<PAGE>   1


================================================================================


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                            -------------------------

                                    FORM 10-Q
           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1998

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   For the transition period from      to
                   Commission file numbers 1-12080 and 0-28226

                            ------------------------

                              POST PROPERTIES, INC.
                           POST APARTMENT HOMES, L.P.
             (Exact name of registrant as specified in its charter)

                  GEORGIA                                 58-1550675
                  GEORGIA                                 58-2053632
       (State or other jurisdiction                    (I.R.S. Employer
     of incorporation or organization)                Identification No.)

           3350 CUMBERLAND CIRCLE, SUITE 2200, ATLANTA, GEORGIA 30339
              (Address of principal executive offices -- zip code)

                                 (770) 850-4400
              (Registrant's telephone number, including area code)

                                       N/A
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrants (1) have filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) have been subject to such
filing requirements for the past 90 days.

Post Properties, Inc.                 Yes   X   No
                                           ---      ---
Post Apartment Homes, L.P.            Yes   X   No
                                           ---      ---

                            ------------------------

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.

       35,493,140 shares of common stock outstanding as of May 11, 1998.

================================================================================

<PAGE>   2




                              POST PROPERTIES, INC.
                           POST APARTMENT HOMES, L.P.

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>      <C>                                                                                         <C>
PART I   FINANCIAL INFORMATION

         ITEM 1  FINANCIAL STATEMENTS

         POST PROPERTIES, INC.
                Consolidated Balance Sheets as of March 31, 1998 and December 31, 1997................3
                Consolidated Statements of Operations for the three months ended
                       March 31, 1998 and 1997........................................................4
                Consolidated Statement of Shareholders' Equity and Accumulated Earnings for the
                       three months ended March 31, 1998..............................................5
                Consolidated Statements of Cash Flows for the three months ended
                       March 31, 1998 and 1997........................................................6
                Notes to Consolidated Financial Statements............................................7

         POST APARTMENT HOMES, L.P.
                Consolidated Balance Sheets as of March 31, 1998 and December 31, 1997...............10
                Consolidated Statements of Operations for the three months ended
                       March 31, 1998 and 1997.......................................................11
                Consolidated Statement of Partners' Equity for the three months ended
                       March 31, 1998................................................................12
                Consolidated Statements of Cash Flows for the three months ended
                       March 31, 1998 and 1997.......................................................13
                Notes to Consolidated Financial Statements ..........................................14

         ITEM 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                  OPERATIONS.........................................................................17

PART II  OTHER INFORMATION
         ITEM 6   EXHIBITS AND REPORTS ON FORM 8-K...................................................32

         SIGNATURES..................................................................................33
</TABLE>






<PAGE>   3



                              POST PROPERTIES, INC.
                           CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                       MARCH 31,      DECEMBER 31,
                                                                                         1998             1997
                                                                                      ----------      ------------
                                                                                      (UNAUDITED)
<S>                                                                                   <C>             <C>       
ASSETS
     Real estate:
         Land ..................................................................      $  233,595       $  234,011
         Building and improvements .............................................       1,255,607        1,255,118
         Furniture, fixtures and equipment .....................................          90,979           89,251
         Construction in progress ..............................................         427,222          342,071
         Land held for future development ......................................           3,544           15,560
                                                                                      ----------       ----------
                                                                                       2,010,947        1,936,011
     Less: accumulated depreciation ............................................        (211,658)        (201,095)
                                                                                      ----------       ----------
         Real estate assets ....................................................       1,799,289        1,734,916
     Cash and cash equivalents .................................................          14,430           10,879
     Restricted cash ...........................................................             951            1,542
     Deferred charges, net .....................................................          15,506           12,629
     Other assets ..............................................................          16,589           20,597
                                                                                      ----------       ----------
         Total assets ..........................................................      $1,846,765       $1,780,563
                                                                                      ==========       ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
     Notes payable .............................................................      $  709,435       $  821,209
     Accrued interest payable ..................................................          10,464            7,505
     Dividends and distributions payable .......................................          28,207           21,327
     Accounts payable and accrued expenses .....................................          47,563           53,101
     Security deposits and prepaid rents .......................................           8,372            8,117
                                                                                      ----------       ----------
         Total liabilities .....................................................         804,041          911,259
                                                                                      ----------       ----------
     Minority interest of unitholders in Operating Partnership .................         118,654          112,384
                                                                                      ----------       ----------
     Commitments and contingencies
     Shareholders' equity
         Preferred stock, $.01 par value, 20,000,000 authorized: 8 1/2% Series A
              Cumulative Redeemable Shares, liquidation preference $50 per
              share, 1,000,000 shares issued and outstanding ...................              10               10
              7 5/8% Series B Cumulative Redeemable Shares, liquidation
              preference $25 per share, 2,000,000 shares issued and
              outstanding ......................................................              20               20
              7 5/8% Series C Cumulative Redeemable Shares, liquidation
              preference $25 per share, 2,000,000 shares issued and
              outstanding ......................................................              20               --
         Common stock, $.01 par value, 100,000,000 authorized,
              34,231,989 and 30,626,592 shares issued and outstanding at
              March 31, 1998 and December 31, 1997, respectively ...............             342              306
     Additional paid-in capital ................................................         923,678          756,584
     Accumulated earnings ......................................................              --               --
                                                                                      ----------       ----------
         Total shareholders' equity ............................................         924,070          756,920
                                                                                      ----------       ----------
         Total liabilities and shareholders' equity ............................      $1,846,765       $1,780,563
                                                                                      ==========       ==========
</TABLE>


        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                      - 3 -

<PAGE>   4




                              POST PROPERTIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED
                                                                             MARCH 31,
                                                                   -----------------------------
                                                                      1998               1997
                                                                   -----------       -----------
<S>                                                                <C>               <C>        
REVENUES
     Rental .................................................      $    64,053       $    41,581
     Property management - third party ......................              737               569
     Landscape services - third party .......................            1,326             1,054
     Interest ...............................................              126                 7
     Other ..................................................            2,720             1,355
                                                                   -----------       -----------
         Total revenues .....................................           68,962            44,566
                                                                   -----------       -----------
EXPENSES
     Property operating and maintenance (exclusive of                      
         items shown separately below) ......................           23,130            15,201
     Depreciation (real estate assets) ......................           10,415             6,137
     Depreciation (non-real estate assets) ..................              345               242
     Property management - third party ......................              584               420
     Landscape services - third party .......................            1,273               901
     Interest ...............................................            8,349             5,361
     Amortization of deferred loan costs ....................              264               302
     General and administrative .............................            2,233             1,846
     Minority interest in consolidated property partnership .               59                --
                                                                   -----------       -----------
         Total expenses .....................................           46,652            30,410
                                                                   -----------       -----------
     Income before loss on unused treasury locks, minority   
         interest of unitholders in Operating Partnership and
         extraordinary item .................................           22,310            14,156
     Loss on unused treasury locks ..........................           (1,944)               --
     Minority interest of unitholders in 
         Operating Partnership ..............................           (2,510)           (2,515)
                                                                   -----------       -----------
     Income before extraordinary item .......................           17,856            11,641
Extraordinary item, net of minority interest of 
     unitholders in Operating Partnership ...................               --               (75)
                                                                   -----------       -----------
         Net income .........................................           17,856            11,566
         Dividend to preferred shareholders .................           (2,566)           (1,063)
                                                                   -----------       -----------
         Net income available to common shareholders ........      $    15,290       $    10,503
                                                                   ===========       ===========
EARNINGS PER COMMON SHARE - BASIC
Income before extraordinary item (net of preferred dividend)       $      0.48       $      0.48
Extraordinary item ..........................................               --                --
                                                                   -----------       -----------
Net income available to common shareholders .................      $      0.48       $      0.48
                                                                   ===========       ===========
Weighted average common shares outstanding ..................       31,762,278        21,949,107
                                                                   ===========       ===========
EARNINGS PER COMMON SHARE - DILUTED
Income before extraordinary item (net of preferred dividend)       $      0.47       $      0.48
Extraordinary item ..........................................               --             (0.01)
                                                                   -----------       -----------
Net income available to common shareholders .................      $      0.47       $      0.47
                                                                   ===========       ===========
Weighted average common shares outstanding ..................       32,217,089        22,136,234
                                                                   ===========       ===========
Dividends declared ..........................................      $      0.65       $     0.595
                                                                   ===========       ===========
</TABLE>

        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                      - 4 -

<PAGE>   5



                              POST PROPERTIES, INC.
               CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND
                              ACCUMULATED EARNINGS
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                      ADDITIONAL
                                                             PREFERRED    COMMON        PAID-IN         ACCUMULATED
                                                              SHARES      SHARES        CAPITAL          EARNINGS           TOTAL
                                                             ---------    ------      ----------        -----------       ---------
<S>                                                          <C>          <C>         <C>               <C>               <C>      
SHAREHOLDERS' EQUITY AND ACCUMULATED
   EARNINGS, DECEMBER 31, 1997 .........................        $30        $306        $ 756,584         $     --         $ 756,920
       Proceeds from Dividend Reinvestment and
            Employee Stock Purchase Plans ..............         --           1            3,798               --             3,799
       Proceeds from sale of common shares, net
            of underwriting discount and offering
            costs of $7,321 ............................         --          35          129,144               --           129,179
       Proceeds from sale of preferred shares, net
            of underwriting discount and offering
            costs of $1,716 ............................         20          --           48,264               --            48,284
       Adjustment for minority interest of unitholders
            in Operating Partnership at dates of capital
            transactions ...............................         --          --           (7,151)              --            (7,151)
       Net income ......................................         --          --               --           17,856            17,856
       Dividends to preferred shareholders .............         --          --               --           (2,566)           (2,566)
       Dividends to common shareholders ................         --          --           (6,961)         (15,290)          (22,251)
                                                                ---        ----        ---------         --------         ---------
SHAREHOLDERS' EQUITY AND ACCUMULATED
   EARNINGS, MARCH 31, 1998 ............................        $50        $342        $ 923,678         $     --         $ 924,070
                                                                ===        ====        =========         ========         =========
</TABLE>


        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                      - 5 -

<PAGE>   6



                              POST PROPERTIES, INC
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                          THREE MONTHS ENDED
                                                                                                               MARCH 31,
                                                                                                     ---------------------------
                                                                                                        1998              1997
                                                                                                     ---------         ---------
<S>                                                                                                  <C>               <C>      
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................................................        $  17,856         $  11,566
     Adjustments to reconcile net income to net cash provided by operating activities:
         Loss on unused treasury locks ......................................................            1,944                --
         Minority interest of unitholders in Operating Partnership ..........................            2,510             2,515
         Extraordinary item, net of minority interest of unitholders in Operating Partnership               --                75
         Depreciation .......................................................................           10,760             6,379
         Amortization of deferred loan costs ................................................              264               302
         Other ..............................................................................              (53)               --
     Changes in assets, (increase) decrease in:
         Restricted cash ....................................................................              591                37
         Other assets .......................................................................            4,008             6,558
         Deferred charges ...................................................................           (2,520)             (117)
     Changes in liabilities, increase (decrease) in:
         Accrued interest payable ...........................................................            2,959             3,283
         Accounts payable and accrued expenses ..............................................           (4,677)            2,551
         Security deposits and prepaid rents ................................................              255                73
                                                                                                     ---------         ---------
     Net cash provided by operating activities ..............................................           33,897            33,222
                                                                                                     ---------         ---------
CASH FLOWS FROM INVESTING ACTIVITIES
     Construction and acquisition of real estate assets, net of payables ....................          (65,513)          (40,960)
     Capitalized interest ...................................................................           (3,756)           (1,829)
     Recurring capital expenditures .........................................................           (1,152)             (704)
     Corporate additions and improvements ...................................................             (880)             (444)
     Non-recurring capital expenditures .....................................................             (253)             (374)
     Revenue generating capital expenditures ................................................           (3,289)           (1,050)
                                                                                                     ---------         ---------
     Net cash (used in) investing activities ................................................          (74,843)          (45,361)
                                                                                                     ---------         ---------
CASH FLOWS FROM FINANCING ACTIVITIES
     Payment of financing costs .............................................................           (1,944)              (92)
     Debt proceeds ..........................................................................          241,332            86,440
     Proceeds from sale of notes ............................................................          100,000            80,000
     Proceeds from issuance of preferred shares .............................................           48,284                --
     Proceeds from issuance of common shares ................................................          129,179                --
     Debt payments ..........................................................................         (453,106)         (136,033)
     Distributions to unitholders ...........................................................           (3,104)           (2,822)
     Proceeds from Dividend Reinvestment and Employee Stock Purchase Plans ..................            3,796               986
     Dividends paid to preferred shareholders ...............................................           (1,719)           (1,063)
     Dividends paid to common shareholders ..................................................          (18,221)          (11,838)
                                                                                                     ---------         ---------
     Net cash provided by financing activities ..............................................           44,497            15,578
                                                                                                     ---------         ---------
     Net increase in cash and cash equivalents ..............................................            3,551             3,439
     Cash and cash equivalents, beginning of period .........................................           10,879               233
                                                                                                     ---------         ---------
     Cash and cash equivalents, end of period ...............................................        $  14,430         $   3,672
                                                                                                     =========         =========
</TABLE>

        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                      - 6 -

<PAGE>   7


POST PROPERTIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

1.       ORGANIZATION AND FORMATION OF THE COMPANY

         ORGANIZATION AND FORMATION OF THE COMPANY
         Post Properties, Inc. (the "Company"), which was incorporated on
         January 25, 1984, is the successor by merger to the original Post
         Properties, Inc., a Georgia Corporation which was formed in 1971. The
         Company was formed to develop, lease and manage upscale multi-family
         apartment communities.

         The Company elected to be taxed as a real estate investment trust
         ("REIT") for Federal income tax purposes beginning with the taxable
         year ended December 31, 1993. A REIT is a legal entity which holds real
         estate interests and, through payments of dividends to shareholders, in
         practical effect is not subject to Federal income taxes at the
         corporate level.

         BASIS OF PRESENTATION
         The accompanying unaudited financial statements have been prepared by
         the Company's management in accordance with generally accepted
         accounting principles for interim financial information and applicable
         rules and regulations of the Securities and Exchange Commission.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         (consisting only of normally recurring adjustments) considered
         necessary for a fair presentation have been included. The results of
         operations for the three month period ended March 31, 1998 are not
         necessarily indicative of the results that may be expected for the full
         year. These financial statements should be read in conjunction with the
         Company's audited financial statements and notes thereto included in
         the Post Properties, Inc. Annual Report on Form 10-K for the year ended
         December 31, 1997.

2.       NOTES PAYABLE

         The Operating Partnership has established a program for the sale of up
         to $344,000 aggregate principal amount of Medium-Term Notes due nine
         months or more from date of issue (the "MTN Program"). On March 12,
         1998, the Operating Partnership issued $100,000 of 6.85% Mandatory Par
         Put Remarketed Securities ("MOPPRS") under the MTN Program. The net
         proceeds from the MOPPRS were used to repay outstanding indebtedness.
         In connection with the MOPPRS transaction, Merrill Lynch & Co.
         purchased an option to remarket the securities as of March 16, 2005
         (the "Remarketing Date"). The Operating Partnership will have an
         effective borrowing rate through the Remarketing Date of approximately
         6.59%. In anticipation of the offering, the Operating Partnership
         entered into forward-treasury-lock agreements in the fall of 1997. As a
         result of the termination of these agreements, the effective borrowing
         rate will be approximately 6.85%, the coupon rate on the MOPPRS. As of
         March 31, 1998, the Operating Partnership had $231,000 aggregate
         principal amount of notes outstanding under the MTN Program.

3.       EXTRAORDINARY ITEM

         The extraordinary item for the three months ended March 31, 1997
         resulted from costs associated with the early extinguishment of
         indebtedness. The extraordinary item is net of minority interest of
         unitholders of $18, calculated on the basis of weighted average units
         and shares outstanding for the period.




                                      - 7 -

<PAGE>   8


POST PROPERTIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

4.     EARNINGS PER SHARE

       For the three months ended March 31, 1998 and 1997, basic and diluted
       earnings per common share for income before extraordinary item, net of
       preferred dividends, and net income available to common shareholders
       before extraordinary item has been computed as follows:


<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED
                                                                     MARCH 31, 1998
                                                     ---------------------------------------------
                                                       INCOME             SHARES         PER SHARE
                                                     (NUMERATOR)       (DENOMINATOR)      AMOUNT
                                                     -----------       -------------     ---------
<S>                                                  <C>               <C>               <C>  
Income before extraordinary item ..............        $ 17,856
Less: Preferred stock dividends ...............          (2,566)
                                                       --------
BASIC EPS
Income available to common shareholders
   before extraordinary item ..................          15,290         31,762,278        $0.48
                                                                                          =====
EFFECT OF DILUTIVE SECURITIES
Options .......................................              --            454,811
                                                       --------         ----------
DILUTED EPS
Income available to common shareholders
   plus assumed conversion before extraordinary
   item .......................................        $ 15,290         32,217,089        $0.47
                                                       ========         ==========        =====
</TABLE>



<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED
                                                                     MARCH 31, 1997
                                                     ---------------------------------------------
                                                       INCOME             SHARES         PER SHARE
                                                     (NUMERATOR)       (DENOMINATOR)      AMOUNT
                                                     -----------       -------------     ---------
<S>                                                  <C>               <C>               <C>  
Income before extraordinary item ..............        $ 11,641
Less: Preferred stock dividends ...............          (1,063)
                                                       --------
BASIC EPS
Income available to common shareholders
   before extraordinary item ..................          10,578         21,949,107          $0.48
                                                                                            =====
EFFECT OF DILUTIVE SECURITIES
Options .......................................              --            187,127
                                                       --------         ----------
DILUTED EPS
Income available to common shareholders
   plus assumed conversion before extraordinary
   item .......................................        $ 10,578         22,136,234          $0.48
                                                       ========         ==========          =====
</TABLE>


5.     SUPPLEMENTAL CASH FLOW INFORMATION

         Non-cash investing and financing activities for the three months ended
         March 31, 1998 and 1997 are as follows:

                  (a)      During the three months ended March 31, 1998, holders
                           of eight Units in Post Apartment Homes, L.P. (the
                           "Operating Partnership") exercised their option to
                           convert their units to shares of Common Stock of the
                           Company on a one-for-one basis. The net effect of
                           these conversions and adjustments to minority
                           interest for the dilutive impact of the Common Stock
                           Offering and the Dividend Reinvestment and Employee



                                      - 8 -

<PAGE>   9



POST PROPERTIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

         Stock Purchase Plans was a reclassification increasing minority
         interest and decreasing shareholders' equity in the amount of $7,151
         for the three months ended March 31, 1998.

                  (b)      The Operating Partnership committed to distribute
                           $25,641 and $16,169 for the quarters ended March 31,
                           1998 and 1997, respectively. As a result, the Company
                           declared a dividend of $.65 and $.595 per common
                           share or $22,251 and $13,065 for the quarters ended
                           March 31, 1998 and 1997, respectively. The remaining
                           distributions from the Operating Partnership in the
                           amount of $3,390 and $3,104, respectively, were
                           distributed to minority interest unitholders in the
                           Operating Partnership.

6.       SUBSEQUENT EVENTS

         On April 8, 1998, the Operating Partnership sold $50,000 of Remarketed
         Reset Notes due April 7, 2009. The notes bear an interest rate of LIBOR
         plus the applicable spread for the first year they are outstanding,
         with the spread being reset quarterly. The initial spread is equal to
         .40%. Net proceeds in the amount $49,825 were used to pay down the
         outstanding balance on the Revolver. The Company entered into an
         interest rate swap to hedge the rate for the entire term of the note.

         On April 29, 1998, the Company sold approximately 1.1 million shares of
         its common stock to Merrill Lynch & Co. at a price of $40.5625 per
         share. The shares have been deposited into a registered unit investment
         trust, the Equity Investor Fund Cohen & Steers Realty Majors
         Portfolio(Unit Investment Trust). Net proceeds in the amount of $44,059
         were used to pay down the outstanding balance on the Revolver.




                                      - 9 -

<PAGE>   10


                                        
                           POST APARTMENT HOMES, L.P.
                          CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                        MARCH 31,        DECEMBER 31,
                                                          1998               1997
                                                       ----------        ------------
                                                       (UNAUDITED)
<S>                                                    <C>               <C>       
ASSETS
     Real estate:
         Land .................................        $  233,595         $  234,011
         Building and improvements ............         1,255,607          1,255,118
         Furniture, fixtures and equipment ....            90,979             89,251
         Construction in progress .............           427,222            342,071
         Land held for future development .....             3,544             15,560
                                                       ----------         ----------
                                                        2,010,947          1,936,011
     Less: accumulated depreciation ...........          (211,658)          (201,095)
                                                       ----------         ----------
         Operating real estate assets .........         1,799,289          1,734,916
     Cash and cash equivalents ................            14,430             10,879
     Restricted cash ..........................               951              1,542
     Deferred charges, net ....................            15,506             12,629
     Other assets .............................            16,589             20,597
                                                       ----------         ----------
         Total assets .........................        $1,846,765         $1,780,563
                                                       ----------         ----------
LIABILITIES AND PARTNERS' EQUITY
     Notes payable ............................        $  709,435         $  821,209
     Accrued interest payable .................            10,464              7,505
     Distributions payable ....................            28,207             21,327
     Accounts payable and accrued expenses ....            47,563             53,101
     Security deposits and prepaid rents ......             8,372              8,117
                                                       ----------         ----------
         Total liabilities ....................           804,041            911,259
                                                       ----------         ----------
     Commitments and contingencies
     Partners' equity .........................         1,042,724            869,304
                                                       ----------         ----------
         Total liabilities and partners' equity        $1,846,765         $1,780,563
                                                       ----------         ----------
</TABLE>

        The accompanying notes are an integral part of these consolidated
                              financial statements.




                                     - 10 -

<PAGE>   11



                           POST APARTMENT HOMES, L.P.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  (DOLLARS IN THOUSANDS, EXCEPT PER UNIT DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                      THREE MONTHS ENDED
                                                                                          MARCH 31,
                                                                               -------------------------------
                                                                                   1998                1997
                                                                               -----------         -----------
<S>                                                                            <C>                 <C>        
REVENUES
     Rental ...........................................................        $    64,053         $    41,581
     Property management - third party ................................                737                 569
     Landscape services - third party .................................              1,326               1,054
     Interest .........................................................                126                   7
     Other ............................................................              2,720               1,355
                                                                               -----------         -----------
         Total revenues ...............................................             68,962              44,566
                                                                               -----------         -----------
EXPENSES
     Property operating and maintenance (exclusive of .................             23,130              15,201
         items shown separately below)
     Depreciation (real estate assets) ................................             10,415               6,137
     Depreciation (non-real estate assets) ............................                345                 242
     Property management - third party ................................                584                 420
     Landscape services - third party .................................              1,273                 901
     Interest .........................................................              8,349               5,361
     Amortization of deferred loan costs ..............................                264                 302
     General and administrative .......................................              2,233               1,846
     Minority interest in consolidated property partnership ...........                 59                  --
                                                                               -----------         -----------
         Total expenses ...............................................             46,652              30,410
                                                                               -----------         -----------
     Income before loss on unused treasury locks and extraordinary item             22,310              14,156
     Loss on unused treasury locks ....................................             (1,944)                 --
                                                                               -----------         -----------
     Income before extraordinary item .................................             20,366              14,156
     Extraordinary item ...............................................                 --                 (93)
                                                                               -----------         -----------
         Net income ...................................................             20,366              14,063
         Distributions to preferred unitholders .......................             (2,566)             (1,063)
                                                                               -----------         -----------
         Net income available to common unitholders ...................        $    17,800         $    13,000
                                                                               ===========         ===========
EARNINGS PER COMMON UNIT - BASIC
     Income before extraordinary item (net of preferred distributions)         $      0.48         $      0.48
     Extraordinary item ...............................................                 --                  --
                                                                               -----------         -----------
     Net income available to common unitholders .......................        $      0.48         $      0.48
                                                                               ===========         ===========
     Weighted average common units outstanding ........................         36,977,423          27,167,244
                                                                               ===========         ===========
EARNINGS PER COMMON UNIT - DILUTED
     Income before extraordinary item (net of preferred distributions)         $      0.47         $      0.48
     Extraordinary item ...............................................                 --               (0.01)
                                                                               -----------         -----------
Net income available to common unitholders ............................        $      0.47         $      0.47
                                                                               ===========         ===========
Weighted average common units outstanding .............................         37,432,234          27,354,371
                                                                               ===========         ===========
Distributions declared ................................................        $      0.65         $     0.595
                                                                               ===========         ===========
</TABLE>

        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                     - 11 -

<PAGE>   12



                           POST APARTMENT HOMES, L.P.
                   CONSOLIDATED STATEMENT OF PARTNERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)



<TABLE>
<CAPTION>
                                                                  GENERAL          LIMITED
                                                                  PARTNER          PARTNERS            TOTAL
                                                                  -------         ----------         ----------
<S>                                                               <C>             <C>                <C>       
PARTNERS' EQUITY, DECEMBER 31, 1997 ......................        $ 9,085         $  860,219         $  869,304
       Contributions from the Company related to Dividend                                        
            Reinvestment and Employee Stock Purchase Plans             38              3,761              3,799
       Contributions from the Company related to the sale
            of common shares .............................          1,292            127,887            129,179
       Contributions from the Company related to the sale
            of preferred shares ..........................             --             48,284             48,284
       Distributions to preferred unitholders ............             --             (2,566)            (2,566)
       Distributions to common unitholders ...............           (256)           (25,386)           (25,642)
       Net income ........................................            204             20,162             20,366
                                                                  -------         ----------         ----------
PARTNERS' EQUITY, MARCH 31, 1998 .........................        $10,363         $1,032,361         $1,042,724
                                                                  =======         ==========         ==========
</TABLE>


        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                     - 12 -

<PAGE>   13



                           POST APARTMENT HOMES, L.P.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                   THREE MONTHS ENDED
                                                                                                        MARCH 31,
                                                                                              ---------------------------
                                                                                                1998              1997
                                                                                              ---------         ---------
<S>                                                                                           <C>               <C>      
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ...........................................................................        $  20,366         $  14,063
     Adjustments to reconcile net income to net cash provided by operating activities:
         Loss on unused treasury locks ...............................................            1,944                --
         Extraordinary item ..........................................................               --                93
         Depreciation ................................................................           10,760             6,379
         Amortization of deferred loan costs .........................................              264               302
         Write-off fully amortized assets ............................................              (53)               --
     Changes in assets, (increase) decrease in:
         Restricted cash .............................................................              591                37
         Other assets ................................................................            4,008             6,558
         Deferred charges ............................................................           (2,520)             (117)
     Changes in liabilities, increase (decrease) in:
         Accrued interest payable ....................................................            2,959             3,283
         Accounts payable and accrued expenses .......................................           (4,677)            2,551
         Security deposits and prepaid rents .........................................              255                73
                                                                                              ---------         ---------
     Net cash provided by operating activities .......................................           33,897            33,222
                                                                                              ---------         ---------
CASH FLOWS FROM INVESTING ACTIVITIES
     Construction and acquisition of real estate assets, net of payables .............          (65,513)          (40,960)
     Capitalized interest ............................................................           (3,756)           (1,829)
     Recurring capital expenditures ..................................................           (1,152)             (704)
     Corporate additions and improvements ............................................             (880)             (444)
     Non-recurring capital expenditures ..............................................             (253)             (374)
     Revenue generating capital expenditures .........................................           (3,289)           (1,050)
                                                                                              ---------         ---------
     Net cash (used in) investing activities .........................................          (74,843)          (45,361)
                                                                                              ---------         ---------
CASH FLOWS FROM FINANCING ACTIVITIES

     Payment of financing costs ......................................................           (1,944)              (92)
     Debt proceeds ...................................................................          241,332            86,440
     Proceeds from sale of notes .....................................................          100,000            80,000
     Proceeds from issuance of preferred units .......................................           48,284                --
     Proceeds from issuance of common units ..........................................          129,179                --
     Debt payments ...................................................................         (453,106)         (136,033)
     Proceeds from contributions from PPI related to Dividend Reinvestment
         and Employee Stock Purchase Plans ...........................................            3,796               986
     Distributions paid to preferred unitholders .....................................           (1,719)           (1,063)
     Distributions paid to common unitholders ........................................          (21,325)          (14,660)
                                                                                              ---------         ---------
     Net cash provided by financing activities .......................................           44,497            15,578
                                                                                              ---------         ---------
     Net increase in cash and cash equivalents .......................................            3,551             3,439
     Cash and cash equivalents, beginning of period ..................................           10,879               233
                                                                                              ---------         ---------
     Cash and cash equivalents, end of period ........................................        $  14,430         $   3,672
                                                                                              =========         ---------
</TABLE>

        The accompanying notes are an integral part of these consolidated
                              financial statements.



                                     - 13 -

<PAGE>   14



POST APARTMENT HOMES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER UNIT DATA)



1.       ORGANIZATION AND FORMATION OF THE COMPANY

         ORGANIZATION AND FORMATION OF THE COMPANY Post Apartment Homes, L.P.
         (the "Operating Partnership"), a Georgia limited partnership, was
         formed on January 22, 1993, to conduct the business of developing,
         leasing and managing upscale multi-family apartment communities for
         Post Properties, Inc. (the "Company").

         The Company elected to be taxed as a real estate investment trust
         ("REIT") for Federal income tax purposes beginning with the taxable
         year ended December 31, 1993. A REIT is a legal entity which holds real
         estate interests and, through payments of dividends to shareholders, in
         practical effect is not subject to Federal income taxes at the
         corporate level.

         BASIS OF PRESENTATION
         The accompanying unaudited financial statements have been prepared by
         the Company's management in accordance with generally accepted
         accounting principles for interim financial information and applicable
         rules and regulations of the Securities and Exchange Commission.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         (consisting only of normally recurring adjustments) considered
         necessary for a fair presentation have been included. The results of
         operations for the three month period ended March 31, 1998 are not
         necessarily indicative of the results that may be expected for the full
         year. These financial statements should be read in conjunction with the
         Company's audited financial statements and notes thereto included in
         the Post Apartment Homes, L.P. Annual Report on Form 10-K for the year
         ended December 31, 1997.

2.       NOTES PAYABLE

         The Operating Partnership has established a program for the sale of up
         to $344,000 aggregate principal amount of Medium-Term Notes due nine
         months or more from date of issue (the "MTN Program"). On March 12,
         1998, the Operating Partnership issued $100,000 of 6.85% Mandatory Par
         Put Remarketed Securities ("MOPPRS") under the MTN Program. The net
         proceeds from the MOPPRS were used to repay outstanding indebtedness.
         In connection with the MOPPRS transaction, Merrill Lynch & Co.
         purchased an option to remarket the securities as of March 16, 2005
         (the "Remarketing Date"). The Operating Partnership will have an
         effective borrowing rate through the Remarketing Date of approximately
         6.59%. In anticipation of the offering, the Operating Partnership
         entered into forward-treasury-lock agreements in the fall of 1997. As a
         result of the termination of these agreements, the effective borrowing
         rate will be approximately 6.85%, the coupon rate on the MOPPRS. As of
         March 31, 1998, the Operating Partnership had $231,000 aggregate
         principal amount of notes outstanding under the MTN Program.


3.       EXTRAORDINARY ITEM

         The extraordinary item for the nine months ended March 31, 1997
         resulted from costs associated with the early extinguishment of
         indebtedness.



                                     - 14 -

<PAGE>   15



POST APARTMENT HOMES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER UNIT DATA)



4.       EARNINGS PER UNIT

         For the three months ended March 31, 1998 and 1997, basic and diluted
         earnings per common unit for income before extraordinary item, net of
         preferred distributions, and net income available to common unitholders
         before extraordinary item has been computed as follows:

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED
                                                                      MARCH 31, 1998
                                                      -------------------------------------------
                                                        INCOME             UNITS         PER UNIT
                                                      (NUMERATOR)      (DENOMINATOR)      AMOUNT
                                                      -----------      -------------     --------
<S>                                                   <C>              <C>               <C>
Income before extraordinary item ..............        $ 20,366
Less: Preferred stock distributions ...........          (2,566)
                                                       --------    
BASIC EPS
Income available to common unitholders
   before extraordinary item ..................          17,800         36,977,423        $0.48
                                                                                          =====
EFFECT OF DILUTIVE SECURITIES
Options .......................................              --            454,811
                                                       --------         ----------    
DILUTED EPS
Income available to common unitholders
   plus assumed conversion before extraordinary
   item .......................................        $ 17,800         37,432,234        $0.47
                                                       ========         ==========        =====
</TABLE>



<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED
                                                                      MARCH 31, 1997
                                                      -------------------------------------------
                                                        INCOME             UNITS         PER UNIT
                                                      (NUMERATOR)      (DENOMINATOR)      AMOUNT
                                                      -----------      -------------     --------
<S>                                                   <C>              <C>               <C>
Income before extraordinary item ..............        $ 14,156
Less: Preferred stock distributions ...........          (1,063)
                                                       -------- 
BASIC EPS
Income available to common unitholders
   before extraordinary item ..................          13,093         27,167,244        $0.48
                                                                                          =====
EFFECT OF DILUTIVE SECURITIES
Options .......................................              --            187,127
                                                       --------         ----------
DILUTED EPS
Income available to common unitholders
   plus assumed conversion before extraordinary
   item .......................................        $ 13,093         27,354,371        $0.48
                                                       ========         ==========        =====
</TABLE>

5.       SUPPLEMENTAL CASH FLOW INFORMATION

         The Operating Partnership committed to distribute $25,641 and $16,169
         for the quarters ended March 31, 1998 and 1997, respectively.



                                     - 15 -

<PAGE>   16



POST APARTMENT HOMES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER UNIT DATA)


6.       SUBSEQUENT EVENTS

         On April 8, 1998, the Operating Partnership sold $50,000 of Remarketed
         Reset Notes due April 7, 2009. The notes bear an interest rate of LIBOR
         plus the applicable spread for the first year they are outstanding,
         with the spread being reset quarterly. The initial spread is equal to
         .40%. Net proceeds in the amount of $49,825 were used to pay down the
         outstanding balance on the Revolver. The Company entered into an
         interest rate swap to hedge the rate for the entire term of the note.

         On April 29, 1998, the Company issued approximately 1.1 million shares
         of its common stock at a price of $40.5625 per share. The shares have
         been deposited into a registered unit investment trust, the Equity
         Investor Fund Cohen & Steers Realty Majors Portfolio(Unit Investment
         Trust). Net proceeds in the amount of $44,059 were contributed to the
         Operating Partnership and used to pay down the outstanding balance on
         the Revolver.





                                     - 16 -

<PAGE>   17


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion should be read in conjunction with all of the financial
statements appearing elsewhere in this report. The following discussion is based
primarily on the Consolidated Financial Statements of Post Properties, Inc. (the
"Company") and Post Apartment Homes, L.P. (the "Operating Partnership"). Except
for the effect of minority interest in the Operating Partnership, the following
discussion with respect to the Company is the same for the Operating
Partnership.

As of March 31, 1998, there were 39,447,713 units in the Operating Partnership
outstanding, of which 34,231,989, or 86.8%, were owned by the Company and
5,215,724, or 13.2% were owned by other limited partners (including certain
officers and directors of the Company). As of March 31, 1998, there were
5,000,000 Perpetual Preferred Units outstanding, all of which were owned by the
Company.

On October 24, 1997 Columbus Realty Trust ("Columbus"), a Texas real estate
investment trust, was merged into a wholly owned subsidiary of the Company.
Pursuant to the merger agreement, each outstanding share of Columbus common
stock was converted into .615 shares of common stock of the Company, which
resulted in the issuance of approximately 8,400 shares of common stock of the
Company.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997

The Company recorded net income available to common shareholders of $15,290 for
the three months ended March 31, 1998, an increase of 45.6% over the
corresponding period in 1997 primarily as a result of the merger with Columbus
and additional units placed in service through the development of new
communities.

COMMUNITY OPERATIONS

The Company's net income is generated primarily from the operation of its
apartment communities. For purposes of evaluating comparative operating
performance, the Company categorizes its operating communities based on the
period each community reaches stabilized occupancy. A community is generally
considered by the Company to have achieved stabilized occupancy on the earlier
to occur of (i) attainment of 95% physical occupancy on the first day of any
month or (ii) one year after completion of construction.

As of March 31, 1998, the Company's portfolio of apartment communities consisted
of the following: (i) 64 communities which were completed and stabilized for all
of the current and prior year, (ii) nine communities which achieved full
stabilization during the prior year and (iii) 11 communities in the development
or lease-up stage.

For communities with respect to which construction is completed and the
community has become fully operational, all property operating and maintenance
expenses are expensed as incurred and those recurring and non-recurring
expenditures relating to acquiring new assets, materially enhancing the value of
an existing asset, or substantially extending the useful life of an existing
asset are capitalized. (See "Capitalization of Fixed Assets and Community
Improvements").

The Company has adopted an accounting policy related to communities in the
development and lease-up stage whereby substantially all operating expenses
(including pre-opening marketing expenses) are expensed as incurred. The Company
treats each unit in an apartment community separately for cost accumulation,
capitalization and expense recognition purposes. Prior to the commencement of
leasing activities, interest and other construction costs are



                                     - 17 -

<PAGE>   18


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


capitalized and reflected on the balance sheet as construction in progress. Once
a unit is placed in service, all operating expenses allocated to that unit,
including interest, are expensed as incurred. During the lease-up phase, the sum
of interest expense on completed units and other operating expenses (including
pre-opening marketing expenses) will typically exceed rental revenues, resulting
in a "lease-up deficit," which continues until such time as rental revenues
exceed such expenses.

Therefore, in order to evaluate the operating performance of its communities,
the Company has presented financial information which summarizes the operating
income on a comparative basis for all of its operating communities combined and
for communities which have reached stabilization prior to January 1, 1997. The
Company has also presented quarterly financial information reflecting the
dilutive impact of lease-up deficits incurred for communities in the development
and lease-up stage and not yet operating at break-even. In this presentation,
only those communities which were dilutive during the period are included and,
accordingly, different communities may be included in each period.




                                     - 18 -

<PAGE>   19


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


ALL OPERATING COMMUNITIES

The operating performance for all of the Company's apartment communities
combined for the three months ended March 31, 1998 and 1997 is summarized as
follows:

<TABLE>
<CAPTION>
                                                                                           THREE MONTHS ENDED
                                                                                                MARCH 31,
                                                                                 ---------------------------------------
                                                                                  1998            1997          % CHANGE
                                                                                 -------        --------        --------
<S>                                                                              <C>            <C>             <C>  
Rental and other revenue:
Mature communities (1) ..................................................        $51,616        $ 49,892            3.5%
Adjustment for acquired mature communities (2) ..........................             --         (10,815)           N/M
   Communities stabilized during 1997 ...................................          6,917             408            N/M
Development and lease-up
   communities (3) ......................................................          6,107           1,802            N/M
 Sold communities (4) ...................................................             --             966            N/M
Other revenue (5) .......................................................          2,133             683          212.3%
                                                                                 -------        --------
                                                                                  66,773          42,936           55.5%
                                                                                 -------        --------
Property operating and maintenance expense (exclusive of depreciation and
   amortization):
 Mature communities (1) .................................................         16,045          15,708            2.2%
Adjustment for acquired mature communities (2) ..........................             --          (3,664)           N/M
Communities stabilized during 1997 ......................................          2,004             345            N/M
Development and lease-up
   communities (3) ......................................................          3,037             682            N/M
Sold communities (4) ....................................................             --             360            N/M
Other expenses (6) ......................................................          2,044           1,770           15.5%
                                                                                 -------        --------
                                                                                  23,130          15,201           52.2%
                                                                                 -------        --------
Revenue in excess of specified
   expense ..............................................................        $43,643        $ 27,735           57.4%
                                                                                 =======        ========
Recurring capital expenditures: (7)
   Carpet ...............................................................        $   583        $    319           82.8%
   Other ................................................................            569             385           47.8%
                                                                                 -------        --------
   Total ................................................................        $ 1,152        $    704           63.6%
                                                                                 =======        ========
Average apartment units in service ......................................         26,462          18,266           44.9%
                                                                                 =======        ========
Recurring capital expenditures per
   apartment unit .......................................................        $    44        $     39           12.8%
                                                                                 =======        ========
</TABLE>

(1)      Communities which reached stabilization prior to January 1, 1997.
         Includes mature communities acquired through the merger with Columbus.

(2)      The adjustment for acquired mature communities represents the
         operating results of the mature communities owned by Columbus prior to
         the merger. 

(3)      Communities in the "construction", "development" or "lease-up" stage
         during 1996 and, therefore, not considered fully stabilized for all of
         the periods presented.

(4)      Includes one community, containing 416 units, which was sold on May 22,
         1997.

(5)      Other revenue includes revenue from furnished apartment rentals above
         the unfurnished rental rates, revenue from commercial properties and
         other revenue not directly related to property operations.

(6)      Other expenses includes certain indirect central office operating
         expenses related to management, grounds maintenance, costs associated
         with furnished apartment rentals and operating expenses from commercial
         properties.

(7)      In addition to those expenses which relate to property operations, the
         Company incurs recurring and non-recurring expenditures relating to
         acquiring new assets, materially enhancing the value of an existing
         asset, or substantially extending the useful life of an existing asset,
         all of which are capitalized.

N/M - Not meaningful.



                                     - 19 -

<PAGE>   20


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


For the three months ended March 31, 1998, rental and other revenue increased
$23,837, or 55.5% compared to the same period in the prior year primarily as a
result of an increase in units placed in service through the merger with
Columbus ($18,737) and the completion of new communities. For the three months
ended March 31, 1998, property operating and maintenance expenses increased
$7,929, or 52.2% compared to the same period in the prior year, primarily as a
result of an increase in the number of units placed in service through the
merger with Columbus ($6,296) and the completion of new communities.

For the three months ended March 31, 1998, recurring capital expenditures
increased $448, or 63.6%, compared to the same period in the prior year,
primarily due to the increase in the average number of apartment units in
service as a result of the merger with Columbus and the completion of new
communities.





                                     - 20 -

<PAGE>   21


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


MATURE COMMUNITIES

The Company defines mature communities as those which have reached stabilization
prior to the beginning of the previous calendar year.

The operating performance of the 64 communities containing an aggregate of
21,819 units which were fully stabilized as of January 1, 1997, is summarized as
follows:

<TABLE>
<CAPTION>
                                                                           THREE MONTHS ENDED
                                                                                MARCH 31,
                                                                ----------------------------------------
                                                                  1998            1997          % CHANGE
                                                                -------         --------        -------- 
<S>                                                             <C>             <C>             <C> 
Rental and other revenue (1) ...........................        $51,616         $ 49,892           3.5%
                                                                -------         --------
Adjustment for acquired mature communities (2) .........             --          (10,815)          N/M
                                                                -------         --------
Rental and other revenue (3) ...........................         51,616           39,077          32.1%
                                                                -------         --------
Property operating and maintenance expense
   (exclusive of depreciation and
   amortization) (1) ...................................         16,045           15,708           2.2%
Adjustment for acquired mature communities (2) .........             --           (3,664)          N/M
                                                                -------         --------
Property operating and maintenance expense (exclusive of
   depreciation and amortization) - historical (3) .....         16,045           12,044          33.2%
                                                                -------         --------

Revenue in excess of specified expense .................        $35,571         $ 27,033          31.6%
                                                                =======         ========    

Recurring capital expenditures: (4)
     Carpet ............................................        $   414         $    308          34.4%
     Other .............................................            417              323          29.1%
                                                                -------         --------
         Total .........................................        $   831         $    631          31.7%
                                                                =======         ========    
Recurring capital expenditures per
   apartment unit (5) ..................................        $    38         $     37           2.7%
                                                                =======         ========    

Average economic occupancy (6) .........................           96.3%            93.7%          2.6%
                                                                -------         --------
Average monthly rental rate per
  apartment unit (7) ...................................        $   806         $    796           1.3%
                                                                =======         ========    
Apartment units in service .............................         21,819           16,937          28.8%
                                                                =======         ========    
</TABLE>

(1)      Communities which reached stabilization prior to January 1, 1997.
         Includes mature communities acquired through the merger with Columbus.

(2)      The adjustment for acquired mature communities represents the
         operations results of the mature communities owned by Columbus prior to
         the merger. This adjustment was included to reduce the rental and other
         revenue of mature communities to the historical results in order to
         provide a more meaningful analysis of the mature communities results.

(3)      Represents the Company's historical results of operations for mature
         communities.

(4)      In addition to those expenses which relate to property operations, the
         Company incurs recurring and non-recurring expenditures relating to
         acquiring new assets, materially enhancing the value of an existing
         asset, or substantially extending the useful life of an existing asset,
         all of which are capitalized.

(5)      In addition to such capitalized expenditures, the Company expensed $144
         and $126 per unit on building maintenance (inclusive of direct
         salaries) and $42 and $47 per unit on landscaping (inclusive of direct
         salaries) for the three months ended March 31, 1998 and 1997,
         respectively.

(6)      Average economic occupancy is defined as gross potential rent less
         vacancy losses, model expenses and bad debt divided by gross potential
         rent for the period, expressed as a percentage. The calculation of
         average economic occupancy does not include a deduction for concessions
         and employee discounts. Average economic occupancy, including these
         amounts would have been 94.6% and 93.0%




                                     - 21 -

<PAGE>   22


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


         for the three months ended March 31, 1998 and 1997, respectively. For
         the three months ended March 31, 1998 and 1997, concessions were $788
         and $190, respectively, and employee discounts were $111 and $86,
         respectively. For the three months ended March 31, 1997, average
         economic occupancy for all mature communities, including mature
         communities acquired through the merger with Columbus, was 94.3%.

(7)      Average monthly rental rate is defined as the average of the gross
         actual rental rates for occupied units and the anticipated rental rates
         for unoccupied units.

N/M - Not meaningful.

For the three months ended March 31, 1998, rental and other revenue increased
$12,539, or 32.1%, compared to the same period in the prior year, due to
increase in units in service as a result of the merger with Columbus and
increased rental rates and occupancy for mature communities owned prior to the
merger with Columbus. For the three months ended March 31, 1998, property
operating and maintenance expenses (exclusive of depreciation and amortization)
increased $4,001, or 33.2%, compared to the same period in the prior year,
primarily as a result of an increase in units in service as a result of the
merger with Columbus.

For the three months ended March 31, 1998, recurring capital expenditures per
apartment unit decreased $7, or 15.6% compared to the same periods in the prior
year, primarily due to the timing of carpet replacements and other recurring
capital expenditures for communities.

LEASE-UP DEFICITS

As noted in the overview of Community Operations, the Company has adopted an
accounting policy related to communities in the development and lease-up stage
whereby substantially all operating expenses (including pre-opening marketing
expenses) are expensed as incurred. The Company treats each unit in an apartment
community separately for cost accumulation, capitalization and expense
recognition purposes. Prior to the commencement of leasing activities, interest
as well as other construction costs are capitalized and reflected on the balance
sheet as construction in progress. Once a unit is placed in service, all
expenses allocated to that unit, including interest, are expensed as incurred.
During the lease-up phase, the sum of interest expense on completed units and
other operating expenses (including pre-opening marketing expenses) will
typically exceed rental revenues, resulting in a "lease-up deficit," which
continues until rental revenues exceed such expenses.

In this presentation, only those communities which were dilutive for the
respective period are included and, accordingly, different communities may be
included in different quarters.

For the three months ended March 31, 1998 and 1997, respectively, the "lease-up
deficit" charged to and included in results of operations is summarized as
follows:


<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED
                                                                      MARCH 31,
                                                                --------------------
                                                                 1998           1997
                                                                ------         -----
<S>                                                             <C>            <C>  
Rental and other revenue ...............................        $1,123         $ 117
Property operating and maintenance expense (exclusive of
   depreciation and amortization) ......................         1,315           207
                                                                ------         -----
Revenue (expense) in excess of specified
   expense/revenue .....................................          (192)          (90)
Interest expense .......................................           629            89
                                                                ------         -----
Lease-up deficit .......................................        $ (821)        $(179)
                                                                ======         =====
</TABLE>



                                     - 22 -

<PAGE>   23


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


THIRD PARTY SERVICES

THIRD PARTY MANAGEMENT SERVICES

The Company provides asset management, leasing and other consulting services to
non-related owners of apartment communities through its subsidiary, RAM
Partners, Inc. ("RAM"). The operating performance of RAM for the three months
ended March 31, 1998 and 1997 is summarized as follows:


<TABLE>
<CAPTION>
                                                   THREE MONTHS ENDED
                                                        MARCH 31,
                                          ----------------------------------- 
                                            1998          1997        %CHANGE
                                          -------        ------       ------- 
<S>                                       <C>            <C>          <C>  
Property management and other
   revenue .......................        $   737        $  554        33.0%
Property management expense ......            408           295        38.3%
General and administrative expense            176           103        70.9%
Depreciation expense .............             10            14       (28.6)%
                                          -------        ------
Revenue in excess of specified
  expense ........................        $   143        $  142         0.7%
                                          =======        ======      
Average apartment units managed ..         10,764         7,775        38.4%
                                          =======        ======      
</TABLE>

The increase in property management revenues and expenses for the three months
ended March 31, 1998 compared to the same periods in the prior year is primarily
attributable to an increase in the average number of units managed. The increase
in general and administrative expense is primarily due to start-up costs of the
new contracts attained in the first quarter of 1998.

THIRD PARTY LANDSCAPE SERVICES

The Company provides landscape maintenance, design and installation services to
non-related parties through a subsidiary, Post Landscape Services, Inc. ("Post
Landscape Services").

The operating performance of Post Landscape Services for the three months ended
March 31, 1998 and 1997 is summarized as follows:


<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED
                                                       MARCH 31,
                                          ----------------------------------
                                           1998          1997       % CHANGE
                                          ------        ------      --------
<S>                                       <C>           <C>         <C>  
Landscape services and other
 revenue .........................        $1,326        $1,054        25.8%
Landscape services expense .......         1,060           756        40.2%
General and administrative expense           213           145        46.9%
Depreciation expense .............            25            25          --
                                          ------        ------   
Revenue in excess of specified
  expense ........................        $   28        $  128       (78.1)%
                                          ======        ======   
</TABLE>



                                     - 23 -

<PAGE>   24


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


The increase in landscape services revenue and expenses for the three months
ended March 31, 1998, compared to the same periods in 1997 is primarily due to
increases in landscape contracts. General and administrative expense increased
due to costs incurred in preparation for future growth plans.

OTHER REVENUES AND EXPENSES

Depreciation expense $4,381, or 68.7% and interest expense increased $2,988, or
55.7% from the three months ended March 31, 1997 to the three months ended March
31, 1998 primarily as a result of the merger with Columbus.

General and administrative expense increased from the three months ended March
31, 1997 to the three months ended March 31, 1998 primarily due to the merger
with Columbus. General and administrative expense as a percent of total revenues
decreased from 4.1% for the three months ended March 31, 1997 to 3.2% for the
three months ended March 31, 1998.

The loss on unused treasury locks of $1,944 resulted from the termination of
treasury locks intended for debt securities that were not issued by the
Operating Partnership.

The extraordinary item of $75 for the three months ended March 31, 1997, net of
minority interest portion, resulted from the costs associated with the early
retirement of debt.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity
The Company's net cash provided by operating activities increased from $33,222
for the three months ended March 31, 1997 to $33,897 for the three months ended
March 31, 1998, principally due to the increase in net income (primarily as a
result of the merger with Columbus) as adjusted for depreciation offset by
changes in accrued assets and liabilities. Net cash used in investing activities
increased from $45,361 in the three months ended March 31, 1997 to $74,843 in
the three months ended March 31, 1998, principally due to an increase in
construction spending. The Company's net cash provided by financing activities
increased from $15,578 in the three months ended March 31, 1997 to $44,497 in
the three months ended March 31, 1998, primarily due to increased debt proceeds
and proceeds from the sale of preferred stock and common stock.

The Company has elected to be taxed as a Real Estate Investment Trust ("REIT")
under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended,
commencing with its taxable year ended December 31, 1993. REITs are subject to a
number of organizational and operational requirements, including a requirement
that they currently distribute 95% of their ordinary taxable income. The Company
generally will not be subject to Federal income tax on net income.




                                     - 24 -

<PAGE>   25


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


At March 31, 1998, the Company had total indebtedness of $709,435 and cash and
cash equivalents of $14,430. The Company's indebtedness includes approximately
$32,907 in conventional mortgages payable secured by individual communities,
tax-exempt bond indebtedness of $230,528, senior unsecured notes of $406,000 and
borrowings under unsecured lines of credit of approximately $40,000.

The Company expects to meet its short-term liquidity requirements generally
through its net cash provided by operations and borrowings under credit
arrangements and expects to meet certain of its long-term liquidity
requirements, such as scheduled debt maturities, repayment of financing of
construction and development activities and possible property acquisitions,
through long-term secured and unsecured borrowings and the issuance of debt
securities or additional equity securities of the Company, sales of communities,
or, possibly in connection with acquisitions of land or improved properties,
units of the Operating Partnership. The Company believes that its net cash
provided by operations will be adequate and anticipates that it will continue to
be adequate to meet both operating requirements and payment of dividends by the
Company in accordance with REIT requirements in both the short and the long
term. The budgeted expenditures for improvements and renovations to certain of
the communities are expected to be funded from property operations.

Lines Of Credit
The Company has two unsecured lines of credit totaling $220,000. At March 31,
1998, borrowings under these lines of credit were approximately $40,000.

Medium Term Notes
The Operating Partnership has established a program for the sale of up to
$344,000 aggregate principal amount of Medium-Term Notes due nine months or more
from date of issue (the "MTN Program").  On March 12, 1998, the Operating
Partnership issued $100,000 of 6.85% Mandatory Par Put Remarketed Securities
("MOPPRS") under the MTN Program. The net proceeds from the MOPPRS were used to
repay outstanding indebtedness. In connection with MOPPRS transaction, Merrill
Lynch & Co. purchased an option to remarket the securities as of March 16, 2005
(the "Remarketing Date"). The Operating Partnership will have an effective
borrowing rate through the Remarketing Rate of approximately 6.59%. In
anticipation of the offering, the Operating Partnership entered into
forward-treasury-lock agreements in the fall of 1997. As a result of the
termination of these agreements, the effective borrowing rate will be
approximately 6.85%, the coupon rate on the MOPPRS. As of March 31, 1998, the
Operating Partnership had $231,000 aggregate principle amount of notes
outstanding under the MTN Program.

On April 8, 1998, the Operating Partnership sold $50,000 of Remarketed Reset
Notes due April 7, 2009. The notes bear an interest rate of LIBOR plus the
applicable spread for the first year they are outstanding, with the spread being
reset quarterly. The initial spread is equal to .40%. Net proceeds in the amount
$49,825 were used to pay down the outstanding balance on the Revolver.  The
Company entered into an interest rate swap to hedge the rate for the entire
term of the note.

Tax Exempt Bonds
On June 29, 1995, the Company replaced the bank letters of credit providing
credit enhancement for twelve of its outstanding tax-exempt bonds and three of
its economically defeased tax-exempt bonds. Under an agreement with the Fannie
Mae ("FNMA"), FNMA now provides, directly or indirectly through other bank
letters of credit, credit enhancement with respect to such bonds. Under the
terms of such agreement, FNMA has provided replacement credit enhancement
through 2025 for 14 bond issues, aggregating $217,230, which were reissued, and
has agreed, subject to certain conditions, to provide credit enhancement through
June 1, 2025 for up to an additional $18,650 with respect to one other bond
issue which matures and may be refunded in 1998. The agreement with FNMA
contains representations, covenants, and events of default customary to such
secured loans.




                                     - 25 -

<PAGE>   26


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


Refundable Tax Exempt Bonds The Company has previously issued tax-exempt bonds,
secured by certain communities, totaling $235,880 of which $5,352 has been
economically defeased, leaving $230,528 of principal amount of tax-exempt bonds
outstanding at March 31, 1998 of which $217,230 of the bonds outstanding has
been reissued with a maturity of June 1, 2025. The remaining outstanding bond,
together with the economically defeased portion of the bond, matures and may be
reissued during the second quarter 1998. The Company has chosen economic
defeasance of the bond obligation rather than a legal defeasance in order to
preserve the legal right to refund such obligation on a tax-exempt basis at the
stated maturity if the Company then determines that such refunding is
beneficial.

The following table shows the amount of bonds (both defeased and outstanding) at
March 31, 1998, which the Company may reissue during the years 1998 and 2025:


<TABLE>
<CAPTION>
                                DEFEASED     OUTSTANDING     TOTAL REISSUE
                                PORTION       PORTION          CAPACITY
                                --------     -----------     -------------
                  <S>           <C>          <C>             <C>     
                  1998           $5,352       $ 13,298         $ 18,650
                  2025               --        217,230          217,230
                                 ------       --------         --------
                                 $5,352       $230,528         $235,880
                                 ------       --------         --------
</TABLE>






                                     - 26 -

<PAGE>   27


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


Schedule of Indebtedness

The following table reflects the Company's indebtedness at March 31, 1998:

<TABLE>
<CAPTION>
                                                                                                        Maturity      Principal
Description                                         Location                  Interest Rate             Date(1)        Balance
---------------------------------------------     -------------       ----------------------------     ------------   ---------
<S>                                               <C>                 <C>                              <C>            <C>    
TAX EXEMPT FIXED RATE (SECURED)
Post Court(R)................................      Atlanta, GA              7.5% + .575% (2)(3)        06/01/98 (4)   $13,298
                                                                                                                      -------
                                                                                                                       13,298
                                                                                                                      -------
CONVENTIONAL FIXED RATE (SECURED)
Post Hillsboro Village.......................     Nashville, TN                   9.20%                10/01/01         2,999
Parkwood Townhomes(TM).......................      Dallas, TX                    7.375%                04/01/14           851
                                                                                                                      -------
                                                                                                                        3,850
CONVENTIONAL FLOATING RATE
Addison Circle Apartment Homes
     by Post(TM)- Phase I....................      Dallas, TX                 LIBOR + .75%             06/01/99        21,724
The Rice.....................................      Houston, TX                LIBOR + 1.90%            08/01/99         7,333
                                                                                                                      -------
                                                                                                                       29,057
TAX EXEMPT FLOATING RATE (SECURED)
Post Ashford(R)Series 1995...................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25         9,895
Post Valley(R)Series 1995....................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        18,600
Post Brook(R)Series 1995.....................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25         4,300
Post Village(R)(Atlanta) Hills
  Series 1995................................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25         7,000
Post Mill(R)Series 1995......................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        12,880
Post Canyon(R)Series 1996....................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        16,845
Post Corners(R)Series 1996...................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        14,760
Post Bridge(R)...............................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        12,450
Post Village(R)(Atlanta) Gardens.............      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        14,500
Post Chase(R)................................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        15,000
Post Walk(R).................................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        15,000
Post Lake(R).................................      Orlando, FL        "AAA" NON-AMT + .575% (2)(3)     06/01/25        28,500
Post Fountains at Lee Vista(R)...............      Orlando, FL        "AAA" NON-AMT + .575% (2)(3)     06/01/25        21,500
Post Village(R)(Atlanta) Fountains
      and Meadows............................      Atlanta, GA        "AAA" NON-AMT + .575% (2)(3)     06/01/25        26,000
                                                                                                                     --------
                                                                                                                      217,230
                                                                                                                     --------
SENIOR NOTES (UNSECURED)
Medium Term Notes............................         N/A                         6.22%                12/31/99        16,000
Medium Term Notes............................         N/A                     LIBOR + .25%             03/03/00        30,000
Northwestern Mutual Life.....................         N/A                         8.21%                06/07/00        30,000
Medium Tern Notes............................         N/A                         7.02%                04/02/01        37,000
Northwestern Mutual Life.....................         N/A                         8.37%                06/07/02        20,000
Senior Notes.................................         N/A                         7.25%                10/01/03       100,000
Medium Term Notes............................         N/A                         7.30%                04/01/04        13,000
Medium Term Notes............................         N/A                         6.69%                09/22/04        10,000
Medium Term Notes............................         N/A                         6.78%                09/22/05        25,000
Senior Notes.................................         N/A                         7.50%                10/01/06        25,000
Mandatory Par Put Remarketed Securities .....         N/A                       6.85% (5)              03/16/15       100,000
                                                                                                                     --------
                                                                                                                      406,000
                                                                                                                     --------
</TABLE>





<PAGE>   28


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


<TABLE>
<S>                                               <C>       <C>                                       <C>         <C>   
LINES OF CREDIT (UNSECURED)
Revolver ..................................       N/A       LIBOR + .675% or prime minus .25% (6)     04/30/01      20,000
Cash Management Line.......................       N/A         LIBOR + .675% or prime minus .25%       03/31/99      20,000
                                                                                                                  --------
                                                                                                                    40,000
TOTAL......................................                                                                       $709,435
                                                                                                                  --------
</TABLE>

(1)      All of the mortgages can be prepaid at any time, subject to certain
         prepayment penalties.

(2)      Bond financed (interest rate on bonds + credit enhancement fees).

(3)      These bonds are cross collateralized. The Company has purchased an
         interest rate cap that limits the Company's exposure to increases in
         the base rate to 5%.

(4)      Subject to certain conditions at re-issuance, the credit enhancement
         runs to June 1, 2025.

(5)      The annual interest rate on these securities to March 16, 2005 (the
         "Remarketing Date") is 6.85%. On the Remarketing Date, they are subject
         to mandatory tender for remarketing.

(6)      Represents stated rate. The Company may also make "money market" loans
         of up to $100,000 at rates below the stated rate.

Preferred Stock Offering
On February 9, 1998, the Company issued two million non-convertible 7 5/8%
Series C Cumulative Redeemable Shares (the "Series C Perpetual Preferred
Shares") at a price of $25 per share. Net proceeds of $48,284 from the sale of
Series C Perpetual Preferred Shares were contributed to the Operating
Partnership in exchange for two million Series C Perpetual Preferred Units and
used by the Operating Partnership to repay outstanding indebtedness.

Common Stock Offering 
On March 4, 1998, the Company issued 3.5 million shares of common stock to the
public. The net proceeds from this offering of $129,179 were contributed to the
Operating Partnership in exchange for 3.5 million common units and used by the
Operating Partnership to repay outstanding indebtedness. Proceeds from this
offering were used to repay outstanding indebtedness under the Revolver.

On April 29, 1998, the Company issued approximately 1.1 million shares of its
common stock at a price of $40.5625 per share. The shares have been deposited
into a registered unit investment trust, the Equity Investor Fund Cohen & Steers
Realty Majors Portfolio (Unit Investment Trust). Net proceeds in the amount of
$44,059 were used to pay down the outstanding balance on the Company's Revolver.

Dividend Reinvestment Plan
The Dividend Reinvestment Plan ("DRIP") is available to all shareholders of the
Company. Under the DRIP, shareholders may elect for their dividends to be used
to acquire additional shares of the Company's Common Stock directly from the
Company for 95% of the market price on the date of purchase.  For the three
months ended March 31, 1998, contributions from the DRIP were $3,015.





                                     - 28 -

<PAGE>   29


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


Current Development Activity
The Company's apartment communities under development or in initial lease-up are
summarized in the following table:


<TABLE>
<CAPTION>
                                                            ACTUAL OR     ACTUAL OR     UNITS
                                                            ESTIMATED     ESTIMATED     LEASED
                                              QUARTER OF     QUARTER       QUARTER      AS OF
                                     # OF    CONSTRUCTION  FIRST UNITS  OF STABILIZED  MAY 11,
METROPOLITAN AREA                   UNITS    COMMENCEMENT   AVAILABLE     OCCUPANCY     1998
-----------------                   -----    ------------  -----------  -------------  -------
<S>                                 <C>      <C>           <C>          <C>            <C>
Atlanta, GA
-----------
Post Lindbergh(TM) ...........        396        3Q'96        3Q'97         1Q'99        216
Post Gardens(R) ..............        397        3Q'96        4Q'97         1Q'99        216
Riverside by Post(TM) ........        536        3Q'96        2Q'98         1Q'00         31
Post River(R)- Phase II ......         88        1Q'97        4Q'97         2Q'98         60
Post Ridge(TM) ...............        232        1Q'97        4Q'97         4Q'98        130
Post Ridge II ................        202        2Q'98        4Q'98         2Q'99        n/a
Post Briarcliff(TM)- Phase I .        388        2Q'97        1Q'98         2Q'99         57
                                    -----                                                ---
                                    2,239                                                710
                                    -----                                                ---
Tampa, FL
---------
Post Rocky Point(R)- Phase III        290        2Q'97        2Q'98         1Q'99        n/a
Post Harbour Island(TM) ......        206        3Q'97        3Q'98         2Q'99        n/a
                                    -----                                                ---
                                      496                                                n/a
                                    -----                                                ---
Dallas, TX
----------
Addison Circle - Phase II ....        473        4Q'97        1Q'99         1Q'00        n/a
American Beauty Mill .........         80        2Q'97        2Q'98         3Q'98         42
Block 580 ....................        204        4Q'97        4Q'98         2Q'99        n/a
                                    -----                                                ---
                                      757                                                 42
                                    -----                                                ---
Houston, TX
-----------
Rice Hotel ...................        312        1Q'97        2Q'98         4Q'98        228
Midtown - Phase I ............        479        1Q'98        1Q'99         4Q'99        n/a
                                    -----                                                ---
                                      791                                                228
                                    -----                                                ---
Denver, CO
----------
Denver Uptown ................        467        4Q'97        1Q'99         1Q'00        n/a
                                    -----                                                ---

Phoenix, AZ
-----------
Deck Park ....................        416        4Q'98        3Q'99         3Q'00        n/a
                                    -----                                                ---
                                    5,166                                                980
                                    -----                                                ---
</TABLE>

The Company is also currently conducting feasibility and other pre-development
studies for possible new Post(R) communities in its primary market areas.




                                     - 29 -

<PAGE>   30


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


Capitalization of Fixed Assets and Community Improvements
The Company has established a policy of capitalizing those expenditures relating
to acquiring new assets, materially enhancing the value of an existing asset, or
substantially extending the useful life of an existing asset. All expenditures
necessary to maintain a community in ordinary operating condition are expensed
as incurred. During the first five years of a community (which corresponds to
the estimated depreciable life), carpet replacements are expensed as incurred.
Thereafter, carpet replacements are capitalized.

Acquisition of assets and community improvement expenditures for the three
months ended March, 31 1998 and 1997 are summarized as follows:


<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED
                                                                           MARCH 31,
                                                                    ----------------------
                                                                      1998           1997
                                                                    -------        -------
<S>                                                                 <C>            <C>    
New community development and acquisition activity .........        $69,269        $42,789
Non-recurring capital expenditures:
      Revenue generating additions and improvements ........          3,289          1,050
      Other community additions and improvements ...........            253            374
Recurring capital expenditures:
      Carpet replacements ..................................            582            319
      Community additions and improvements .................            570            385
      Corporate additions and improvements .................            880            444
                                                                    -------        -------
                                                                    $74,843        $45,361
                                                                    =======        =======
</TABLE>

INFLATION

Substantially all of the leases at the communities allow, at the time of
renewal, for adjustments in the rent payable thereunder, and thus may enable the
Company to seek increases in rents. The substantial majority of these leases are
for one year or less and the remaining leases are for up to two years. At the
expiration of a lease term, the Company's lease agreements provide that the term
will be extended unless either the Company or the lessee gives at least sixty
(60) days written notice of termination; in addition, the Company's policy
permits the earlier termination of a lease by a lessee upon thirty (30) days
written notice to the Company and the payment of one month's additional rent as
compensation for early termination. The short-term nature of these leases
generally serves to reduce the risk to the Company of the adverse effect of
inflation.





                                     - 30 -

<PAGE>   31


MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION

Historical Funds from Operations
The Company considers funds from operations ("FFO") an appropriate measure of
performance of an equity REIT. Funds from operations is defined to mean net
income (loss) available to common shareholders determined in accordance with
GAAP, excluding gains (or losses) from debt restructuring and sales of property,
plus depreciation of real estate assets, and after adjustment for unconsolidated
partnerships and joint ventures. FFO should not be considered as an alternative
to net income (determined in accordance with GAAP) as an indicator of the
Company's financial performance or to cash flow from operating activities
(determined in accordance with GAAP) as a measure of the Company's liquidity,
nor is it necessarily indicative of sufficient cash flow to fund all of the
Company's needs. Cash available for distribution ("CAD") is defined as FFO less
capital expenditures funded by operations and loan amortization payments. The
Company believes that in order to facilitate a clear understanding of the
consolidated historical operating results of the Company, FFO and CAD should be
examined in conjunction with net income as presented in the consolidated
financial statements and data included elsewhere in this report.

FFO and CAD for the three months ended March 31, 1998 and 1997 presented on a
historical basis are summarized in the following table:

Calculations of Funds from Operations and Cash Available for Distribution

<TABLE>
<CAPTION>
                                                                                  THREE MONTHS ENDED
                                                                                       MARCH 31,
                                                                           -------------------------------
                                                                               1998                1997
                                                                           -----------         -----------
<S>                                                                        <C>                 <C>        
Net income available to common shareholders .......................        $    15,290         $    10,503
     Extraordinary item, net of minority interest .................                 --                  75
     Minority interest ............................................              2,510              2 ,515
     Loss on unused treasury locks ................................              1,944                  --
                                                                           -----------         -----------
Adjusted net income ...............................................             19,744              13,093
  Depreciation of real estate assets ..............................             10,415               6,137
                                                                           -----------         -----------
Funds from Operations (1) .........................................             30,159              19,230
Recurring capital expenditures (2) ................................             (1,152)               (704)
Non-recurring capital expenditures (3) ............................               (253)               (374)
Loan amortization payments ........................................                (18)                (59)
                                                                           -----------         -----------
Cash Available for Distribution ...................................        $    28,736         $    18,093
                                                                           ===========         -----------
Revenue generating capital expenditures (4) .......................        $     3,289         $     1,050
                                                                           ===========         ===========
Cash Flow Provided By (Used In):
Operating activities ..............................................        $    33,897         $    33,222
Investing activities ..............................................        $    74,843         $   (45,361)
Financing activities ..............................................        $    44,497         $    15,578

Weighted average common shares outstanding - basic ................         31,762,278          21,949,107
                                                                           -----------         ===========
Weighted average common shares and units outstanding - basic ......         36,977,423          27,167,244
                                                                           -----------         ===========
Weighted average common shares outstanding - diluted ..............         32,217,089          22,136,234
                                                                           ===========         ===========
Weighted average common shares and units outstanding - diluted ....         37,432,234          27,354,371
                                                                           ===========         ===========
</TABLE>


                                     - 31 -


<PAGE>   32

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT APARTMENT UNIT DATA)


(1)      The Company uses the National Association of Real Estate Investment
         Trusts ("NAREIT") definition of FFO which was adopted for periods
         beginning after January 1, 1996. FFO for any period means the
         Consolidated Net Income of the Company and its subsidiaries for such
         period excluding gains or losses from debt restructuring and sales of
         property plus depreciation of real estate assets, and after adjustment
         for unconsolidated partnerships and joint ventures, all determined on a
         consistent basis in accordance with generally accepted accounting
         principles. FFO presented herein is not necessarily comparable to FFO
         presented by other real estate companies due to the fact that not all
         real estate companies use the same definition. However, the Company's
         FFO is comparable to the FFO of real estate companies that use the
         current NAREIT definition.

(2)      Recurring capital expenditures consisted primarily of $582 and $319 of
         carpet replacement and $570 and $385 of other additions and
         improvements to existing communities for the three months ended March
         31, 1998 and 1997, respectively. Since the Company does not add back
         the depreciation of non-real estate assets in its calculation of FFO,
         capital expenditures of $880 and $444 for the three months ended March
         31, 1998 and 1998, respectively, are excluded from the calculation of
         CAD.

(3)      Non-recurring capital expenditures consisted of community additions and
         improvements of $253 and $374 for the three months ended March 31, 1998
         and 1997, respectively.

(4)      Revenue generating capital expenditures included a major renovation of
         four communities in the amount of $2,861, for the three months ended
         March 31, 1998 and one community in the amount of $961 for the three
         months ended March 31, 1997, and submetering of water service to
         communities in the amount of $428 and $89 for the three months ended
         March 31, 1998 and 1997, respectively.





                                     - 32 -

<PAGE>   33




PART II. OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

              (a) Exhibits

27.1     Financial Data Schedule for the Company - First Quarter 1998 (for SEC
         filing purposes only)

27.2     Restated Financial Data Schedule for the Company - First Quarter 1997
         (for SEC filing purposes only)

27.3     Financial Data Schedule for the Operating Partnership - First Quarter
         1998 (for SEC filing purposes only)

27.4     Restated Financial Data Schedule for the Operating Partnership - First
         Quarter 1997 (for SEC filing purposes only)

         The registrants agree to furnish a copy of all agreements relating to
         long-term debt upon request of the Commission.

         (b) Reports on Form 8-K

             Reports on Form 8-K filed by each registrant on February 9, 1998,
             February 26, 1998, March 3, 1998 and March 16, 1998.






                                     - 33 -

<PAGE>   34




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.




                                             POST PROPERTIES, INC.




May 15, 1998                                 /s/ John T. Glover
------------                                 -----------------------------
  (Date)                                     John T. Glover, President
                                             (Principal Financial Officer)




May 15, 1998                                 /s/ R. Gregory Fox
------------                                 -----------------------------
  (Date)                                     R. Gregory Fox
                                             Senior Vice President, Chief
                                             Accounting Officer





                                     - 34 -

<PAGE>   35


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.




                                  POST APARTMENT HOMES L.P.
                                  By: Post GP Holdings, Inc., as General Partner




May 15, 1998                      /s/ John T. Glover
------------                      ----------------------------------------------
  (Date)                          John T. Glover, President
                                  (Principal Financial Officer)





May 15, 1998                      /s/ R. Gregory Fox
------------                      ----------------------------------------------
  (Date)                          R. Gregory Fox
                                  Senior Vice President, Chief
                                  Accounting Officer





                                     - 35 -