Shares of Post Properties fall after 3Q report

ATLANTA - Shares of Post Properties Inc. fell Tuesday after the apartment real estate investment trust posted weak third-quarter results and warned that it may have to spent up to $45 million on repairs.

Its shares fell $2.74, or 12.7 percent, to $18.77 in afternoon trading. The stock has ranged from $17.02 to $44.68 over the past year.

Late Monday, Post said funds from operations in the quarter ended Sept. 30 fell nearly 33 percent to $16.1 million, or 36 cents per share. That compares with $23.9 million, or 53 cents per share, recorded in the same period a year ago.

On average, analysts polled by Thomson Reuters expected FFO of 42 cents per share.

Funds from operations, or FFO, adds such items as amortization and depreciation back to profit. It is considered a key indication of strength for real estate investment trusts like Post Properties.

RBC Capital Markets analyst Mike Salinsky said the company's earnings report "fell well short of consensus expectations with a rather ominous operating outlook" for the fourth quarter. In addition, potential water leaks at up to 30 properties that will cost up to $45 million to repair are "likely to cause concern among investors," he wrote.

KeyBank Captial Markets analyst Karin Ford noted that expected job losses in Atlanta, Charlotte and Florida "will likely make 2009 quite challenging" for the company's holdings in those markets.

Net income available to common shareholders was $25.2 million, or 57 cents per share, up from $9.1 million, or 21 cents per share, in the same period last year.

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