Colonial Properties Trust Reports Results for Fourth Quarter 2012

  Colonial Properties Trust Reports Results for Fourth Quarter 2012

Business Wire

BIRMINGHAM, Ala. -- January 24, 2013

Colonial Properties Trust (NYSE: CLP) announced its results for the quarter
and year ended December 31, 2012.

For the fourth quarter 2012, the company reported net income available to
common shareholders (EPS) of $16.0 million, or $0.18 per diluted share,
compared with net income available to common shareholders of $9.1 million, or
$0.10 per diluted share, for the same period in 2011. The increase compared
with the prior-year period is primarily attributable to $22.7 million of gains
recognized from the sale of four multifamily apartment communities and one
commercial asset during the fourth quarter 2012 and an increase in multifamily
same-property net operating income (NOI) in 2012 as a result of improving
rental rates, partially offset by certain one-time charges totaling $14.2
million, as further discussed below under Other Charges.

For the year ended December 31, 2012, the company reported net income
available to common shareholders of $19.9 million, or $0.22 per diluted share,
compared with net income available to common shareholders of $3.4 million, or
$0.04 per diluted share, for 2011. The increase compared with the prior-year
is primarily attributable to an increase in multifamily same-property NOI in
2012 as a result of improving rental rates, income derived from multifamily
apartment communities acquired during 2011 and 2012, and a $21.9 million gain
recognized from the company’s disposition of its ownership interest in the
DRA/CLP office joint venture, partially offset by certain one-time charges
totaling $14.2 million, as further discussed below under Other Charges.

Funds from Operations Available to Common Shareholders and Unitholders (FFO),
a widely accepted measure of REIT performance, for the fourth quarter 2012 was
$18.1 million, or $0.19 per diluted share, compared with $26.4 million, or
$0.28 per diluted share, for the same period in 2011. FFO for the year ended
December 31, 2012 totaled $105.1 million, or $1.11 per diluted share, compared
with $104.7 million, or $1.15 per diluted share, for the same period in 2011.
The results were primarily influenced by an increase in company’s multifamily
same-property NOI as a result of improving rental rates and income from
multifamily apartment communities acquired in 2011 and 2012, partially offset
by the Other Charges discussed below.

A reconciliation of net income/loss available to common shareholders to FFO,
and a reconciliation of NOI to income/loss from continuing operations, as well
as definitions and statements of purpose are included in the financial tables
accompanying this press release.

Thomas H. Lowder, Chairman and Chief Executive Officer, noted, “Our core
multifamily operating fundamentals continue to perform well. Solid occupancy
and leasing, combined with expense controls, led to our best year-over-year
same-property NOI growth rate in our company’s history. The asset recycling
transactions we completed in the fourth quarter improved the growth profile of
the company. We intend to capitalize on this stronger portfolio, as well as
our multifamily development pipeline to create additional value for our
shareholders in 2013.”

Highlights for the Fourth Quarter 2012

  *Multifamily same-property NOI increased 6.7 percent compared with fourth
    quarter 2011
  *Ended the quarter with multifamily same-property physical occupancy of
    95.8 percent
  *Multifamily same-property revenue increased 5.3 percent compared with
    fourth quarter 2011
  *Sold four apartment communities totaling 1,380 units for $95.4 million
  *Acquired three apartment communities totaling 948 units in separate
    transactions for $105.3 million
  *Sold Colonial Promenade Alabaster retail center for $37.4 million in cash,
    and the remaining 10 percent interest in a nine-office, 1.7 million square
    foot portfolio in Huntsville, Alabama for total consideration of $19.4
    million
  *Subsequent to quarter end, sold our remaining 10 percent ownership
    interest in Colonial Promenade at Hoover for total consideration of $2.0
    million

Multifamily Operating Performance

Multifamily NOI for the fourth quarter 2012 increased 6.7 percent compared
with the fourth quarter 2011 for the 28,943 apartment homes included in the
consolidated same-property results. Multifamily same-property revenues
increased 5.3 percent and expenses increased 3.3percent compared with the
fourth quarter 2011. The increase in revenues was primarily due to an
improvement in renewal lease rates and an 80 basis point increase in financial
occupancy as compared to the fourth quarter 2011. The increase in expenses is
primarily due to an increase in property taxes, utilities and repairs and
maintenance expenses. Same-property physical occupancy as of December 31,
2012, was 95.8 percent, compared with 95.9 percent at December 31, 2011.

Multifamily NOI for 2012 increased 7.6 percent compared with 2011, with
multifamily same-property revenues increasing 5.4 percent and expenses
increasing 2.3percent. The increase in revenues was primarily due to an
improvement in both new and renewal lease rates and a consistently high
occupancy level. For the year, the increase in expenses is primarily due to an
increase in real estate taxes and payroll costs.

Sequentially, multifamily same-property NOI for the fourth quarter 2012
increased 3.9 percent compared with the third quarter 2012, with revenues
increasing 0.7 percent and expenses decreasing 4.1 percent compared with the
prior quarter. The decrease in expenses is primarily due to seasonal decreases
in utilities and repair and maintenance expenses in the fourth quarter 2012
compared with the third quarter 2012.

Development Activity

During the quarter, the company completed construction of Colonial Grand at
Lake Mary (Phase I), a $26.7 million multifamily development with 232 units in
Orlando, Florida. As of December 31, 2012, the property was 94.0 percent
occupied.

Construction continued during the quarter on five wholly-owned apartment
communities: Colonial Grand at Double Creek, a $31.7 million development with
296 units in Austin, Texas; Colonial Grand at Lake Mary (Phase II), a $13.9
million development with 108 units in Orlando, Florida; Colonial Reserve at
South End, a $59.3 million development with 353 units in Charlotte, North
Carolina; Colonial Grand at Randal Lakes, a $57.0 million development with 462
units in Orlando, Florida; and Colonial Grand at Ayrsley (Phase II), a $9.1
million development with 81 units in Charlotte, North Carolina.

Acquisitions

In October 2012, the company purchased the 370-unit Colonial Grand at Research
Park, a Class A garden style multifamily apartment community in
Raleigh/Durham, North Carolina, for a total purchase price of $38.0 million of
which $21.3 million was used to repay existing property-specific debt. The
company previously had a 20 percent ownership interest in the property.

In December 2012, the company purchased two apartment communities with an
average age of seven years for a total purchase price of $67.3 million. The
following properties were acquired: the 306-unit Colonial Reserve at Las
Colinas in Dallas, Texas, and the 272-unit Colonial Grand at Canyon Ranch in
Austin, Texas.

Dispositions

In October 2012, the company sold the 612,000-square-foot retail center
Colonial Promenade Alabaster located in Birmingham, Alabama, for $37.4
million.

In December 2012, the company sold four apartment communities with an average
age of 31 years for total proceeds of $95.4 million. The following properties
were sold: the 425-unit Autumn Hill in Charlottesville, Virginia; the 229-unit
Colonial Village at Canyon Hills in Austin, Texas; the 250-unit Colonial
Village at Highland Hills in Raleigh, North Carolina; and the 476-unit
Heatherwood in Charlotte, North Carolina.

In December 2012, the company sold its remaining 10 percent ownership interest
in the Bluerock office portfolio, which consisted of nine office assets
located in Huntsville, Alabama comprising 1.7 million square feet of leasable
space. The company received $2.0 million in cash and no longer has
responsibility for $10.7 million of associated mortgage debt and $7.9 million
of other liabilities, which represented the company’s pro-rata share of such
debt and liabilities.

In January 2013, the company sold its remaining 10 percent ownership interest
in the 388,000-square-foot retail center Colonial Promenade at Hoover in
Birmingham, Alabama. The company received $0.5 million in cash and no longer
has responsibility for $1.5 million of associated mortgage debt, which
represented the company’s pro-rata share of such debt.

Other Charges

In the fourth quarter 2012, the company recorded charges of $8.2 million
related to a proposed settlement with respect to the previously disclosed UCO
litigation. The charges are comprised of an increase in the loss contingency
accrual of $4.9 million and $3.3 million non-cash impairment charge on certain
for-sale residential lots. The loss contingency accrual and impairment are
reflected in Impairment and Other Losses on the company’s consolidated
statement of operations.

The company also recorded an adjustment to a previously recognized gain on
sale of property of approximately $4.2 million in the fourth quarter 2012
related to required infrastructure repairs on a retail asset that was
originally developed by the company and sold in the fourth quarter of 2007.
The company recognized a pre-tax gain of approximately $12.8 million when the
property was originally sold in 2007. The company is evaluating its options
with respect to, among other things, recovery of some or all of the costs
associated with the repairs from the general contractor responsible for the
infrastructure and site work.

Additionally, $1.8 million of restructuring charges were recorded in the
fourth quarter 2012, related to severance costs associated with the departure
of the company’s President and Chief Financial Officer, as well as departures
of other management personnel as a result of additional simplification of the
company’s operations.

Quarterly Dividend on Common Shares

On January 23, 2013, the Board of Trustees voted to increase the quarterly
cash dividend on common shares for the first quarter 2013 by 16.7 percent to
$0.21 per common share. The dividend is payable February 11, 2013, to
shareholders of record as of February 4, 2013, representing an ex-dividend
date of January 31, 2013.

2013 EPS and FFO per Share Guidance

The company’s guidance range for the full-year 2013 for EPS and FFO per share,
with certain assumptions and the timing of certain transactions, is set forth
and reconciled below:

                                              
                                                Full-Year
                                                2013 Range
                                                Low        –  High
Diluted EPS                                     $ 0.29     –  $ 0.45
Plus: Real Estate Depreciation & Amortization     1.35      –     1.35
Less: Gain on Sale of Operating Properties       (0.30 )  –   (0.40 )
Total Diluted FFO per share                     $ 1.34    –  $ 1.40  
                                                                  

Following are the assumptions reflected in the company’s full-year 2013
guidance:

  *Multifamily same-property net operating income: growth of 4.00 to 6.00
    percent.

       *Revenue: Increase of 4.25 to 5.25 percent
       *Expense: Increase of 4.00 to 5.00 percent

  *Development spending of $125 million to $150 million.
  *Acquisitions of $150 million to $175 million.
  *Dispositions of $275 million to $325 million.
  *Corporate G&A expenses of $18 million to $19 million.

The company’s guidance range reflects the existence of volatile economic
conditions, and is based on a number of assumptions, many of which are outside
the company’s control and all of which are subject to change. The company’s
guidance may change if actual results vary from these assumptions.

For additional details regarding the company’s disposition and investment
activities, see the company’s Supplemental Financial Highlights available on
the company’s website at www.colonialprop.com.

Conference Call and Supplemental Materials

The company will hold its quarterly conference call Thursday, January 24,
2013, at 1:00p.m.Central Time. The call will include a review of the
company’s fourth quarter performance, 2013 guidance and a discussion of the
company’s strategy and expectations for the future.

To participate, please dial 1-800-908-8370. As with previous calls, a replay
will be available for seven days by dialing 1-800-633-8284; the conference ID
is 21629708. Access to the live call and a replay will also be available
through the company's website at www.colonialprop.com under “Investors: Press
Releases: Event Calendar.”

Colonial Properties Trust produces a supplemental information package that
provides detailed information regarding operating performance, investing
activities and the company’s overall financial position. For a copy of
Colonial Properties’ detailed Supplemental Financial Highlights, please visit
the company's website at www.colonialprop.com under the “Investors: Financial
Information and Filings: Quarterly Supplemental Information” tab, or contact
Jerry Brewer in Investor Relations at 1-800-645-3917.

Colonial Properties Trust is a real estate investment trust (REIT) that
creates value for its shareholders through a multifamily portfolio and the
management and development of select commercial assets in the Sunbelt region
of the United States. As of December 31, 2012, the company owned, had partial
ownership in or managed 34,497 apartment units and 2.5 million square feet of
commercial space. Headquartered in Birmingham, Alabama, Colonial Properties is
listed on the New York Stock Exchange under the symbol CLP and is included in
the S&P SmallCap 600 Index. For more information, please visit the company’s
website at www.colonialprop.com.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this press release.
The non-GAAP financial measures include FFO and NOI. 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
comparing such performance to other REITs.

Funds from Operations — FFO, as defined by the National Association of Real
Estate Investment Trusts (NAREIT), means income (loss) before non-controlling
interest (determined in accordance with GAAP), excluding gains (losses) from
sales of depreciated property and impairment write-downs of depreciable real
estate, plus real estate depreciation and amortization and after adjustments
for unconsolidated partnerships and joint ventures. FFO is a widely recognized
measure in the company’s industry and is presented to assist investors in
analyzing the company’s performance. The company believes that FFO is useful
to investors because it provides an additional indicator of the company’s
financial and operating performance. This is because, by excluding the effect
of real estate depreciation and amortization, gains (or losses) from sales of
properties and impairment write-downs of depreciable real estate (all of which
are based on historical costs which may be of limited relevance in evaluating
current performance), FFO can facilitate comparison of operating performance
among equity REITs. FFO is a widely recognized measure in the company’s
industry.

The company believes that the line on its consolidated statements of income
entitled “net income available to common shareholders” is the most directly
comparable GAAP measure to FFO.

Historical cost accounting for real estate assets implicitly assumes that the
value of real estate assets diminishes predictably over time. Since real
estate values instead have historically risen or fallen with market
conditions, many industry investors and analysts have considered presentation
of operating results for real estate companies that use historical cost
accounting to be insufficient by themselves. Thus, NAREIT created FFO as a
supplemental measure of REIT operating performance that excludes historical
cost depreciation, among other items, from GAAP net income. Management
believes that the use of FFO, combined with the required primary GAAP
presentations, is fundamentally beneficial, improving the understanding of
operating results of REITs among the investing public and making comparisons
of REIT operating results more meaningful. In addition to company management
evaluating the operating performance of its reportable segments based on FFO
results, management uses FFO and FFO per share, along with other measures, to
assess performance in connection with evaluating and granting incentive
compensation to key employees.

Property Net Operating Income - The company uses property NOI, including
same-property NOI, as an operating measure. NOI is defined as total property
revenues, including unconsolidated partnerships and joint ventures, less total
property operating expenses (such items as repairs and maintenance, payroll,
utilities, property taxes, insurance and advertising). The company believes
that in order to facilitate a clear understanding of its operating results,
NOI should be examined in conjunction with (loss) income from continuing
operations as presented in the company’s consolidated financial statements.
The company also 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. This
measure is particularly useful, in the opinion of the company, in evaluating
the performance of geographic operations, same-property groupings and
individual properties. Additionally, the company believes that NOI is a widely
accepted measure of comparative operating performance in the real estate
investment community. The company believes that the line on its consolidated
statements of income entitled "(loss) income from continuing operations" is
the most directly comparable GAAP measure to NOI. In addition to company
management evaluating the operating performance of its reportable segments
based on NOI results, management uses NOI, along with other measures, to
assess performance in connection with evaluating and granting incentive
compensation to key employees.

The company's method of calculating FFO and NOI may be different from methods
used by other REITs and, accordingly, may not be comparable to such other
REITs. FFO and NOI should not be considered (1) as an alternative to net
income (determined in accordance with GAAP), (2) as an indicator of financial
performance, (3) as cash flow from operating activities (determined in
accordance with GAAP) or (4) as a measure of liquidity, nor is it indicative
of sufficient cash flow to fund all of the company’s needs, including the
company’s ability to make distributions.

Safe Harbor Statement

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of
1995: Estimates of future earnings are, by definition, and certain other
statements in this press release, including statements regarding future
dispositions and developments, development costs, operating performance
outlook, the outcome of litigation, and other business fundamentals, may
constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve known and unknown risks,
uncertainties and other factors that may cause the company’s actual results,
performance, achievements or transactions to be materially different from the
results, performance, achievements or transactions expressed or implied by the
forward looking statements. Factors that impact such forward looking
statements include, among others, changes in national, regional and local
economic conditions, which may be negatively impacted by concerns about
inflation, deflation, government deficits (including the European sovereign
debt crisis), high unemployment rates, decreased consumer confidence and
liquidity concerns, particularly in markets in which we have a high
concentration of properties; exposure, as a multifamily REIT, to risks
inherent in investments in a single industry; ability to obtain financing on
favorable rates, if at all; performance of affiliates or companies in which we
have made investments; changes in operating costs; higher than expected
construction costs; uncertainties associated with the timing and amount of
real estate disposition and the resulting gains/losses associated with such
dispositions; legislative or regulatory decisions; the company’s ability to
continue to maintain our status as a REIT for federal income tax purposes;
price volatility, dislocations and liquidity disruptions in the financial
markets and the resulting impact on availability of financing; the effect of
any rating agency action on the cost and availability of new debt financings;
level and volatility of interest rates or capital market conditions; effect of
any terrorist activity or other heightened geopolitical crisis; or other
factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the company
assumes no responsibility to update the information in this press release.

The company refers you to the documents filed by the company from time to time
with the Securities and Exchange Commission, specifically the section titled
“Risk Factors” in the company’s Annual Report on Form 10-K for the year ended
December31, 2011, as may be updated or supplemented in the company’s Form
10-Q filings, which discuss these and other factors that could adversely
affect the company’s results.


COLONIAL PROPERTIES TRUST
Financial Statements
Fourth Quarter 2012
                                                             
BALANCE SHEET                                                
                                                                
($ in 000s)                                    As of            As of
                                               12/31/2012       12/31/2011
ASSETS
Real Estate Assets
Operating Properties                           $ 3,489,324      $ 3,445,455
Undeveloped Land & Construction in Progress     296,153        306,826    
Total Real Estate, before Depreciation           3,785,477        3,752,281
                                                                
Less: Accumulated Depreciation                   (804,964   )     (731,894   )
Real Estate Assets Held for Sale, net           93,450         10,543     
                                                                
Net Real Estate Assets                           3,073,963        3,030,930
                                                                
Cash and Equivalents                             11,674           6,452
Restricted Cash                                  38,128           43,489
Accounts Receivable, net                         23,977           26,762
Notes Receivable                                 42,399           43,787
Prepaid Expenses                                 19,460           19,912
Deferred Debt and Lease Costs                    23,938           22,408
Investment in Unconsolidated Subsidiaries        7,777            12,303
Other Assets                                    44,892         52,562     
                                                                
Total Assets                                   $ 3,286,208     $ 3,258,605  
                                                                
LIABILITIES
Unsecured Credit Facility                      $ 188,631        $ 184,000
Notes and Mortgages Payable                     1,643,361      1,575,727  
Total Debt                                       1,831,992        1,759,727
                                                                
Accounts Payable                                 53,545           50,266
Accrued Interest                                 10,209           11,923
Accrued Expenses                                 28,952           15,731
Investment in Unconsolidated Subsidiaries        -                31,577
Other Liabilities                               36,751         25,208     
Total Liabilities                               1,961,449      1,894,432  
                                                                
Redeemable Common Units                          162,150          159,582
                                                                
EQUITY
Limited Partner's Noncontrolling Interest        695              728
                                                                
Cumulative Earnings                              1,287,863        1,267,958
Cumulative Distributions                         (1,926,167 )     (1,862,838 )
Common Equity, including Additional Paid-in      1,975,393        1,965,812
Capital
Treasury Shares, at Cost                         (150,163   )     (150,163   )
Accumulated Other Comprehensive Loss            (25,012    )    (16,906    )
Total Equity, including Noncontrolling          1,162,609      1,204,591  
Interest
                                                                
Total Liabilities and Equity                   $ 3,286,208     $ 3,258,605  
                                                                
SHARES & UNITS OUTSTANDING, END OF PERIOD                    
                                                                
(shares and units in 000s)                     As of            As of
                                               12/31/2012       12/31/2011
Basic
Shares                                           88,212           87,474
Operating Partnership Units (OP Units)          7,153          7,169      
Total Shares & OP Units                          95,365           94,643
                                                                             

                                                              
COLONIAL PROPERTIES TRUST
Financial Statements
Fourth Quarter 2012
                                                                   
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                   
($ in 000s, except per   Three Months Ended          Twelve Months Ended
share data)
                         12/31/2012    12/31/2011    12/31/2012    12/31/2011
Revenue
Minimum Rent             $ 83,061      $ 75,964      $ 320,489     $ 287,667
Tenant Recoveries          2,252         2,430         9,574         9,329
Other Property Related     16,076        12,829        57,769        48,346
Revenue
Other Non-Property        1,622       2,097       5,712       8,047   
Related Revenue
Total Revenues             103,011       93,320        393,544       353,389
                                                                   
Operating Expenses
Operating Expenses:
Property Operating         27,766        24,950        107,657       98,108
Expenses
Taxes, Licenses and       11,740      10,410      44,413      40,039  
Insurance
Total Property             39,506        35,360        152,070       138,147
Operating Expenses
                                                                   
Property Management        3,773         2,187         12,858        9,185
Expense
General and                5,507         4,844         22,615        20,439
Administrative Expense
Management Fee and         1,092         2,386         6,298         8,067
Other Expenses
Restructuring Charges      1,848         153           1,848         153
Investment and
Development Expenses       653           344           1,285         1,781
(1)
Depreciation               32,259        29,085        120,993       113,475
Amortization               1,425         1,804         6,122         7,446
Impairment and Other      8,621       3,392       13,313      5,736   
Losses (2)
Total Operating           94,684      79,555      337,402     304,429 
Expenses
Income from Operations     8,327         13,765        56,142        48,960
                                                                   
Other Income (Expense)
Interest Expense           (22,718 )     (22,991 )     (92,085 )     (86,573 )
Debt Cost Amortization     (1,412  )     (1,252  )     (5,697  )     (4,767  )
Interest Income            493           276           2,569         1,521
Income from
Partially-Owned            10,358        18,588        31,862        17,497
Investments
(Loss) Gain on Sale of     (4,212  )     96            (4,306  )     115
Property (3)
Income Tax and Other      (218    )    (132    )    (907    )    (872    )
Total Other Income        (17,709 )    (5,415  )    (68,564 )    (73,079 )
(Expense)
                                                                   
(Loss) Income from         (9,382  )     8,350         (12,422 )     (24,119 )
Continuing Operations
                                                                   
Discontinued
Operations
Income from
Discontinued               3,900         1,121         11,258        6,565
Operations
Gain on Disposal of
Discontinued              22,743      58          22,729      23,733  
Operations
Net Income from
Discontinued             26,643      1,179       33,987      30,298  
Operations
                                                                   
Net Income                17,261      9,529       21,565      6,179   
                                                                   
Noncontrolling
Interest
Continuing Operations
Noncontrolling
Interest of Limited        (14     )     (6      )     (43     )     (53     )
Partners
Noncontrolling
Interest in CRLP -         -             (867    )     -             (3,586  )
Preferred
Noncontrolling
Interest in CRLP -         705           (658    )     938           2,094
Common
Discontinued
Operations
Noncontrolling
Interest in CRLP -        (1,998  )    (90     )    (2,555  )    (2,387  )
Common
Income Attributable to
Noncontrolling            (1,307  )    (1,621  )    (1,660  )    (3,932  )
Interest
Net Income
Attributable to Parent   $ 15,954     $ 7,908      $ 19,905     $ 2,247   
Company
                                                                   
Preferred Unit             -             2,500         -             2,500
Repurchase Gains
Preferred Share/Unit      -           (1,319  )    -           (1,319  )
Issuance Costs
Net Income Available     $ 15,954     $ 9,089      $ 19,905     $ 3,428   
to Common Shareholders
                                                                   

                                                             
COLONIAL PROPERTIES TRUST

Financial Statements

Fourth Quarter 2012

CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
                   Three Months Ended             Twelve Months Ended
                   12/31/2012       12/31/2011    12/31/2012       12/31/2011
Income (Loss)
per Share -
Basic
Continuing         $  (0.10   )     $  0.09       $  (0.14   )     $  (0.30  )
Operations
Discontinued         0.28           0.01         0.36           0.34   
Operations
EPS - Basic        $  0.18         $  0.10       $  0.22         $  0.04   
                                                                   
Income (Loss)
per Share -
Diluted
Continuing         $  (0.10   )     $  0.09       $  (0.14   )     $  (0.30  )
Operations
Discontinued         0.28           0.01         0.36           0.34   
Operations
EPS - Diluted      $  0.18         $  0.10       $  0.22         $  0.04   
                                                                   
(1) Reflects costs incurred related to acquisitions and abandoned pursuits.
These costs are volatile and therefore may vary between periods.
(2) For the three months ended December 31, 2012, the Company recorded a $4.9
million charge for a loss contingency related to certain litigation, a $3.3
million non-cash impairment charge related to for-sale residential land and a
$0.4 million casualty loss due to property damage caused by a fire at one of
the Company's multifamily apartment communities. In addition, during the
twelve months ended December 31, 2012, the Company recorded a $0.9 million
charge related to warranty claims on for-sale residential units previously
sold, a $3.3 million non-cash impairment charge on one of the Company's
commercial assets and a $0.4 million non-cash impairment charge related to a
joint venture investment consisting of undeveloped land. For the three months
ended December 31, 2011, the Company recorded a $3.3 million charge for a loss
contingency related to certain litigation. In addition to these charges, for
the twelve months ended December 31, 2011, the Company recorded a $1.5 million
charge for a loss contingency related to certain litigation, $0.7 million in
casualty losses as a result of property damage at eight multifamily apartment
communities and $0.2 million in non-cash impairment charges related to various
for-sale project and land outparcel transactions.
(3) Amounts presented in 2012 include $4.1 million of infrastructure costs for
a commercial development previously sold. This liability was recorded as a
reduction of gains previously recognized on the sale.
                                                                   
SHARES AND UNITS OUTSTANDING, WEIGHTED
(shares and        Three Months Ended             Twelve Months Ended
units in 000s)
                   12/31/2012       12/31/2011    12/31/2012       12/31/2011
                                                                   
Basic
Shares                87,454           86,769        87,251           84,142
Operating
Partnership          7,153          7,191        7,159          7,247  
Units (OP
Units)
Total Shares &        94,607           93,960        94,410           91,389
OP Units
                                                                   
Dilutive
Common Share          -                241           -                -
Equivalents
                                                                   
Diluted (1)
Shares                87,454           87,010        87,251           84,142
Total Shares &        94,607           94,201        94,410           91,389
OP Units
                                                                   
(1) For periods where the Company reported a net loss from continuing
operations (after preferred dividends), the effect of dilutive shares has been
excluded from per share computations as including such shares would be
anti-dilutive.


                                                              
COLONIAL PROPERTIES TRUST

Financial Statements

Fourth Quarter 2012
                                                                   
FUNDS FROM OPERATIONS (FFO) RECONCILIATION
                                                                   
($ in 000s,
except per         Three Months Ended                Twelve Months Ended
share data)
                   12/31/2012        12/31/2011      12/31/2012    12/31/2011
Net Income
Available to       $  15,954         $  9,089        $ 19,905      $ 3,428
Common
Shareholders
Noncontrolling
Interest in
CRLP (Operating      1,293           748          1,617       293     
Partnership
Unitholders)
Total                 17,247            9,837          21,522        3,721
                                                                   
Adjustments -
Consolidated
Properties
Depreciation -        32,099            31,531         126,222       126,696
Real Estate
Amortization -        1,466             2,047          6,613         8,306
Real Estate
Impairment on
Depreciable           -                 -              3,251         -
Asset
Remove:
(Gain)/Loss on
Sale of
Property, net
of Income Tax
and
Noncontrolling        (18,530  )        (154     )     (18,423 )     (23,849 )
Interest
Include:
Gain/(Loss) on
Sale of
Undepreciated
Property, net
of Income Tax
and
Noncontrolling       (4,212   )       96           (4,339  )    102     
Interest
Total
Adjustments -         10,823            33,520         113,324       111,255
Consolidated
                                                                   
Adjustments -
Unconsolidated
Properties
Depreciation -        240               1,524          2,699         6,451
Real Estate
Amortization -        59                459            843           2,822
Real Estate
Remove:
(Gain)/Loss on       (10,102  )       (18,787  )    (32,501 )    (18,765 )
Sale of
Property
Total
Adjustments -        (9,803   )       (16,804  )    (28,959 )    (9,492  )
Unconsolidated
                                                                   
Funds from         $  18,267        $  26,553      $ 105,887    $ 105,484 
Operations
                                                                   
Income
Allocated to         (135     )       (179     )    (817    )    (772    )
Participating
Securities
Funds from
Operations
Available to
Common
Shareholders
and Unitholders    $  18,132        $  26,374      $ 105,070    $ 104,712 
                                                           
FFO per Share
Basic              $  0.19           $  0.28         $ 1.11        $ 1.15
Diluted            $  0.19           $  0.28         $ 1.11        $ 1.15
                                                                   
FFO, as defined by the National Association of Real Estate Investment Trusts
(NAREIT), means income (loss) before noncontrolling interest (determined in
accordance with GAAP), excluding gains (losses) from sales of depreciated
property and impairment write-downs of depreciable real estate, plus real
estate depreciation and amortization and after adjustments for unconsolidated
partnerships and joint ventures. FFO is presented to assist investors in
analyzing the Company's performance. The Company believes that FFO is useful
to investors because it provides an additional indicator of the Company's
financial and operating performance. This is because, by excluding the effect
of real estate depreciation and amortization, gains (or losses) from sales of
properties and impairment write-downs of depreciable real estate (all of which
are based on historical costs which may be of limited relevance in evaluating
current performance), FFO can facilitate comparison of operating performance
among equity REITs. FFO is a widely recognized measure in the Company's
industry.
                                                                   
The Company's method of calculating FFO and Operating FFO may be different
from methods used by other REITs and, accordingly, may not be comparable to
such other REITs. Neither FFO nor Operating FFO should be considered (1) as an
alternative to net income (determined in accordance with GAAP), (2) as an
indicator of financial performance, (3) as cash flow from operating activities
(determined in accordance with GAAP) or (4) as a measure of liquidity nor is
it indicative of sufficient cash flow to fund all of our needs, including our
ability to make distributions.



COLONIAL PROPERTIES TRUST
Corporate Reconciliations
($ in 000s)
                                                             
RECONCILIATION                                             
OF REVENUES
                                                                  
                   Three Months Ended              Twelve Months Ended
                   12/31/2012        12/31/2011    12/31/2012     12/31/2011
Divisional
Total Revenues
Multifamily -      $  79,277         $ 75,252      $ 310,859      $ 294,800
Same Property
Multifamily -
Non-Same              17,060           10,249        56,771         41,247
Property (1)
Commercial           13,003         19,401      62,084       77,850   
Total
Divisional            109,340          104,902       429,714        413,897
Revenues
                                                                  
Less:
Unconsolidated        (291     )       (459    )     (1,731   )     (2,336   )
Revenues -
Multifamily
Less:
Unconsolidated        (1,148   )       (6,129  )     (11,500  )     (26,046  )
Revenues -
Commercial
Discontinued          (6,512   )       (7,091  )     (28,651  )     (40,173  )
Operations
Unallocated
Corporate            1,622          2,097       5,712        8,047    
Revenues
Consolidated
Revenue
Adjusted -'11        103,011        93,320      393,544      353,389  
Discontinued
Operations (2)
Add: Additional
Discontinued
Operations           -              7,048       -            27,921   
Revenue, post
filing (3)
Total
Consolidated       $  103,011       $ 100,368    $ 393,544     $ 381,310  
Revenue, per
10-Q/10-K (4)
                                                                  
RECONCILIATION                                             
OF EXPENSES
                                                                  
                   12/31/2012        12/31/2011    12/31/2012     12/31/2011
Divisional
Total Expenses
Multifamily -      $  30,470         $ 29,491      $ 121,990      $ 119,247
Same Property
Multifamily -
Non-Same              7,811            5,080         25,704         20,756
Property (1)
Commercial           4,315          6,218       20,483       25,076   
Total
Divisional            42,596           40,789        168,177        165,079
Expenses
                                                                  
Less:
Unconsolidated        (135     )       (211    )     (807     )     (1,153   )
Expenses -
Multifamily
Less:
Unconsolidated        (340     )       (2,147  )     (4,160   )     (8,728   )
Expenses -
Commercial
Discontinued         (2,615   )      (3,071  )    (11,140  )    (17,051  )
Operations
Total Property
Operating             39,506           35,360        152,070        138,147
Expenses
Property
Management            3,773            2,187         12,858         9,185
Expense
General and
Administrative        5,507            4,844         22,615         20,439
Expense
Management Fee
and Other             1,092            2,386         6,298          8,067
Expenses
Restructuring         1,848           153          1,848         153
Charges
Investment and
Development           653              344           1,285          1,781
Expenses (5)
Impairment and        8,621            3,392         13,313         5,736
Other Losses
Depreciation          32,259           29,085        120,993        113,475
Amortization         1,425          1,804       6,122        7,446    
Consolidated
Expense
Adjusted -'11        94,684         79,555      337,402      304,429  
Discontinued
Operations (2)
Add: Additional
Discontinued
Operations           -              5,316       -            21,376   
Expense, post
filing (3)
Total
Consolidated       $  94,684        $ 84,871     $ 337,402     $ 325,805  
Expense, per
10-Q/10-K (4)
                                                                  
RECONCILIATION                                             
OF NOI
                                                                  
                   12/31/2012        12/31/2011    12/31/2012     12/31/2011
Divisional
Total NOI
Multifamily -      $  48,807         $ 45,761      $ 188,869      $ 175,553
Same Property
Multifamily -
Non-Same              9,249            5,169         31,067         20,491
Property (1)
Commercial           8,688          13,183      41,601       52,774   
Total                 66,744           64,113        261,537        248,818
Divisional NOI
                                                                  
Less:
Unconsolidated        (156     )       (248    )     (924     )     (1,183   )
NOI -
Multifamily
Less:
Unconsolidated        (808     )       (3,982  )     (7,340   )     (17,318  )
NOI -
Commercial
Discontinued          (3,897   )       (4,020  )     (17,511  )     (23,122  )
Operations
Unallocated
Corporate             1,622            2,097         5,712          8,047
Revenues
Property
Management            (3,773   )       (2,187  )     (12,858  )     (9,185   )
Expense
General and
Administrative        (5,507   )       (4,844  )     (22,615  )     (20,439  )
Expense
Management Fee
and Other             (1,092   )       (2,386  )     (6,298   )     (8,067   )
Expenses
Restructuring         (1,848   )       (153    )     (1,848   )     (153     )
charges
Investment and
Development           (653     )       (344    )     (1,285   )     (1,781   )
Expenses (5)
Impairment and        (8,621   )       (3,392  )     (13,313  )     (5,736   )
Other Losses
Depreciation          (32,259  )       (29,085 )     (120,993 )     (113,475 )
Amortization         (1,425   )      (1,804  )    (6,122   )    (7,446   )
Income from           8,327            13,765        56,142         48,960
Operations
Total Other
Income               (17,709  )      (5,415  )    (68,564  )    (73,079  )
(Expense)
(Loss) Income
from Continuing      (9,382   )      8,350       (12,422  )    (24,119  )
Operations (6)
Discontinued         -              1,735       -            6,527    
Operations
(Loss) Income
from Continuing    $  (9,382   )     $ 10,085     $ (12,422  )   $ (17,592  )
Operations, per
10-Q/10-K (4)
                                                                  
(1) Includes operations from for-sale portfolio.
(2) Reflects total consolidated revenue and total consolidated expense (as
applicable), adjusted to reflect discontinued operations classifications made
after filing of prior period financials.
(3) Adjustment to prior period financials to reflect discontinued operations
classifications made after filing of prior period financials.
(4) For prior period, reflects total consolidated revenue, expense or income
(loss) from continuing operations (as applicable) as presented in prior period
financials (i.e., excluding adjustment for discontinued operations
classifications made after filing of prior period financials).
(5) Reflects costs incurred related to acquisitions and abandoned pursuits.
These costs are volatile and therefore may vary between periods.
(6) (Loss) Income from Continuing Operations before extraordinary items,
noncontrolling interest and discontinued operations. Adjustments for
additional discontinued operations have restated periods in accordance with
ASC 205-20.


Contact:

Colonial Properties Trust
Jerry A. Brewer, 1-800-645-3917
Executive Vice President, Finance
 
Press spacebar to pause and continue. Press esc to stop.