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Post Properties Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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Post Properties Inc. (PPS) filed Quarterly Report for the period ended 2012-06-30.

Post Properties Inc has a market cap of $2.77 billion; its shares were traded at around $49.57 with a P/E ratio of 21.4 and P/S ratio of 9.1. The dividend yield of Post Properties Inc stocks is 2%.

Highlight of Business Operations:

In December 2011, the Company acquired Post Katy Trail, a 227-unit apartment community located in Uptown Dallas, Texas for a purchase price of $48,500. The community was completed in 2010 and includes 9,080 square feet of retail space that is currently 100% leased. Operating results for the three and six months ended June 30, 2012 includes property revenues of $1,091 and $2,149, respectively, and net operating income of $583 and $1,168, respectively, from this community.

Rental and other revenues increased $5,426 or 7.8% from 2011 to 2012. This increase resulted from a 6.5% increase in the average monthly rental rate per apartment unit and from a 1.0% increase in average economic occupancy between periods. The increase in average rental rates resulted in a revenue increase of approximately $4,429 between periods. Average economic occupancy increased from 95.1% in 2011 to 96.1% in 2012. The occupancy increase between periods resulted in lower vacancy losses of $413 in 2012. The remaining increase in rental and other property revenues of $584 was primarily due to somewhat higher net leasing and other fees and utility reimbursements and lower net concessions. Average occupancy levels were slightly higher between years due to improved rental market conditions in 2012. The Company expects that rental revenues will continue to increase moderately on a year over year basis in 2012, continuing a trend that began in late 2010. Average rental rate and occupancy increases were primarily due to increasing rental demand resulting from a gradually improving economy, a continued decline in the home ownership rate and due to a modest supply of new apartment communities. See the Outlook section below for an additional discussion of trends for 2012.

Rental and other revenues increased $10,728 or 7.8% from 2011 to 2012. This increase resulted from a 6.3% increase in the average monthly rental rate per apartment unit and from a 1.0% increase in average economic occupancy between periods. The increase in average rental rates resulted in a revenue increase of approximately $8,614 between periods. Average economic occupancy increased from 95.0% in 2011 to 96.0% in 2012. The occupancy increase between periods resulted in lower vacancy losses of $901 in 2012. The remaining increase in rental and other property revenues of $1,213 was primarily due to somewhat higher net leasing and other fees and utility reimbursements and lower net concessions. Average occupancy levels were slightly higher between years due to

In May 2012, the Company adopted a new at-the-market (ATM) common equity sales program for the sale of up to 4,000 shares of common stock. At June 30, 2012, the Company had approximately 4,137 shares remaining for issuance under its new and prior ATM programs. The Company has used and expects to continue to use this program as an additional source of capital and liquidity and to maintain the strength of its balance sheet. For the six months ended June 30, 2012 and the full year 2011, the Company sold 414 and 3,409 shares for gross proceeds of $19,159 and $138,628, respectively. The average gross sales prices per share were $46.33 and $40.67 for the six months ended June 30, 2012 and the full year of 2011, respectively. The Companys net proceeds totaled $18,625 and $135,651 for the six months ended June 30, 2012 and for the full year 2011, respectively. Sales under the program will be dependent on a variety of factors, including, among others, market conditions and the trading price of the Companys common stock relative to other sources of capital.

In May 2012, the Company adopted a new at-the-market (ATM) common equity sales program for the sale of up to 4,000 shares of common stock. At June 30, 2012, the Company had approximately 4,137 shares remaining for issuance under its new and prior ATM programs. The Company has used and expects to continue to use this program as an additional source of capital and liquidity and to maintain the strength of its balance sheet. For the three and six months ended June 30, 2012, the Company sold 97 and 414 shares for gross proceeds of $4,847 and $19,159, respectively. The average gross sales prices per share were $50.23 and $46.33 for the three and six months ended June 30, 2012, respectively. The Companys sales of common shares produced net proceeds totaling $4,643 and $18,625 for the three and six months ended June 30, 2012, respectively. Underwriter commissions paid totaled $73 and $359 for the three and six months ended June 30, 2012, respectively. For the full year 2011, the Company sold 3,409 shares for gross proceeds of $138,628 at an average gross sales price per share of $40.67, producing net proceeds of $135,651.

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