Post loses $50.7 million in 2nd quarter

By By Michelle E. Shaw

The Atlanta Journal-Constitution

The high-profile Ritz Carlton Residences project, which combines condo living with upscale hotel services, should begin closing sales in late spring, Post Properties executives said during a second quarter conference call.

Dave Stockert, president and chief executive officer of Post, said it will take five years for the condos at 3630 Peachtree Road N.E. to sell out.

Atlanta-based Post Properties also announced a net loss of $50.7 million in the second quarter, compared to a $27 million loss in the same period of 2008.

The current second quarter loss includes a write-off of about $76.3 million related to the Ritz Carlton condo project, according to earnings documents.

That charge-off was partially offset by the sale of Post Dunwoody, which sold in April for $47.4 million. From that sale, Post recognized a $24.7 million gain for the quarter.

The impairment on the Ritz condo project included $68.2 million on the tower under construction and $8.1 million on adjacent land that was being held for a second tower, according to company documents.

Last month the company completed the sale of its Post Ridge apartment community for $44.8 million. It expects to see a gain on that transaction of about $17.2 million in the third quarter of 2009. No other apartment communities are on the market at this time, Stockert said.