Post Properties reports $21.7m profit in 3Q, beats estimates
Post Properties, Inc. (PPS) earned $21.7 million, or 44 cents per share, for the third quarter of 2010, as the apartment builder took advantage of low interest rates to refinance debt. Earnings were down 56.9% from an income of $50.2 million, or $1.13 per share, in the third quarter of 2009. Revenue was $72.9 million, up from $69.4 million in the year-ago period. () Post Properties acquired the remainder of an Atlanta condo project and its adjacent land, infrastructure and construction loans during the quarter. The project includes 129 luxury units and was acquired for a net gain of $20.9 million. Average occupancy at the company’s 43 mature communities, was 95.8%, up from 94.4% for the third quarter of 2009. President and CEO of Post Properties, David Stockert, said improving market conditions helped the company's numbers. "Apartment market conditions continued to improve and we were able to grow revenues on a sequential basis in every one of our markets," he said. "We took advantage of the favorable interest environment to refinance debt maturing in the near term and to preserve the company's substantial liquidity." Post Properties completed an offering in October of $150 million senior unsecured notes at 4.75% interest. The bonds will mature in 2017. For the first nine months, Post Properties has a net loss of $16.9 million, compared to a loss of $66,000 in the same period of 2009. Post Properties anticipates its funds from operations will increase to between $1.07 and $1.11 per share by the year's end. This is due in part to the public offering of senior notes in October. The company said it will start the second phase of development on one apartment complex in Alexandria, Va., and does not expect to break ground or acquire any other properties for the remainder of the year. The firm had a total of $2 billion real estate assets on its balance sheet as of Sept. 30. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.