Post Properties Inc : Post Properties Announces First Quarter 2012 Earnings and Development of Post Richmond Avenue™ in Houston, Texas
05/07/2012| 05:05pm US/Eastern
Recommend:
0
Investor/Analyst Conference Call Scheduled for Tuesday, May 8 at 10:00
a.m. EDT
Post Properties, Inc. (NYSE: PPS) announced today net income available
to common shareholders of $20.9 million, or $0.39 per diluted share, for
the first quarter of 2012, compared to a net loss attributable to common
shareholders of $0.4 million, or a loss of $0.01 per diluted share, for
the first quarter of 2011.
The Company's net income available to common shareholders for the first
quarter of 2012 included a gain of $6.1 million on the sale of its
interest in Post Biltmore™ in Atlanta, Georgia, held in an
unconsolidated joint venture entity in which the Company owned a 35%
interest. The Company's net loss attributable to common shareholders for
the first quarter of 2011 included $1.8 million of costs associated with
the Company's redemption of its Series B preferred stock.
Funds From Operations
The Company uses the National Association of Real Estate Investment
Trusts ("NAREIT") definition of Funds from Operations ("FFO") as an
operating measure of the Company's financial performance. A
reconciliation of FFO to GAAP net income is included in the financial
data (Table 1) accompanying this press release.
FFO for the first quarter of 2012 was $34.2 million, or $0.64 per
diluted share, compared to $18.3 million, or $0.37 per diluted share,
for the first quarter of 2011. FFO for the first quarter of 2012
excludes the gain on the sale of Post Biltmore™ discussed above. The
Company's FFO for the first quarter of 2011 included the charge related
to the redemption of its Series B preferred stock of $1.8 million, or
$0.035 per diluted share.
Said Dave Stockert, the Company's CEO and President, "We performed well
across-the-board in the first quarter, with solid growth in
profitability of our apartment business and a healthy pace of
condominium sales. We added another high-quality project to our
development pipeline, taking advantage of fundamental tailwinds, and
continued to emphasize strength and liquidity in our balance sheet. Post
remains well-positioned in the current environment, and our first
quarter results are a good way to start the year."
Same Store Community Data
Average economic occupancy at the Company's 50 same store communities,
containing 18,114 apartment units, was 95.8% and 94.8% for the first
quarter of 2012 and 2011, respectively.
Total revenues for the same store communities increased 7.8% and total
operating expenses increased 3.2% during the first quarter of 2012,
compared to the first quarter of 2011, resulting in a 10.9% increase in
same store net operating income ("NOI"). The average monthly rental rate
per unit increased 6.2% during the first quarter of 2012, compared to
the first quarter of 2011.
On a sequential basis, total revenues for the same store communities
increased 1.4% and total operating expenses increased 6.3%, producing a
1.5% decrease in same store NOI for the first quarter of 2012, compared
to the fourth quarter of 2011. On a sequential basis, the average
monthly rental rate per unit increased 1.2%. For the first quarter of
2012, average economic occupancy at the same store communities was
95.8%, compared to 95.9% for the fourth quarter of 2011.
Same store NOI is a supplemental non-GAAP financial measure. A
reconciliation of same store NOI to the comparable GAAP financial
measure is included in the financial data (Table 2) accompanying this
press release. Information on same store NOI and average rental rate per
unit by geographic market is also included in the financial data (Table
3) accompanying this press release.
Development Activity
The Company today announced the development of its Post Richmond Avenue™
apartment community in Houston, TX. Post Richmond Avenue™ is planned to
consist of 242 apartment units with an average unit size of
approximately 857 square feet. The community is expected to have a total
estimated development cost of approximately $34.3 million. The Company
currently expects the stabilized yield on the project will be
approximately 6.65%, after a 3% management fee and $300 per unit
reserve, and based on current market rents, without trending. The
Company anticipates that first apartment unit deliveries will occur in
the third quarter of 2013. The Company currently expects to fund future
estimated construction expenditures primarily by utilizing available
borrowings under its unsecured bank credit facilities as well as
proceeds from its on-going condominium sales and its at-the-market
common equity sales program.
In the aggregate, the Company has 1,810 units in six apartment
communities, and approximately 37,567 square feet of retail space, under
development with a total estimated cost of $306.4 million.
Joint Venture Disposition Activity
The Company announced today that in February 2012, the 35%-owned
unconsolidated entity which owned the 276-unit Post Biltmore™ apartment
community sold that asset to a third party for gross proceeds of $51.1
million. Upon the sale of the community, the $29.3 million, 5.83%
secured mortgage loan was fully repaid. The remaining cash proceeds have
been distributed to the members, resulting in a gain on sale to the
Company of $6.1 million for the three months ended March 31, 2012.
Financing Activity
Credit Ratings Activity
On April 25, 2012, Standard & Poor's revised its outlook on the Company
to positive from stable and affirmed its "BBB-" corporate credit rating
on the Company. This follows a similar ratings action by Moody's
Investor Service in December 2011, when Moody's changed the Company's
outlook to positive from stable and affirmed its "Baa3" credit rating on
the Company.
Leverage, Line and Term Loan Capacity
Total debt and preferred equity as a percentage of undepreciated real
estate assets (adjusted for joint venture partners' share of real estate
assets and debt) was 35.1% at March 31, 2012.
As of May 4, 2012, the Company had cash and cash equivalents of $4.3
million. The Company had no outstanding borrowings and had letters of
credit totaling $0.6 million under its combined $330 million unsecured
lines of credit. The Company also had available future borrowing
capacity of $200 million under its unsecured bank term loan.
Computations of debt ratios and reconciliations of the ratios to the
appropriate GAAP measures in the Company's financial statements are
included in the financial data (Table 4) accompanying this press release.
At-the-Market Common Equity Activity
The Company has an at-the-market common equity program for the sale of
up to 4 million shares of common stock. The Company expects to use this
program as an additional source of capital and liquidity, to maintain
the strength of its balance sheet and to fund its planned investment
activities. Sales under this program will be dependent upon a variety of
factors, including, among others, market conditions, the trading price
of the Company's common stock and potential use of proceeds. During the
first quarter of 2012, the Company sold 317,000 shares, at an average
gross price per share of $45.15, producing net proceeds of $14.0
million. Since the inception of the program, the Company has sold
3,767,000 shares, at an average gross price per share of $40.90,
producing net proceeds of $150.8 million. The Company has approximately
233,000 shares remaining for issuance under this program.
Condominium Activity
During the first quarter of 2012, the Company closed 19 condominium
units at its Austin and Atlanta condominium projects for aggregate gross
revenue of $17.6 million. As of May 4, 2012, the Company has, in the
aggregate, closed 139 units at the Austin and Atlanta condominium
projects and had 23 units under contract. There can be no assurance that
condominium units under contract will close.
The Company recognized net gains in FFO of $6.9 million, or $0.13 per
diluted share, from condominium sales activities during the first
quarter of 2012, compared to $0.7 million, or $0.015 per diluted share,
during the first quarter of 2011.
2012 Outlook
The estimates and assumptions presented below are forward looking and
are based on the Company's future view of the apartment and condominium
markets and of general economic conditions, as well as other risks
outlined below under the caption "Forward Looking Statements." There can
be no assurance that the Company's actual results will not differ
materially from the estimates set forth below. The Company assumes no
obligation to update this guidance in the future.
Based on its revised outlook, the Company anticipates that FFO for the
full year 2012 will be in the range set forth below, as compared to its
previous outlook issued in its February 2012 earnings release. The
tables below reflect anticipated net gains from condominium sales (for
purposes of this discussion, "Condo FFO") and FFO before Condo FFO (for
purposes of this discussion, "Core FFO").
Previously
Current
Issued
Outlook
Outlook
Core FFO
$2.07 - $2.14
$2.04 - $2.14
Condo FFO
$0.19 - $0.24
$0.08 - $0.14
FFO
$2.26 - $2.38
$2.12 - $2.28
Previously
Current
Issued
Same Store Assumptions
Outlook
Outlook
Revenue
5.75% - 6.25%
5.25% - 6.25%
Operating expenses
3.75% - 4.75%
3.75% - 4.75%
Net operating income (NOI)
6.40% - 7.80%
5.60% - 7.80%
Supplemental Financial Data
The Company also produces Supplemental Financial Data that includes
detailed information regarding the Company's operating results,
investment activity, financing activity, balance sheet and properties.
This Supplemental Financial Data is considered an integral part of this
earnings release and is available on the Company's website. The
Company's Earnings Release and the Supplemental Financial Data are
available through the For Investors/Financial Reports/Quarterly and
Other Reports section of the Company's website at www.postproperties.com.
The ability to access the attachments on the Company's website requires
the Adobe Acrobat Reader, which may be downloaded at http://get.adobe.com/reader/.
Non-GAAP Financial Measures and Other Defined Terms
The Company uses certain non-GAAP financial measures and other defined
terms in this press release and in its Supplemental Financial Data
available on the Company's website. The non-GAAP financial measures
include FFO, Adjusted Funds from Operations ("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 and on page 19 of the Supplemental Financial Data. 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 (or 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 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 and 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 its operating capital expenditures through earnings. In
addition, since most equity REITs provide AFFO information to the
investment community, the Company believes that AFFO is a useful
supplemental measure for comparing the Company to other equity REITs.
The Company believes that the line on its consolidated statement of
operations entitled "net income available to common shareholders" is the
most directly comparable GAAP measure to AFFO.
Property Net Operating Income ("NOI") - The Company uses property
NOI, including same store NOI and same store NOI by market, as an
operating measure. NOI is defined as rental and other revenues from real
estate operations less total property and maintenance expenses from real
estate operations (exclusive of depreciation and amortization). The
Company believes that NOI is an important supplemental measure of
operating performance for a REIT's operating real estate because it
provides a measure of the core operations, rather than factoring in
depreciation and amortization, financing costs and general and
administrative expenses generally incurred at the corporate level. This
measure is particularly useful, in the opinion of the Company, in
evaluating the performance of geographic operations, same store
groupings and individual properties. Additionally, the Company believes
that NOI, as defined, is a widely accepted measure of comparative
operating performance in the real estate investment community. The
Company believes that the line on its consolidated statement of
operations entitled "net income" is the most directly comparable GAAP
measure to NOI.
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 properties, 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 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. In addition, the Company presents these measures because the
degree of leverage could affect the Company's ability to obtain
additional financing for working capital, capital expenditures,
acquisitions, development or other general corporate purposes. The
Company uses these measures internally as an indicator of liquidity and
the Company believes that these measures are also utilized by the
investment and analyst communities to better understand the Company's
liquidity.
The Company uses income available for debt service to calculate certain
debt ratios and statistics. Income available for debt service is defined
as net income (loss) before interest, taxes, depreciation, amortization,
gains on sales of real estate assets, non-cash impairment charges and
other non-cash income and expenses. Income available for debt service is
a supplemental measure of operating performance that does not represent
and should be considered as an alternative to net income or cash flow
from operating activities as determined under GAAP, and the Company's
calculation thereof may not be comparable to similar measures reported
by other companies, including EBITDA or Adjusted EBITDA.
Average Economic Occupancy - The Company uses average economic
occupancy as a statistical measure of operating performance. The Company
defines average economic occupancy as gross potential rent less vacancy
losses, model expenses and bad debt expenses divided by gross potential
rent for the period, expressed as a percentage.
Conference Call Information
The Company will hold its quarterly conference call on Tuesday, May 8,
at 10:00 a.m. ET. The telephone numbers are 888-293-6979 for US and
Canada callers and 719-457-2640 for international callers. The access
code is 7394734. The conference call will be open to the public and can
be listened to live on Post's website at www.postproperties.com
under For Investors/Event Calendar. The replay will begin at 1:00 p.m.
ET on Tuesday, May 8, and will be available until Monday, May 14, at
11:59 p.m. ET. The telephone numbers for the replay are 888-203-1112 for
US and Canada callers and 719-457-0820 for international callers. The
access code for the replay is 7394734. A replay of the call also will be
archived on Post's website under For Investors/Audio Archives.
About Post
Post Properties, founded more than 40 years ago, is a leading developer
and operator of upscale multifamily communities. The Company's mission
is delivering superior satisfaction and value to its residents,
associates, and investors, with a vision of being the first choice in
quality multifamily living. Operating as a real estate investment trust
("REIT"), the Company focuses on developing and managing Post® branded
resort-style garden and high density urban apartments. Post Properties
is headquartered in Atlanta, Georgia, and has operations in ten markets
across the country.
Post Properties has interests in 21,622 apartment units in 58
communities, including 1,471 apartment units in four communities held in
unconsolidated entities and 1,810 apartment units in six communities
currently under development. The Company is also selling luxury for-sale
condominium homes in two communities through a taxable REIT subsidiary.
Forward Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the Company, may constitute
"forward-looking statements" within the meaning of the federal
securities laws. Statements regarding future events and developments and
the Company's future performance, as well as management's expectations,
beliefs, plans, estimates or projections relating to the future, are
forward-looking statements within the meaning of these laws. Examples of
such statements in this press release include, expectations regarding
apartment market conditions, expectations regarding use of proceeds from
unsecured bank credit facilities, expectations regarding future
operating conditions, including the Company's current outlook as to
expected funds from operations, revenue, operating expenses and net
operating income, anticipated development activities (including
projected construction expenditures and timing), expectations regarding
the for-sale condominium business, and expectations regarding offerings
of the Company's common stock and the use of proceeds thereof. All
forward-looking statements are subject to certain risks and
uncertainties that could cause actual events to differ materially from
those projected. Management believes that these forward-looking
statements are reasonable; however, you should not place undue reliance
on such statements. These statements are based on current expectations
and speak only as of the date of such statements. The Company undertakes
no obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or
otherwise.
The following are some of the factors that could cause the Company's
actual results and its expectations to differ materially from those
described in the Company's forward-looking statements: the success of
the Company's business strategies discussed in its Annual Report on Form
10-K for the year ended December 31, 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 press release.
Financial Highlights
(Unaudited; in thousands, except per share and unit amounts)
Three months ended
March 31,
2012
2011
OPERATING DATA
Total revenues
$
80,276
$
73,531
Net income (loss) available to common shareholders
$
20,878
$
(421
)
Funds from operations available to common
shareholders and unitholders (Table 1)
$
34,223
$
18,341
Weighted average shares outstanding - diluted
53,493
49,041
Weighted average shares and units outstanding - diluted
53,645
49,212
PER COMMON SHARE DATA - DILUTED
Net income (loss) available to common shareholders
$
0.39
$
(0.01
)
Funds from operations available to common
shareholders and unitholders (Table 1) (1)
$
0.64
$
0.37
Dividends declared
$
0.22
$
0.20
1) Funds from operations per share was computed using weighted
average shares and units outstanding, including the impact of
dilutive securities totaling 406 and 387 for the three months
ended March 31, 2012 and 2011, respectively. The dilutive
securities for the three months ended March 31, 2011 were
antidilutive to the computation of income (loss) per share, as the
Company reported a net loss attributable to common shareholders
for this period under GAAP. Additionally, basic and diluted
weighted average shares and units included the impact of
non-vested shares and units totaling 119 and 153 for the three
months ended March 31, 2012 and 2011, respectively, for the
computation of FFO per share. Such non-vested shares and units are
considered in the income (loss) per share computations under GAAP
using the "two-class method."
Table 1
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations Available to Common Shareholders and
Unitholders
(Unaudited; in thousands, except per share amounts)
Three months ended
March 31,
2012
2011
Net income (loss) available to common shareholders
$
20,878
$
(421
)
Noncontrolling interests - Operating Partnership
59
(1
)
Depreciation on consolidated real estate assets, net
19,003
18,404
Depreciation on real estate assets held in
unconsolidated entities
338
359
Gains on sales of depreciable real estate assets -
unconsolidated entities
(6,055
)
-
Funds from operations available to common
shareholders and unitholders
$
34,223
$
18,341
Funds from operations - per share and unit - diluted (1)
$
0.64
$
0.37
Weighted average shares and units outstanding - diluted (1)
53,764
49,752
1) Diluted weighted average shares and units include the impact of
dilutive securities totaling 406 and 387 for the three months
ended March 31, 2012 and 2011, respectively. The dilutive
securities for the three months ended March 31, 2011 were
antidilutive to the computation of income (loss) per share, as the
Company reported a net loss attributable to common shareholders
for this period under GAAP. Additionally, basic and diluted
weighted average shares and units included the impact of
non-vested shares and units totaling 119 and 153 for the three
months ended March 31, 2012 and 2011, respectively, for the
computation of FFO per share. Such non-vested shares and units are
considered in the income (loss) per share computations under GAAP
using the "two-class method."
Table 2
Reconciliation of Same Store Net Operating Income (NOI) to GAAP
Net Income
(Unaudited; In thousands)
Three months ended
March 31,
March 31,
December 31,
2012
2011
2011
Total same store NOI
$
45,066
$
40,626
$
45,752
Property NOI from other operating segments
351
72
(204
)
Consolidated property NOI
45,417
40,698
45,548
Add (subtract):
Interest income
51
92
39
Other revenues
222
216
232
Depreciation
(19,341
)
(18,752
)
(18,880
)
Interest expense
(11,645
)
(14,475
)
(13,672
)
Amortization of deferred financing costs
(661
)
(647
)
(712
)
General and administrative
(4,285
)
(4,116
)
(3,768
)
Investment and development
(480
)
(478
)
(148
)
Other investment costs
(306
)
(494
)
(157
)
Gains on condominium sales activities, net
6,904
744
1,757
Equity in income of unconsolidated
real estate entities, net
6,446
209
211
Other income (expense), net
(156
)
16
389
Net loss on extinguishment of indebtedness
(301
)
-
(6,919
)
Net income
$
21,865
$
3,013
$
3,920
Table 3
Same Store Net Operating Income (NOI) and Average Rental Rate per
Unit by Market
(In thousands)
Three months ended
Q1 '12
Q1 '12
Q1 '12
March 31,
March 31,
December 31,
vs. Q1 '11
vs. Q4 '11
% Same
2012
2011
2011
% Change
% Change
Store NOI
Rental and other revenues
Atlanta
$
19,970
$
18,513
$
19,687
7.9
%
1.4
%
Washington, D.C.
12,854
12,049
12,691
6.7
%
1.3
%
Dallas
15,123
14,047
15,018
7.7
%
0.7
%
Tampa
8,509
7,922
8,314
7.4
%
2.3
%
Charlotte
4,663
4,267
4,618
9.3
%
1.0
%
New York
3,602
3,413
3,585
5.5
%
0.5
%
Houston
3,245
2,964
3,189
9.5
%
1.8
%
Orlando
2,662
2,479
2,592
7.4
%
2.7
%
Austin
2,692
2,363
2,630
13.9
%
2.4
%
Total rental and other revenues
73,320
68,017
72,324
7.8
%
1.4
%
Property operating and maintenance
expenses (exclusive of depreciation
and amortization)
Atlanta
7,816
7,822
7,578
(0.1
)%
3.1
%
Washington, D.C.
4,024
3,768
3,818
6.8
%
5.4
%
Dallas
6,527
6,324
6,062
3.2
%
7.7
%
Tampa
3,170
2,954
2,998
7.3
%
5.7
%
Charlotte
1,620
1,600
1,481
1.3
%
9.4
%
New York
1,686
1,550
1,454
8.8
%
16.0
%
Houston
1,205
1,337
1,237
(9.9
)%
(2.6
)%
Orlando
1,003
981
923
2.2
%
8.7
%
Austin
1,203
1,055
1,021
14.0
%
17.8
%
Total
28,254
27,391
26,572
3.2
%
6.3
%
Net operating income
Atlanta
12,154
10,691
12,109
13.7
%
0.4
%
27.0
%
Washington, D.C.
8,830
8,281
8,873
6.6
%
(0.5
)%
19.6
%
Dallas
8,596
7,723
8,956
11.3
%
(4.0
)%
19.1
%
Tampa
5,339
4,968
5,316
7.5
%
0.4
%
11.8
%
Charlotte
3,043
2,667
3,137
14.1
%
(3.0
)%
6.7
%
New York
1,916
1,863
2,131
2.8
%
(10.1
)%
4.3
%
Houston
2,040
1,627
1,952
25.4
%
4.5
%
4.5
%
Orlando
1,659
1,498
1,669
10.7
%
(0.6
)%
3.7
%
Austin
1,489
1,308
1,609
13.8
%
(7.5
)%
3.3
%
Total same store NOI
$
45,066
$
40,626
$
45,752
10.9
%
(1.5
)%
100.0
%
Average rental rate per unit
Atlanta
$
1,168
$
1,092
$
1,155
7.0
%
1.1
%
Washington, D.C.
1,843
1,787
1,832
3.1
%
0.6
%
Dallas
1,101
1,032
1,084
6.7
%
1.6
%
Tampa
1,297
1,205
1,281
7.6
%
1.3
%
Charlotte
1,105
1,018
1,091
8.5
%
1.3
%
New York
3,744
3,672
3,749
2.0
%
(0.1
)%
Houston
1,264
1,174
1,236
7.7
%
2.2
%
Orlando
1,424
1,336
1,405
6.6
%
1.4
%
Austin
1,548
1,426
1,522
8.6
%
1.7
%
Total average rental rate per unit
1,320
1,243
1,305
6.2
%
1.2
%
Table 4
Computation of Debt Ratios
(In thousands)
As of March 31,
2012
2011
Total real estate assets per balance sheet
$
2,083,008
$
2,027,500
Plus:
Company share of real estate assets held in unconsolidated entities
59,748
71,210
Company share of accumulated depreciation - assets held in
unconsolidated entities
9,896
11,132
Accumulated depreciation per balance sheet
785,996
711,111
Total undepreciated real estate assets (A)
$
2,938,648
$
2,820,953
Total debt per balance sheet
$
939,263
$
1,036,770
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)
$
988,794
$
1,096,371
Total debt as a % of undepreciated real estate assets (adjusted for
joint venture
partners' share of debt) (B÷A)
33.6
%
38.9
%
Total debt per balance sheet
$
939,263
$
1,036,770
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)
$
1,032,186
$
1,139,763
Total debt and preferred equity as a % of undepreciated real estate
assets (adjusted
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