Exhibit 99.2

Fourth Quarter 2006
Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations	3
Calculation of Funds from Operations and Adjusted Funds From Operations	7
Same Store Results	9
Consolidated Balance Sheets	12
Consolidated Debt Summary	13
Summary of Communities Under Construction	16
Summary of Future Projects in Pre-Development	17
Summary of Communities Under Rehabilitation	18
Summary of Condominium Conversion Projects	19
Community Acquisition and Disposition Summary	20
Capitalized Costs Summary	21
Investments in Unconsolidated Real Estate Entities	22
Net Asset Value Supplemental Information	24
Non-GAAP Financial Measures and Other Defined Terms	26

The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute “forward-looking statements” within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results to differ materially from the expected results described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its annual report on Form 10-K dated December 31, 2005, as amended; future local and national economic conditions, including changes in job growth, interest rates, the availability of financing and other factors; demand for apartments in the Company’s markets and the effect on occupancy and rental rates; the impact of competition on the Company’s business, including competition for tenants and development locations for its apartment communities and competing for-sale housing in the markets where the Company is completing condominium conversions or developing new condominiums; the Company’s ability to obtain financing or self-fund the development or acquisition of additional multifamily rental and for-sale housing; the uncertainties associated with the Company’s current and planned future real estate development, including actual costs exceeding the Company’s budgets or development periods exceeding expectations; uncertainties associated with the timing and amount of asset sales and the resulting gains/losses associated with such asset sales; uncertainties associated with the Company’s condominium conversion and for-sale housing business; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with environmental and other regulatory matters, including the Americans with Disabilities Act and the Fair Housing Act; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission and uncertainties of litigation; and the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the company’s annual report on Form 10-K, as amended, dated December 31, 2005 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

Post Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share or unit data)
(Unaudited)

	Three months ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenues
Rental	$	72,439		$	67,958		$	282,650		$	264,763
Other property revenues		4,110			3,803			17,044			15,478
Other		202			59			402			255
Total revenues		76,751			71,820			300,096			280,496
Expenses
Property operating and maintenance (exclusive of items shown separately below)		34,328			31,283			137,172			128,115
Depreciation		17,227			16,896			67,328			70,435
General and administrative		5,038			4,800			18,502			18,307
Investment, development and other (1)		1,924			974			6,424			4,711
Severance charges (2)		—			796			—			796
Total expenses		58,517			54,749			229,426			222,364
Operating income		18,234			17,071			70,670			58,132
Interest income		279			78			1,261			661
Interest expense		(13,199	)		(12,916	)		(54,049	)		(55,638	)
Amortization of deferred financing costs		(875	)		(954	)		(3,526	)		(4,661	)
Gains (losses) on sales of condominiums, net (3)		2,356			(163	)		12,378			(531	)
Equity in income of unconsolidated real estate entities		562			473			1,813			1,767
Other income (4)		—			—			3,095			5,267
Minority interest in consolidated property partnerships		(80	)		28			(257	)		239
Minority interest of common unitholders		(82	)		(108	)		(451	)		120
Income from continuing operations		7,195			3,509			30,934			5,356
Discontinued operations (5)
Income from discontinued property operations, net of minority interest		691			1,070			3,774			6,638
Gains on sales of real estate assets, net of minority interest and provision for income taxes		39,362			1,007			67,247			132,997
Loss on early extinguishment of indebtedness, net of minority interest (6)		(365	)		—			(486	)		(3,043	)
Income from discontinued operations		39,688			2,077			70,535			136,592
Net income		46,883			5,586			101,469			141,948
Dividends to preferred shareholders		(1,909	)		(1,909	)		(7,637	)		(7,637	)
Net income available to common shareholders	$	44,974		$	3,677		$	93,832		$	134,311
Per common share data — Basic (7)
Income (loss) from continuing operations (net of preferred dividends)	$	0.12		$	0.04		$	0.54		$	(0.06	)
Income from discontinued operations		0.91			0.05			1.65			3.40
Net income available to common shareholders	$	1.04		$	0.09		$	2.19		$	3.34
Weighted average common shares outstanding — basic		43,392			40,908			42,812			40,217
Per common share data — Diluted (7)
Income (loss) from continuing operations (net of preferred dividends)	$	0.12		$	0.04		$	0.53		$	(0.06	)
Income from discontinued operations		0.90			0.05			1.62			3.40
Net income available to common shareholders	$	1.02		$	0.09		$	2.15		$	3.34
Weighted average common shares outstanding — diluted		44,175			41,513			43,594			40,217
Dividends declared	$	0.45		$	0.45		$	1.80		$	1.80

3

Post Properties, Inc.
Notes to Consolidated
Statements of Operations
(In thousands, except per share or unit data)

(1)	Investment, development and other expenses for the three months and year ended December 31, 2006 and 2005 include investment group expenses, development personnel and associated costs not allocable to current development projects.
(2)	In the fourth quarter of 2005, the Company recorded additional expenses of $796 relating to changes in the estimated future costs of certain benefits granted to former executive officers under prior employment or settlement agreements. The estimated future cost increases primarily relate to increased fuel and other operating costs and expenses associated with certain fractional aircraft benefits provided to such executives.
(3)	In the three months and year ended December 31, 2006, income from continuing operations included net gains from condominium sales activities at condominium conversion projects representing portions of existing communities. In addition, condominium gains are net of certain expensed selling, marketing and other costs associated with new condominium communities under development totaling $308 and $163 for the three months and $706 and $531 for the year ended December 31, 2006 and 2005, respectively. Net gains from condominium sales activities at other consolidated community conversion projects are included in discontinued operations under generally accepted accounting principles (see (5) below). A summary of revenues and costs and expenses of condominium activities included in continuing operations for the three months and year ended December 31, 2006 and 2005 was as follows:

	Three months ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Condominium revenues	$	8,123		$	—		$	33,364		$	—
Condominium costs and expenses		(5,767	)		(163	)		(20,986	)		(531	)
Gains (losses) on sales of condominiums, net	$	2,356		$	(163	)	$	12,378		$	(531	)

(4)	In the year ended December 31, 2006, other income includes a gain on the sale of marketable securities of $573, an additional gain on sale of its prior investment in Rent.com, a privately-held internet leasing company, of $325 resulting from the receipt of previously escrowed proceeds under the prior year sale, a $503 gain on the sale of a land parcel and additional income totaling $1,655 resulting from the net increase in the market value of an ineffective cash flow hedge prior to its termination in April 2006. In the year ended December 31, 2005, the Company sold its investment in Rent.com and recognized a gain of $5,267.
(5)	Under SFAS No. 144, the operating results of real estate assets designated as held for sale are included in discontinued operations for all periods presented. Additionally, all subsequent gains or additional losses on the sale of these assets are included in discontinued operations.
	For the three months and year ended December 31, 2006, income from discontinued operations included the operating results of one apartment community, containing 182 units classified as held for sale, one condominium conversion community classified as held for sale and the operations of three apartment communities, containing 1,340 units, through their sale dates in 2006. For the three months and year ended December 31, 2005, income from discontinued operations included the operating results of one apartment community and one condominium conversion community classified as held for sale at December 31, 2006, the operations of three apartment communities sold in 2006, six communities sold in 2005 and one condominium conversion community through its sell-out date in 2005.

4

The operating revenues and expenses of these communities for the three months and year ended December 31, 2006 and 2005 were as follows:

	Three months ended					Year Ended
	December 31,					December 31,
	2006			2005		2006			2005
Revenues
Rental	$	1,791		$	3,836	$	12,146		$	27,965
Other property revenues		154			375		1,282			2,805
Total revenues		1,945			4,211		13,428			30,770
Expenses
Property operating and maintenance (exclusive of items shown separately below)		965			1,581		5,269			13,135
Depreciation		—			1,453		1,639			5,812
Interest		279			680		2,673			5,421
Minority interest in consolidated property partnerships		—			—		—			14
Total expenses		1,244			3,714		9,581			24,382
Income from discontinued property operations before minority interest		701			497		3,847			6,388
Minority interest		(10	)		573		(73	)		250
Income from discontinued property operations	$	691		$	1,070	$	3,774		$	6,638

For the three months ended December 31, 2006, the Company recognized net gains in discontinued operations of $40,204 ($39,471 net of minority interest), from the sale of two apartment communities, containing 644 units. For the year ended December 31, 2006, the Company recognized net gains in discontinued operations of $68,324 ($67,026 net of minority interest) from the sale of three apartment communities, containing 1,340 units. These sales generated net proceeds of approximately $56,131 for the three months and $173,007 (including $40,000 of secured indebtedness assumed by the purchaser) for the year ended December 31, 2006, respectively.

For the three months and year ended December 31, 2006 and 2005, gains on sales of real estate assets included in discontinued operations also includes net gains (losses) from condominium sales at two condominium conversion communities. A summary of revenues and costs and expenses of condominium activities included in discontinued operations for the three months and year ended December 31, 2006 and 2005 was as follows:

	Three months ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Condominium revenues	$	300		$	5,995		$	7,322		$	56,012
Condominium costs and expenses		(412	)		(5,069	)		(7,097	)		(39,200	)
Gains (losses) on condominium sales, before minority interest and income taxes		(112	)		926			225			16,812
Minority interest		3			22			(4	)		(814	)
Provision for income taxes		—			59			—			(594	)
Gains (losses) on condominium sales, net of minority interest and income taxes	$	(109	)	$	1,007		$	221		$	15,404

For the year ended December 31, 2005, the Company recognized net gains in discontinued operations of $124,425 ($117,593 net of minority interest) from the sale of six apartment communities, containing 3,047 units. The sales generated net proceeds of approximately $229,249, including $81,560 of tax-exempt secured indebtedness assumed by the purchasers.

(6)

For the three months ended December 31, 2006, the loss on early extinguishment of indebtedness includes the write-off of unamortized deferred costs of $230 ($226 net of minority interest) relating to the retirement of secured indebtedness in connection with the sale of one community, containing 496 units, and a loss of $142 ($139 net of minority interest) due to the ineffectiveness of a related interest rate cap agreement. For the year ended December 31, 2006, the loss on early extinguishment of indebtedness includes the write-off unamortized deferred costs of $353 ($347 net of minority interest) and the loss on the interest rate cap agreement discussed herein relating to the secured indebtedness retired in the fourth quarter and additional secured indebtedness assumed by the purchaser in connection with the sale of one apartment community in the third quarter of 2006.

5

For the year ended December 31, 2005, the loss on early extinguishment of indebtedness included the write-off of unamortized deferred costs of $2,265 ($2,142 net of minority interest) relating to tax-exempt indebtedness assumed in connection with the sale of two communities in May 2005 and one community in August 2005, plus a loss of $955 ($901 net of minority interest) in connection with the termination of related interest rate cap agreements that were used as cash flow hedges of the assumed debt.

(7)

Post Properties, Inc. is structured as an UPREIT, or Umbrella Partnership Real Estate Investment Trust. Post GP Holdings, Inc., a wholly owned subsidiary of the Company, is the sole general partner and, together with Post LP Holdings, Inc., owns the controlling interest in Post Apartment Homes, L.P., the Operating Partnership through which the Company conducts its operations. As of December 31, 2006, there were 44,191 units of the Operating Partnership outstanding, of which 43,486, or 98.4%, were owned by the Company. For the year ended December 31, 2005, the potential dilution from the Company’s outstanding stock options and awards of 400 shares was antidilutive to the continuing operations per share calculation. As such, the amount was excluded from weighted average shares and units and the income (loss) per share calculations for the year ended December 31, 2005.

6

Post Properties, Inc.
Calculation of Funds from Operations
and Adjusted Funds From Operations Available
to Common Shareholders and Unitholders
(In thousands, except per share or unit data)
(Unaudited)

A reconciliation of net income available to common shareholders to funds from operations available to common shareholders and unitholders and adjusted funds from operations available to common shareholders and unitholders is provided below.

	Three months ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Net income available to common shareholders	$	44,974		$	3,677		$	93,832		$	134,311
Minority interest of common unitholders - continuing operations		82			108			451			(120	)
Minority interest in discontinued operations (1)		733			(595	)		1,366			7,219
Depreciation on wholly-owned real estate assets, net (2)		16,645			17,603			66,574			73,189
Depreciation on real estate assets held in unconsolidated entities		227			224			906			969
Gains on sales of real estate assets, net of provision for income taxes		(42,448	)		(821	)		(80,927	)		(140,112	)
Incremental gains on condominium sales, net of provision for income taxes (3)		174			821			1,406			8,280
Gains on sales of real estate assets — unconsolidated entities		(236	)		(167	)		(482	)		(612	)
Incremental gains on condominium sales — unconsolidated entities (3)		141			68			96			359
Funds from operations available to common shareholders and unitholders (A)	$	20,292		$	20,918		$	83,222		$	83,483
Funds from operations available to common shareholders and unitholders (A)	$	20,292		$	20,918		$	83,222		$	83,483
Annually recurring capital expenditures		(2,002	)		(2,750	)		(11,145	)		(9,921	)
Periodically recurring capital expenditures		(1,518	)		(1,871	)		(5,964	)		(4,508	)
Non-cash straight-line adjustment for ground lease expenses		322			310			1,248			1,250
Non-cash loss on early extinguishment of indebtedness associated with property sales		372			—			495			3,220
Non-cash income relating to mark-to-market of interest rate swap agreement		—			—			(1,655	)		—
Adjusted funds from operations available to common shareholders and unitholders (4) (B)	$	17,466		$	16,607		$	66,201		$	73,524
Per Common Share Data — Basic
Funds from operations per share or unit, as defined (A÷C)	$	0.46		$	0.49		$	1.91		$	1.97
Adjusted funds from operations per share or unit (4) (B÷C)	$	0.40		$	0.39		$	1.52		$	1.74
Dividends declared	$	0.45		$	0.45		$	1.80		$	1.80
Weighted average shares outstanding		43,392			40,908			42,812			40,217
Weighted average shares and units outstanding (C)		44,096			42,456			43,645			42,353
Per Common Share Data — Diluted
Funds from operations per share or unit, as defined (A÷D)	$	0.45		$	0.49		$	1.87		$	1.95
Adjusted funds from operations per share or unit (4) (B÷D)	$	0.39		$	0.39		$	1.49		$	1.72
Dividends declared	$	0.45		$	0.45		$	1.80		$	1.80
Weighted average shares outstanding (5)		44,175			41,513			43,594			40,616
Weighted average shares and units outstanding (5) (D)		44,880			43,060			44,427			42,752

7

(1)	Represents the minority interest in earnings and gains on sales of real estate assets reported as discontinued operations for the periods presented.
(2)	Depreciation on wholly-owned real estate assets is net of the minority interest portion of depreciation in consolidated entities.
(3)	The Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeds the greater of their fair value or net book value as of the date the property is acquired by the Company’s taxable REIT subsidiary. See page 19 for further detail.
(4)	Since the Company does not add back the depreciation of non-real estate assets in its calculation of funds from operations, non-real estate related capital expenditures of $557 and $615 for the three months and $3,480 and $1,771 for the year ended December 31, 2006 and 2005, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.
(5)	Diluted weighted average shares and units include 400 shares and units, for the year ended December 31, 2005 that were antidilutive to the income (loss) per share computations under generally accepted accounting principles.

8

Post Properties, Inc.
Same Store Results
(In thousands, except per share or unit data)
(Unaudited)

Same Store Results

The Company defines fully stabilized or same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by communities sold, under rehabilitation and classified as held for sale. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 28 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 48 communities containing 17,955 apartment units which were fully stabilized as of January 1, 2005, is summarized as follows:

	Three months ended							Year ended
	December 31,							December 31,
	2006		2005		% Change			2006		2005		% Change
Rental and other revenues	$	64,197	$	61,156		5.0	%	$	252,761	$	239,817		5.4	%
Property operating and maintenance expenses (excluding depreciation and amortization)		23,351		22,376		4.4	%		95,871		91,742		4.5	%
Same store net operating income	$	40,846	$	38,780		5.3	%	$	156,890	$	148,075		6.0	%
Capital expenditures (1)
Annually recurring:
Carpet	$	791	$	574		37.8	%	$	3,648	$	2,625		39.0	%
Other		923		1,839		(49.8	)%		6,019		5,221		15.3	%
Total annually recurring		1,714		2,413		(29.0	)%		9,667		7,846		23.2	%
Periodically recurring		971		1,591		(39.0	)%		2,822		3,094		(8.8	)%
Total capital expenditures (A)	$	2,685	$	4,004		(32.9	)%	$	12,489	$	10,940		14.2	%
Total capital expenditures per unit (A ÷ 17,955 units)	$	150	$	223		(32.9	)%	$	696	$	609		14.2	%
Average monthly rental rate per unit (2)	$	1,199	$	1,118		7.2	%	$	1,163	$	1,106		5.2	%

(1)	See Table 3 on page 31 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital expenditures and total periodically recurring capital expenditures as presented on the consolidated cash flow statements prepared under GAAP.
(2)	Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units.

9

Same Store Operating Results by Market -
Comparison of 2006 to 2005
(Increase (decrease) from same period in prior year)

	Three months ended												Year ended
	December 31, 2006												December 31, 2006
										Average												Average
										Economic												Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy			Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		4.3	%		9.0	%		1.8	%		(0.1	)%		3.7	%		7.5	%		1.5	%		0.8	%
Dallas		2.1	%		(2.3	)%		5.8	%		(1.8	)%		4.0	%		3.9	%		4.0	%		(0.6	)%
Washington, DC		5.8	%		(13.5	)%		14.8	%		(2.7	)%		6.4	%		(0.6	)%		9.9	%		(0.7	)%
Tampa		8.7	%		23.9	%		(0.6	)%		(5.4	)%		8.7	%		6.7	%		10.0	%		(1.7	)%
Charlotte		5.2	%		11.7	%		2.6	%		(5.2	)%		7.5	%		6.6	%		7.9	%		(1.0	)%
New York		9.6	%		(3.2	)%		15.2	%		(0.8	)%		9.5	%		2.8	%		12.3	%		0.1	%
Houston		5.2	%		(0.4	)%		9.7	%		(6.3	)%		8.6	%		(7.1	)%		27.5	%		1.7	%
Orlando		4.2	%		(11.0	)%		15.6	%		(4.6	)%		7.9	%		0.6	%		13.3	%		(2.5	)%
Total		5.0	%		4.4	%		5.3	%		(2.0	)%		5.4	%		4.5	%		6.0	%		0.0	%

(1) See Table 2 on page 29 for a reconciliation of these components of same store net operating income and Table 1 on page 28 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

						Average Economic						Average Economic
			% of NOI			Occupancy (1)						Occupancy (1)						Physical
			Three months ended			Three months ended						Year ended						Occupancy
	Apartment		December 31,			December 31,						December 31,						at December 31,
Market	Units		2006			2006			2005			2006			2005			2006 (2)
Atlanta		8,284		41.3	%		94.9	%		95.0	%		94.5	%		93.7	%		94.9	%
Dallas		3,607		15.5	%		92.1	%		93.9	%		93.1	%		93.7	%		93.9	%
Washington, DC		1,703		15.4	%		94.4	%		97.1	%		96.6	%		97.3	%		94.2	%
Tampa		1,877		10.0	%		93.0	%		98.4	%		95.8	%		97.5	%		92.8	%
Charlotte		1,065		6.0	%		90.9	%		96.1	%		94.8	%		95.8	%		91.9	%
New York		337		6.3	%		95.5	%		96.3	%		96.1	%		96.0	%		94.1	%
Houston		837		3.9	%		90.6	%		96.9	%		93.1	%		91.4	%		92.2	%
Orlando		245		1.6	%		93.7	%		98.3	%		95.6	%		98.1	%		88.2	%
Total		17,955		100.0	%		93.7	%		95.7	%		94.7	%		94.7	%		94.0	%

(1)

The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts would have been 92.8% and 94.8% for the three months ended December 31, 2006 and 2005, respectively, and 93.9% and 93.8% for the year ended December 31, 2006 and 2005, respectively. For the three months ended December 31, 2006 and 2005, net concessions were $310 and $317, respectively, and employee discounts were $211 and $136, respectively. For the year ended December 31, 2006 and 2005, net concessions were $1,255 and $1,632, respectively, and employee discounts were $765 and $564, respectively.

(2)

Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage.

10

Same Store Sequential Comparison

	Three months ended
	December 31,			September 30,
	2006			2006			% Change
Rental and other revenues	$	64,197		$	64,350			(0.2	)%
Property operating and maintenance expenses (excluding depreciation and amortization)		23,351			24,973			(6.5	)%
Same store net operating income (1)	$	40,846		$	39,377			3.7	%
Average economic occupancy		93.7	%		94.9	%		(1.2	)%
Average monthly rental rate per unit	$	1,199		$	1,178			1.8	%

(1) See Table 2 on page 29 for a reconciliation of these components of same store net operating income and Table 1 on page 28 for a reconciliation of same store net operating income to GAAP net income.

Sequential Same Store Operating Results by Market -
Comparison of Fourth Quarter of 2006 to Third Quarter 2006
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		(0.1	)%		(6.4	)%		4.0	%		(0.3	)%
Dallas		(1.8	)%		(10.7	)%		6.0	%		(0.7	)%
Washington, DC		(1.0	)%		(22.4	)%		9.6	%		(3.1	)%
Tampa		2.2	%		15.1	%		(5.8	)%		(0.9	)%
Charlotte		(3.0	)%		(2.5	)%		(3.3	)%		(5.0	)%
New York		2.4	%		9.0	%		0.2	%		(0.7	)%
Houston		0.5	%		(13.2	)%		13.4	%		(1.3	)%
Orlando		2.2	%		(7.9	)%		9.2	%		(0.4	)%
Total		(0.2	)%		(6.5	)%		3.7	%		(1.2	)%

(1) See Table 2 on page 29 for a reconciliation of these components of same store net operating income and Table 1 on page 28 for a reconciliation of same store net operating income to GAAP net income.

11

Post Properties, Inc.
Consolidated Balance Sheets
(In thousands, except per share or unit data)

	December 31,
	2006			2005
	(Unaudited)
Assets
Real estate assets
Land	$	278,448		$	266,914
Building and improvements		1,821,123			1,789,479
Furniture, fixtures and equipment		204,318			207,497
Construction in progress		135,428			47,005
Land held for future development		92,800			62,511
		2,532,117			2,373,406
Less: accumulated depreciation		(547,477	)		(516,954	)
For-sale condominiums (1)		28,295			38,338
Assets held for sale, net of accumulated depreciation of $4,035 and $0 at December 31, 2006 and 2005, respectively		15,645			4,591
Total real estate assets		2,028,580			1,899,381
Investments in and advances to unconsolidated real estate entities		32,794			26,614
Cash and cash equivalents		3,663			6,410
Restricted cash		5,203			4,599
Deferred charges, net		12,400			11,624
Other assets		34,007			32,826
Total assets	$	2,116,647		$	1,981,454
Liabilities and shareholders’ equity
Indebtedness	$	1,033,779		$	980,615
Accounts payable and accrued expenses		75,403			53,429
Dividend and distribution payable		19,886			19,257
Accrued interest payable		4,885			5,478
Security deposits and prepaid rents		9,915			9,857
Total liabilities		1,143,868			1,068,636
Minority interest of common unitholders in Operating Partnership		14,056			26,764
Minority interests in consolidated real estate entities		2,268			5,045
Total minority interests		16,324			31,809
Shareholders’ equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 900 shares issued and outstanding		9			9
7 5/8% Series B Cumulative Redeemable Shares, liquidation preference $25 per share, 2,000 shares issued and outstanding		20			20
Common stock, $.01 par value, 100,000 authorized:
43,603 and 41,394 shares issued, 43,486 and 41,394 shares outstanding at December 31, 2006 and 2005, respectively		436			414
Additional paid-in-capital		869,588			803,765
Accumulated earnings		97,567			86,315
Accumulated other comprehensive income (loss)		(3,490	)		(4,208	)
Deferred compensation		—			(3,625	)
		964,130			882,690
Less common stock in treasury, at cost, 175 and 44 shares at December 31, 2006 and 2005, respectively		(7,675	)		(1,681	)
Total shareholders’ equity		956,455			881,009
Total liabilities and shareholders’ equity	$	2,116,647		$	1,981,454

(1) Consists of two communities, originally containing 349 units, being converted into for-sale condominiums through the Company’s taxable REIT subsidiaries.

12

Post Properties, Inc.
Consolidated Debt Summary
(Dollars in thousands, except per share or unit data)
(Unaudited)

Summary of Outstanding Debt at December 31, 2006

						Weighted Average Rate (1)
			Percentage			Three months ended December 31,
Type of Indebtedness	Balance		of Total			2006			2005
Unsecured fixed rate senior notes	$	560,000		54.2	%		6.4	%		6.5	%
Secured conventional fixed rate notes		354,971		34.3	%		6.2	%		6.3	%
Secured tax exempt variable rate notes (2)		9,895		1.0	%		3.6	%		3.5	%
Unsecured lines of credit		108,913		10.5	%		5.6	%		4.0	%
	$	1,033,779		100.0	%		6.2	%		6.1	%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			of Total Debt (3)
Total fixed rate debt	$	914,971		88.5	%		6.2
Total variable rate debt		118,808		11.5	%		4.6
Total debt	$	1,033,779		100.0	%		6.0

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
2007	$	113,190			7.1	%
2008		5,230			5.9	%
2009		76,618			5.4	%
2010		297,641	(4)		6.9	%
2011		141,831			3.8	%
Thereafter		399,269			5.9	%
	$	1,033,779

Debt Statistics

	Year ended
	December 31,
	2006			2005
Interest coverage ratio (5)(6)		2.6x			2.3x
Fixed charge coverage ratio (5)(7)		2.3x			2.1x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		39.9	%		40.7	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		43.6	%		44.5	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended December 31, 2005 are based on the debt outstanding for that period.
(2)	The Company has an interest rate cap arrangement that limits the Company’s exposure to increases in the base rate to 5.0%.
(3)	Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.
(4)	Includes outstanding balances on lines of credit of $108,913 maturing in 2010.
(5)	Calculated for the year ended December 31, 2006 and 2005.
(6)	Interest coverage ratio is defined as net income available for debt service divided by interest expense. For purposes of this calculation, net income available for debt service represents income from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and interest expense to consolidated interest expense is included in Table 4 on page 32.
(7)	Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders and distributions to preferred unitholders. For purposes of this calculation, net income available for debt service represents earnings from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the fixed coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and fixed charges to consolidated interest expense plus preferred dividends to shareholders and preferred distributions to unitholders is included in Table 4 on page 32.
(8)	A computation of the debt ratios is included in Table 5 on page 33.

13

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Financial Debt Covenants — Senior Unsecured Public Notes

	As of
Covenant requirement (1)	December 31, 2006
Consolidated Debt to Total Assets cannot exceed 60%		39	%
Secured Debt to Total Assets cannot exceed 40%		14	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.50/1		3.04x
Consolidated Income Available for Debt Service Charge must be at least 1.50/1		2.60x

(1) A summary of the public debt covenant calculations and reconciliations of the financial components used in the public debt covenant calculations to the most comparable GAAP financial measures are detailed below.

	As of
	December 31, 2006
Ratio of Consolidated Debt to Total Assets
Consolidated debt, per balance sheet (A)	$	1,033,779
Total assets, as defined (B) (Table A)	$	2,655,759
Computed ratio (A÷B)		39	%
Required ratio (cannot exceed)		60	%
Ratio of Secured Debt to Total Assets
Secured conventional fixed and variable rate notes	$	354,971
Secured tax exempt variable rate notes		9,895
Total secured debt (C)	$	364,866
Computed ratio (C÷B)		14	%
Required ratio (cannot exceed)		40	%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	1,033,779
Total secured debt (C)		364,866
Total unsecured debt (D)	$	668,913
Total unencumbered assets, as defined (E) (Table A)	$	2,036,625
Computed ratio (E÷D)		3.04x
Required minimum ratio		1.50x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge
Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	149,889
Annual Debt Service Charge, as defined (G) (Table B)	$	57,708
Computed ratio (F÷G)		2.60x
Required minimum ratio		1.50x

14

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Table A

	As of
	December 31, 2006
Total real estate assets	$	2,028,580
Add:
Investments in and advances to unconsolidated real estate entities		32,794
Accumulated depreciation		547,477
Accumulated depreciation on assets held for sale		4,035
Other tangible assets		42,873
Total assets for public debt covenant computations		2,655,759
Less:
Encumbered real estate assets		(619,134	)
Total unencumbered assets for public debt covenant computations	$	2,036,625

Table B

	Year ended
	December 31, 2006
Consolidated income available for debt service
Net income	$	101,469
Add:
Minority interests		1,817
Provision for income taxes		—
Income before minority interest and provision for income taxes		103,286
Add:
Depreciation		67,328
Depreciation (company share) of assets held in unconsolidated entities		906
Depreciation of discontinued operations		1,639
Amortization of deferred financing costs		3,526
Interest expense		54,049
Interest expense (company share) of assets held in unconsolidated entities		986
Interest expense of discontinued operations		2,673
Less:
Gains on sales of condominiums, net — continuing operations		(12,378	)
Gains on sales of real estate assets — discontinued operations		(68,549	)
Gains on sales of real estate assets — unconsolidated entities		(482	)
Other income		(3,095	)
Consolidated income available for debt service	$	149,889
Annual debt service charge
Consolidated interest expense	$	54,049
Interest expense (company share) of assets held in unconsolidated entities		986
Interest expense of discontinued operations		2,673
Annual debt service charge	$	57,708

15

Post Properties, Inc.
Summary Of Communities Under Construction

Quarter

Costs

of

Estimated

Incurred

Quarter of

First

Quarter of

Estimated

Units

Number

Retail

Estimated

as of

Construction

Units

Stabilized

Units

Quarter

Under

Units

Community

Location

of Units

Sq. Ft.

Cost

Dec. 31, 2006

Start

Available

Occupancy (1)

Leased

Sell-out

Contract (6)

Closed

($ in millions)

($ in millions)

Apartments:

Post Alexander™

Atlanta, GA

307

—

$

62.8

$

17.3

2Q 2006

1Q 2008

1Q 2009

—

N/A

N/A

N/A

Post Carlyle Square™

Washington, D.C. Area

205

17,000

59.0

54.4

4Q 2004

4Q 2006

4Q 2007

43

N/A

N/A

N/A

Post Eastside™

Dallas, TX

435

36,000

53.9

8.2

4Q 2006

4Q 2007

1Q 2009

—

N/A

N/A

N/A

Post Hyde Park® (expansion)

Tampa, FL

84

—

18.6

(5)

5.5

4Q 2006

1Q 2008

4Q 2008

—

N/A

N/A

N/A

Total Apartments

1,031

53,000

$

194.3

$

85.4

43

Weighted average projected property net operating income as a % of total

6.00

% -

estimated construction cost (3)

6.75

%

Condominiums:

The Condominiums at Carlyle Square™(2)

Washington, D.C.Area

145

$

45.3

$

36.5

4Q 2004

2Q 2007

N/A

N/A

2Q 2008

94

—

Mercer Square™

Dallas, TX

85

17.3

8.5

2Q 2006

3Q 2007

N/A

N/A

3Q 2008

5

—

Total Condominiums

230

$

62.6

$

45.0

99

—

Weighted average projected pre-tax profit as a % of total estimated construction cost (4)

≥ 20

%

(1)	The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy on the first day of any month or (ii) one year after completion of construction.
(2)	This project, consisting of 145 units, is being developed in a majority owned joint venture with a Washington D.C. based developer.
(3)	The calculation represents the aggregate projected unlevered property net operating income to be earned by the apartment communities in their first year of stabilized operations (after deducting a 3% management fee and a $300 per unit capital reserve) divided by aggregate estimated construction costs of the apartment communities. The Company uses property net operating income as a management tool to measure the operating performance of its apartment communities. There can be no assurance that these percentages will be achieved.
(4)	The Company defines “pre-tax profit” to equal projected net revenues from condominium activities less projected costs and expenses from condominium activities before the impact of income tax expense. There can be no assurance that such pre-tax profit percentages will be achieved.
(5)	Total estimated construction costs for the Post Hyde Park® expansion include the estimated replacement costs of six apartment units at the Company’s existing Hyde Park community that are being demolished to accommodate the expansion.
(6)	As of January 29, 2007, represents the total number of units under contract for sale upon completion and delivery of the units. There can be no assurance that condominium units under contract will close.

16

Post Properties, Inc.
Summary of Future Projects In Pre-Development

The following are future projects for which the Company is currently in pre-development with the intent to begin construction over the next 12-18 months. The estimates and assumptions detailed below, including the timing of construction starts, the approximate number of units, approximate retail square footage and approximate total projected development costs, are forward-looking and are subject to risks outlined on page 2 of this supplemental financial data. There can be no assurance that projects in pre-development will commence construction on the projected timeline or at all, that the number of units, square footage or intended use of the product will not change in the future or that development costs will not differ materially from the estimates provided below. The Company assumes no obligation to update this outlook in the future. In certain situations, the Company may initiate a pre-sale program for for-sale condominium projects before it commences construction.

		Estimated Units				Estimated Retail
Project	Metro Area	For Rent		For Sale		Square Feet
3630 Peachtree (1)	Atlanta, GA		—		137		—
Allen Plaza I	Atlanta, GA		458		—		19,500
Bull Creek (2)	Austin, TX		330		—		—
South Lamar (2)	Austin, TX		280		—		18,000
Town Lake (Downtown)	Austin, TX		246		90		5,000
Frisco I	Dallas, TX		300		—		26,000
Midtown III	Houston, TX		121		—		12,200
Wade I (2)	Raleigh, NC		361		—		120,000	(3)
Citrus Park	Tampa, FL		287		—		—
Soho Square	Tampa, FL		—		192		17,000
Carlyle II	Washington, D.C.		330		—		5,000
Park	Washington, D. C.		321		70		1,600
			3,034		489		224,300

Approx. Projected Total
Development Costs (4)
For Rent		For Sale
$	610	$	190

(1)	Land owned in joint venture. The company currently expects to develop the condominiums in a 50/50 partnership. The Company’s share of projected development costs is included in total projected development costs.
(2)	Site under contract to purchase. There can be no assurance that these acquisitions will close.
(3)	The Company currently expects to develop the retail portion of this project in a partnership with a retail developer. The Company’s share of projected development costs is included in total projected development costs.
(4)	The projected project costs of proposed retail component are included in the total projected development costs of the for rent and for sale components, as applicable.

17

Post Properties, Inc.
Summary Of Communities Under Rehabilitation
(Dollars in thousands, except per square foot)

								Average Monthly Rental				Property NOI		Property NOI						Number of Units
								Rate Per Sq. Ft. (1)				For the Fiscal		For the		Undepreciated		Projected		As of December 31, 2006
						Average		Actual		Projected		Year Preceding		Three Months		Book Value		Total
		Year		Total		Sq. Ft.		Prior to		After		The Start of		Ended		Prior to		Rehabilitation				Out
Project	Location	Completed		Units		Per Unit (1)		Rehabilitation		Rehabilitation		Rehabilitation		December 31, 2006		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Chastain®	Atlanta, GA		1990		558		867	$	1.09	$	1.29	$	3,693	$	800	$	48,133	$	16,200		127		37
Post Worthington™	Dallas, TX		1993		332		819	$	1.32	$	1.58	$	2,384	$	156		41,139		10,600		152		66
					890											$	89,272	$	26,800		279		103

	Rehabilitation Cost Incurred in											Projected
	The Three Months Ended					Rehabilitation Capital Cost Incurred						Remaining
		December 31, 2006				As of December 31, 2006						Rehabilitation				Projected		Projected
	Revenue-	Non-Revenue-		Total		Revenue-		Non-Revenue-		Total		Capital Cost		Quarter of		Quarter of		Quarter of
	Generating	Generating		Capital		Generating		Generating		Capital		To be		Rehabilitation		Rehabilitation		Re-Stabilized
Project	Capital Cost	Capital Cost		Cost		Capital Cost		Capital Cost		Cost		Incurred		Start		Completion		Occupancy
Post Chastain®	$2,399	$	70	$	2,469	$	4,807	$	264	$	5,071	$	11,129		2Q 2006		2Q 2008		4Q 2008
Post Worthington™	1,752		211		1,963		5,834		408		6,242		4,358		1Q 2006		3Q 2007		4Q 2007
	$4,151	$	281	$	4,432	$	10,641	$	672	$	11,313	$	15,487

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary. There can be no assurance that the projected average monthly rental rates after the rehabilitation will be achieved.
(2)	Includes approximately $2,600 of projected non-revenue generating capital costs.

18

Post Properties, Inc.
Summary Of Condominium Conversion Projects
(Dollars in thousands)

								# of Rental Units		Average									Units (4)
		Year		Sale		Total		Occupied as of		Unit		Project Transfer		Transfer Price Per		Book Value as of									Available
Project	Location	Completed		Start Date		Units		December 31, 2006		Sq. Ft. (1)		Price (2)		Unit		December 31, 2006 (3)			Total		Closed		Under Contract		for Sale
588TM	Dallas, TX		2000		Q1 2005		127		—		1,470	$	20,274	$	160	$	210			127		126		1		—
The Peachtree ResidencesTM (5)	Atlanta, GA		2001		Q2 2005		121		—		1,340		30,190		250		1,941	(8)		121		111		4		6
Harbour Place City Homes™	Tampa, FL		1999		Q2 2006		206		1		1,036		37,000		180		9,543			206		101		9		96
RISETM	Houston, TX		2000		Q2 2006		143		49		1,407		26,250		184		18,752			143		35		5		103
Hyde Park WalkTM	Tampa, FL		1997		Q2 2005		134		—		890		16,755		125		—			134		134		—		—
																$	30,446			731		507		19		205

	Three months ended							Three months ended							Year ended							Year ended							Cumulative through
	December 31, 2006							December 31, 2005							December 31, 2006							December 31, 2005							December 31, 2006
					FFO							FFO							FFO
					Incremental							Incremental							Incremental							FFO							FFO
	Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Incremental			Units		Gross		Incremental
Project	Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)(7)			Closed		Revenues		Gain on Sale (6)(7)			Closed		Revenues		Gain on Sale (6)
588TM		1	$	300	$	(112	)		21	$	5,995	$	925			23	$	7,322	$	225			103	$	26,675	$	3,228			126	$	33,997	$	3,453
The Peachtree ResidencesTM (5)		13		5,344		141			20		5,906		68			64		21,857		96			45		15,098		359			109		36,955		455
Harbour Place City Homes™		14		3,744		356			—		—		—			97		24,772		1,674			—		—		—			97		24,772		1,674
RISETM		18		4,378		237			—		—		—			35		8,520		141			—		—		—			35		8,520		141
Hyde Park WalkTM		—		—		—			—		—		—			—		—		—			134		29,337		6,177			134		29,337		6,177
		46		13,766		622			41		11,901		993			219		62,471		2,136			282		71,110		9,764			501		133,581		11,900
Other		—		1		(307	)		—		—		(163	)		—		72		(634	)		—		—		(531	)		—		72		(1,165	)
		46	$	13,767	$	315			41	$	11,901	$	830			219	$	62,543	$	1,502			282	$	71,110	$	9,233			501	$	133,653	$	10,735

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary.
(2)	Transfer price for purposes of computing incremental gains on condominium sales included in FFO reflects the greater of (1) the estimated fair value on the date the project was acquired by the Company’s taxable REIT subsidiary (as supported by independently-prepared, third-party appraisals) or (2) its net book value at that time.
(3)	Including total estimated construction costs of ground-up condominiums being developed (see page 16) of approximately $62.6 million and book value of unsold condominium conversions above, committed capital to the condominium business at December 31, 2006 totaled approximately $93.0 million.
(4)	Unit status is as of January 29, 2007. There can be no assurance that condominium units under contract will close.
(5)	The Peachtree ResidencesTM is owned in an unconsolidated entity, where the Company’s equity ownership is 35%. Amounts shown, except for incremental gains on condominium sales included in FFO, represents gross amounts at the unconsolidated entity level.
(6)	The Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeds the “transfer price” as described in note 2 above.
(7)	Excludes the impact of income tax expense (benefit) attributable to gains on condominium sales of $(59) and $594 for the three months and year ended December 31, 2005, respectively. There was no income tax expense (benefit) in 2006.
(8)	Represents the Company’s 35% equity investment in an unconsolidated entity.

19

Post Properties, Inc.
Community Acquisition and Disposition Summary

					Gross Amount		Gross
Property Name/Period	Location	Units		Year Built	Per Unit		Amount
Acquisitions
Q2 2005
Post Ballantyne	Charlotte, NC		319	2004	$	116,771	$	37,250,000
2005 YTD Total							$	37,250,000
Average Cap Rate – Acquisitions – 2005								5.6%	(1)
Q1 2006
Post Barton Creek™	Austin, TX		160	1998	$	166,875	$	26,700,000
Post Park Mesa™	Austin, TX		148	1992	$	132,095		19,550,000
Q3 2006
Post Fallsgrove	Washington D.C. Area		361	2003	$	227,465	$	82,115,000	(2)
Q4 2006
Post Bay at Rocky Point™	Tampa, FL		150	1997	$	155,000	$	23,250,000
2006 YTD Total							$	151,615,000
Average Cap Rate – Acquisitions – 2006								4.6%	(3)
Dispositions
Q2 2005
Post American Beauty Mill™	Dallas, TX		80	1998	$	63,125
Post Bennie Dillon™	Nashville, TN		86	1999	$	119,767
Post Corners®	Atlanta, GA		460	1986	$	63,696
Post Walk®	Atlanta, GA		476	1984-1987	$	88,445
Post White Rock®	Dallas, TX		207	1988	$	59,420	$	99,050,000
Q3 2005
Post Village®	Atlanta, GA		1,738	1983-1988	$	76,237	$	132,500,000
2005 YTD Total							$	231,550,000
Average Cap Rate – Dispositions – 2005								5.9%	(4)
Q3 2006
Post Uptown Square™	Denver, CO		696	1999-2001	$	169,540	$	118,000,000
Q4 2006
Post Summit®	Atlanta, GA		148	1990	$	107,365	$	15,890,000
Post Valley®	Atlanta, GA		496	1988	$	82,379	$	40,860,000
2006 YTD Total							$	174,750,000
Average Cap Rate – Dispositions – 2006								4.7%	(4)

(1)	Based on projected first twelve-month net operating income after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $2 million relating to closing costs, reimbursement of a fee to terminate a loan commitment that the seller had previously entered into in connection with the community and other amounts it plans to spend to improve the community.
(2)	The Company may be required to pay additional purchase consideration of up to $6.6 million based on a share of the appreciation in the value of the community, if any, over the next four years.
(3)	Based on projected first twelve-month net operating income upon achievement of stabilized operations (as it relates to Post Bay at Rocky Point™ which is undergoing renovation and is in lease-up) and after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $7.0 million (Post Barton Creek™/Park Mesa™ — $1.2 million, Post Fallsgrove — $3.3 million, Post Bay at Rocky Point™ — $2.5 million) relating to closing costs and other amounts it plans to spend to improve these communities.
(4)	Based on trailing twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit).

20

Post Properties, Inc.
Capitalized Costs Summary
(Dollars in thousands, except per share or unit data)
(Unaudited)

The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development, construction and rehabilitation of apartment and condominium communities. In addition, the Company capitalizes expenditures that enhance the value of existing assets and expenditures that substantially extend the life of existing assets. All other expenditures necessary to maintain a community in ordinary operating condition are expensed as incurred. Additionally, for new development communities, carpet, vinyl and blind replacements are expensed as incurred during the first five years (which corresponds to the estimated depreciable life of these assets) after construction completion. Thereafter, these replacements are capitalized. Further, the Company expenses as incurred the interior and exterior painting of operating communities, unless those communities are under major rehabilitation.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment and condominium communities under development, construction, and major rehabilitation. The internal personnel and associated costs are capitalized to the projects under development based upon the effort identifiable with such projects. The Company treats each unit in an apartment and condominium community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the commencement of leasing and sales activities, interest and other construction costs are capitalized and are reflected on the balance sheet as construction in progress. The Company ceases the capitalization of such costs as the residential units in a community become substantially complete and available for occupancy. This results in a proration of these costs between amounts that are capitalized and expensed as the residential units in a development community become available for occupancy. In addition, prior to the completion of units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing and property management and leasing personnel expenses) of such communities.

A summary of community acquisition and development improvements and other capitalized expenditures for the three months and year ended December 31, 2006 and 2005 is detailed below.

	Three months ended				Year ended
	December 31,				December 31,
	2006		2005		2006		2005
Development and acquisition expenditures (1)	$	109,210	$	11,836	$	295,979	$	116,710
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		4,151		—		10,641		—
Other community additions and improvements (3)		1,518		1,871		5,964		4,508
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		2,002		2,750		11,145		9,921
Corporate additions and improvements		557		615		3,480		1,771
	$	117,438	$	17,072	$	327,209	$	132,910
Other Data
Capitalized interest	$	2,881	$	1,354	$	9,942	$	2,907
Capitalized development costs and fees (5)	$	518	$	337	$	1,884	$	1,219

(1)	Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years.
(2)	Represents expenditures for major community rehabilitations and other unit upgrade costs that enhance the rental value of such units (see page 18).
(3)	Represents community improvement expenditures (e.g. property upgrades) that generally occur less frequently than on an annual basis.
(4)	Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis.
(5)	Reflects internal personnel and associated costs capitalized to construction and development activities.

21

Post Properties, Inc.
Investments in Unconsolidated Real Estate Entities
(Dollars in thousands, except per share or unit data)
(Unaudited)

Apartments and Condominium Conversion Communities

The Company holds investments in three individual limited liability companies (the “Property LLCs”) with an institutional investor. Two of the Property LLCs own single apartment communities. The third Property LLC is converting its apartment community, originally containing 121 units, into for-sale condominiums. The Company holds a 35% equity interest in the Property LLCs.

The Company accounts for its investments in these Property LLCs using the equity method of accounting. The excess of the Company’s investment over its equity in the underlying net assets of the Property LLCs was approximately $5,446 at December 31, 2006. The excess investment related to Property LLCs holding apartment communities is being amortized as a reduction to earnings on a straight-line basis over the lives of the related assets. The excess investment of approximately $104 at December 31, 2006 related to the Property LLC holding the condominium conversion community will be recognized as additional cost of sales as the underlying condominiums are sold. The Company provides real estate services (development, construction and property management) to the Property LLCs for which it earns fees.

The operating results of the Company include its proportionate share of net income from the investments in the Property LLCs. A summary of financial information for the Property LLCs in the aggregate was as follows:

	December 31,
	2006		2005
Balance Sheet Data
Real estate assets, net of accumulated depreciation of $11,039 and $8,349, respectively	$	93,614	$	96,000
Assets held for sale, net (1)		3,027		17,715
Cash and other		4,067		1,770
Total assets	$	100,708	$	115,485
Mortgage notes payable	$	66,998	$	66,999
Mortgage notes payable to Company		—		5,967
Other liabilities		1,107		996
Total liabilities		68,105		73,962
Members’ equity		32,603		41,523
Total liabilities and members’ equity	$	100,708	$	115,485
Company’s equity investment	$	16,883	$	20,647

(1) Includes one community, originally containing 121 units, being converted into condominiums through a taxable REIT subsidiary.

22

	Three months ended					Year ended
	December 31,					December 31,
	2006		2005			2006			2005
Revenues
Rental	$	2,823	$	2,708		$	11,447		$	10,789
Other property revenues		188		195			799			840
Total revenues		3,011		2,903			12,246			11,629
Expenses
Property operating and maintenance		1,072		1,013			3,948			3,689
Depreciation and amortization		664		657			2,650			2,621
Interest		688		688			2,752			2,752
Total expenses		2,424		2,358			9,350			9,062
Income from continuing operations		587		545			2,896			2,567
Discontinued operations
Loss from discontinued operations		17		(57	)		(343	)		(176	)
Gains on sales of real estate assets, net		1,050		984			2,947			2,834
Loss on early extinguishment of debt		—		—			—			(273	)
Income from discontinued operations		1,067		927			2,604			2,385
Net income	$	1,654	$	1,472		$	5,500		$	4,952
Company’s share of net income	$	562	$	473		$	1,813		$	1,767

For the periods presented, gains on sales of real estate assets represent net gains from condominium sales at the condominium conversion community held by one of the Property LLCs. A summary of revenues and costs and expenses of condominium activities for the three months and year ended December 31, 2006 and 2005 was as follows:

	Three months ended						Year ended
	December 31,						December 31,
	2006			2005			2006			2005
Condominium revenue	$	5,344		$	5,906		$	21,857		$	15,098
Condominium costs and expenses		(4,294	)		(4,922	)		(18,910	)		(12,264	)
Gains on condominium sales, net	$	1,050		$	984		$	2,947		$	2,834

At December 31, 2006, mortgage notes payable include a $49,998 mortgage note that bears interest at 4.13%, requires monthly interest payments and annual principal payments of $1 through 2009. Thereafter, the note requires monthly principal and interest payments based on a 25-year amortization schedule and matures in April 2034. The note is callable by the lender in May 2009 and on each successive fifth year anniversary of the note thereafter. The note is prepayable without penalty in May 2008. The additional mortgage note payable totaling $17,000 bears interest at a rate of 4.04% and matures in 2008.

In 2005, one of the Property LLCs elected to convert its apartment community into for-sale condominiums. As a result of its decision to sell the community through the condominium conversion process, the Property LLC prepaid its third party mortgage note payable of $16,392 through secured borrowings from the Company. The Property LLC incurred debt prepayment costs and expenses associated with the write-off of unamortized deferred financing costs totaling $273 in March 2005. The mortgage note payable to the Company had a fixed rate component ($16,392) bearing interest at 4.28% and a variable rate component bearing interest at LIBOR at 1.90%. In the second quarter of 2006, the mortgage note payable was retired from the proceeds of condominium sales.

Land Entities

At December 31, 2006, the Company holds a 50% equity interest in a limited liability company whose sole investment consists of a partnership interest in an entity (the “Land Partnership”) which holds land for future development. At December 31, 2006, the Land Partnership had total assets of $26,157, principally land held for future development, total liabilities of $12,582 (including a secured note payable of $12,000 to the Company) and total equity of $13,575 (including the Company’s equity investment of $3,911).

23

Post Properties, Inc.
Net Asset Value Supplemental Information
(Dollars in thousands, except per share or unit data)
(Unaudited)

This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income, which is a supplemental non-GAAP financial measure that the Company makes internally to calculate Net Asset Value (“NAV”). In addition, the Company believes that investors and analysts use similar measures in estimating the Company’s NAV. These measures, as adjusted, are supplemental non-GAAP financial measures. With the exception of Net Operating Income, the most comparable GAAP measure for each of the non-GAAP measures presented below in the “As Adjusted” column is the corresponding number presented in the first column listed below. In the information below, the Company presents Net Operating Income for the quarter ended December 31, 2006 for properties stabilized by the beginning of the quarter ended December 31, 2006 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by the beginning of the quarter ended December 31, 2006 are presented at full undepreciated cost. Other tangible assets are also presented, as well as total liabilities and the liquidation value of preferred shares. The Company believes it is important to provide these measures to allow investors to easily develop their own calculations of NAV. The Company also believes that internal and external NAV estimates are a useful benchmark of the value of the Company’s assets over time and provide a useful measure for analyzing the Company’s trading price on the New York Stock Exchange.

Financial Data
(In thousands)

	Three months ended						As
	December 31, 2006		Adjustments				Adjusted
Income Statement Data
Rental revenues	$	72,439	$	(1,060	)	(1)	$	71,379
Other property revenues		4,110		(169	)	(1)		3,941
Total rental and other revenues (A)		76,549		(1,229	)			75,320
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		34,328		(6,599	)	(1)		27,729
Property net operating income (Table 1) (A-B)	$	42,221	$	5,370			$	47,591	(2)
Apartment units represented		21,745		(1,535	)	(3)		20,210

	As of						As
	December 31, 2006		Adjustments				Adjusted
Other Asset Data
Cash & equivalents	$	3,663	$	—			$	3,663
Construction in progress and real estate assets acquired, at cost		135,428		19,704		(4)		155,132
Land held for future development		92,800		—				92,800
For-sale condominiums and assets held for sale		43,940		(5,873	)	(5)		38,067
Investments in and advances to unconsolidated real estate entities (6)		32,794		(16,883	)	(6)		15,911
Other assets (7)		39,210		—				39,210
Cash and other assets of unconsolidated real estate entities		4,067		(2,643	)	(8)		1,424
	$	351,902	$	(5,695	)		$	346,207
Other Liability Data
Tax-exempt debt	$	9,895	$	—			$	9,895
Other notes payable		1,023,884		—				1,023,884
Other liabilities (9)		112,357		(11,303	)	(9)		101,054
Total liabilities of unconsolidated real estate entities (10)		68,105		(44,268	)	(10)		23,837
	$	1,214,241	$	(55,571	)		$	1,158,670
Other Data
Liquidation value of preferred shares		95,000		—				95,000
Common shares outstanding		43,486		—				43,486
Common units outstanding		705		—				705

(1) The adjustments include additions for the Company’s 35% share of rental revenues ($988) and other property revenues ($66) and property operating and maintenance expenses (excluding depreciation and amortization) ($375) from Post Biltmore™ and Post Massachusetts Avenue™ (properties accounted for under the equity method of accounting). The adjustments include additions for rental revenues ($527) and other revenues ($28) and property operating and maintenance expenses ($255) from Post Oak™, a community classified as held for sale and included in discontinued operations. The adjustments reflect a reduction for revenues ($116) and other revenues ($11) and property operating and maintenance expenses ($286) generated by Post Bay at Rocky Point™, a community acquired during the three months ended December 31, 2006. The adjustments reflect a reduction for revenues ($10) and other revenues ($9) and property operating and maintenance expense ($160) generated by Post Carlyle™, a community under construction and lease-up during the three months ended December 31, 2006. In addition, the adjustments reflect a reduction of rental revenues ($283) and other revenues ($9) and property and operating maintenance expenses (excluding depreciation and amortization) ($417) generated by the Harbour Place City Homes™ and RISE™ units being converted to condominiums. Also, the adjustments reflect a reduction of rental revenues ($2,166) and other revenues ($234) and property operating and maintenance expenses (excluding depreciation and amortization) ($2,163) relating to the Company’s corporate apartment business. Lastly, the adjustment to operating and maintenance expenses (excluding depreciation and amortization) also includes a reduction for corporate property management expenses ($3,881) and the impact of straight-lining long-term ground lease expense ($322).

24

(2)	Property NOI, as adjusted, includes net operating income of Post Chastain® and Post Worthington™ which were being rehabilitated during the three months ended December 31, 2006. See page 18 for further information regarding rehabilitation activities and net operating income for these properties for the three months ended December 31, 2006.
(3)	The adjustment reflects a reduction for 1,031 units currently under construction at Post Eastside™, Post Hyde Park®, Post Carlyle™ and Post Alexander™, a reduction for 65% of the 545 units held in Post Biltmore™ and Post Massachusetts Avenue™ (two unconsolidated entities) (a 354 unit reduction) to adjust the units held in unconsolidated entities to the Company’s 35% share of the units and a reduction for 150 units at Post Bay at Rocky Point, a community acquired in the fourth quarter of 2006.
(4)	The “As Adjusted” amount represents the construction in progress balance per the Company’s balance sheet plus the costs of properties under construction and lease-up that have been transferred to operating real estate assets as apartment units are completed.
(5)	The adjustment reflects a reduction for the depreciated book value of Post Oak™ a community held for sale and included in discontinued operations and an increase for its 35% share of the book value of its unconsolidated condominium conversion asset (Post Peachtree™). The “As Adjusted” amount represents the book value of its wholly-owned condo conversion assets (588™, Harbour Place City Homes™ and RISE™) and its 35% share of the book value of its unconsolidated condominium conversion asset (Post Peachtree™) and the book value of various land parcels held for sale.
(6)	The adjustment reflects a reduction for the investments in Post Biltmore™ and Post Massachusetts Avenue™ as the Company’s net operating income of such investments is included in the adjusted net operating income reflected above. The “As Adjusted” amount represents the Company’s investment in and advances to unconsolidated land entities.
(7)	These amounts consist of restricted cash and other assets, per the Company’s balance sheet.
(8)	The “As of December 31, 2006” amount represents cash and other assets of unconsolidated apartment and condominium conversion entities. The adjustment includes a reduction for the venture partners’ 65% share of cash and other assets ($2,643) of unconsolidated apartment and condominium conversion entities. The “As Adjusted” amount represents the Company’s 35% share of the cash and other assets of unconsolidated apartment and condominium conversion entities.
(9)	The “As of December 31, 2006” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses, security deposits and prepaid rents and minority interests in consolidated real estate entities as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense.
(10)	The “As of December 31, 2006” amount represents total liabilities of unconsolidated apartment and condominium conversion entities. The adjustment represents a reduction for the venture partner’s 65% share of liabilities of unconsolidated apartment and condominium conversion entities. The “As Adjusted” amount represents the Company’s 35% share of liabilities of unconsolidated apartment and condominium conversion entities.

Computation of Implied Portfolio Capitalization Rate
(In thousands)

	Three months ended
Calculation of Adjusted Property Net Operating Income	December 31, 2006
Total rental and other revenues	$	75,320	(a)
Property operating & maintenance expenses (excluding depreciation and amortization)		27,729	(a)
Property net operating income		47,591
Adjustments to property net operating income
Assumed property management fee (calculated at 3% of revenues)		(2,260	)
Assumed property capital expenditure reserve ($300 per unit per year based on 20,210 units)		(1,516	)
Property net operating income, adjusted for assumed management fee and assumed capital expenditures	$	43,815
Property net operating income, adjusted for assumed management fee and assumed capital expenditures (annualized) (A)	$	175,260

	As of
Calculation of Implied Market Value of Company Gross Real Estate Assets	December 31, 2006
Implied market value of common shares and units	$	2,019,529	(b)
Other assets, as adjusted		(346,207	)(a)
Other liabilities, as adjusted		1,158,670	(a)
Preferred stock, at liquidation value		95,000	(a)
Implied market value of Company gross real estate assets (B)	$	2,926,992
Implied Portfolio Capitalization Rate, based on Company’s stock price as of December 31, 2006 (A÷B)		6.0	%

(a)	Represents amounts in the “as adjusted” column from the Financial Data table reflected above.
(b)	Calculated as follows:

Common shares and units outstanding at December 31, 2006		44,191
Per share market value of common stock at December 31, 2006	$	45.70
Implied market value of common shares and units at December 31, 2006	$	2,019,529

25

Post Properties, Inc.
Non-GAAP Financial Measures and Other Defined Terms
(Dollars in thousands, except per share or unit data)
(Unaudited)

Definitions of Supplemental Non-GAAP Financial Measures and Other Defined Terms

The Company uses certain non-GAAP financial measures and other defined terms in this accompanying Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

Funds from Operations — The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (losses) from extraordinary items and sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO presented in the Company’s press release and Supplemental Financial Data is not necessarily comparable to FFO presented by other real estate companies because not all real estate companies use the same definition. The Company’s FFO is comparable to the FFO of real estate companies that use the current NAREIT definition.

Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance. In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income (loss) available to common shareholders” is the most directly comparable GAAP measure to FFO.

Adjusted Funds From Operations — The Company also uses adjusted funds from operations (“AFFO”) as an operating measure. AFFO is defined as FFO less operating capital expenditures after adjusting for the non-cash impact of straight-line long-term ground lease expense, losses on early extinguishment of indebtedness and other income related to mark-to-market of an interest rate swap arrangement. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund operating capital expenditures through earnings. In addition, since most equity REITs provide AFFO information to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income (loss) available to common shareholders” is the most directly comparable GAAP measure to AFFO. Prior period amounts have been conformed to the current period presentation.

Property Net Operating Income — The Company uses property NOI, including same store NOI and same store NOI by market, as an operating measure. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store groupings and individual properties. Additionally, the Company believes that NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to NOI.

26

Same Store Capital Expenditures — The Company uses same store annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The Company believes that same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its same store communities on an ongoing basis. The corresponding GAAP measures include information with respect to the Company’s other operating segments consisting of communities stabilized in the prior year, lease-up communities, rehabilitation communities, sold properties and commercial properties in addition to same store information. Therefore, the Company believes that the Company’s presentation of same store annually recurring and periodically recurring capital expenditures is necessary to demonstrate same store replacement costs over time. The Company believes that the most directly comparable GAAP measure to same store annually recurring and periodically recurring capital expenditures are the lines on the Company’s consolidated statements of cash flows entitled “annually recurring capital expenditures” and “periodically recurring capital expenditures.”

Debt Statistics and Debt Ratios — The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) an interest coverage ratio; (2) a fixed charge coverage ratio; (3) total debt as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; and (8) a ratio of consolidated income available to debt service to annual debt service charge. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.

Average Economic Occupancy — The Company uses average economic occupancy as a statistical measure of operating performance. The Company defines average economic occupancy as gross potential rent less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage.

27

Reconciliations of Supplemental Non-GAAP Financial Measures

Table 1
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Dollars in thousands)
(Unaudited)

	Three months ended									Year ended
	December 31,			December 31,			September 30,			December 31,			December 31,
	2006			2005			2006			2006			2005
Total same store NOI	$	40,846		$	38,780		$	39,377		$	156,890		$	148,075
Property NOI from other operating segments		1,375			1,698			1,658			5,632			4,051
Consolidated property NOI		42,221			40,478			41,035			162,522			152,126
Add (subtract):
Interest income		279			78			175			1,261			661
Other revenues		202			59			49			402			255
Minority interest in consolidated property partnerships		(80	)		28			(85	)		(257	)		239
Depreciation		(17,227	)		(16,896	)		(16,966	)		(67,328	)		(70,435	)
Interest expense		(13,199	)		(12,916	)		(13,609	)		(54,049	)		(55,638	)
Amortization of deferred financing costs		(875	)		(954	)		(882	)		(3,526	)		(4,661	)
General and administrative		(5,038	)		(4,800	)		(4,406	)		(18,502	)		(18,307	)
Investment, development and other expenses		(1,924	)		(974	)		(1,332	)		(6,424	)		(4,711	)
Severance expense		—			(796	)		—			—			(796	)
Gains (losses) on sales of condominiums, net		2,356			(163	)		1,611			12,378			(531	)
Equity in income of unconsolidated real estate entities		562			473			527			1,813			1,767
Other income		—			—			1,401			3,095			5,267
Minority interest of common unitholders		(82	)		(108	)		(87	)		(451	)		120
Income from continuing operations		7,195			3,509			7,431			30,934			5,356
Income from discontinued operations		39,688			2,077			28,370			70,535			136,592
Net income	$	46,883		$	5,586		$	35,801		$	101,469		$	141,948

28

Table 2
Same Store Net Operating Income (NOI) Summary by Market
(Dollars in thousands)

	Three Months Ended						Q4 ’06			Q4 ’06			Q4 ’06
	December 31,		December 31,		September 30,		vs. Q4 ’05			vs. Q3 ’06			% Same
	2006		2005		2006		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	26,595	$	25,490	$	26,616		4.3	%		(0.1	)%
Dallas		11,074		10,842		11,281		2.1	%		(1.8	)%
Washington, D.C.		8,505		8,035		8,590		5.8	%		(1.0	)%
Tampa		7,171		6,598		7,019		8.7	%		2.2	%
Charlotte		3,577		3,399		3,688		5.2	%		(3.0	)%
New York		3,509		3,203		3,426		9.6	%		2.4	%
Houston		2,749		2,613		2,735		5.2	%		0.5	%
Orlando		1,017		976		995		4.2	%		2.2	%
Total rental and other revenues		64,197		61,156		64,350		5.0	%		(0.2	)%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		9,732		8,930		10,399		9.0	%		(6.4	)%
Dallas		4,730		4,843		5,298		(2.3	)%		(10.7	)%
Washington, D.C.		2,204		2,548		2,840		(13.5	)%		(22.4	)%
Tampa		3,095		2,498		2,690		23.9	%		15.1	%
Charlotte		1,111		995		1,139		11.7	%		(2.5	)%
New York		953		985		874		(3.2	)%		9.0	%
Houston		1,153		1,158		1,328		(0.4	)%		(13.2	)%
Orlando		373		419		405		(11.0	)%		(7.9	)%
Total		23,351		22,376		24,973		4.4	%		(6.5	)%
Net operating income
Atlanta		16,863		16,560		16,217		1.8	%		4.0	%		41.3	%
Dallas		6,344		5,999		5,983		5.8	%		6.0	%		15.5	%
Washington, D.C.		6,301		5,487		5,750		14.8	%		9.6	%		15.4	%
Tampa		4,076		4,100		4,329		(0.6	)%		(5.8	)%		10.0	%
Charlotte		2,466		2,404		2,549		2.6	%		(3.3	)%		6.0	%
New York		2,556		2,218		2,552		15.2	%		0.2	%		6.3	%
Houston		1,596		1,455		1,407		9.7	%		13.4	%		3.9	%
Orlando		644		557		590		15.6	%		9.2	%		1.6	%
Total same store NOI	$	40,846	$	38,780	$	39,377		5.3	%		3.7	%		100.0	%

29

Table 2 (con’t)
Same Store Net Operating Income (NOI) Summary by Market
(Dollars in thousands)

	Year ended
	December 31,		December 31,
	2006		2005		% Change
Rental and other revenues
Atlanta	$	104,314	$	100,594		3.7	%
Dallas		44,316		42,632		4.0	%
Washington, D.C.		33,584		31,578		6.4	%
Tampa		27,903		25,680		8.7	%
Charlotte		14,296		13,300		7.5	%
New York		13,509		12,342		9.5	%
Houston		10,848		9,992		8.6	%
Orlando		3,991		3,699		7.9	%
Total rental and other revenues		252,761		239,817		5.4	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		39,448		36,685		7.5	%
Dallas		19,945		19,197		3.9	%
Washington, D.C.		10,618		10,682		(0.6	)%
Tampa		10,839		10,162		6.7	%
Charlotte		4,520		4,242		6.6	%
New York		3,844		3,738		2.8	%
Houston		5,080		5,468		(7.1	)%
Orlando		1,577		1,568		0.6	%
Total		95,871		91,742		4.5	%
Net operating income
Atlanta		64,866		63,909		1.5	%
Dallas		24,371		23,435		4.0	%
Washington, D.C.		22,966		20,896		9.9	%
Tampa		17,064		15,518		10.0	%
Charlotte		9,776		9,058		7.9	%
New York		9,665		8,604		12.3	%
Houston		5,768		4,524		27.5	%
Orlando		2,414		2,131		13.3	%
Total same store NOI	$	156,890	$	148,075		6.0	%

30

Table 3
Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(Dollars in thousands)

	Three months ended				Year ended
	December 31,				December 31,
	2006		2005		2006		2005
Annually recurring capital expenditures by operating segment
Same store	$	1,714	$	2,413	$	9,667	$	7,846
Construction and lease-up		129		86		503		433
Condominium conversion communities		—		25		2		133
Acquired		81		56		271		92
Other segments		78		170		702		1,417
Total annually recurring capital expenditures per statements of cash flows	$	2,002	$	2,750	$	11,145	$	9,921
Periodically recurring capital expenditures by operating segment
Same store	$	971	$	1,591	$	2,822	$	3,094
Construction and lease-up		278		3		702		296
Condominium conversion communities		—		17		—		75
Acquired		13		—		25		5
Other segments		256		260		2,415		1,038
Total periodically recurring capital expenditures per statements of cash flows	$	1,518	$	1,871	$	5,964	$	4,508

31

Table 4
Computation of Interest and Fixed Charge Coverage Ratios
(Dollars in thousands)

	Year ended
	December 31,
	2006			2005
Income from continuing operations	$	30,934		$	5,356
Minority interest of common unitholders		451			(120	)
Other income		(3,095	)		(5,267	)
Losses (gains) on sales of condominiums, net		(12,378	)		531
Gains on sales of real estate assets – unconsolidated entities		(482	)		(612	)
Depreciation expense		67,328			70,435
Depreciation (company share) of assets held in unconsolidated entities		906			969
Interest expense		54,049			55,638
Interest expense (company share) of assets held in unconsolidated entities		986			1,164
Amortization of deferred financing costs		3,526			4,661
Income available for debt service (A)	$	142,225		$	132,755
Interest expense	$	54,049			55,638
Interest expense (company share) of assets held in unconsolidated entities		986			1,164
Interest expense for purposes of computation (B)		55,035			56,802
Dividends and distributions to preferred shareholders and unitholders		7,637			7,637
Fixed charges for purposes of computation (C)	$	62,672		$	64,439
Interest coverage ratio (A÷B)		2.6x			2.3x
Fixed charge coverage ratio (A÷C)		2.3x			2.1x

32

Table 5
Computation of Debt Ratios
(Dollars in thousands)

	As of December 31,
	2006			2005
Total real estate assets per balance sheet	$	2,028,580		$	1,899,381
Plus:
Company share of real estate assets held in unconsolidated entities		41,344			39,800
Company share of accumulated depreciation – assets held in unconsolidated entities		3,864			2,922
Accumulated depreciation per balance sheet		547,477			516,954
Accumulated depreciation on assets held for sale		4,035			—
Total undepreciated real estate assets (A)	$	2,625,300		$	2,459,057
Total debt per balance sheet	$	1,033,779		$	980,615
Plus:
Company share of third party debt held in unconsolidated entities		23,449			23,450
Less:
Joint venture partners’ share of mortgage debt of the company		(8,550	)		(3,879	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,048,678		$	1,000,186
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		39.9	%		40.7	%
Total debt per balance sheet	$	1,033,779		$	980,615
Plus:
Company share of third party debt held in unconsolidated entities		23,449			23,450
Preferred shares at liquidation value		95,000			95,000
Less:
Joint venture partners’ share of mortgage debt of the company		(8,550	)		(3,879	)
Total debt and preferred equity (adjusted for joint venture partner’s share of debt) (C)	$	1,143,678		$	1,095,186
Total debt and preferred equity as a % of undepreciated assets (adjusted for joint venture partners’ share of debt) (C÷A)		43.6	%		44.5	%

33

Table 6
Calculation of Company Undepreciated Book Value Per Share
(Dollars in thousands)

	December 31,
	2006
Total shareholders’ equity, per balance sheet	$	956,455
Plus:
Accumulated depreciation, per balance sheet		547,477
Accumulated depreciation held for sale assets, per balance sheet		4,035
Minority interest of common unitholders in Operating Partnership, per balance sheet		14,056
Less:
Deferred charges, net, per balance sheet		(12,400	)
Preferred shares at liquidation value		(95,000	)
Total undepreciated book value (A)	$	1,414,623
Total common shares and units (B)		44,191
Company undepreciated book value per share (A÷B)	$	32.01

34