SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant |_|
Filed by a Party other than the Registrant |X|
Check the appropriate box:
|_| Preliminary Proxy Statement
|_| Confidential, For Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
|_| Definitive Proxy Statement
|_| Definitive Additional Materials
|X| Soliciting Material Under Rule
14a-12
Post Properties, Inc.
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(Name of Registrant as Specified in Its Charter)
John A. Williams
(Name of Person(s) Filing Proxy Statement, if Other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
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|_| Fee paid previously with preliminary materials:
Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.
(1) Amount previously paid:
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(4) Date Filed:
RESTORING VALUE AND INVESTOR CONFIDENCE IN POST PROPERTIES
APRIL 2003
IMPORTANT INFORMATION
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On April 7, 2003, Mr. Williams filed a preliminary proxy statement with
the Securities and Exchange Commission relating to his solicitation of proxies
from shareholders of Post Properties, Inc. with respect to Post Properties' 2003
Annual Meeting. Mr. Williams will file with the Commission, and will furnish to
Post Properties shareholders, a definitive proxy statement regarding his
solicitation of proxies from Post Properties shareholders with respect to the
2003 Annual Meeting. Mr. Williams may also file additional proxy solicitation
materials. MR. WILLIAMS ADVISES ALL POST PROPERTIES SHAREHOLDERS TO READ THE
DEFINITIVE PROXY STATEMENT AND ANY ADDITIONAL PROXY SOLICITATION MATERIALS
CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Mr. Williams' preliminary proxy statement is, and the definitive
proxy statement and any additional proxy solicitation materials will be,
available for free at the Commission's Internet web site at www.sec.gov. You may
also obtain a free copy of Mr. Williams' definitive proxy statement, when it
becomes available, and other relevant documents by writing to MacKenzie Partners
at 105 Madison Avenue, 14th Floor, New York, NY 10016.
PARTICIPANT INFORMATION
Mr. Williams and his nominees for election to the board of directors of Post
Properties may be deemed to be participants in Mr. Williams' solicitation of
proxies with respect to the 2003 Annual Meeting of Post Properties. These
nominees are George R. Puskar, Roy E. Barnes, Paul J. Dolinoy, Thomas J.A. Lavin
and Jansen Noyes III.
Mr. Williams and his nominees have interests in the solicitation of proxies with
respect to the 2003 Annual Meeting of Post Properties arising from their
beneficial ownership of the common stock of Post Properties. Mr. Williams also
receives customary compensation from Post Properties in exchange for his
services as a director and pursuant to his employment agreement with the
Company. If elected, Mr. Williams' nominees will also receive customary
compensation for their services as directors. Additional information with
respect to the beneficial ownership of shares of common stock of Post Properties
by Mr. Williams and his nominees is as follows: other than Mr. Williams, who
owns 2,887,815 shares (including currently exercisable options and partnership
units convertible for common stock) and Mr. Puskar, who owns 3,000 shares, none
of the other nominees currently own shares in Post Properties.
1
FORWARD LOOKING STATEMENT
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Future plans and discussions on performance, and certain other matters discussed
herein may be, deemed forward-looking statements within the meaning of the
federal securities laws. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we can give no
assurance that our expectations will be attained, and it is possible that our
actual results may differ materially from those indicated by these forward-
looking statements due to a variety of risks and uncertainties. Those risks and
uncertainties include, but are not limited to, the national, regional and local
economic climate, competitive market forces, changes in market rental rates,
trends in the multifamily industry or changes in market rates of interest.
2
TABLE OF CONTENTS
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o Current Market Situation
o Post Management's Response
o Recent Operating Results and Shareholder Returns
o Action Plan to Restore Value and Investor Confidence
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| Sign the GOLD CARD & |
| Restore Value and Investor Confidence |
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CURRENT MARKET SITUATION
CURRENT MARKET SITUATION
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o Struggling US economy and lack of visibility
o Minimal job growth
o Likelihood of jobless recovery
o Continued high levels of supply in the multifamily sector
o Low rates available for financing of single-family and condo home
purchases
o Severe pressure on rates and occupancy
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| Difficult times require a management |
| team with PROVEN experience |
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4
POST MANAGEMENT'S RESPONSE
Inexperience and Failure to Enhance Shareholder Value
POORLY EXECUTED ASSET SALES
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Inferior Strategy & Results
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o Wrong assets being sold
o Higher cap rates vs. peers (2001 and 2002)
o 8.37% for Post vs. 7.72% for Gables
o Use of Procedes
Lack of Oversight
-----------------
o No Board oversight of sale process
o No formal engagement letters between Post and brokers on a substantial
number of transactions
o No incentive fee arrangement with brokers
5
LOSS OF COMPETITIVE ADVANTAGE
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o Excessive price discounting (beyond market requirement)
o Deferred maintenance expenses
o Neglected employee training and customer service
o Diminished reputation with customers
o Foundation of Company's past success
o Sacrificed in favor of short-sighted strategy
o No promotion of, or committment to, the Post Brand Name
6
FAILED TO RETAIN KEY EMPLOYEES
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o Unsuitable replacements for key personnel
o Property Maintenance
o Property Security
o Employee Training
o Negative management practices
o Property managers defecting to competitors
7
FAILED TO IMPLEMENT EFFECTIVE YIELD MANAGEMENT PROGRAM
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o Philosophy of delegating operating decisions to property level managers
has been a failure
o All decisions regarding occupancy, rate and marketing should be made at
corporate level by senior management
o Need to structure system of controls
o No incentives to leasing personnel to strive for higher rents
8
G&A Expense - Excessive and Increasing
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o Highest G&A expense margin among peers
o Corporate headcount too high
o Post development team unsuitable for current environment
o Should be downsized
o Re-tool development team ------> save $1.2 million per year
o Dallas office unnecessary
o Reducing presence in Dallas
o Should be closed given lack of development activity
o Estimated annual cost of $0.5 million
9
BOARD'S INEFFECTIVE STRATEGIC PLANNING COMMITTEE
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o Responsible for meeting with CEO and other officers to
o Develop a multi-year strategic plan
o Review the strategic plan
o Dismal fact pattern
o Robert Goddard has no prior multifamily experience
o Ronald de Waal lives in Belgium; travels to U.S. infrequently
o Only met three times in 2002
o No plan was ever distributed to Board
o Company lacks clear strategic direction and outlook
o Arthur Blank recently resigned
10
CONCLUSION
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o We believe Post's current management team is ill-equipped to manage in
the current environment
o No effective strategic plan
o No effective operating plan
o Repeatedly ignored John Williams' suggestions to improve
operating performance and enhance shareholder value
o Little multifamily operating experience
o Post's poor results during 2002 support this conclusion
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RECENT OPERATING RESULTS
AND SHAREHOLDER RETURNS
2002 - POOR OPERATING RESULTS
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[box with the word 'LAST' superimposed over each of the charts below]
Same Store Revenue Growth Same Store NOI Growth
------------------------- ---------------------
1 Home Properties 4.1% 1 Home Properties 3.6%
2 Town and Country 2.7 2 Town and Country 0.3
3 United Dominion Realty (0.2) 3 United Dominion Realty (0.8)
4 Archstone-Smith (0.4) 4 Apartment Inv & Mgmt Co (1.6)
5 Mid-America Apartment (0.6) 5 Archstone-Smith (2.7)
6 Apartment Inv & Mgmt Co (0.7) 6 Mid-America Apartment (3.0)
7 Gables Residential (1.4) 7 Equity Residential (4.6)
8 Camden Property (2.6) 8 Camden Property (4.7)
9 Equity Residential (2.6) 9 Gables Residential (4.7)
10 BRE Properties (3.0) 10 BRE Properties (5.0)
11 AMLI Residential Properties (4.3) 11 AMLI Residential Properties (6.9)
12 Summit Properties (4.9) 12 Essex Property (8.3)
13 Essex Property (5.3) 13 Summit Properties (8.8)
14 AvalonBay Communities (6.1) 14 AvalonBay Communities (9.9)
15 POST PROPERTIES (6.8) 15 POST PROPERTIES (10.1)
----------------------------------- ----------------------------------
Peer Group Average (1.8%) Peer Group Average (4.1%)
Source: Public filings.
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2002 - POOR OPERATING RESULTS
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[box with the words 'SECOND TO LAST' superimposed over the first chart and the
word 'LAST' superimposed over the second chart below]
Same Store Occupancy G&A Expense Margin
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1 Archstone-Smith 95.8% 1 Apartment Inv & Mgmt Co 1.3%
2 Essex Property 94.6 2 AvalonBay Communities 2.2
3 BRE Properties 94.3 3 Equity Residential 2.3
4 Gables Residential 93.7 4 Mid-America Apartment 2.9
5 AvalonBay Communities 93.5 5 Gables Residential 3.1
6 Equity Residential 93.5 6 Essex Property 3.1
7 Summit Properties 93.4 7 Home Properties 3.2
8 Town and Country 93.4 8 United Dominion Realty 3.2
9 United Dominion Realty 93.3 9 BRE Properties 3.4
10 Camden Property 92.2 10 Camden Property 3.5
11 Home Properties 92.0 11 Summit Properties 3.8
12 Mid-America Apartment 91.7 12 Archstone-Smith 4.0
13 Apartment Inv & Mgmt Co 91.1 13 Town & Country 4.0
14 POST PROPERTIES 90.9 14 AMLI Residential Properties 4.3
15 AMLI Residential Properties 90.8 15 POST PROPERTIES 4.4
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Peer Group Average 93.1% Peer Group Average 3.2%
Source: Public filings.
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2002 - POOR OPERATING RESULTS BY MARKET
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[box with the words 'SECOND TO LAST' superimposed over the first chart, box with
the words "THIRD TO LAST" superimposed on the second chart, and box with the
word 'LAST' superimposed over the third chart below]
Same Store Revenue Growth
Atlanta Dallas Tampa
------- ------ -----
1 Summit Properties (5.3%) 1 Gables Residential (1.8%) 1 Apartment Inv & Mgmt Co 2.1%
2 Gables Residential (6.1) 2 Summit Properties (2.6) 2 Camden Property Trust 0.2
3 AMLI Residential Properties (7.2) 3 AMLI Residential Properties (2.9) 3 Equity Residential 0.2
4 United Dominion (7.2) 4 Equity Residential (2.9) 4 United Dominion (2.3)
5 Equity Residential (7.7) 5 United Dominion (2.9) 5 POST PROPERTIES (2.5)
6 POST PROPERTIES (8.1) 6 POST PROPERTIES (4.3)
7 Apartment Inv & Mgmt Co (9.3) 7 Apartment Inv & Mgmt Co (5.9)
8 Camden Property Trust (7.4)
------------------------------------ ---------------------------------- ---------------------------------
Peer Group Average (7.1%) Peer Group Average (3.8%) Peer Group Average 0.1%
Source: Public filings.
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DISMAL SHAREHOLDER RETURNS
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2002 Stock Price Performance
[Bar graph depicting the declining stock price performances of the companies
listed below}
[box with the word 'LAST' superimposed over the chart below]
United Dominon 12.7%
Home Properties 8.7%
Essex Property 3.1%
BRE Properties 0.6%
Town and Country 0.5%
Mid-America Apartment (6.9%)
Camden Property (9.5%)
Archstone-Smith (10.3%)
Equity Residential (14.5%)
AMLI Residential (15.3%)
Gables Properties (16.6%)
AvalonBay (16.9%)
Apartment Inv & Mgmt Co (17.4%)
Summit Properties (29.2%)
Post Properties (32.8%)
Source: Bloomberg L.P.
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DISMAL SHAREHOLDER RETURNS
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2002 Total Returns
[Bar graph depicting the declining stock price performances of the companies
listed below}
[box with the word 'LAST' superimposed over the chart below]
United Dominon 21.4%
Home Properties 16.8%
Essex Property 9.4%
Town and Country 8.8%
BRE Properties 7.0%
Mid-America Apartment 2.2%
Camden Property (2.9%)
Archstone-Smith (4.0%)
AMLI Residential (8.1%)
Equity Residential (8.8%)
Gables Properties (9.2%)
Apartment Inv & Mgmt Co (10.8%)
AvalonBay (11.5%)
Summit Properties (22.9%)
Post Properties (25.2%)
Source: Bloomberg L.P.
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ACTION PLAN TO RESTORE VALUE
AND INVESTOR CONFIDENCE
ACTION PLAN
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o Elect a slate of independent, better qualified directors
Our Director Nominees Their Director Nominees*
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Yrs.of Yrs. of
Nominee RE Exp. Prior Experience Nominee RE Exp. Prior Experience
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George R. 36 Chairman, Lend Lease Real Estate Robert C. 15 Chairman & CEO, Goddard Investment
Puskar Chairman & CEO, Equitable Real Goddard Group
Estate Investment Mgmt Chairman & CEO, NAI/Brannen Goddard
Director Nominee, New Plan Excel Company
Director, I-Star Financial NO PUBLIC COMPANY EXPERIENCE
Director, CarrAmerica NO MULTIFAMILY EXPERIENCE
Director, NRC, ICSC, NACREIF, ULI
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Roy E. 25 Immediate Past Governor of Georgia Herschel 9 Partner, King & Spalding
Barnes Former Georgia State Representative M. Bloom Director of Russell Corp.
Founder, Efficiency Lodge Hotel Company K&S IS COMPANY COUNSEL
Founder, Cobb Savings and Loan Assoc.
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Paul J. 31 President, Lend Lease Real Estate Investments Ronald de 3 Chairman, We International b.v.
Dolinoy SVP, Equitable Real Estate Waal Director of Sakes Inc, and The Body Shop
Chairman, JP Morgan US Real Estate Fund LIVES IN BELGIUM
Director, NYSTRS Real Estate Advisory Cmte. NO MULTIFAMILY EXPERIENCE
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Thomas J.A. 30 Head of Mortgage Lending, MetLife Russell R. 10 General Partner, Moseley & Co.
Lavin Head of RE Debt Origination, Citicorp French VENTURE CAPITALIST
Securities NO MULTIFAMILY EXPERIENCE
Head of Real Estate Investment Banking, Smith FORMER PARTNER, K&S
Barney and First Boston
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Jansen 24 SVP, Emigrant Savings Bank - Commercial David P. 8 EVP, Duke Realty Corp.
Noyes III Real Estate Division Stockert SVP & CFO, Weeks Corp.
VP, Prudential Realty Group FORMER INVESTMENT BANKER
SVP, Manufacturers Hanover Trust - Head of NO MULTIFAMILY EXPERIENCE
National Lending Group of the RE Division
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* Information derived from Post Properties' 2003 Proxy Statement.
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ACTION PLAN
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o Establish active Strategic Planning Committee
o Will meet monthly until the Company's operating performance is
acceptable
o Proposed members include
- George Puskar
- John Williams
- Barry Teague (will be invited)
o Over 100 years of combined multifamily experience
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ACTION PLAN
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o Establish shareholder-friendly governance
o Eliminate staggered board
o Create a Special Committee of independent directors to
OBJECTIVELY evaluate ALL strategic alternatives
o Shareholder approval required for grant of options and
restricted stock to CEO and any other directors
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ACTION PLAN
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o Replace senior management
o Chairman: George Puskar vs. Robert Goddard
o CEO: John Williams vs. David Stockert
OUR TEAM THEIR TEAM*
----------------------|-----------| --------------------------|---------|
Puskar Williams | Total | Goddard Stockert | Total |
----------------------------------| -----------------------------------|
Years of Real Estate Exp. 36 37 | 73 | 15 8 | 23 |
| | | |
Years of Multifamily Exp. 36 37 | 73 | 0 2 | 2 |
| | | |
Years of CEO/Pres. Exp. 16 32 | 48 | 15 1 | 16 |
| | | |
Other Public Company 3 3 | 6 | 0 0 | 0 |
Directorships | | | |
| | | |
Ownership Interest (Shares) 3,000 2,887,815 | 2,890,815 | 26,141 141,116 | 167,257 |
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o REVIEW OF SENIOR OFFICERS
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| Whose interests are better aligned with shareholders? |
| Which team is better equipped? |
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* Information derived from Post Properties' 2003 Proxy Statement.
20
ACTION PLAN
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o Re-establish Post corporate culture and brand image
o Highest and consistent level of training and on-site quality control
o Promote from within
o Uniform procedures
o Commitment to customer satisfaction
o Fix yield management problems
o Rate
o Occupancy
o Expenses
o Establish proper incentives
21
ACTION PLAN
================================================================================
o Establish improved criteria for asset sales and use of proceeds
o Active Board oversight
o Proper incentive fee arrangements with brokers
o Repurchase stock on leverage neutral basis
o Undertake appropriate G&A cuts
o Explore ALL alternatives to enhance shareholder value
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| |
| Sign the GOLD CARD & |
| Restore Value and Investor Confidence |
| |
| |
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