Post Properties Tender Offer Expires

ATLANTA-Locally based Post Properties Inc. has allowed the expiration of its cash tender offer for notes that were due to mature over the next two years, accepting nearly $175 million worth of the securities. The offer by the multifamily REIT, announced a week earlier, ended Friday at 5 p.m.

Post stated that $84.5 million in 2010 notes at 7.7% were returned to the company, as were $90.4 million of its 2011 notes at slightly over 5.1%. Approximately 90% of the $100-million issue of 2011 notes were returned, along with 46% of the $185 million worth of 2010 notes.

David Stockert, Post president and CEO, explained in a conference call with analysts last week that the tender offer was believed to be more preferable to investors under ongoing market conditions. “We just think those investors are not going to accept a loss on a security that has two years to run and is paying them an attractive rate of interest,” he said.

Last week, Post posted an annualized net loss of $16.3 million for 2008 after having reported net income of $171.1 million the previous year, while revenue grew nearly 2% over the year to $281.9 million. The REIT cited more than $100 million in non-cash impairment charges, along with at least $75 million gained from selling apartment communities last year.