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Third Avenue Comments on Post Properties
Posted by: Holly LaFon (IP Logged)
Date: September 18, 2013 03:37PM
Post Properties Post Properties (PPS) owns and operates one of the most highly coveted apartment portfolios in North America with approximately 19,000 units in high-job-growth markets such as Atlanta, Dallas, and Washington D.C. The portfolio is currently more than 95% leased. The company is known for its high-quality luxury properties in infill locations desired by rising professionals who can afford premium rental rates. With the recent selloff in U.S. REIT stocks, Post Common traded at a 52-week low and allowed the Fund to establish its position at a price that represents a discount to our conservative estimate of net asset value (NAV) and substantially below its potential value to a strategic buyer in a negotiated transaction. With a superior balance sheet (net debt-to-assets of less than 30%) and internal growth prospects (through higher rental rates and development opportunities), we believe it is likely the company will be able to compound NAV by 6% to 10% annually, over the next two to three years, without having to raise external capital in order to do so.
From Third Avenue's semi-annual 2013 review.
Guru Discussed: Third Avenue Management: Current Portfolio, Stock Picks
Stocks Discussed: PPS,
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