<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 2000
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Post Properties, Inc.
Post Apartment Homes, L.P.
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(Exact name of registrant as specified in its charter)
Georgia
Georgia
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(State or other jurisdiction of incorporation)
1-12080
0-28226
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(Commission File Number)
58-1550675
58-2053632
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(IRS Employer Identification Number)
4401 Northside Parkway, Suite 800, Atlanta, Georgia 30327
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(Address of principal executive offices)
Registrant's telephone number, including area code: (404) 846-5000
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Not applicable
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
Item 5. Other Events
Post Properties, Inc. and Post Apartment Homes, L.P. are filing this
Current Report on Form 8-K to file with the Securities and Exchange Commission
certain items that are to be incorporated by reference in their Registration
Statement on Form S-3 (Registration No. 333-36595).
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
12.1 Statement Regarding Computation of Earnings to Fixed
Charges
99.1 Supplemental Information
2
<PAGE> 3
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 8, 2000
POST PROPERTIES, INC.
By: /s/ R. Gregory Fox
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R. Gregory Fox
Executive Vice President and
Chief Accounting Officer
3
<PAGE> 4
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 8, 2000
POST APARTMENT HOMES, L.P.
By: Post GP Holdings, Inc., as General Partner
By: /s/ R. Gregory Fox
-------------------------------------
R. Gregory Fox
Executive Vice President and
Chief Accounting Officer
4
<PAGE> 5
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
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<S> <C>
12.1 Statement Regarding Computation of Earnings
to Fixed Charges
99.1 Supplemental Information
</TABLE>
5
<PAGE> 1
EXHIBIT 12.1
POST PROPERTIES, INC.(1)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
Year Ended December 31,
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1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
Pre-tax income (loss) from
continuing operations $ 104,975(2) $ 88,950 $ 54,947(2) $ 43,469(2) $ 29,988(2)
Minority interest in the income of
subsidiary with fixed charges 12,598 11,511 11,131 9,984 8,429
---------- ---------- ---------- ---------- ----------
117,573 100,461 66,078 53,453 38,417
---------- ---------- ---------- ---------- ----------
Fixed Charges:
Interest incurred and amortization
of debt discount and premium on
all indebtedness 56,105 48,189 35,205 27,916 29,714
Rentals - 33.34%(3) 2,385 2,220 1,686 939 405
---------- ---------- ---------- ---------- ----------
Total fixed charges 58,490 50,409 36,891 28,855 30,119
---------- ---------- ---------- ---------- ----------
Earnings before income taxes,
minority interest and fixed charges 176,063 150,870 102,969 82,308 68,536
Adjustment for capitalized interest (21,417) (15,707) (9,567) (4,443) (5,653)
---------- ---------- ---------- ---------- ----------
Total earnings $ 154,646 $ 135,163 $ 93,402 $ 77,865 $ 62,883
========== ========== ========== ========== ==========
Ratio of Earnings to Fixed Charges 2.6 2.7 2.5 2.7 2.1
========== ========== ========== ========== ==========
</TABLE>
(1) The ratio of earnings to fixed charges is the same for Post Apartment
Homes, L.P.
(2) Included in the pre-tax income from continuing operations for 1999,
1997, 1996 and 1995 was a non-recurring (loss)/gain of ($1,522),
$3,270, $854 and $1,746, respectively, relating to the sale of real
estate assets as disclosed in the Company's consolidated financial
statements. If such sales had not occurred, the ratio of earnings to
fixed charges would have been 2.7, 2.5, 2.7 and 2.0 for 1999, 1997,
1996 and 1995, respectively.
(3) The interest factor of rental expense is calculated as one-third of
the rental expense which represents an appropriate interest factor.
<PAGE> 1
EXHIBIT 99.1
SUPPLEMENTAL INFORMATION
SELECTED FINANCIAL INFORMATION
The following unaudited financial information of Post Apartment
Homes, L. P. (the "Operating Partnership") as of and for the three month period,
ended March 31, 2000 and 1999 has been prepared by the Operating Partnership's
management in accordance with generally accepted accounting principles ("GAAP")
for interim financial information and the applicable rules and regulations of
the Securities and Exchange Commission. Accordingly, they do not include all of
the information and footnotes required by GAAP for complete financial
statements. In the opinion of management, all adjustments (consisting only of
normal recurring adjustments) considered necessary for a fair presentation have
been included. The results of operations for the three month period ended March
31, 2000 are not necessarily indicative of the results that may be expected for
the full year. This financial information should be read in conjunction with the
Operating Partnership's audited financial statements and notes thereto included
in the Operating Partnership's Annual Report on Form 10-K for the year ended
December 31, 1999.
<TABLE>
<CAPTION>
Three months ended
March 31,
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2000 1999
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(Dollars in thousands, except per unit data)
(Unaudited)
<S> <C> <C>
OPERATING DATA
Revenue:
Rental - owned properties ................................. $ 87,825 $ 75,585
Property management - third party ......................... 908 871
Landscape services - third party .......................... 2,102 1,730
Interest .................................................. 539 65
Other ..................................................... 4,069 2,641
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Total revenue ..................................... 95,443 80,892
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Property operating and maintenance expenses - owned
properties ............................................... 30,651 26,369
Depreciation expense ......................................... 17,005 12,710
Property management expenses - third party ................... 788 719
Landscape services expenses - third party .................... 2,005 1,660
Interest expense ............................................. 10,701 7,217
Amortization of deferred loan costs .......................... 385 336
General and administrative expenses .......................... 2,497 2,383
Minority interest in consolidated property partnerships ...... (555) 92
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63,477 51,486
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Net income before net gain (loss) on sale of assets and
extraordinary item ....................................... 31,966 29,406
Net gain (loss) on sale of assets ............................ 687 (1,567)
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Net income before extraordinary item ......................... 32,653 27,839
Extraordinary item(1) ........................................ -- (521)
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Net income ...................................................... 32,653 27,318
Distribution to preferred unitholders ........................... (4,369) (2,969)
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Net income available to common unitholders ...................... $ 28,284 $ 24,349
========== ==========
Funds from operations(2) ..................................... $ 43,490 $ 38,754
========== ==========
PER COMMON UNIT DATA
Net income before extraordinary item
(net of preferred distribution) - basic ................. $ 0.64 $ 0.57
========== ==========
Net income available to common unitholders - basic ........... $ 0.64 $ 0.56
========== ==========
Net income before extraordinary item
(net of preferred distribution) - diluted ............... $ 0.63 $ 0.57
========== ==========
Net income available to common unitholders - diluted ......... $ 0.63 $ 0.56
========== ==========
Dividends declared ........................................... $ 0.76 $ 0.70
========== ==========
</TABLE>
<TABLE>
<CAPTION>
March 31,
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2000 1999
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(Dollars in thousands)
(Unaudited)
<S> <C> <C>
BALANCE SHEET DATA
Real estate, before accumulated depreciation ................. $2,644,278 $2,327,270
Real estate, after accumulated depreciation .................. 2,328,141 2,068,117
Total assets ................................................. 2,419,931 2,141,868
Total debt ................................................... 1,046,847 869,881
Partners' equity ............................................. 1,255,375 1,172,259
KEY DEBT STATISTICS
Total secured debt ........................................... $ 414,847 $ 331,881
Total unsecured debt ......................................... 632,000 538,000
Interest coverage ratio(3)(4) ................................ 5.6x 6.9x
Fixed charge coverage ratio(3)(5) ............................ 4.0x 4.9x
Total debt as a % of undepreciated real estate ............... 39.6% 37.4%
</TABLE>
NOTES TO SELECTED FINANCIAL INFORMATION
(1) - The extraordinary item for the three months ended March 31, 1999 resulted
from the costs associated with the early extinguishment of indebtedness.
(2) - The Operating Partnership uses the National Association of Real Estate
Investment Trust ("NAREIT") definition of Funds from Operations ("FFO"), as
described below.
(3) - Calculated for the three months ended March 31, 2000 and 1999.
(4) - Interest coverage ratio is defined as net income available for debt
service divided by interest expense. For purposes of this calculation, net
income available for debt service represents earnings before distributions to
preferred unitholders, gain (loss) on sale of assets, interest expense,
depreciation, amortization and extraordinary items.
(5) - Fixed charge coverage ratio is defined as net income available for debt
service divided by interest expense plus distributions to preferred
unitholders. For purposes of this calculation, net income available for debt
service represents earnings before distributions to preferred unitholders, gain
(loss) on sale of assets, interest expense, depreciation, amortization and
extraordinary items.
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
The Operating Partnership believes FFO is a useful measure of performance of an
equity real estate investment trust. The Operating Partnership uses the NAREIT
definition of FFO, which for any period means the consolidated net income
available to common unitholders of the Operating Partnership and its
subsidiaries for such period excluding gains or losses from debt restructuring
and sales of property, plus depreciation of real estate assets, and after
adjustment for unconsolidated partnerships and joint ventures, all determined on
a consistent basis in accordance with GAAP. NAREIT's definition of FFO
historically excluded items classified by GAAP as extraordinary or unusual and
significant non-recurring events that materially distort the comparative
measurement of performance over time. Effective January 1, 2000 NAREIT amended
its definition of FFO to include in FFO all non-recurring events, except for
those that are defined as extraordinary items under GAAP and gains and losses
from sales of property. The Operating Partnership adopted this amended
definition effective January 1, 2000. FFO should not be considered as an
alternative to net income (determined in accordance with GAAP) as an indicator
of the Operating Partnership's financial performance or to cash flow from
operating activities (determined in accordance with GAAP) as a measure of the
Operating Partnership's liquidity, nor is it necessarily indicative of
sufficient cash flow to fund all of the Operating Partnership's needs. Cash
available for distribution ("CAD") is defined as FFO less capital expenditures
funded by operations and loan amortization payments. The Operating Partnership
believes that in order to facilitate a clear understanding of the consolidated
historical operating results of the Operating Partnership, FFO and CAD should be
examined in conjunction with net income as presented in the consolidated
financial statements included in the Operating Partnership's Annual Report on
Form 10-K for the year ended December 31, 1999 and the selected financial
information included elsewhere in this report. FFO and CAD for the three months
ended March 31, 2000 and 1999 are summarized in the following table:
<TABLE>
<CAPTION>
Three months ended
March 31,
-------------------------------
2000 1999
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(Dollars in thousands, except per unit data)
<S> <C> <C>
NET INCOME AVAILABLE TO COMMON UNITHOLDERS ...................... $ 28,284 $ 24,349
Extraordinary item ......................................... -- 521
Net (gain) loss on sale of assets .......................... (687) 1,567
------------ ------------
Adjusted net income ............................................. 27,597 26,437
Depreciation on real estate assets, net(1) ...................... 15,893 12,317
------------ ------------
FUNDS FROM OPERATIONS ........................................... 43,490 38,754
Recurring capital expenditures(2) ............................... (1,938) (1,873)
Non-recurring capital expenditures .............................. (830) (554)
Loan amortization payments ...................................... (310) (20)
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CASH AVAILABLE FOR DISTRIBUTION ................................. $ 40,412 $ 36,307
============ ============
Revenue generating capital expenditures(3) ...................... $ 576 $ 1,018
============ ============
</TABLE>
(1) - Depreciation on real estate assets is net of the minority interest
portion of depreciation in consolidated partnerships.
(2) - Since the Operating Partnership does not add back the depreciation of
non-real estate assets in its calculation of FFO, capital expenditures of $912
and $955 for the three months ended March 31, 2000 and 1999, respectively, are
excluded from the calculation of CAD.
(3) - Primarily comprised of major renovations of communities.
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CURRENT DEVELOPMENT ACTIVITY
Certain information regarding the Operating Partnership's apartment
communities under development or in initial lease-up as of April 29, 2000 is
set forth in the following table:
<TABLE>
<CAPTION>
ESTIMATED ESTIMATED ESTIMATED
QUARTER OF QUARTER OF QUARTER OF
CONSTRUCTION FIRST UNITS STABILIZED
METROPOLITAN AREA START AVAILABLE OCCUPANCY
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<S> <C> <C> <C>
ATLANTA, GA
Post Stratford 2Q '99 1Q '00 1Q '01
Post Spring 3Q '99 2Q '00 3Q '01
CHARLOTTE, NC
Post Uptown Place 3Q '98 1Q '00 3Q '00
Post Gateway Place 3Q '99 3Q '00 2Q '01
TAMPA, FL
Post Harbour Place 4Q '98 2Q '00 1Q '01
DALLAS, TX
Post Block 588 4Q '98 1Q '00 2Q '00
Legacy Town Center City Apa 3Q '99 3Q '00 4Q '01
Post Addison Circle III 3Q '99 3Q '00 2Q '01
Uptown Village by Post (II) 3Q '99 2Q '00 4Q '00
HOUSTON, TX
Post Midtown Square II 1Q '00 1Q '01 4Q '01
DENVER, CO
Post Uptown Square I 1Q '98 3Q '99 4Q '00
Post Uptown Square II 1Q '00 1Q '01 4Q '01
PHOENIX, AZ
Post Roosevelt Square 4Q '98 1Q '00 1Q '01
ORLANDO, FL
Post Parkside 1Q '99 2Q '99 3Q '00
WASHINGTON D. C.
Post Pentagon Row 2Q '99 4Q '00 1Q '02
AUSTIN, TEXAS
Post West Avenue Lofts 3Q '99 4Q '00 3Q '01
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</TABLE>
