Post Properties, Inc. (PPS) Maintains A Market Perform Rating

Analysts at Raymond James (NYSE: RJF) have maintained a Market Perform rating for Post Properties, Inc. (NYSE: PPS). The company reported results for the fourth-quarter on Monday.

Post Properties, Inc. reported FFO of $0.17 per share, which included $8.5 million of previously announced debt extinguishment and severance charge. Analysts had forecast FFO of $0.20 per share, while the consensus was of $0.14 per share.

The company reported a year-over-year decline of 11.3% in same-store NOI. The company saw a drop of 6% in revenues, and a 2.8% increase in expenses in the quarter. The company saw some improvements in markets such as Washington, D.C., Orlando, and Charlotte during the quarter.

The management at Post Properties, Inc. also issued guidance for 2010. The company expects FFO to be in the range of $0.98-$1.12 per share in 2010.

Analysts believe that the moderating declines in lease pricing, and the progress made by the company to address balance sheet and liquidity concerns are an encouraging sign. According to analysts, the company is currently trading at a discount of 16% to their revised NAV estimates.

However, analysts believe that the company will have to eventually write off $377 million in land holdings. According to analysts, the company’ core revenue and NOI results will lag behind its peers as it is exposed to late-cycle job markets such as Atlanta, Charlotte, and Dallas.

Taking all these factors into account, analysts at Raymond James have reiterated a Market Perform rating for Post Properties, Inc.