Post Properties, Inc. announced today net income available to common shareholders of $18.7 million, or $0.34 per diluted share, for the second quarter of 2015 compared to $46.8 million, or $0.86 per diluted share, for the second quarter of 2014.

Net income available to common shareholders for the six months ended June 30, 2015, was $37.7 million, or $0.69 per diluted share, compared to $60.1 million, or $1.10 per diluted share, for the six months ended June 30, 2014.

Net income for the first six months of 2015 included a gain on the sale of real estate assets of $1.5 million. Net income for the three and six months ended June 30, 2014, included gains on sales of real estate assets of $36.1 million and $36.9 million, respectively, offset by a loss of $4.3 million on the extinguishment of indebtedness.

Funds From Operations

The Company uses the National Association of Real Estate Investment Trusts definition of Funds from Operations (“FFO”) as an operating measure of the Company’s financial performance. A reconciliation of FFO to GAAP net income is included in the financial data accompanying this press release.

FFO for the second quarter of 2015 was $40.4 million, or $0.74 per diluted share, compared to $31.7 million, or $0.58 per diluted share for the second quarter of 2014. FFO for the three months ended June 30, 2014 included a net loss on extinguishment of indebtedness of $4.3 million, or $0.08 per diluted share.

FFO for the six months ended June 30, 2015 was $78.9 million, or $1.44 per diluted share, compared to $66.8 million, or $1.22 per diluted share, for the six months ended June 30, 2014. FFO for the first half of 2015 included losses on extinguishment of indebtedness of $0.2 million, or less than $0.01 per diluted share. FFO for the first half of 2014 included FFO from condominium activities of $0.8 million, or $0.01 per diluted share, as well as the net loss on extinguishment of indebtedness of $4.3 million, or $0.08 per diluted share.

Said Dave Stockert, Post’s CEO, “In the second quarter we posted another double-digit growth rate in earnings and cash flow, on solid apartment market conditions. As a result of the Company’s performance in the first half, we are increasing full-year guidance. We are also setting aside $100 million of capital to pursue share repurchases over roughly the next four quarters where we believe we can capture the difference between the share price and the underlying net asset value of the portfolio.”

Same Store Community Data

Total revenues at the Company’s 50 same store communities, containing 18,780 apartment units, increased 2.8% and total operating expenses increased 2.6% during the second quarter of 2015, compared to the second quarter of 2014, producing a 2.9% increase in same store net operating income. The average monthly rental rate per unit increased 2.2% during the second quarter of 2015, compared to the second quarter of 2014. Average economic occupancy was 96.0% in the second quarter of 2015, compared to 95.9% for the second quarter of 2014.

On a sequential basis, total revenues for the same store communities increased 2.1% and total operating expenses increased 3.3%, resulting in a 1.3% increase in same store NOI for the second quarter of 2015, compared to the first quarter of 2015. On a sequential basis, the average monthly rental rate per unit increased 0.6%. For the second quarter of 2015, average economic occupancy at the same store communities was 96.0%, compared to 94.9% for the first quarter of 2015.

Total revenues for the same store communities increased 2.6% and total operating expenses increased 3.4% during the first half of 2015, compared to the first half of 2014, producing a 2.0% increase in same store NOI. The average monthly rental rate per unit increased 2.3% for the six months ended June 30, 2015, compared to the six months ended June 30, 2014. For the six months ended June 30, 2015, average economic occupancy at the Company’s same store communities was 95.5% compared to 95.6% for the six months ended June 30, 2014.

Same store NOI is a supplemental non-GAAP financial measure. A reconciliation of same store NOI to the comparable GAAP financial measure is included in the financial data accompanying this press release. Information on same store NOI and average rental rate per unit by geographic market is also included in the financial data accompanying this press release.

Investment Activity

Development Activity

The Company announced today a modest expansion of its current development project at the Post Parkside™ at Wade, Phase II community to include 15 luxury townhomes with an average unit size of approximately 1,893 square feet. These for-rent townhomes are expected to have a total estimated development cost of approximately $4.5 million and are expected to initially produce an estimated stabilized yield on cost of approximately 6.0%, calculated on current market rents and after a 3% management fee and $300 per unit replacement reserve.

In the aggregate, the Company has 1,834 units in five apartment communities, and approximately 5,800 square feet of retail space, under development with a total estimated cost of $369.9 million, and a remaining funding requirement of $228.6 million. The Company believes it has adequate internal and external resources to fund its development commitments.

Share Repurchase Program

The Company announced today that it plans to allocate up to $100 million of capital, under its previously existing authorization, to pursue a program of share repurchases over approximately the next 12 months. Such repurchases are expected to be conditioned on the trading price of the Company’s common stock in relation to management’s estimates of the net asset value of the Company’s portfolio, and on general economic and market conditions. There can be no assurance that any shares will be repurchased under this program.

Financing Activity

Leverage and Line of Credit Capacity

Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of real estate assets and debt) was 30.7% at June 30, 2015.

As of July 31, 2015, the Company had cash and cash equivalents of $95 million. Additionally, the Company had no outstanding borrowings, and letters of credit totaling $0.1 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities until 2017.

Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP measures in the Company’s financial statements are included in the financial data accompanying this press release.