Post Properties swings to profit as rental rates, occupancy rise
Post Properties Inc. (NYSE: PPS) swung to a profit in the second quarter with net income of $8.8 million, or 17 cents a share, as apartment occupancy and rental rates heated up. That compares to a net loss of $35.5 million, or a loss of 73 cents per share, for the year-ago quarter. Funds from operations, a common measurement of performance for real estate investment trusts such as Post, was $27.7 million, or 55 cents per share, compared to a deficit of $17.2 million, or a 35-cent deficit per share, for the second quarter of 2010. The Atlanta-based company beat the consensus estimate from analysts of 42 cents per share and has raised its guidance for the full year to $1.64 to $1.70 per share, up from its previous guidance of $1.57 to $1.63. FFO for the six months ended June 30 was $46 million, or 92 cents per share, compared to a deficit of $2.1 million, or a 4-cent deficit per share, for the first six months of 2010. Total revenue for 2Q was $75.4 million, up from $70.8 million in the year-ago period. Post said the average monthly rental rate per unit increased 3.5% during the second quarter of 2011, compared to the second quarter of 2010. Occupancy was also on the rise, clocking in at 95.5% at its mature communities, or those that have been open and operating at least a year. That's up from 95.1% in the year-ago period. The apartment developer said it has begun development of apartment communities in Orlando, Fla., and Raleigh, N.C. In total, the company has 1,568 units in five apartment communities and 37,567 square feet of retail space under development with a total estimated cost of $272.1 million. Post Properties and its subsidiaries develop, own and manage upscale multifamily apartment communities across the U.S. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.