Boston, MA 05/08/2014 (wallstreetpr) – Post Properties Inc (NYSE:PPS) is a $2.8 billion real estate investment trust. Like its peers, the company is moving forward with property acquisitions, rebalancing and revamping to create big shareholder value. However, the company had little to show for the 1Q trading period where profit declined by double-digit.
Many REITs have reported bottom-line impact as focus on the long-term take the center-stage. Real estate developers are keen to acquire properties that promise high dollar in the future while giving up on assets with little upside potential. Construction of new buildings is also in the pipelines as Post already has several construction projects underway.
The company is developing five apartment complexes with a combined 1,620 units. The company is also planning more developments on the land it owns.
Asset sale
As Post Properties Inc (NYSE:PPS) makes an effort to increase its apartment units in prime locations, it is also putting some assets on the market. It has three complexes in New York and Houston that are already on the market.
In the previous quarters, the company generated significant proceeds from the sale of condos. However, the reduction of the number of condos for sale partially impacted 1Q performance. The company closed the final condo sale in Buckhead at the 126-unit Ritz-Carlton.
1Q at a glance
Post Properties Inc (NYSE:PPS) reported 1Q2014 revenue of $93.5 million, up 8.3 percent from the same quarter a year earlier. The company realized net income of $13.3 million in the quarter, a 31.4 percent decline from the corresponding quarter of 2013. As already mentioned, the big net income decline was linked to a drop in high-margin condo sales. However, the management sought to assure investors that the company is poised for better things in the future and that it was just a matter of time before the benefits are realized.
Post Properties Inc (NYSE:PPS) reported that its apartments in Atlanta were renting for $1,301 per month and on average its properties are currently renting out for $1,380 per month. As such, completion of more units and high occupancy rate that the company enjoys should result into higher revenue and profits in the future.
