Post's New Stock Repurchase Program - Analyst Blog

Post Properties Inc. (PPS), a leading operator and developer of multifamily properties across the U.S., has recently announced a new stock and note repurchase program that would replace its existing share repurchase program in place till the end of 2010. Under the terms of the new program, Post Properties may repurchase up to a maximum of $200 million worth of common shares or preferred stock or its operating partnership's senior unsecured notes till December 31, 2012.

Post properties had earlier reported strong third quarter 2010 results with sequential revenue growth, positive year-over-year net operating income and solid performance in Atlanta. The company has  reduced its operating costs and has effectively managed the balance sheet by reducing the risks associated with condominium projects and being prudent about investments in capital outlays. The multifamily sector is also benefiting from the gradual economic recovery, limited supply and a declining rate of homeownership. We expect Post Properties to maintain high occupancy levels in the coming quarters with one of the best quality portfolios in the industry.

Headquartered in Atlanta, Georgia, Post Properties develops and operates luxury multifamily apartment communities under the renowned Post brand since its formation in 1971. The company owns interests in 20,207 apartment units in 56 communities, including 1,747 apartment units in 5 communities held in unconsolidated entities, 396 apartment units in 1 community currently in lease-up stage and 344 apartment units in 1 community currently under construction. Post Properties is also developing and selling 277 luxury for-sale condominium homes in 2 communities through a taxable REIT subsidiary.

The rating on Post Properties is currently ‘Neutral'. The stock presently has a Zacks #3 Rank, which translates into a short-term ‘Hold' rating and indicates that the stock is expected to perform in line with the overall U.S. equity market for the next 1−3 months. We also have a ‘Neutral' recommendation and a Zacks #3 Rank for Equity Residential (EQR), one of the competitors of Post Properties.

 
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