Post Properties Inc.'s net income fell in the first quarter, but its funds from operations (FFO) jumped. The Atlanta-based multifamily real estate investment trust posted net income of $9.1 million on $78 million in revenue, compared with net income of $33.9 million on $74.7 million in revenue in the third quarter of 2006. Earnings were 21 cents a share, down from earnings of 77 cents a share in the third quarter of 2006.
The results for 2006 include a $16.7 million net gain on the sale of an apartment community and $55.3 million in gains on the sale of a 75 percent interest in two apartment communities converted to joint venture ownership.
Funds from operations (FFO) -- a real estate measurement of operating performance -- for the third quarter totaled $23.9 million, or 53 cents a share. This compares with FFO of $20.8 million, or 47 cents a share, for the third quarter of 2006.
"Results for the third quarter exceeded our expectations," said David Stockert, CEO and president of Post Properties. "We increased apartment revenues, on a same-store basis, through a combination of higher rents and occupancy. Despite conditions in the housing market, we also achieved our targets for condominium sales, closing 84 condominium units with gross revenues totaling more than $30 million."
At the end of the third quarter, Post's aggregate pipeline of development projects under construction totaled $435.9 million. The company also owns land for which it is in pre-development for 2,761 rental apartment units, 238 for-sale condominium units and 152,900 square feet of retail amenities. Post estimates the development costs for the pipeline around $750 million.
Source: Atlanta Business Chronicle