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Post Properties (Post Properties) ROE % : 5.89% (As of Sep. 2016)


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What is Post Properties ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Post Properties's annualized net income for the quarter that ended in Sep. 2016 was $70.39 Mil. Post Properties's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $1,195.59 Mil. Therefore, Post Properties's annualized ROE % for the quarter that ended in Sep. 2016 was 5.89%.

The historical rank and industry rank for Post Properties's ROE % or its related term are showing as below:

PPSPRA.PFD' s ROE % Range Over the Past 10 Years
Min: -1.59   Med: 6.75   Max: 17.34
Current: 6.32

During the past 13 years, Post Properties's highest ROE % was 17.34%. The lowest was -1.59%. And the median was 6.75%.

PPSPRA.PFD's ROE % is not ranked
in the REITs industry.
Industry Median: 4.21 vs PPSPRA.PFD: 6.32

Post Properties ROE % Historical Data

The historical data trend for Post Properties's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Post Properties ROE % Chart

Post Properties Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 7.75 9.73 17.64 6.38

Post Properties Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.37 6.72 6.58 7.34 5.89

Competitive Comparison of Post Properties's ROE %

For the REIT - Residential subindustry, Post Properties's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Post Properties's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Post Properties's ROE % distribution charts can be found below:

* The bar in red indicates where Post Properties's ROE % falls into.



Post Properties ROE % Calculation

Post Properties's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=80.623/( (1285.96+1241.482)/ 2 )
=80.623/1263.721
=6.38 %

Post Properties's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=70.392/( (1198.264+1192.921)/ 2 )
=70.392/1195.5925
=5.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2016) net income data. ROE % is displayed in the 30-year financial page.


Post Properties  (NYSE:PPSPRA.PFD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2016 )
=Net Income/Total Stockholders Equity
=70.392/1195.5925
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(70.392 / 406.356)*(406.356 / 2307.0755)*(2307.0755 / 1195.5925)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.32 %*0.1761*1.9297
=ROA %*Equity Multiplier
=3.05 %*1.9297
=5.89 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2016 )
=Net Income/Total Stockholders Equity
=70.392/1195.5925
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (70.392 / 70.54) * (70.54 / 97.828) * (97.828 / 406.356) * (406.356 / 2307.0755) * (2307.0755 / 1195.5925)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9979 * 0.7211 * 24.07 % * 0.1761 * 1.9297
=5.89 %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Post Properties ROE % Related Terms

Thank you for viewing the detailed overview of Post Properties's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Post Properties (Post Properties) Business Description

Traded in Other Exchanges
N/A
Address
Post Properties Inc is a Georgia corporation, which was incorporated on January 25, 1984, and is the successor by merger to the original Post Properties, Inc., a Georgia corporation, which was formed in 1971. It is a self-administrated and self-managed equity real estate investment trust (REIT). The Company and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The operating divisions of the Company include Post Apartment Management, Post Investment Group and Post Corporate Services. Post Apartment Management is responsible for the day-to-day operations of all Post(r) communities including community leasing, property management, personnel recruiting, training and development, maintenance and security. Post Apartment Management also conducts short-term corporate apartment leasing activities. It is responsible for all development, acquisition, rehabilitation, disposition, for-sale and asset management activities of the Company. For development, this includes site selection, zoning and regulatory approvals, project design and construction management. This division is also responsible for apartment community acquisitions as well as property dispositions and strategic joint ventures that the Company undertakes as part of its investment plan. Post Corporate Services provides executive direction and control to the Company's other divisions and subsidiaries and has responsibility for the creation and implementation of all Company financing, capital and risk management strategies. All accounting, management reporting, compliance, information systems, human resources, legal, risk management and insurance services required by the Company and all of its affiliates are centralized in Post Corporate Services. The Company, through its wholly-owned subsidiaries, is the general partner and owns a majority interest in the Operating Partnership which, through its subsidiaries, conducts all of the on-going operations of the Company. At December 31, 2009, approximately 35.4%, 23.1%, 11.2% and 10.8% (on a unit basis) of the Company's communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively. At December 31, 2009, 19,863 apartment units in 55 apartment communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,428 apartment units in four communities currently under construction and/or in lease-up. The Company is also developing and selling 277 luxury for-sale condominium homes in two communities (including 129 units in one community held in an unconsolidated entity) and is completing the sell out of units in one condominium community through a taxable REIT subsidiary. The Company competes for residents in its apartment communities based on its high level of resident service, the quality of its apartment communities and the desirability of its locati
Executives
Morgan John F., Sr. director C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
David C. Ward officer: EVP & Chief Investment Officer 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Toni Jennings director C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Donald C Wood director 909 ROSE AVENUE - SUITE 200, NORTH BETHESDA MD 20852
Sheila J. Teabo officer: Senior Vice Pres. 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Charles A. Konas officer: Executive Vice Pres. 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
David R. Schwartz director 4401 NOTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327-3057
Dale Anne Reiss director 589 KINZIE ISLAND COURT, SANIBEL FL 33957
Stella Ferguson Thayer director 4401 NORTHSIDE PARKWAY,, SUITE 800, ATLANTA GA 30327
Deriso Walter M Jr director 1111 BAY AVENUE, SUITE 501, COLUMBUS GA 31901
Douglas Ii Crocker director C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Thomas D Senkbeil officer: EVP & Chief Financial Officer
Herschel M Bloom director 755 LEE STREET, PO BOX 272, ALEXANDER CITY AL 35011-0272
Christopher J Papa officer: Chief Financial Officer 4401 NORTHSIDE PARKWAY, SUITE 800, ATLANTA GA 30327
Nicholas B Paumgarten director C/O JP MORGAN CHASE, 227 PARK AVE 45TH FL, NEW YORK NY 10172

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