Post Reports 1Q Loss

Amidst an ongoing fight for control of the company, Atlanta-based Post Properties has reported a net loss of $23.5 million ($0.63 per share) for the first quarter, compared with net income of $14.2 million ($0.38 per share) a year earlier.Dave Stockert, Post's chief executive officer, said the real estate investment trust has cut costs in the past year and brought "Post's development exposure to a level consistent with current market conditions." Post is also selling older assets in its "most concentrated markets" and exiting some single-asset markets. In a related teleconference, Post said a shareholder lawsuit alleging a breach of fiduciary duty by the directors of the company (including ex-CEO John Williams) is not likely to affect its results. Post said in a news release that such litigation is "routine during hostile proxy contests" and is expected to be resolved in due course. Mr. Williams, who initiated the proxy fight, has sent a letter to the Post board in which he alleges that directors John Glover and Barry Teague, who have significant holdings in Post partnership units, were part of a group of directors who refused to consider an all-cash offer for the company. Mr. Williams has pledged to vote all his shares and partnership units, if such an offer is approved by an independent special committee of the board, regardless of the tax consequences to himself.