued interest payable		7,962			4,051
Security deposits and prepaid rents		14,629			13,537
Total liabilities		1,122,999			1,017,089

Redeemable common units		7,477			7,133

Commitments and contingencies
Equity
Company shareholders' equity
Preferred stock, $.01 par value, 20,000 authorized: 8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 868 shares issued and outstanding		9			9
Common stock, $.01 par value, 100,000 authorized: 54,632 and 54,632 shares issued and 53,509 and 54,012 shares outstanding at September 30, 2016 and December 31, 2015, respectively		546			546
Additional paid-in-capital		1,120,204			1,117,627
Accumulated earnings		148,149			167,791
Accumulated other comprehensive income (loss)		(5,227	)		(3,356	)
		1,263,681			1,282,617
Less common stock in treasury, at cost, 1,207 and 706 shares at September 30, 2016 and December 31, 2015, respectively		(70,760	)		(41,135	)
Total Company shareholders' equity		1,192,921			1,241,482
Noncontrolling interests - consolidated real estate entities		2,306			1,545
Total equity		1,195,227			1,243,027
Total liabilities, redeemable common units and equity	$	2,325,703		$	2,267,249


Supplemental Financial Data	Page 5


3^rd Quarter 2016

Notes to Consolidated Financial Statements

And Reconciliation of Funds From Operations and Adjusted Funds From Operations

(In thousands)

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

2)	In connection with the proposed merger transaction with MAA, the Company incurred legal, investment banking and other transaction costs (“Merger expenses”) totaling $6,468 for the three and nine months ended September 30, 2016.

3)	Other expenses for the nine months ended September 30, 2016 included $150 related to the upgrade of the Company’s human resources information system and $250 of casualty losses related to extreme weather conditions in one of the Company’s Texas markets.

4)	In 2015, the Company sold its remaining condominium retail asset and recognized a gain of $1,773. Additionally in 2015, gains on sales of real estate assets included state tax expense of $298 related to an asset sale.

5)	In January 2015, the Company refinanced its unsecured lines of credit and term loan facilities. In connection with the refinancing, the Company recognized an extinguishment loss of $197 related to the write-off of a portion of unamortized deferred loan costs.

Post Properties, Inc., through its wholly-owned subsidiaries, is the sole general partner, a limited partner and owns a majority interest in Post Apartment Homes, L.P., the Operating Partnership, through which the Company conducts its operations. As of September 30, 2016, there were 53,622 Operating Partnership units outstanding, of which 53,509, or 99.8%, were owned by the Company.

Diluted weighted average shares and units include the impact of dilutive securities totaling 19 and 16 for the three months and 17 and 16 for the nine months ended September 30, 2016 and 2015, respectively. Additionally, diluted weighted average shares and units include the impact of non-vested shares and units totaling 121 and 136 for the three months and 123 and 131 for the nine months ended September 30, 2016 and 2015, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”

Since the Company does not add back the depreciation of non-real estate assets in its calculation of FFO, non-real estate related capital expenditures of $304 and $400 for the three months and $1,158 and $942 for the nine months ended September 30, 2016 and 2015, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.

Previously reported adjusted funds from operations included an adjustment to add back non-cash, straight-line ground rent. Non-cash, straight-line ground rent was $112 and $339 for the three and nine months ended September 30, 2015, respectively.

9)	FFO and AFFO for the three and nine months ended September 30, 2016 included merger-related expenses of $6,468, or $0.12 per diluted share.


Supplemental Financial Data	Page 6


3^rd Quarter 2016

Fully Stabilized (“Same Store”) Results

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

Same Store Operating Results

The Company defines same store communities as those communities which have reached stabilization prior to the beginning of the previous calendar year. Same store net operating income is a supplemental non-GAAP financial measure. See Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 52 communities containing 19,819 apartment units which were fully stabilized as of January 1, 2015, are summarized in the table below.

	Three months ended			Nine months ended
	September 30,		%	September 30,		%
	2016	2015	Change	2016	2015	Change
Revenues:
Rental and other revenue	$ 89,429	$ 87,233	2.5%	$ 265,515	$ 257,440	3.1%
Utility reimbursements	2,956	2,747	7.6%	8,544	7,891	8.3%
Total rental and other revenues	92,385	89,980	2.7%	274,059	265,331	3.3%
Property operating and maintenance expenses:
Personnel expenses	7,041	7,187	(2.0)%	21,648	21,566	0.4%
Utility expense	4,895	4,717	3.8%	13,160	13,034	1.0%
Real estate taxes and fees	13,118	14,575	(10.0)%	43,097	43,162	(0.2)%
Insurance expenses	1,462	1,371	6.6%	4,388	4,075	7.7%
Building and grounds repairs and maintenance (1)	5,096	4,943	3.1%	15,871	14,769	7.5%
Ground lease expense	230	230	-	690	690	-
Other expenses	2,479	2,539	(2.4)%	7,442	7,016	6.1%
Total property operating and maintenance expenses
(excluding depreciation and amortization)	34,321	35,562	(3.5)%	106,296	104,312	1.9%
Same store net operating income	$ 58,064	$ 54,418	6.7%	$ 167,763	$ 161,019	4.2%
Same store net operating income margin	62.9%	60.5%	2.4%	61.2%	60.7%	0.5%
Capital expenditures (2)
Annually recurring	$ 4,927	$ 5,218	(5.6)%	$ 14,380	$ 11,185	28.6%
Periodically recurring	789	1,587	(50.3)%	2,929	3,676	(20.3)%
Total capital expenditures (A)	$ 5,716	$ 6,805	(16.0)%	$ 17,309	$ 14,861	16.5%
Total capital expenditures per unit
(A ÷ 19,819 units)	$ 288	$ 343	(16.0)%	$ 873	$ 750	16.4%
Average monthly rental rate per unit (3)	$ 1,492	$ 1,456	2.5%	$ 1,482	$ 1,446	2.5%
Gross turnover (4)	54.5%	55.0%	(0.5)%	52.2%	51.8%	0.4%
Net turnover (5)	50.2%	50.2%	-	47.9%	47.2%	0.7%
Percentage rent increase - new leases (6)	1.1%	1.2%	(0.1)%	1.2%	1.4%	(0.2)%
Percentage rent increase - renewed leases (6)	4.5%	4.7%	(0.2)%	4.7%	4.3%	0.4%

1)	Building and ground repairs and maintenance includes $103 and $432 for the three months ended and $754 and $1,165 for the nine months ended September 30, 2016 and 2015, respectively, related to painting of communities.

2)	See Table 7 on page 30 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital expenditures and total periodically recurring capital expenditures as presented in the consolidated cash flow statements prepared under GAAP.

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

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

5)	Net turnover is gross turnover decreased by the percentage of expiring leases where the resident(s) transfer to a new apartment unit in the same community or in another Post® community.

Percentage change is calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit. Accordingly, these percentage changes may differ from the change in the average monthly rental rate per unit due to the timing of move-ins and/or the term of the respective leases.


Supplemental Financial Data	Page 7


3^rd Quarter 2016

Fully Stabilized (“Same Store”) Results (con’t)

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

Same Store Operating Results by Market - Comparison of Third Quarter 2016 to Third Quarter 2015 (1)

(Increase (decrease) between periods)

	Three months ended				Nine months ended
	September 30, 2016				September 30, 2016
Market	Revenues	Expenses	NOI	Average Economic Occupancy	Revenues	Expenses	NOI	Average Economic Occupancy
Atlanta	4.3%	(12.0)%	14.2%	0.1%	4.0%	(2.1)%	7.9%	(0.3)%
Dallas	2.9%	6.8%	(0.1)%	0.2%	3.4%	6.7%	0.8%	0.5%
Houston	(9.5)%	(5.5)%	(12.7)%	(5.7)%	(4.7)%	1.0%	(9.0)%	(2.1)%
Austin	2.8%	(1.6)%	7.2%	1.6%	3.7%	3.5%	3.9%	2.1%
Wash. DC Metro	0.5%	(6.0)%	4.7%	(0.4)%	1.7%	(1.4)%	3.6%	1.4%
Tampa	4.5%	(2.5)%	8.4%	0.5%	4.6%	4.0%	5.0%	0.0%
Orlando	3.8%	(12.1)%	15.0%	(0.5)%	5.1%	1.1%	7.6%	0.1%
Charlotte	1.9%	8.4%	(1.1)%	(0.2)%	2.7%	5.8%	1.2%	0.6%
Raleigh	7.2%	(18.8)%	26.2%	2.9%	8.6%	(4.1)%	17.3%	2.9%
Total	2.7%	(3.5)%	6.7%	(0.1)%	3.3%	1.9%	4.2%	0.4%

1)	See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

								Avg. Rental
		% of NOI	Average Economic		Average Economic			Rate Per Unit
		Three months	Occupancy (1)		Occupancy (1)		Physical	Three months
		ended	Three months ended		Nine months ended		Occupancy at	ended
	Apartment	September 30,	September 30,		September 30,		September 30,	September 30,
Market	Units	2016	2016	2015	2016	2015	2016 (2)	2016 (3)
Atlanta	5,065	27.6%	97.6%	97.5%	96.6%	96.9%	96.1%	$ 1,458
Dallas	4,726	18.5%	97.4%	97.2%	96.8%	96.3%	96.0%	1,321
Houston	653	2.5%	89.6%	95.3%	90.9%	93.0%	88.8%	1,438
Austin	935	4.1%	96.2%	94.6%	95.8%	93.7%	95.4%	1,600
Wash. DC Metro	2,645	17.3%	96.7%	97.1%	96.4%	95.0%	96.5%	1,901
Tampa	2,342	13.1%	97.5%	97.0%	97.2%	97.2%	95.7%	1,567
Orlando	1,308	7.1%	97.1%	97.6%	96.8%	96.7%	95.2%	1,563
Charlotte	1,748	8.2%	96.2%	96.4%	96.0%	95.4%	94.6%	1,336
Raleigh	397	1.6%	98.4%	95.5%	96.6%	93.7%	96.7%	1,101
Total	19,819	100.0%	96.9%	97.0%	96.4%	96.0%	95.6%	$ 1,492

Average economic occupancy is defined as gross potential rent plus other rental fees less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts, would have been 96.5% and 96.5% for the three months and 96.0% and 95.4% for the nine months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016 and 2015, net concessions were $226 and $280, respectively, and employee discounts were $185 and $161, respectively. For the nine months ended September 30, 2016 and 2015, net concessions were $651 and $1,037, respectively, and employee discounts were $554 and $482, respectively.

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

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


Supplemental Financial Data	Page 8


3^rd Quarter 2016

Fully Stabilized (“Same Store”) Results (con’t)

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

Sequential Same Store Operating Results – Comparison of Third Quarter 2016 to Second Quarter 2016

	Three months ended
	September 30,	June 30,	%
	2016	2016	Change
Revenues:
Rental and other revenue	$ 89,429	$ 88,653	0.9%
Utility reimbursements	2,956	2,779	6.4%
Total rental and other revenues	92,385	91,432	1.0%
Property operating and maintenance expenses:
Personnel expenses	7,041	7,150	(1.5)%
Utility expense	4,895	4,161	17.6%
Real estate taxes and fees	13,118	14,959	(12.3)%
Insurance expenses	1,462	1,464	(0.1)%
Building and grounds repairs and maintenance (1)	5,096	5,936	(14.2)%
Ground lease expense	230	230	0.0%
Other expenses	2,479	2,583	(4.0)%
Total property operating and maintenance expenses
(excluding depreciation and amortization)	34,321	36,483	(5.9)%
Same store net operating income (2)	$ 58,064	$ 54,949	5.7%
Average economic occupancy	96.9%	96.2%	0.7%
Average monthly rental rate per unit	$ 1,492	$ 1,483	0.6%

1)	Building and grounds repairs and maintenance includes $103 and $326 for the three months ended September 30, 2016 and June 30, 2016, respectively, related to painting of communities.

2)	See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income.

Sequential Same Store Operating Results by Market - Comparison of Third Quarter of 2016 to Second Quarter of 2016 (1)

(Increase (decrease) between periods)

Market	Revenues	Expenses	NOI	Average Economic Occupancy
Atlanta	1.8%	(15.4)%	12.4%	1.5%
Dallas	2.2%	(1.6)%	5.5%	1.3%
Houston	(4.8)%	(3.1)%	(6.3)%	(2.2)%
Austin	0.9%	(4.0)%	5.9%	0.9%
Washington, D.C. Metro	0.2%	1.3%	(0.5)%	(0.2)%
Tampa	1.0%	(10.2)%	7.6%	0.8%
Orlando	0.9%	(6.5)%	5.3%	0.9%
Charlotte	0.6%	0.3%	0.8%	(0.2)%
Raleigh	(0.7)%	(5.3)%	1.7%	1.7%
Total	1.0%	(5.9)%	5.7%	0.7%

1)	See Table 3 on page 24 for a reconciliation of these components of same store net operating income and Table 2 on page 23 for a reconciliation of same store net operating income to GAAP net income.


Supplemental Financial Data	Page 9


3^rd Quarter 2016

Operating Community Data

(Unaudited)

				Avg.		Q3 2016				Q3 2016
Market /	Yr. Completed /			Unit		Avg. Monthly Rent				Average
Submarket /	Yr. of Substantial	No. of		Size		Per		Per		Economic
Community	Renovations	Units		(Sq. Ft.)		Unit		Sq. Ft.		Occ.
Atlanta
Buckhead / Brookhaven
Post Alexander Reserve^TM	2008	307			1,015	$	1,803	$	1.78	98.0%
The High Rise at Post Alexander^TM (3)	2015	340			830		1,951		2.35	84.3%
Post Brookhaven®	1990-1992	735			933		1,332		1.43	98.2%
Post Chastain®	1990 / 2008	558			866		1,400		1.62	98.0%
Post Collier Hills® (1)(2)	1997	396			948		1,329		1.40	95.5%
Post Gardens®	1998	397			1,039		1,421		1.37	97.1%
Post Glen® (2)	1997	314			1,076		1,494		1.39	98.4%
Post Lindbergh® (1)(2)	1998	396			909		1,375		1.51	97.1%
Post Peachtree Hills®	1992-1994 / 2009	300			978		1,506		1.54	97.7%
Post Stratford^TM	2000	250			1,000		1,458		1.46	94.0%

Dunwoody
Post Crossing® (2)	1995	354			1,036		1,370		1.32	97.8%

Emory Area
Post Briarcliff^TM (2)	1999	688			1,006		1,435		1.43	97.4%

Midtown
Post Parkside^TM	2000	188			886		1,669		1.88	96.9%

Northwest Atlanta
Post Crest® (1)(2)	1996	410			1,033		1,263		1.22	97.6%
Post Riverside®	1998	522			1,059		1,714		1.62	97.7%
Post Spring^TM	2000	452			977		1,199		1.23	97.8%

Dallas
North Dallas
Post Addison Circle^TM	1998-2000		1,334		846		1,212		1.43	98.0%
Post Eastside^TM	2008	435			912		1,298		1.42	98.3%
Post Legacy	2000	384			810		1,207		1.49	96.6%
Post Sierra at Frisco Bridges^TM	2009	268			896		1,225		1.37	96.5%

Uptown Dallas
Post Abbey^TM	1996	34			1,223		2,095		1.71	93.8%
Post Cole’s Corner^TM	1998	186			800		1,260		1.58	97.7%
Post Gallery^TM	1999	34			2,307		3,091		1.34	97.1%
Post Heights^TM	1998 -1999 / 2009	368			845		1,406		1.66	97.7%
Post Katy Trail^TM	2010	227			898		1,699		1.89	96.4%
Post Meridian^TM	1991	133			780		1,565		2.01	96.9%
Post Square^TM	1996	217			856		1,435		1.68	96.6%
Post Uptown Village^TM	1995-2000	496			736		1,193		1.62	98.0%
Post Vineyard^TM	1996	116			733		1,228		1.67	97.5%
Post Vintage^TM	1993	160			750		1,292		1.72	97.9%
Post Worthington^TM	1993 / 2008	334			820		1,487		1.81	96.9%

Houston
Post 510^TM	2014	242			857		1,515		1.77	97.4%
Post Midtown Square®	1999-2000, 2013	653			783		1,438		1.84	89.6%


Supplemental Financial Data	Page 10


3^rd Quarter 2016

Operating Community Data (con’t)

(Unaudited)

				Avg.		Q3 2016				Q3 2016
Market /	Yr. Completed /			Unit		Avg. Monthly Rent				Average
Submarket /	Yr. of Substantial	No. of		Size		Per		Per		Economic
Community	Renovations	Units		(Sq. Ft.)		Unit		Sq. Ft.		Occ.
Austin
Post Barton Creek^TM	1998		160		1,162	$	1,849	$	1.59	96.1%
Post Park Mesa^TM	1992		148		1,091		1,580		1.45	95.3%
Post South Lamar^TM	2012		298		853		1,574		1.85	97.0%
Post West Austin^TM	2009	329			889		1,511		1.70	95.9%

Washington D.C. Metro
Maryland
Post Fallsgrove	2003	361			983		1,709		1.74	96.4%
Post Park®	2010	396			975		1,671		1.71	94.8%

Virginia
Post Carlyle Square^TM	2006, 2013	549			890		2,247		2.52	95.1%
Post Corners at Trinity Centre (2)	1996	336			994		1,599		1.61	98.3%
Post Pentagon Row^TM	2001	504			853		2,222		2.61	97.8%
Post Tysons Corner^TM	1990	499			807		1,719		2.13	98.0%

Washington D.C.
Post Massachusetts Avenue^TM (1)(2)	2002	269			883		3,358		3.80	96.4%

Tampa
Post Bay at Rocky Point^TM	1997	150			1,012		1,577		1.56	98.9%
Post Harbour Place^TM	1999-2002	578			920		1,653		1.80	97.5%
Post Hyde Park® (2)	1996, 2008	467			1,011		1,614		1.60	98.0%
Post Rocky Point®	1996-1998	916			1,031		1,417		1.37	96.6%
Post Soho Square^TM	2014	231			880		1,844		2.10	98.9%

Orlando
Post Lake® at Baldwin Park	2004-2007, 2013	760			1,013		1,596		1.58	97.6%
Post Lakeside^TM	2013	300			1,070		1,445		1.35	96.6%
Post Parkside^TM	1999	248			867		1,603		1.85	96.2%

Charlotte
Post Ballantyne	2004	323			1,252		1,277		1.02	96.3%
Post Gateway Place^TM	2000	436			804		1,182		1.47	95.7%
Post Park at Phillips Place®	1998	402			1,101		1,495		1.36	96.2%
Post South End^TM	2009	360			847		1,453		1.72	97.0%
Post Uptown Place^TM	2000	227			800		1,246		1.56	95.8%

Raleigh
Post Parkside at Wade^TM - Phase I	2013	397			875		1,101		1.26	98.5%
Post Parkside at Wade^TM - Phase II (3)	2016	406		910			1,174		1.29	16.6%

Communities held in unconsolidated entities.

Communities encumbered by secured mortgage indebtedness.

During the period, these communities or portions thereof, were in lease-up.


Supplemental Financial Data	Page 11


3^rd Quarter 2016

Debt Summary

(In thousands) - (Unaudited)

Summary of Outstanding Debt at September 30, 2016 - Consolidated

				Percentage		Weighted Average
Type of Indebtedness	Balance			of Total Debt		Stated Rate (1)
Unsecured fixed rate senior notes	$	400,000			42.1%		3.9%
Unsecured bank term loan		300,000			31.5%		2.7%
Secured fixed rate notes		187,267			19.7%		6.0%
Unsecured revolving lines of credit		63,857			6.7%		1.6%
Total principal outstanding	$	951,124			100.0%		3.8%
Less: debt issuance costs		(3,748	)
Total indebtedness	$	947,376

				Percentage		Weighted Average
	Balance			of Total Debt		Maturity (2)
Total fixed rate debt	$	887,267			93.3%		3.5
Total variable rate debt - unhedged		63,857			6.7%		2.3
Total principal outstanding	$	951,124			100.0%		3.4
Less: debt issuance costs		(3,748	)
Total indebtedness	$	947,376

Debt Maturities – Consolidated and Unconsolidated

	Consolidated					Unconsolidated Entities
				Weighted Avg.				Company		Weighted Avg.
Aggregate debt maturities by year	Balance			Stated Rate (1)		Balance		Share		Stated Rate (1)
Remainder of 2016	$	801			6.0%	$	-	$	-	-
2017		153,296			4.8%		85,723		21,431		5.6%
2018		3,502			6.0%		41,000		10,250		5.7%
2019		243,525	(3)		4.8%		51,000		17,850		3.5%
2020		300,000	(4)		2.7%		-		-	-
Thereafter		250,000			3.4%		-		-	-
Total principal outstanding	$	951,124			3.8%	$	177,723	$	49,531		5.0%

Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at September 30, 2016 are based on the debt outstanding at that date. The weighted average interest rate of the unsecured bank term loan represents the effective stated fixed interest rate based on outstanding borrowings as of September 30, 2016, after considering the impact of interest rate swap arrangements that hedge this debt.

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

3)	Includes $63,857 outstanding on unsecured revolving lines of credit. At September 30, 2016, the Company’s lines of credit bear interest at LIBOR plus 1.05% and mature in 2019 with a one year extension option.

Includes an unsecured bank term loan that matures in January 2020. The blended effective stated interest rate, after considering the impact of interest rate swap arrangements that hedge this debt, is 2.69% through January 2018, the termination date of four interest rate swaps. From January 2018 to January 2020, the term loan is swapped to an effective stated interest rate of 2.52%. The underlying term loan bears interest at the stated rate of LIBOR plus 1.15%.


Supplemental Financial Data	Page 12


3^rd Quarter 2016

Debt Summary (con’t)

(In thousands) - (Unaudited)

Debt Statistics	Nine months ended
	September 30,
	2016		2015
Interest coverage ratio (1)	7.0x		6.1x
Interest coverage ratio (including capitalized interest) (1)	5.7x		5.4x
Fixed charge coverage ratio (2)	6.2x		5.5x
Fixed charge coverage ratio (including capitalized interest) (2)	5.2x		4.9x
Total debt to annualized income available for debt service ratio (3)	4.5x		4.5x
Total debt as a % of undepreciated real estate assets
(adjusted for joint venture partner's share of debt) (4)		29.0%		28.9%
Total debt and preferred equity as a % of undepreciated real
estate assets (adjusted for joint venture partner's share of debt) (4)		30.3%		30.2%

Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income, and interest expense to adjusted interest expense is included in Table 6 on page 29.

Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders. The calculation of the fixed charge coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and fixed charges to adjusted interest expense plus dividends to preferred shareholders is included in Table 6 on page 29.

3)	A computation of this ratio is included in Table 6 on page 29.

4)	A computation of these debt ratios is included in Table 5 on page 28.

Senior Unsecured Public Notes Debt Ratings

Moody’s – Baa2 (stable)

Standard & Poor’s – BBB (stable)

Financial Debt Covenants - Senior Unsecured Public Notes

	As of
Covenant requirements, as defined (1)	September 30, 2016
Consolidated Debt to Total Assets cannot exceed 60%		28%
Secured Debt to Total Assets cannot exceed 40%		5%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1	4.2x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1	7.0x

1)	A summary of the public debt covenant calculations and reconciliations of the financial components used in the public debt covenant calculations to the most comparable GAAP financial measures is detailed in Table 4 on page 26.


Supplemental Financial Data	Page 13


3^rd Quarter 2016

Summary Of Apartment Communities Under Development,

Land Held For Future Investment and acquisitions/disposition activity

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

Communities Under Development

				Estimated						Estimated		Costs		Quarter	Estimated
		Number		Average		Estimated		Estimated		Total		Incurred		of First	Quarter of
		of		Unit Size		Retail		Total		Cost Per		as of		Units	Stabilized	Percent
Community	Location	Units		Sq. Ft. (1)		Sq. Ft. (1)		Cost (2)		Sq. Ft. (3)		9/30/2016		Available	Occup. (4)	Leased (5)
Under construction
Post Parkside at Wade^TM, II	Raleigh, NC		406		910		-	$	58.3	$	158	$	52.6	2Q 2016	3Q 2017	49.0%
Post Afton Oaks^TM	Houston, TX		388		867		-		79.9		238		72.3	4Q 2016	1Q 2018	2.8%
Post South Lamar^TM, II	Austin, TX		344		734		5,800		65.6		254		39.5	2Q 2017	3Q 2018	N/A
Post Millennium Midtown^TM(6)	Atlanta, GA		332		926		-		90.6		295		36.4	3Q 2017	4Q 2018	N/A
Post River North^TM (7)	Denver, CO		358		818		-		88.2		301		39.2	3Q 2017	4Q 2018	N/A
Post Centennial Park^TM	Atlanta, GA		438		808		-		96.0		271		28.2	1Q 2018	2Q 2019	N/A
Total			2,266				5,800	$	478.6			$	268.2

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

To the extent that developments contain a retail component, total estimated cost includes estimated first generation tenant improvements and leasing commissions. For stabilized apartment communities, remaining unfunded construction costs include first generation retail tenant improvements and leasing commissions.

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

4)	The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy or (ii) one year after completion of construction.

5)	Represents unit status as of October 29, 2016.

6)	Unit count for Post Millennium Midtown™ was reduced from 356 units to 332 units and the estimated average unit size was increased from 864 square feet to 926 square feet resulting from unit combinations to incorporate larger floor plans in the community based on market demand.

7)	The Company owns a 92.5% interest in an entity which is developing Post River North™. Total estimated cost represents aggregate costs of the joint venture and excludes any future promoted interest to the developer.

Land Held for Future Investment

The following are land positions (including pre-development costs incurred to date) that the Company currently holds. There can be no assurance that projects held for future investment will be developed in the future or at all.

		Carrying Value		Estimated
		at Sept. 30, 2016		Usable
Project	Metro Area	(in thousands)		Acreage
Centennial Park II	Atlanta, GA	$	5,953		1.7
Frisco Bridges II	Dallas, TX		5,480		5.4
Wade III	Raleigh, NC		2,510		5.4
Other land parcels	Atlanta, GA		2,787		10.2
Total Land Held for Future Investment		$	16,730		22.7

Acquisition/Disposition Activity - Current and Prior Year

None


Supplemental Financial Data	Page 14


3^rd Quarter 2016

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 activities, interest and other construction costs are capitalized and are reflected on the balance sheet as construction in progress. The Company ceases the capitalization of such costs as the residential units in a community become substantially complete and available for occupancy. This results in a proration of these costs between amounts that are capitalized and expensed as the residential units in a development community become available for occupancy. In addition, prior to the completion of units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing and property management and leasing personnel expenses) of such communities.

A summary of community acquisition and development improvements and other capitalized expenditures for the three and nine months ended September 30, 2016 and 2015 is provided below.

	Three months ended				Nine months ended
	September 30,				September 30,
	2016		2015		2016		2015
New community development and acquisition activity (1)	$	42,502	$	38,908	$	104,881	$	87,453
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating
improvements (2)		3,416		3,707		9,388		7,653
Other community additions and improvements (3)		1,354		2,003		4,470		4,526
Annually recurring capital expenditures
Carpet replacements and other community additions and
improvements (4)		5,122		5,406		14,786		11,545
Corporate additions and improvements		304		400		1,158		942
	$	52,698	$	50,424	$	134,683	$	112,119

Other Data
Capitalized interest	$	2,064	$	1,109	$	5,463	$	3,328
Capitalized development and associated costs (5)	$	1,394	$	1,237	$	4,221	$	3,585

Reflects aggregate community acquisition and new community development costs.

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

Represents community improvement expenditures that generally occur less frequently than on an annual basis. Amounts include second generation leasing costs on commercial properties of $100 and $87 for the three months and $438 and $250 for the nine months ended September 30, 2016 and 2015, respectively.

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

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


Supplemental Financial Data	Page 15


3^rd Quarter 2016

Investments In Unconsolidated Real Estate Entities

(In thousands) - (Unaudited)

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

Non-Financial Data
						Ownership
Joint Venture Property	Location		# of Units			Interest

Post Collier Hills® (1)	Atlanta, GA		396				25%
Post Crest® (1)	Atlanta, GA		410				25%
Post Lindbergh® (1)	Atlanta, GA		396				25%
Post Massachusetts Avenue^TM	Washington, D.C.		269				35%

Financial Data
	As of
	September 30, 2016
	Gross							Company's
	Investment in		Mortgage			Entity		Equity
Joint Venture Property	Real Estate (6)		Notes Payable			Equity		Investment
Post Collier Hills® (1)	$	59,188	$	39,552	(2)	$	9,262	$	(4,268	)	(1)
Post Crest® (1)		66,000		46,145	(2)		7,358		(7,302	)	(1)
Post Lindbergh® (1)		66,022		40,972	(3)		14,107		(3,939	)	(1)
Post Massachusetts Avenue^TM		75,449		50,913	(4)		3,268		3,645
Total	$	266,659	$	177,582		$	33,995	$	(11,864	)

	Three months ended							Nine months ended
	September 30, 2016							September 30, 2016
			Company's		Mgmt.					Company's		Mgmt.
	Entity		Equity in		Fees &			Entity		Equity in		Fees &
Joint Venture Property	NOI		Income (Loss)		Other			NOI		Income (Loss)		Other
Post Collier Hills® (1)	$	1,158	$	166				$	2,843	$	247
Post Crest® (1)		1,070		120					2,992		208
Post Lindbergh® (1)		1,151		158					2,883		224
Post Massachusetts Avenue^TM		1,907		477					5,743		1,474
Total	$	5,286	$	921	$	239	(5)	$	14,461	$	2,153	$	705	(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. At September 30, 2016, these apartment communities are currently under contract to be sold. There can be no assurance that any sales will close.

2)	These mortgage notes have a combined outstanding principal value of $85,723, bear interest at a stated fixed rate of 5.63% and mature in June 2017.

3)	This mortgage note has an outstanding principal value of $41,000, bears interest at a stated fixed rate of 5.71% and matures in January 2018, at which time it will be automatically extended for a one-year term at a variable interest rate.

4)	This note has an outstanding principal value of $51,000, bears interest at a stated fixed rate of 3.5% and matures in February 2019. The note is prepayable without penalty beginning in February 2017.

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

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


Supplemental Financial Data	Page 16


3^rd Quarter 2016

Net Asset Value Supplemental Information (1)

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

Financial Data

	Three months ended						As
Income Statement Data	September 30, 2016		Adjustments				Adjusted (3)
Rental revenues	$	95,330	$	(1,510	)	(2)	$	93,820
Other property revenues		5,986		(104	)	(2)		5,882
Total rental and other revenues (A)		101,316		(1,614	)			99,702
Property operating & maintenance expenses
(excluding depreciation and amortization) (B)		42,110		(5,196	)	(2)		36,914
Property net operating income (1) (A-B)	$	59,206	$	3,582			$	62,788

Assumed property management fee
(calculated at 3% of revenues) (A x 3%)								(2,991	)
Assumed property capital expenditure reserve
($300 per unit per year based on 20,455 units)								(1,534	)
Adjusted property net operating income							$	58,263
Annualized property net operating income (C)							$	233,052

Apartment units represented (D)		24,138		(3,683	)	(2)		20,455

	As of						As
Other Asset Data	September 30, 2016		Adjustments				Adjusted
Cash & equivalents	$	5,060	$	-			$	5,060
Real estate assets under construction, at cost (4)		243,334		96,416		(4)		339,750
Land held for future investment		16,730		-				16,730
Investments in and advances to unconsolidated real
estate entities (5)		3,645		(3,645	)	(5)		-
Restricted cash and other assets (6)		34,982		(1,786	)	(6)		33,196
Cash & other assets of unconsolidated apartment entities (7)		7,110		(5,190	)	(7)		1,920
Total (E)	$	310,861	$	85,795			$	396,656

Other Liability Data
Indebtedness (8)	$	947,376	$	3,748		(8)	$	951,124
Investments in unconsolidated real estate entities (5)		15,509		(15,509	)	(5)		-
Other liabilities (9)		160,114		(9,545	)	(9)		150,569
Total liabilities of unconsolidated apartment entities (10)		181,431		(130,860	)	(10)		50,571
Total (F)	$	1,304,430	$	(152,166	)		$	1,152,264


Other Data	As of September 30, 2016
	# Shares/Units		Stock Price				Implied Value
Liquidation value of preferred shares (G)							$	43,392

Common shares outstanding		53,509
Common units outstanding		113
Total (H)		53,622	$	66.13			$	3,546,023

Implied market value of Company gross real estate
assets (I) = (F+G+H-E)							$	4,345,023

Implied Portfolio Capitalization Rate (C÷I)								5.4	%

This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income (“NOI”), which is a supplemental non-GAAP financial measure that the Company uses internally to calculate Net Asset Value (“NAV”). These measures, as adjusted, are also non-GAAP financial measures. With the exception of NOI, the most comparable GAAP measure for each of the non-GAAP measures presented below in the “As Adjusted” column is the corresponding number presented in the first column listed below. See Table 2 on page 23 for a reconciliation of NOI to consolidated net income.


Supplemental Financial Data	Page 17


3^rd Quarter 2016

The Company presents NOI for the third quarter ended September 30, 2016, for properties stabilized as of July 1, 2016, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of July 1, 2016, are presented at full undepreciated cost. Other tangible assets and total liabilities are presented at book value. The liquidation value of preferred shares is also presented.

2)	The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2016, to adjust property net operating income to the Company’s share for fully stabilized communities:

	Rental Revenue			Other Revenue			Expenses			Units
Communities in lease-up / development	$	(1,906	)	$	(179	)	$	(1,065	)		(2,606	)
Company share of unconsolidated entities		2,102			143			643			(1,077	)
Corporate property management expenses		-			-			(3,058	)		-
Corporate apartments and other		(1,706	)		(68	)		(1,716	)		-
	$	(1,510	)	$	(104	)	$	(5,196	)		(3,683	)

3)	The following table summarizes the Company’s share of the “As Adjusted” components of property net operating income, apartment units and commercial square feet by market for the three months ended September 30, 2016:

			Property Operating
			Maintenance		Property Net		Percentage
	Rental and		Expenses (ex. Depr.		Operating		of			Apartment Units /
	Other Revenues		and Amort.)		Income (NOI)		Total NOI			Commercial Sq. Ft.
Atlanta	$	24,782	$	7,729	$	17,053		27.1	%		5,365
Dallas		19,569		8,848		10,721		17.0	%		4,726
Houston		3,769		1,774		1,995		3.2	%		895
Austin		4,577		2,195		2,382		3.8	%		935
Wash. DC Metro		16,776		6,021		10,755		17.1	%		2,739
Tampa		11,393		3,762		7,631		12.2	%		2,342
Orlando		6,334		2,215		4,119		6.6	%		1,308
Charlotte		7,176		2,416		4,760		7.6	%		1,748
Raleigh		1,353		432		921		1.5	%		397
Commercial		3,973		1,522		2,451		3.9	%		-
Total	$	99,702	$	36,914	$	62,788		100.0	%		20,455
Approximate commercial Sq. Ft.											689,000

4)	The “As Adjusted” amount represents the CIP balance, adjusted for costs of completed apartment units, as follows:


The High Rise at Post Alexander^TM	$	74,558
Post Parkside at Wade^TM- Phase II		52,543
Post Afton Oaks^TM		72,279
Post South Lamar^TM - Phase II		39,464
Post Millennium Midtown^TM		36,381
Post Centennial Park^TM		28,243
Post River North^TM (a)		36,282
	$	339,750

(a)

The Company owns 92.5% of the consolidated real estate entity that owns this community. The amount above represents 92.5%

of the consolidated CIP balance for this community.

5)	The adjustments reflect reductions for investments in unconsolidated entities, as the net operating income of the Company’s respective share of such investments in unconsolidated entities is included in the adjusted net operating income reflected above.

6)	This adjustment reflects a reduction to other assets for the net debt issuance costs related to the Company’s lines of credit.

The “As of September 30, 2016” amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment entities.

8)	The adjustment reflects an addition of the debt issuance costs related to consolidated indebtedness. The “As Adjusted” column represents the outstanding principal value of consolidated indebtedness.

The “As of September 30, 2016” amount represents of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses and security deposits and prepaid rents as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense.

10)

The “As of September 30, 2016” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partners’ respective share of liabilities and an adjustment to reflect the Company’s share of the outstanding principal value of mortgage indebtedness. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.


Supplemental Financial Data	Page 18


3^rd Quarter 2016

Margin Analysis and Company Undepreciated Book Value Per Share

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

Margin Analysis

	Nine months ended September 30, 2016
			Property		Net
	Rental and		Operating &		Operating
	Other Property		Maintenance		Income			NOI		Expense
	Revenues		Expenses		("NOI")			Margin		Margin
Same store communities	$	274,059	$	106,296	$	167,763			61.2%		38.8%
Newly stabilized communities		3,278		1,583		1,695			51.7%		48.3%
Lease-up communities		4,447		2,536		1,911		N/A		N/A
Other property segments:
Corporate apartments		5,031		4,493		538			10.7%		89.3%
Commercial		12,134		4,341		7,793			64.2%		35.8%
Corporate property management expenses (1)		-		9,512		(9,512	)
	$	298,949	$	128,761
Consolidated property NOI (2)					$	170,188

Third-party management fees					$	705

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

Numerator:
Corporate property management expenses	$	9,512
Less: Third-party management fees		(705	)
Net property management expenses	$	8,807

Denominator:
Total rental and other property revenues	$	298,949
Less: Corporate apartment revenues		(5,031	)
Adjusted property revenues	$	293,918

Net property management expenses as a
percentage of adjusted property revenues		3.0	%

Consolidated property NOI is a non-GAAP financial measure. See Table 2 on page 23 for a reconciliation of consolidated property NOI to GAAP net income.

Calculation of Company Undepreciated Book Value Per Share

	September 30, 2016
Total Company shareholders' equity per balance sheet	$	1,192,921
Plus:
Accumulated depreciation, per balance sheet		1,091,705
Noncontrolling interest of common unitholders - Operating Partnership		7,477
Less:
Preferred shares at liquidation value		(43,392	)
Total undepreciated book value (A)	$	2,248,711
Total common shares and units (B)		53,622
Company undepreciated book value per share and unit (A÷B)	$	41.94


Supplemental Financial Data	Page 19


3^rd Quarter 2016

Non-Gaap Financial Measures And Other Defined Terms

Definitions of Supplemental Non-GAAP Financial Measures and Other Defined Terms

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

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

Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance.

In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.

Adjusted Funds From Operations - The Company uses AFFO as a supplemental non-GAAP measure. AFFO is defined by the Company as FFO less operating capital expenditures and after adjusting for the impact of debt extinguishment gains (losses), if any. AFFO is used as an additional measure in evaluating Company performance, as an indication of the REIT’s ability to fund its operating capital expenditures through earnings and in reviewing its common dividend policy over time. In addition, since other equity REITs provide AFFO, or similar supplemental measures, to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company’s calculation of AFFO is reconciled to the line on its consolidated statement of cash flows entitled “net cash provided by operating activities”, the comparable GAAP measure (see Table 1).

Property Net Operating Income (“NOI”) - The Company uses property NOI, including same store NOI and same store NOI by market, as a reportable segment operating performance measures. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that property NOI is an important measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store segment groupings and individual properties. Additionally, the Company believes that property NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to property NOI (see Tables 2 and 3).


Supplemental Financial Data	Page 20


3^rd Quarter 2016

Operating Capital Expenditures - The Company uses aggregate Company and same store annually recurring and periodically recurring capital expenditures as cash flow measures. The Company believes that aggregate Company and same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its communities on an ongoing basis. Aggregate company annually recurring and periodically recurring capital expenditures include information with respect to the Company’s reportable operating segments consisting of fully stabilized (same store) communities, newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties. Aggregate company annually recurring and periodically recurring capital expenditures are reported on the line in the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating capital expenditures (see Table 7).

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

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

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


Supplemental Financial Data	Page 21


3^rd Quarter 2016

Reconciliations Of Supplemental Non-Gaap Financial Measures

Table 1 - Reconciliation of Adjusted Funds From Operations to GAAP Net Cash Flow Provided by Operating Activities

(In thousands) - (Unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
	2016			2015			2016			2015
Net cash provided by operating activities	$	63,851		$	45,771		$	157,392		$	133,646
Changes in components of working capital		(21,545	)		(2,066	)		(24,043	)		(4,810	)
Dividends to preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Non-cash expenses		(1,075	)		(1,597	)		(4,154	)		(5,605	)
Distributions from unconsolidated entities		(568	)		(448	)		(2,057	)		(1,503	)
Equity in earnings of unconsolidated entities, net of depreciation		1,072			903			2,908			2,467
Corporate depreciation		(369	)		(361	)		(1,085	)		(1,051	)
Annually and periodically recurring property capital expenditures		(6,476	)		(7,409	)		(19,256	)		(16,071	)
Adjusted funds from operations available to common
shareholders and unitholders	$	33,968		$	33,871		$	106,939		$	104,307

A summary of net cash provided by (used in) operating, investing and financing activities from the Company’s statements of cash flows is detailed below.

	Nine months ended
	September 30,
	2016			2015

Net cash provided by operating activities	$	157,392		$	133,646

Net cash used in investing activities	$	(134,417	)	$	(107,448	)

Net cash used in financing activities	$	(46,526	)	$	(103,751	)


Supplemental Financial Data	Page 22


3^rd Quarter 2016

Table 2 - Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income

(In thousands) - (Unaudited)

	Three months ended									Nine months ended
	September 30,			September 30,			June 30,			September 30,			September 30,
	2016			2015			2016			2016			2015
Total same store NOI	$	58,064		$	54,418		$	54,949		$	167,763		$	161,019
Property NOI from other operating segments		1,142			305			625			2,425			344
Consolidated property NOI		59,206			54,723			55,574			170,188			161,363
Add (subtract):
Interest income		-			34			-			1			158
Other revenues		273			337			283			828			924
Depreciation		(23,949	)		(22,073	)		(22,794	)		(69,452	)		(64,748	)
Interest expense		(7,427	)		(8,217	)		(7,534	)		(22,727	)		(24,631	)
General and administrative		(4,474	)		(4,622	)		(3,761	)		(13,121	)		(13,989	)
Investment and development		(44	)		(73	)		(33	)		(102	)		(583	)
Other investment costs		(87	)		(165	)		(76	)		(240	)		(453	)
Merger expenses		(6,468	)		-			-			(6,468	)		-
Other expenses		-			-			(67	)		(400	)		-
Equity in income of unconsolidated
real estate entities, net		921			603			589			2,153			1,568
Gains on sales of real estate assets, net		-			-			-			-			1,475
Other income (expense), net		(316	)		(357	)		(110	)		(821	)		(1,061	)
Net loss on extinguishment of indebtedness		-			-			-			-			(197	)
Net income	$	17,635		$	20,190		$	22,071		$	59,839		$	59,826


Supplemental Financial Data	Page 23


3^rd Quarter 2016

Table 3 - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market

(In thousands, except average rental rates)

.	Three months ended			Q3 '16	Q3 '16	Q3 '16
	September 30,	September 30,	June 30,	vs. Q3 '15	vs. Q2 '16	% Same
	2016	2015	2016	% Change	% Change	Store NOI
Rental and other revenues
Atlanta	$ 23,533	$ 22,560	$ 23,124	4.3%	1.8%
Dallas	19,569	19,013	19,155	2.9%	2.2%
Houston	2,669	2,949	2,804	(9.5)%	(4.8)%
Austin	4,577	4,452	4,536	2.8%	0.9%
Washington, D.C. Metro	15,781	15,700	15,754	0.5%	0.2%
Tampa	11,393	10,899	11,285	4.5%	1.0%
Orlando	6,334	6,101	6,280	3.8%	0.9%
Charlotte	7,176	7,044	7,132	1.9%	0.6%
Raleigh	1,353	1,262	1,362	7.2%	(0.7)%
Total rental and other revenues	92,385	89,980	91,432	2.7%	1.0%

Property operating and maintenance
expenses (exclusive of depreciation
and amortization)
Atlanta	$ 7,495	$ 8,515	8,857	(12.0)%	(15.4)%
Dallas	8,848	8,281	8,996	6.8%	(1.6)%
Houston	1,236	1,308	1,275	(5.5)%	(3.1)%
Austin	2,195	2,230	2,286	(1.6)%	(4.0)%
Washington, D.C. Metro	5,722	6,089	5,647	(6.0)%	1.3%
Tampa	3,762	3,859	4,190	(2.5)%	(10.2)%
Orlando	2,215	2,519	2,368	(12.1)%	(6.5)%
Charlotte	2,416	2,229	2,408	8.4%	0.3%
Raleigh	432	532	456	(18.8)%	(5.3)%
Total	34,321	35,562	36,483	(3.5)%	(5.9)%

Net operating income
Atlanta	16,038	14,045	14,267	14.2%	12.4%	27.6%
Dallas	10,721	10,732	10,159	(0.1)%	5.5%	18.5%
Houston	1,433	1,641	1,529	(12.7)%	(6.3)%	2.5%
Austin	2,382	2,222	2,250	7.2%	5.9%	4.1%
Washington, D.C. Metro	10,059	9,611	10,107	4.7%	(0.5)%	17.3%
Tampa	7,631	7,040	7,095	8.4%	7.6%	13.1%
Orlando	4,119	3,582	3,912	15.0%	5.3%	7.1%
Charlotte	4,760	4,815	4,724	(1.1)%	0.8%	8.2%
Raleigh	921	730	906	26.2%	1.7%	1.6%
Total same store NOI	$ 58,064	$ 54,418	$ 54,949	6.7%	5.7%	100.0%


Average rental rate per unit
Atlanta	$ 1,458	$ 1,405	$ 1,446	3.8%	0.8%
Dallas	1,321	1,289	1,312	2.5%	0.7%
Houston	1,438	1,496	1,475	(3.9)%	(2.5)%
Austin	1,600	1,583	1,590	1.1%	0.6%
Washington, D.C. Metro	1,901	1,890	1,895	0.6%	0.3%
Tampa	1,567	1,500	1,547	4.5%	1.3%
Orlando	1,563	1,508	1,555	3.6%	0.5%
Charlotte	1,336	1,310	1,322	2.0%	1.0%
Raleigh	1,101	1,077	1,093	2.2%	0.7%
Total average rental rate per unit	1,492	1,456	1,483	2.5%	0.6%


Supplemental Financial Data	Page 24


3^rd Quarter 2016

Table 3 (con’t) - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market

(In thousands, except average rental rates)

	Nine months ended
	September 30,	September 30,	%
	2016	2015	Change
Rental and other revenues
Atlanta	$ 69,412	$ 66,746	4.0%
Dallas	57,775	55,883	3.4%
Houston	8,275	8,684	(4.7)%
Austin	13,626	13,137	3.7%
Washington, D.C. Metro	46,976	46,175	1.7%
Tampa	33,881	32,387	4.6%
Orlando	18,831	17,913	5.1%
Charlotte	21,290	20,729	2.7%
Raleigh	3,993	3,677	8.6%
Total rental and other revenues	274,059	265,331	3.3%

Property operating and maintenance
expenses (exclusive of depreciation
and amortization)
Atlanta	$ 25,300	$ 25,852	(2.1)%
Dallas	26,386	24,737	6.7%
Houston	3,772	3,733	1.0%
Austin	6,656	6,429	3.5%
Washington, D.C. Metro	16,875	17,110	(1.4)%
Tampa	11,795	11,345	4.0%
Orlando	6,952	6,874	1.1%
Charlotte	7,121	6,732	5.8%
Raleigh	1,439	1,500	(4.1)%
Total	106,296	104,312	1.9%

Net operating income
Atlanta	44,112	40,894	7.9%
Dallas	31,389	31,146	0.8%
Houston	4,503	4,951	(9.0)%
Austin	6,970	6,708	3.9%
Washington, D.C. Metro	30,101	29,065	3.6%
Tampa	22,086	21,042	5.0%
Orlando	11,879	11,039	7.6%
Charlotte	14,169	13,997	1.2%
Raleigh	2,554	2,177	17.3%
Total same store NOI	$ 167,763	$ 161,019	4.2%


Average rental rate per unit
Atlanta	$ 1,445	$ 1,390	4.0%
Dallas	1,312	1,275	2.9%
Houston	1,467	1,505	(2.5)%
Austin	1,591	1,574	1.1%
Washington, D.C. Metro	1,894	1,899	(0.3)%
Tampa	1,549	1,478	4.8%
Orlando	1,550	1,490	4.0%
Charlotte	1,324	1,298	2.0%
Raleigh	1,092	1,070	2.1%
Total average rental rate per unit	1,482	1,446	2.5%


Supplemental Financial Data	Page 25


3^rd Quarter 2016

Table 4 – Financial Debt Covenant Calculations – Senior Unsecured Public Notes

Ratio of Consolidated Debt to Total Assets
	As of
	September 30, 2016
Outstanding principal value of consolidated debt (A)	$	951,124
Total assets, as defined (B) (1)	$	3,408,594
Computed ratio (A÷B)		28	%
Required ratio (cannot exceed)		60	%

Ratio of Secured Debt to Total Assets

Outstanding principal value of secured debt (C)	$	187,267
Computed ratio (C÷B)		5	%
Required ratio (cannot exceed)		40	%

Ratio of Total Unencumbered Assets to Unsecured Debt

Outstanding principal value of consolidated debt (A)	$	951,124
Outstanding principal value of secured debt (C)		(187,267	)
Outstanding principal value of unsecured debt (D)	$	763,857
Total unencumbered assets, as defined (E) (1)	$	3,188,881
Computed ratio (E÷D)	4.2x
Required minimum ratio	1.5x

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

Consolidated Income Available for Debt Service, as defined (F) (2)	$	219,989
Annual Debt Service Charge, as defined (G) (2)	$	31,633
Computed ratio (F÷G)	7.0x
Required minimum ratio	1.5x

1)	The Calculation of Total Assets and Total Unencumbered Assets for Public Debt Covenant Computations, as defined, is detailed below.

	As of
	September 30, 2016
Total real estate assets	$	2,282,016
Add:
Investments in and advances to unconsolidated real estate entities		3,645
Accumulated depreciation		1,091,705
Other tangible assets		31,228
Total assets for public debt covenant computations		3,408,594
Less:
Encumbered real estate assets		(216,068	)
Investments in and advances to unconsolidated real estate entities		(3,645	)
Total unencumbered assets for public debt covenant computations	$	3,188,881


Supplemental Financial Data	Page 26


3^rd Quarter 2016

Table 4 (con’t) – Financial Debt Covenant Calculations – Senior Unsecured Public Notes

2)	The Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge, as defined, is detailed below.

The computation below reflects annualized 2016 results for comparison and presentation purposes. The actual calculation of these ratios requires the use of annual trailing financial data. The computations using annual trailing financial data for the year ended December 21, 2015, reflected compliance with the debt covenants.

	Nine months ended
Consolidated income available for debt service, as defined	September 30, 2016
Net income	$	59,839
Add:
Depreciation		69,452
Depreciation (company share) - unconsolidated entities		755
Interest expense:
Interest expense, excluding debt cost amortization		21,892
Debt cost amortization		835
Interest expense (company share) - unconsolidated entities:
Interest expense, excluding debt cost amortization		1,833
Debt cost amortization		22
Other non-cash (income) expense, net (a)		3,468
Merger expenses		6,468
Income tax expense (benefit), net		428
Consolidated income available for debt service	$	164,992
Consolidated income available for debt service (annualized)	$	219,989

Annual debt service charge, as defined
Interest expense, excluding debt cost amortization	$	21,892
Interest expense, excluding debt cost amortization - unconsolidated entities		1,833
Annual debt service charge	$	23,725
Annual debt service charge (annualized)	$	31,633

a)	Includes debt cost amortization of $579 relating to the Company’s unsecured revolving lines of credit.


Supplemental Financial Data	Page 27


3^rd Quarter 2016

Table 5 – Computation of Debt Statistics

(In thousands)

	As of September 30,
	2016			2015
Total real estate assets per balance sheet	$	2,282,016		$	2,181,641
Plus:
Company share of real estate assets held in unconsolidated entities		57,433			57,461
Company share of accumulated depreciation - assets held in unconsolidated entities		16,777			15,388
Accumulated depreciation per balance sheet		1,091,705			1,001,342
Total undepreciated real estate assets (A)	$	3,447,931		$	3,255,832

Outstanding principal value of total consolidated debt	$	951,124		$	890,292
Plus:
Company share of outstanding principal value of debt held in unconsolidated entities		49,531			49,531
Total outstanding principal value of debt (adjusted for joint venture partners' share of debt) (B)	$	1,000,655		$	939,823

Total outstanding principal value of debt as a % of undepreciated real estate assets
(adjusted for joint venture partners' share of debt) (B÷A)		29.0	%		28.9	%

Outstanding principal value of total consolidated debt	$	951,124		$	890,292
Plus:
Company share of outstanding principal value of debt held in unconsolidated entities		49,531			49,531
Preferred shares at liquidation value		43,392			43,392
Total outstanding principal value of debt and liquidation value of preferred equity (adjusted
for joint venture partners' share of debt) (C)	$	1,044,047		$	983,215

Total outstanding principal value of debt and liquidation value preferred equity as a % of
undepreciated real estate assets (adjusted for joint venture partners' share of real estate assets
and debt) (C÷A)		30.3	%		30.2	%


Supplemental Financial Data	Page 28


3^rd Quarter 2016

Table 6 - Computation of Debt Coverage Ratios

(In thousands)

	Nine months ended
	September 30,
	2016		2015
Net income	$	59,839	$	59,826
Other non-cash (income) expense, net (1)		3,468		4,709
Income tax expense (benefit), net		428		756
Gains on sales of real estate assets, net		-		(1,475	)
Net loss on extinguishment of indebtedness		-		197
Merger expenses		6,468		-
Depreciation expense		69,452		64,748
Depreciation (company share) - unconsolidated entities		755		900
Interest expense:
Interest expense, excluding debt cost amortization		21,892		23,773
Debt cost amortization		835		858
Interest expense (company share) - unconsolidated entities:
Interest expense, excluding debt cost amortization		1,833		1,827
Debt cost amortization		22		22
Income available for debt service, as defined (A)	$	164,992	$	156,141
Annualized income available for debt service, as defined (B)	$	219,989	$	208,188

Interest expense, excluding debt cost amortization	$	21,892	$	23,773
Interest expense, excluding debt cost amortization - unconsolidated entities		1,833		1,827
Adjusted interest expense, as defined (C)		23,725		25,600
Capitalized interest		5,463		3,328
Adjusted interest expense, as defined (including capitalized interest) (D)	$	29,188	$	28,928

Fixed charges for purposes of computation -
Adjusted interest expense	$	23,725	$	25,600
Dividends to preferred shareholders		2,766		2,766
Fixed charges (E)		26,491		28,366
Capitalized interest		5,463		3,328
Fixed charges (including capitalized interest) (F)	$	31,954	$	31,694

Total outstanding principal value of debt (adjusted for joint venture partners' share of debt) (see Table 5) (G)	$	1,000,655	$	939,823

Interest coverage ratio (A÷C)	7.0x		6.1x
Interest coverage ratio (including capitalized interest) (A÷D)	5.7x		5.4x
Fixed charge coverage ratio (A÷E)	6.2x		5.5x
Fixed charge coverage ratio (including capitalized interest) (A÷F)	5.2x		4.9x
Total outstanding principal value of debt to annualized income available for debt service ratio (G÷B)	4.5x		4.5x

1)	Includes debt cost amortization of $579 and $456 for the nine months ended September 30, 2016 and 2015, respectively, related to the Company’s unsecured revolving lines of credit.


Supplemental Financial Data	Page 29


3^rd Quarter 2016

Table 7 – Reconciliation of Segment Cash Flow Data to Statements of Cash Flows

(In thousands)

	Three months ended					Nine months ended
	September 30,					September 30,
	2016		2015			2016			2015
Annually recurring capital expenditures by operating segment
Same store communities	$	4,927	$	5,218		$	14,380		$	11,185
Newly stabilized communities		-		3			6			6
Lease-up communities		1		-			5			-
Commercial and other segments		194		185			395			354

Total annually recurring capital expenditures	$	5,122	$	5,406		$	14,786		$	11,545
Periodically recurring capital expenditures by operating segment
Same store communities	$	789	$	1,587		$	2,929		$	3,676
Newly stabilized communities		-		1			-			1
Lease-up communities		-		-			-			-
Commercial and other segments		565		415			1,541			849

Total periodically recurring capital expenditures	$	1,354	$	2,003		$	4,470		$	4,526

Total revenue generating capital expenditures	$	3,416	$	3,707		$	9,388		$	7,653

Decrease (increase) in capital expenditure accruals, net of commercial leasing costs	$	119	$	(759	)	$	(82	)	$	(1,057	)

Total property capital expenditures per statements of cash flows	$	10,011	$	10,357		$	28,562		$	22,667


Supplemental Financial Data	Page 30

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