ATLANTA-Post Properties Inc. has improved its balance sheet, reporting positive net income and funds from operations in both the fourth quarter and all of 2005.
The locally based apartment and condominium developer posted fourth-quarter 2005 net income of $3.7 million, or nine cents per diluted share, compared to a net loss of $16.4 million and a net loss of 41 cents per diluted share in the same 2004 period. For the full year ended Dec. 31, 2005, Post had net income of $134.3 million, or $3.34 per share, compared to $76.4 million or $1.92 in fourth quarter 2004.
Funds from operations in fourth quarter 2005 totaled $20.9 million, or 49 cents per diluted share, compared to $2.9 million or seven cents per share in last year's final period. For the full year, FFO totaled $83.5 million, or $1.95 per share, versus $50.6 million or $1.19 per share in fourth quarter 2004.
"Strong results in the fourth quarter capped a very solid year for Post, with our rental apartment and for-sale condominium businesses performing ahead of our expectations," Post president and CEO David Stockert says in a prepared statement. "Market conditions remain favorable and we expect to experience upward momentum in rents, due to ongoing job growth, immigration, household formation and moderate levels of supply in our primary markets."
Stockert says the company plans to begin a multimillion-dollar rehabilitation program at several of its older properties located in strong infill submarkets. Among those properties are the 558-unit Post Chastain in the Buckhead district of Atlanta and the 332-unit Post Worthington in the Uptown submarket of Dallas. Stockert says Post plans to invest about $25,000 to $30,000 per unit in the two properties. That would amount to about $16.74 million at Post Chastain and about $9.96 million at Post Worthington.
Post also plans to "re-orient its strategic investment activities in the Southwest around three primary Texas markets--Dallas, Houston and Austin," Stockert says. "The company plans to re-establish its presence in the Austin, TX market and recently entered into a development agreement with Ardent Residential whose principals have over 10 years experience in developing quality multifamily properties in Austin."
Stockert anticipates Post's net income per share for the full year 2006 will be in the range of $1.10 to $1.40 per diluted share and that FFO will be in the range of $1.85 to $2.01 per diluted share.
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