UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): October 28, 2015


MID-AMERICA APARTMENT COMMUNITIES, INC.
(Exact name of registrant as specified in its charter)


TENNESSEE
001-12762
62-1543819
(State or Other Jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

MID-AMERICA APARTMENTS, L.P.
(Exact name of registrant as specified in its charter)


TENNESSEE
333-190028-01
62-1543816
(State or Other Jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

6584 Poplar Avenue
 
Memphis, Tennessee
38138
(Address of Principal Executive Offices)
(Zip Code)


(901) 682-6600

(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13 e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





ITEM 2.02    Results of Operations and Financial Condition.

On October 28, 2015, the Registrant issued a press release announcing its consolidated financial results for the three and nine months ended September 30, 2015. Copies of the press release and supplemental data schedules are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

The information in this Current Report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by the Registrant under the Exchange Act or the Securities Act of 1933, as amended.

ITEM 9.01    Financial Statements and Exhibits.

 
(d)
Exhibits
 
 
 
 
 
 
 
 
 
Exhibit Number
 
Description
 
 
99.1
 
Press Release dated October 28, 2015
 
 
99.2
 
Supplemental Data Schedules dated September 30, 2015





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.

 
 
MID-AMERICA APARTMENT COMMUNITIES, INC.
 
 
 
Date:
October 28, 2015
/s/Albert M. Campbell, III
 
 
Albert M. Campbell, III
 
 
Executive Vice President and Chief Financial Officer
 
 
(Principal Financial and Accounting Officer)

 
 
MID-AMERICA APARTMENTS, L.P.
 
 
By: Mid-America Apartment Communities, Inc.
 
 
 
Date:
October 28, 2015
/s/Albert M. Campbell, III
 
 
Albert M. Campbell, III
 
 
Executive Vice President and Chief Financial Officer
 
 
(Principal Financial and Accounting Officer)





EXHIBIT INDEX

Exhibits
 
 
 
 
 
Exhibit Number
 
Description
99.1
 
Press Release dated October 28, 2015
99.2
 
Supplemental Data Schedules dated September 30, 2015










TABLE OF CONTENTS
 
Press Release Text
1

Financial Highlights
6

Consolidated Statements of Operations
8

Share and Unit Data
9

Funds from Operations
10

Consolidated Balance Sheets
11

Non-GAAP Financials and Other Definitions
12

Portfolio Statistics
S-1

Components of Property Net Operating Income/Components of Same Store Property Expenses
S-3

NOI Contribution Percentage by Region
S-4

NOI Bridge
S-5

Multifamily Same Store Comparisons
S-6

Multifamily Development Pipeline/Multifamily Lease-up Communities
S-9

2015 Acquisition Activity
S-9

2015 Disposition Activity
S-10

Debt and Debt Covenants as of September 30, 2015
S-11

EBITDA and Balance Sheet Ratios
S-13

2015 Guidance
S-14

Credit Ratings/Common Stock/Investor Relations Data
S-15








OVERVIEW

MAA REPORTS THIRD QUARTER RESULTS
MEMPHIS, Tenn., October 28, 2015 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA, (NYSE: MAA) today announced operating results for the quarter ended September 30, 2015.

Highlights

•
Core Funds from Operations, or Core FFO, per diluted common share and unit, or per Share, was $1.38 for the third quarter; 8% above the same period in the prior year and a record quarterly performance for the company.
•
Same store net operating income, or NOI, for the third quarter increased 8.1% as compared to the same period in the prior year, based on a 6.1% increase in revenue and a 3.0% increase in property operating expenses.
•
Average revenue per occupied unit for the same store portfolio increased 5.1% to $1,123, primarily driven by an increase in average effective rent per unit of 4.6%.
•
Average physical occupancy for the quarter increased 0.9% over the prior year and physical occupancy ended the quarter at 96.6%.
•
Resident turnover for the same store portfolio remained low for the third quarter of 2015 at 53.3% on a rolling twelve month basis.
•
During the quarter, we acquired two properties, a 252-unit community located in the Norfolk/Hampton/Virginia Beach, Virginia Metropolitan Statistical Area, or MSA and a new 280-unit community located in the Kansas City, Missouri-Kansas MSA.
•
During the quarter, we sold three properties containing 1,602 units. For the full year, we have sold 21 properties, recognizing gains of $190.0 million and producing internal rates of return on invested capital of 14.1% on a leveraged basis.
•
MAA has four development communities with a total projected cost of approximately $120 million under construction. An additional $10.5 million of construction costs were funded during the quarter.
•
Three communities remained in lease-up as of quarter-end, with an average occupancy of 91.0%. Two of these properties were acquired in lease-up and the third was a development project completed by the company during the second quarter.
•
Year-to-date, we have renovated 4,209 apartment homes under our redevelopment program, achieving average rental rate increases of 10.6% above non-renovated homes.
•
Following quarter end, we completed the refinancing of our unsecured revolving credit facility, increasing borrowing capacity to $750 million and further improving terms to reflect our strong credit profile.
•
The company is issuing revised guidance for the full year of 2015, with Core FFO now expected to be in the range of $5.39 per Share to $5.49 per Share for the full year.

Eric Bolton, Chairman and Chief Executive Officer, said, “MAA's focus on diversifying capital across the high growth Sunbelt region continues to generate strong leasing results. Our balanced approach, aimed at deploying capital to target a broad segment of the rental market, supported by a strong operating platform, continues to capture solid rent growth and high occupancy. Active capital recycling over the past few years has improved the quality of our portfolio and has MAA well-positioned for continued strong full cycle performance.”

Funds from Operations
For the quarter ended September 30, 2015, FFO was $114.5 million, or $1.44 per Share, compared to $103.8 million, or $1.31 per Share, for the quarter ended September 30, 2014. Core FFO, which excludes certain non-cash or non-routine items, for the quarter ended September 30, 2015 was $109.9 million, or $1.38 per Share, as compared to $101.6 million, or $1.28 per Share, for the quarter ended September 30, 2014.

For the nine months ended September 30, 2015, FFO was $333.8 million, or $4.20 per Share, compared to $296.7 million, or $3.74 per Share, for the nine months ended September 30, 2014. Core FFO for the nine months ended September 30, 2015 was $323.1 million, or $4.06 per Share, as compared to $291.0 million, or $3.67 per Share, for the nine months ended September 30, 2014.

A reconciliation of FFO and Core FFO to net income attributable to MAA and an expanded discussion of the components of FFO and Core FFO can be found later in this press release.




1





Net Income Available to Common Shareholders
For the quarter ended September 30, 2015, net income available for common shareholders was $91.7 million, or $1.22 per diluted common share, compared to $67.0 million, or $0.89 per diluted common share, for the quarter ended September 30, 2014. Results for the quarter ended September 30, 2015 included $54.6 million, or $0.73 per diluted common share, of gains related to the sale of real estate assets during the period, as compared to $35.9 million, or $0.48 per diluted common share, of for the quarter ended September 30, 2014.

For the nine months ended September 30, 2015, net income available for common shareholders was $289.3 million, or $3.84 per diluted common share, compared to $113.5 million, or $1.51 per diluted common share, for the nine months ended September 30, 2014. Results for the nine months ended September 30, 2015 included $190.2 million, or $2.53 per diluted common share, of gains related to the sale of real estate assets during the period. Results for the nine months ended September 30, 2014 included $10.3 million, or $0.14 per diluted common share, of merger and integration expenses and $48.2 million, or $0.64 per diluted common share, of gains related to the sale of real estate assets during the period.

Third Quarter Same Store Operating Results

Operating results for the Same Store portfolio of 71,376 apartment units for the company's Large Market and Secondary Market portfolios are presented below:

 
Percent Change From
 
Three months ended
 
Three months ended September 30, 2014
 
September 30, 2015
 
 
 
 
 
 
 
Average
 
Average
 
 
 
 
 
 
 
Effective
 
Physical
 
Revenue
 
Expense
 
NOI
 
Rent per Unit
 
Occupancy
Large Markets
6.5
%
 
3.6
%
 
8.5
%
 
5.6
%
 
96.5
%
Secondary Markets
5.2
%
 
1.9
%
 
7.4
%
 
2.8
%
 
96.6
%
Same Store
6.1
%
 
3.0
%
 
8.1
%
 
4.6
%
 
96.6
%

Total Same Store revenue growth of 6.1% during the third quarter was primarily produced by a 5.1% increase in revenues per occupied unit, to $1,123, combined with a 0.9% increase in average physical occupancy for the quarter, as compared to the same period in the prior year. Overall physical occupancy for the Same Store portfolio ended the quarter at 96.6%. Operating expenses increased 3.0% for the quarter, with the largest portion of the growth related to utilities and personnel expenses for the quarter.

A reconciliation of NOI, including same store NOI, to net income attributable to MAA and an expanded discussion of the components of NOI can be found later in this release.

Acquisition and Disposition Activity
During the third quarter, MAA acquired two new communities: Radius, a 252-unit community located in the Norfolk/Hampton/Virginia Beach, Virginia MSA, and Haven at Prairie Trace, a 280-unit community located in the Kansas City, Missouri-Kansas MSA, for a combined purchase price of $86.6 million. These acquisitions bring the year-to-date purchase price for new acquisition properties to $244.4 million for five properties containing 1,409 units.

During the third quarter, the company closed on the disposition of three additional multifamily properties: Whisperwood, a 1,008-unit community located in Columbus, Georgia; Colonial Grand at Wilmington, a 390-unit community located in Wilmington, North Carolina; and Savannah Creek, a 204-unit community located in the Memphis, Tennessee MSA.

Year to date, MAA received combined gross proceeds of $354.3 million by selling 21 properties with an average age of 25 years and recognized total net gains on the sale of real estate assets of $190.0 million. As a result of these property sales, the company has exited eleven markets included in the Secondary Market segment of the portfolio, achieving an economic cap rate of 5.8% and internal rates of return on invested capital of 14.1% on a leveraged basis and 10.3% on an unleveraged basis.

Development and Lease-up Activity
MAA has four development communities with a total projected cost of $119.5 million under construction, with an expected stabilized NOI yield of 7.2%. During the third quarter MAA funded an additional $10.5 million, with $54.0 million remaining to be funded. The company had three communities remaining in lease-up during the quarter: Colonial Grand at Bellevue Phase

2





II, an expansion community located in Nashville, Tennessee, completed during the second quarter; Retreat at West Creek, located in Richmond, Virginia, and Skysong, located in Phoenix, Arizona, which were both acquired in lease-up during the second quarter. Average occupancy for the three communities was 91.0% at the end of the quarter.

Redevelopment Activity
The company continues its redevelopment program at select communities throughout the portfolio. During the third quarter, MAA renovated a total of 1,777 units at an average cost of $4,596 per unit, bringing total units renovated during the year to 4,209 at an average cost of $4,522 per unit, and achieving average rental rate increases of 10.6% above non-renovated units.

Capital Expenditures
Recurring capital expenditures for the portfolio totaled $15.8 million for the third quarter, or approximately $0.20 per Share, as compared to $19.2 million, or $0.24 per Share, for the same period in 2014. These expenditures resulted in Core Adjusted Funds from Operations, or Core AFFO, of $1.18 per Share, for the third quarter, compared to $1.04 per Share for the same period in 2014, which represents a 13% increase.

Recurring capital expenditures for the portfolio totaled $48.3 million for the nine months ended September 30, 2015, or approximately $0.61 per Share, as compared to $44.9 million or $0.57 per Share, for the same period in 2014. These expenditures resulted in Core Adjusted Funds from Operations, or Core AFFO, of $3.45 per Share for the nine months ended September 30, 2015, compared to $3.10 per Share for the same period in 2014.

Total capital expenditures for the portfolio during the third quarter were $24.7 million on existing properties, with an additional $9.7 million on redevelopment opportunities. Total capital expenditures for the portfolio during the nine months ended September 30, 2015 were $72.8 million on existing properties, with an additional $22.5 million on redevelopment opportunities.

A reconciliation of FFO and Core AFFO to net income attributable to MAA and an expanded discussion of the components of FFO and Core AFFO can be found later in this release.

Financing Activity
As part of the disposition plans and continued balance sheet improvement, during the quarter, the company paid off $35.1 million related to two property mortgages with scheduled maturities.

Subsequent to quarter-end, the company also paid off $184.9 million of senior unsecured notes at their maturity date.

Subsequent to quarter-end, the company closed on a new unsecured revolving credit facility, replacing the current credit facility. The new credit facility, provides $750.0 million of borrowing capacity, with an option to extend to $1.5 billion at the company's request. The new facility extends the maturity date of the credit facility to April 2020 with one 6-month extension option, and bears interest at LIBOR plus a spread based on an investment ratings grid, currently at 1.00%.

We also amended the terms to one of the three existing terms loans subsequent to quarter-end; extending the maturity from 2017 to 2021 and reducing the interest rate from LIBOR plus a spread of 1.35% to LIBOR plus a spread of 1.10% based on an investment grade ratings grid. The notional amount remained unchanged at $150 million.

Balance Sheet
As of September 30, 2015,

•
Total debt to total capitalization was 34.5% (based on the September 30, 2015 closing stock price),
•
Total net debt to total gross assets (based on gross book value at September 30, 2015) was 39.9%, compared to 41.3% for the same period in the prior year,
•
Total debt outstanding was $3.4 billion at an average effective interest rate of 3.6%,
•
90.4% of the total debt was fixed or hedged against rising interest rates for an average of 4.2 years,
•
Fixed charge coverage ratio (Recurring EBITDA divided by interest expense adjusted for mark-to-market debt adjustment) was 4.23x and total net debt to Recurring EBITDA was 5.76x,
•
Approximately $357.6 million combined cash and capacity was available under the company's unsecured credit facility, and
•
Unencumbered assets increased to 70.6% of gross real estate assets as compared to 67.2% in the prior year.

A reconciliation of EBITDA and Recurring EBITDA to consolidated net income and an expanded discussion of the components of EBITDA and Recurring EBITDA can be found later in this release.

3






87th Consecutive Quarterly Common Dividend Declared
Our Board of Directors declared its 87th consecutive quarterly common dividend at an annual rate of $3.08 per common share and unit, which will be paid on October 30, 2015 to holders of record on October 15, 2015.

2015 Core FFO per Share Guidance
The company is revising prior guidance for full year Core FFO, which is now projected to be in a range of $5.39 per Share to $5.49 per Share, or $5.44 per Share at the midpoint, an increase from the prior guidance range of $5.25 per Share to $5.41 per Share.

Management now expects full year revenue growth from the Same Store portfolio to be in the 5.0% to 6.0% range, while property operating expense growth is expected to be in the 3.5% to 4.5% growth. This growth will result in expected property NOI growth in the range of 6.0% to 7.0%, an increase from the prior guidance range of 4.5% to 5.5%.

The company expects total recurring capital expenditures for the full year 2015 to be in the range of $52 million - $56 million, producing Core AFFO of $4.71 per Share to $4.81 per Share, or $4.76 per Share at the mid-point.

Additional information on our 2015 financial and earnings guidance is included in the supplemental data accompanying this press release.

Supplemental Material and Conference Call
Supplemental data to this press release can be found on the "For Investors" page of our website at www.maac.com. MAA will host a conference call to further discuss third quarter results on Thursday, October 29, 2015, at 9:00 AM Central Time. The conference call-in number is 866-952-7532. You may also join the live webcast of the conference call by accessing the "For Investors" page of our website at www.maac.com. Our filings with the Securities and Exchange Commission are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA
MAA is a self-administered, self-managed real estate investment trust, which owned 79,024 apartment units throughout the Southeast and Southwest regions of the United States as of September 30, 2015. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6584 Poplar Ave., Memphis, TN 38138, Attn: Investor Relations.

Forward-Looking Statements
Sections of this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements concerning property acquisitions and dispositions, joint venture activity, development and renovation activity as well as other capital expenditures, capital raising activities, rent and expense growth, occupancy, financing activities and interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Such factors include, among other things, unanticipated adverse business developments affecting us, or our properties, adverse changes in the real estate markets and general and local economies and business conditions. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our future results to differ materially from those expressed in the forward-looking statements:
 
•
inability to generate sufficient cash flows due to market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
•
exposure, as a multifamily focused REIT, to risks inherent in investments in a single industry;

4





•
adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets, which we may seek to enter in the future, limitations on our ability to increase rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
•
failure of new acquisitions to achieve anticipated results or be efficiently integrated;
•
failure of development communities to be completed, if at all, within budget and on a timely basis or to lease-up as anticipated;
•
unexpected capital needs;
•
changes in operating costs, including real estate taxes, utilities and insurance costs;
•
losses from catastrophes in excess of our insurance coverage;
•
ability to obtain financing at favorable rates, if at all, and refinance existing debt as it matures;
•
level and volatility of interest or capitalization rates or capital market conditions;
•
loss of hedge accounting treatment for interest rate swaps or interest rate caps;
•
the continuation of the good credit of our interest rate swap and cap providers;
•
price volatility, dislocations and liquidity disruptions in the financial markets and the resulting impact on financing;
•
the effect of any rating agency actions on the cost and availability of new debt financing;
•
significant decline in market value of real estate serving as collateral for mortgage obligations;
•
significant change in the mortgage financing market that would cause single-family housing, either as an owned or rental product, to become a more significant competitive product;
•
our ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of our operating partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
•
inability to attract and retain qualified personnel;
•
potential liability for breaches of our privacy or information security systems;
•
potential liability for environmental contamination;
•
adverse legislative or regulatory tax changes;
•
litigation and compliance costs associated with laws requiring access for disabled persons; and
•
other risks identified in this press release and, from time to time, in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.
    
We undertake no obligation to publicly update or revise these forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.


  


5


FINANCIAL HIGHLIGHTS
 
 
 
 
 
 
 
Dollars in thousands, except per share data
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Total property revenue
$
261,998

 
$
249,563

 
$
779,441

 
$
738,959

 
 
 
 
 
 
 
 
Total NOI
$
160,399

 
$
148,681

 
$
476,338

 
$
443,653

 
 
 
 
 
 
 
 
Management & leasing fee revenue
$
—

 
$
11

 
$
—

 
$
154

 
 
 
 
 
 
 
 
Recurring EBITDA
$
146,712

 
$
137,302

 
$
433,751

 
$
406,223

 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
Basic
$
1.22

 
$
0.89

 
$
3.84

 
$
1.51

Diluted
$
1.22

 
$
0.89

 
$
3.84

 
$
1.51

 
 
 
 
 
 
 
 
Funds from operations per share (diluted):
 
 
 
 
 
 
 
FFO
$
1.44

 
$
1.31

 
$
4.20

 
$
3.74

Core FFO
$
1.38

 
$
1.28

 
$
4.06

 
$
3.67

Core AFFO
$
1.18

 
$
1.04

 
$
3.45

 
$
3.10

 
 
 
 
 
 
 
 
Dividends declared per share
$
0.7700

 
$
0.7300

 
$
2.3100

 
$
2.1900

 
 
 
 
 
 
 
 
Dividends/Core FFO (diluted) payout ratio
55.8
%
 
57.0
%
 
56.9
%
 
59.7
%
Dividends/ Core AFFO (diluted) payout ratio
65.3
%
 
70.2
%
 
67.0
%
 
70.6
%
 
 
 
 
 
 
 
 
Consolidated interest expense
$
29,342

 
$
28,251

 
$
88,801

 
$
89,090

Mark-to-market debt adjustment
5,321

 
5,328

 
16,053

 
19,568

Capitalized interest
349

 
403

 
1,313

 
1,253

Total interest incurred
$
35,012

 
$
33,982

 
$
106,167

 
$
109,911

 
 
 
 
 
 
 
 
Amortization of principal on notes payable
$
1,923

 
$
1,562

 
$
6,310

 
$
4,685





6


FINANCIAL HIGHLIGHTS (CONTINUED)
 
 
 
Dollars in thousands, except per share data
 
 
 
 
As of
 
September 30, 2015
 
December 31, 2014
Total gross assets
$
8,313,918

 
$
8,207,272

Total debt
$
3,425,135

 
$
3,524,515

Common shares and units, outstanding end of period
79,564,446

 
79,458,827

Share price, end of period
$
81.87

 
$
74.68

Book equity value, end of period
$
3,178,587

 
$
3,057,722

Market equity value, end of period
$
6,513,941

 
$
5,933,985

Debt to total market capitalization ratio
34.5
%
 
37.3
%
Total net debt/total gross assets
39.9
%
 
42.6
%
Unencumbered Assets/Gross Real Estate Assets
70.6
%
 
67.2
%
Recurring EBITDA/Debt Service
4.01x

 
3.75x

Fixed Charge Coverage (1)
4.23x

 
3.99x

Total Net Debt (2)/Recurring EBITDA (3)
5.76x

 
6.37x


(1) 
Fixed charge coverage represents Recurring EBITDA divided by interest expense adjusted for mark-to-market debt adjustment and any preferred dividends.
(2) 
Total Net Debt equals Total Debt less Cash and Cash Equivalents.
(3) 
Recurring EBITDA represents the twelve months ended September 30, 2015.


7



CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
Dollars in thousands, except per share data
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Operating revenues:
 
 
 
 
 
 
 
Rental revenues
$
239,670

 
$
226,584

 
$
710,775

 
$
671,695

Other property revenues
22,328

 
22,979

 
68,666

 
67,264

Total property revenues
261,998

 
249,563

 
779,441

 
738,959

Management fee income
—

 
11

 
—

 
154

Total operating revenues
261,998

 
249,574

 
779,441

 
739,113

Operating Expenses:
 

 
 

 
 

 
 

Property operating expenses
101,599

 
100,882

 
303,103

 
296,408

Depreciation and amortization
73,098

 
70,222

 
220,606

 
229,866

Acquisition expense
656

 
13

 
2,155

 
971

Property management expenses
7,628

 
7,429

 
23,106

 
24,019

General and administrative expenses
5,879

 
6,511

 
19,103

 
16,065

Merger related expenses
—

 
331

 
—

 
3,202

Integration related expenses
—

 
147

 
—

 
7,140

Income from continuing operations before non-operating items
73,138

 
64,039

 
211,368

 
161,442

Interest and other non-property (expense) income
(179
)
 
37

 
(359
)
 
1,077

Interest expense
(29,342
)
 
(28,251
)
 
(88,801
)
 
(89,090
)
Loss on debt extinguishment
(5
)
 
(2,586
)
 
(3,384
)
 
(2,586
)
Amortization of deferred financing costs
(887
)
 
(1,000
)
 
(2,710
)
 
(3,485
)
Net casualty (loss) gain after insurance and other settlement proceeds
(5
)
 
(126
)
 
485

 
(431
)
Gain on sale of depreciable real estate assets excluded from discontinued operations
54,621

 
36,032

 
190,031

 
42,254

Gain on sale of non-depreciable real estate assets
—

 
—

 
172

 
535

Income before income tax expense
97,341

 
68,145

 
306,802

 
109,716

Income tax expense
(512
)
 
(442
)
 
(1,419
)
 
(1,235
)
Income from continuing operations before joint venture activity
96,829

 
67,703

 
305,383

 
108,481

(Loss) gain from real estate joint ventures
(1
)
 
3,124

 
(5
)
 
6,019

Income from continuing operations
96,828

 
70,827

 
305,378

 
114,500

Discontinued operations:
 

 
 

 
 

 
 

Loss from discontinued operations before (loss) gain on sale
—

 
(8
)
 
—

 
(59
)
Net casualty gain after insurance and other settlement proceeds on discontinued operations
—

 
3

 
—

 
—

(Loss) gain on sale of discontinued operations
—

 
(103
)
 
—

 
5,378

Consolidated net income
96,828

 
70,719

 
305,378

 
119,819

Net income attributable to noncontrolling interests
5,094

 
3,743

 
16,078

 
6,364

Net income available for MAA common shareholders
$
91,734

 
$
66,976

 
$
289,300

 
$
113,455

 
 
 
 
 
 
 
 
Earnings per common share - basic:
 

 
 

 
 

 
 

Income from continuing operations available for common shareholders
$
1.22

 
$
0.89

 
$
3.84

 
$
1.44

Discontinued property operations
—

 
—

 
—

 
0.07

Net income available for common shareholders
$
1.22

 
$
0.89

 
$
3.84

 
$
1.51

 
 
 
 
 
 
 
 
Earnings per common share - diluted:
 

 
 

 
 

 
 

Income from continuing operations available for common shareholders
$
1.22

 
$
0.89

 
$
3.84

 
$
1.44

Discontinued property operations
—

 
—

 
—

 
0.07

Net income available for common shareholders
$
1.22

 
$
0.89

 
$
3.84

 
$
1.51

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.7700

 
$
0.7300

 
$
2.3100

 
$
2.1900



8



SHARE AND UNIT DATA
 
 
 
 
 
 
 
Shares and units in thousands
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
NET INCOME SHARES (1)
 
 
 
 
 
 
 
Weighted average common shares - Basic
75,189

 
75,058

 
75,167

 
74,937

Weighted average partnership units outstanding
—

 
—

 
—

 
—

Effect of dilutive securities
—

 
—

 
—

 
—

Weighted average common shares - Diluted
75,189

 
75,058

 
75,167

 
74,937

FUNDS FROM OPERATIONS SHARES AND UNITS
 
 
 
 
 
 
 
Weighted average common shares and units - Basic
79,374

 
79,263

 
79,355

 
79,148

Weighted average common shares and units - Diluted
79,570

 
79,425

 
79,543

 
79,338

PERIOD END SHARES AND UNITS
 
 
 
 

 

Common shares at September 30,
75,379

 
75,242

 
75,379

 
75,242

Partnership units at September 30,
4,185

 
4,202

 
4,185

 
4,202

Total shares and units at September 30,
79,564

 
79,444

 
79,564

 
79,444

(1) 
For additional information on the calculation of diluted shares and earnings per share, please refer to the Notes to Condensed Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2015, expected to be filed with the SEC on October 30, 2015.


9



FUNDS FROM OPERATIONS
 
 
 
 
 
 
 
 
Dollars in thousands, except per share data
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
 
Net income available for MAA common shareholders
$
91,734

 
$
66,976

 
$
289,300

 
$
113,455

 
Depreciation and amortization of real estate assets
72,335

 
69,613

 
218,451

 
228,106

 
Depreciation and amortization of real estate assets of discontinued operations
—

 
—

 
—

 
42

 
Loss (gain) on sale of discontinued operations
—

 
103

 
—

 
(5,378
)
 
Gain on sale of depreciable real estate assets excluded from discontinued operations
(54,621
)
 
(36,032
)
 
(190,031
)
 
(42,254
)
 
Gain on disposition within unconsolidated entities
—

 
(603
)
 
(12
)
 
(4,017
)
 
Depreciation and amortization of real estate assets of real estate joint ventures
6

 
37

 
19

 
391

 
Net income attributable to noncontrolling interests
5,094

 
3,743

 
16,078

 
6,364

 
Funds from operations attributable to the Company
114,548

 
103,837

 
333,805

 
296,709

 
Acquisition expense
656

 
13

 
2,155

 
971

 
Merger related expenses
—

 
331

 
—

 
3,202

 
Integration related expenses
—

 
147

 
—

 
7,140

 
(Gain) on sale of non-depreciable real estate assets
—

 
—

 
(172
)
 
(535
)
 
Mark-to-market debt adjustment
(5,321
)
 
(5,328
)
 
(16,053
)
 
(19,568
)
 
Loss on debt extinguishment
5

 
2,586

 
3,384

 
3,126

(1 
) 
Core funds from operations attributable to the Company
109,888

 
101,586

 
323,119

 
291,045

 
Recurring capital expenditures
(15,814
)
 
(19,205
)
 
(48,310
)
 
(44,864
)
 
Core adjusted funds from operations
$
94,074

 
$
82,381

 
$
274,809

 
$
246,181

 
 
 
 
 
 
 
 
 
 
Weighted average common shares and units - Diluted
79,570

 
79,425

 
79,543

 
79,338

 
 
 
 
 
 
 
 
 
 
Funds from operations per share and unit - Diluted
$
1.44

 
$
1.31

 
$
4.20

 
$
3.74

 
Core funds from operations per share and unit - Diluted
$
1.38

 
$
1.28

 
$
4.06

 
$
3.67

 
Core adjusted funds from operations per share and unit - Diluted
$
1.18

 
$
1.04

 
$
3.45

 
$
3.10

 

(1) The loss on debt extinguishment for the nine months ended September 30, 2014 includes MAA's share of debt extinguishment costs incurred by its joint venture, Mid-America Multifamily Fund II.



10



CONSOLIDATED BALANCE SHEETS
 
 
 
Dollars in thousands
 
 
 
 
September 30, 2015
 
December 31, 2014
Assets
 
 
 
Real estate assets
 
 
 
Land
$
913,045

 
$
913,408

Buildings and improvements
6,842,089

 
6,781,210

Furniture, fixtures and equipment
223,759

 
214,742

Capital improvements in progress
44,645

 
80,772

 
8,023,538

 
7,990,132

Accumulated depreciation
(1,410,155
)
 
(1,358,400
)
 
6,613,383

 
6,631,732

Undeveloped land
51,779

 
55,997

Corporate property, net
8,606

 
7,988

Investments in real estate joint ventures
1,807

 
1,791

Real estate assets, net
6,675,575

 
6,697,508

Cash and cash equivalents
44,876

 
26,653

Restricted cash
89,321

 
28,181

Deferred financing cost, net
11,901

 
17,812

Other assets
64,061

 
61,119

Goodwill
1,607

 
2,321

Total assets
$
6,887,341

 
$
6,833,594

 
 
 
 
Liabilities and Shareholders' Equity

 
 
Liabilities
 
 
 
Secured notes payable
$
1,373,654

 
$
1,592,116

Unsecured notes payable
2,051,481

 
1,932,399

Accounts payable
10,509

 
8,395

Fair market value of interest rate swaps
17,953

 
13,392

Accrued expenses and other liabilities
243,711

 
219,044

Security deposits
11,446

 
10,526

Total liabilities
3,708,754

 
3,775,872

Redeemable stock
7,266

 
5,911

Shareholders' equity
 
 
 
Common stock
754

 
752

Additional paid-in capital
3,623,834

 
3,619,270

Accumulated distributions in excess of net income
(614,500
)
 
(729,086
)
Accumulated other comprehensive loss
(6,306
)
 
(412
)
Total MAA shareholders' equity
3,003,782

 
2,890,524

Noncontrolling interest
167,539

 
161,287

Total equity
3,171,321

 
3,051,811

Total liabilities and shareholders' equity
$
6,887,341

 
$
6,833,594



11



NON-GAAP FINANCIALS AND OTHER DEFINITIONS
Average Effective Rent per Unit
Average effective rent per unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.

Average Physical Occupancy
Average physical occupancy represents the average of the daily physical occupancy for the quarter.

Average Total Revenue per Occupied Unit
Average total revenue per occupied unit represents total revenue divided by the average daily number of units that were physically occupied.

Core Adjusted Funds From Operations (Core AFFO)
Core AFFO is composed of Core FFO less recurring capital expenditures. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from core operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds From Operations (Core FFO)
Core FFO represents FFO excluding certain non-cash or non-routine items such as acquisition, merger and integration expenses, mark-to-market debt adjustments, loss or gain on debt extinguishment, and loss or gain on sale of non-depreciable assets. While MAA's definition of Core FFO is similar to others in the industry, MAA's precise methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to net income. MAA believes that Core FFO is helpful in understanding operating performance in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

Development Portfolio
Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Portfolio.

Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
For purposes of calculations in this document, EBITDA is composed of net income before net gain on asset sales and insurance and other settlement proceeds, and gain or loss on debt extinguishment, plus depreciation, interest expense, income taxes, and amortization of deferred financing costs. EBITDA is a non-GAAP financial measure used as a performance measure. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA does not include various income and expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to net income as an indicator of financial performance. MAA's computation of EBITDA may differ from the methodology utilized by other companies to calculate EBITDA.

Effective Occupancy
Effective occupancy represents contract rents on occupied units divided by the sum of market rents on vacant units and contract rents on occupied units.

Funds From Operations (FFO)
FFO represents net income available for common shareholders (computed in accordance with U.S. generally accepted accounting principles, or GAAP) excluding extraordinary items, asset impairment, gains or losses on disposition of real estate assets, plus net income attributable to noncontrolling interest, depreciation of real estate, and adjustments for joint ventures to reflect FFO on the same basis. Because noncontrolling interest is added back, FFO, when used in this document, represents FFO attributable to MAA. While MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trust’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to such other REITs. FFO should not be considered as an alternative to net income. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation expense of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

12




NON-GAAP FINANCIALS AND OTHER DEFINITIONS (CONTINUED)
Lease-up Portfolio
New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Portfolio until stabilized.

Net Operating Income (NOI)
Net operating income represents total property revenues less total property operating expenses, excluding depreciation, for all properties held during the period, regardless of their status as held for sale. We believe NOI by market is a helpful tool in evaluating the operating performance within MAA's markets because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Other Non-Same Store Portfolio
Other Non-Same Store includes recent acquisitions, communities in development or lease-up, communities that have undergone a significant casualty loss, and commercial assets.

Recurring Earnings Before Interest Taxes Depreciation and Amortization (Recurring EBITDA)
Recurring EBITDA represents EBITDA excluding certain non-cash or non-routine items such as acquisition and merger and integration expenses. MAA believes Recurring EBITDA is an important performance measure as it adjusts for certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance. Recurring EBITDA should not be considered as an alternative to net income as an indicator of financial performance. MAA's computation of Recurring EBITDA may differ from the methodology utilized by other companies to calculate Recurring EBITDA.

Same Store Portfolio
MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities that have been approved by the Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have undergone a significant casualty loss are also excluded from the Same Store Portfolio. Within the Same Store Portfolio communities are designated as operating in Large or Secondary markets:

Large Market Same Store communities are generally those communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units.

Secondary Market Same Store communities are generally those communities in markets with either a population less than one million or less than 1% of the total public multifamily REIT units, or both.

Stabilized Communities
Communities are considered stabilized after achieving 90% occupancy for 90 days.



CONTACT: Investor Relations of MAA, 866-576-9689 (toll free), investor.relations@maac.com

13





PORTFOLIO STATISTICS

TOTAL MULTIFAMILY PORTFOLIO AT SEPTEMBER 30, 2015 (In apartment units)
 
Same Store
 
Non Same Store
 
In Lease-Up
 
Total for Completed Communities
 
Current Development Units Delivered
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta, GA
5,594

 
480

 
—

 
6,074

 
—

 
6,074

Austin, TX
5,838

 
—

 
—

 
5,838

 
—

 
5,838

Dallas, TX
3,979

 
1,318

 
—

 
5,297

 
—

 
5,297

Charlotte, NC
4,648

 
353

 
—

 
5,001

 
—

 
5,001

Raleigh/Durham, NC
4,663

 
—

 
—

 
4,663

 
—

 
4,663

Fort Worth, TX
4,519

 
—

 
—

 
4,519

 
—

 
4,519

Nashville, TN
3,207

 
349

 
220

 
3,776

 
—

 
3,776

Orlando, FL
2,718

 
934

 
—

 
3,652

 
—

 
3,652

Houston, TX
2,597

 
635

 
—

 
3,232

 
—

 
3,232

Tampa, FL
2,878

 
—

 
—

 
2,878

 
—

 
2,878

Phoenix, AZ
1,976

 
—

 
325

 
2,301

 
—

 
2,301

Las Vegas, NV
721

 
—

 
—

 
721

 
—

 
721

South Florida
480

 
—

 
—

 
480

 
—

 
480

Large Markets
43,818

 
4,069

 
545

 
48,432

 
—

 
48,432

 
 
 
 
 
 
 
 
 
 
 
 
Jacksonville, FL
3,202

 
—

 
—

 
3,202

 
232

 
3,434

Charleston, SC
2,648

 
—

 
—

 
2,648

 
—

 
2,648

Savannah, GA
2,219

 
—

 
—

 
2,219

 
—

 
2,219

Richmond, VA
1,668

 
—

 
254

 
1,922

 
—

 
1,922

Memphis, TN
1,811

 
 
 
—

 
1,811

 
—

 
1,811

Greenville, SC
1,748

 
—

 
—

 
1,748

 
—

 
1,748

San Antonio, TX
1,176

 
328

 
—

 
1,504

 
—

 
1,504

Birmingham, AL
1,462

 
—

 
—

 
1,462

 
—

 
1,462

Huntsville, AL
1,380

 
—

 
—

 
1,380

 
—

 
1,380

Little Rock, AR
1,368

 
—

 
—

 
1,368

 
—

 
1,368

Norfolk, Hampton, VA Beach, VA
1,033

 
252

 
—

 
1,285

 
—

 
1,285

Jackson, MS
1,241

 
—

 
—

 
1,241

 
—

 
1,241

Chattanooga, TN
943

 
—

 
—

 
943

 
—

 
943

Lexington, KY
924

 
—

 
—

 
924

 
—

 
924

Other
4,735

 
1,968

 
—

 
6,703

 
—

 
6,703

Secondary Markets
27,558

 
2,548

 
254

 
30,360

 
232

 
30,592

Total Multifamily Units
71,376

 
6,617

 
799

 
78,792

 
232

 
79,024





Supplemental Data S-1



PORTFOLIO STATISTICS (CONTINUED)

TOTAL MULTIFAMILY COMMUNITY STATISTICS
Dollars in thousands, except Average Effective Rent
 
 
As of September 30, 2015
 
Average Effective Rent for the Three Months Ended September 30, 2015
 
As of September 30, 2015
 
 
Gross Real Assets
 
Percent to Total of Gross Real Assets
 
Physical Occupancy
 
 
Completed Units
 
Total Units, Including Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta, GA
 
$
662,829

 
8.3
%
 
96.6
%
 
$
1,083

 
6,074

 
 
Charlotte, NC
 
$
607,129

 
7.6
%
 
97.1
%
 
$
980

 
5,001

 
 
Austin, TX
 
$
577,055

 
7.3
%
 
96.3
%
 
$
1,049

 
5,838

 
 
Raleigh/Durham, NC
 
$
547,208

 
6.9
%
 
96.3
%
 
$
947

 
4,663

 
 
Dallas, TX
 
$
543,075

 
6.8
%
 
96.1
%
 
$
1,082

 
5,297

 
 
Orlando, FL
 
$
478,744

 
6.0
%
 
97.2
%
 
$
1,140

 
3,652

 
 
Fort Worth, TX
 
$
382,093

 
4.8
%
 
96.6
%
 
$
973

 
4,519

 
 
Nashville, TN
 
$
338,932

 
4.3
%
 
96.5
%
 
$
1,092

 
3,556

 
 
Tampa, FL
 
$
304,539

 
3.8
%
 
98.0
%
 
$
1,078

 
2,878

 
 
Houston, TX
 
$
280,869

 
3.5
%
 
96.0
%
 
$
1,061

 
3,232

 
 
Phoenix, AZ
 
$
236,020

 
3.0
%
 
96.8
%
 
$
935

 
1,976

 
 
Las Vegas, NV
 
$
65,949

 
0.8
%
 
97.8
%
 
$
818

 
721

 
 
South Florida
 
$
58,614

 
0.7
%
 
96.3
%
 
$
1,504

 
480

 
 
Large Markets
 
$
5,083,056

 
63.8
%
 
96.6
%
 
$
1,042

 
47,887

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charleston, SC
 
$
261,717

 
3.3
%
 
96.7
%
 
$
1,041

 
2,648

 
 
Jacksonville, FL
 
$
247,509

 
3.1
%
 
97.2
%
 
$
944

 
3,202

 
 
Savannah, GA
 
$
224,745

 
2.8
%
 
96.5
%
 
$
982

 
2,219

 
 
Richmond, VA
 
$
188,600

 
2.4
%
 
97.2
%
 
$
951

 
1,668

 
 
Fredericksburg, VA
 
$
156,852

 
2.0
%
 
97.3
%
 
$
1,219

 
1,001

 
 
San Antonio, TX
 
$
156,587

 
2.0
%
 
96.5
%
 
$
1,053

 
1,504

 
 
Birmingham, AL
 
$
145,614

 
1.8
%
 
96.3
%
 
$
939

 
1,462

 
 
Kansas City, MO-KS
 
$
143,262

 
1.8
%
 
96.6
%
 
$
1,195

 
901

 
 
Norfolk, Hampton, VA Beach, VA
 
$
140,432

 
1.8
%
 
95.3
%
 
$
1,052

 
1,285

 
 
Memphis, TN
 
$
124,418

 
1.6
%
 
96.0
%
 
$
857

 
1,811

 
 
Huntsville, AL
 
$
113,732

 
1.4
%
 
95.1
%
 
$
753

 
1,380

 
 
Little Rock, AR
 
$
113,596

 
1.4
%
 
96.5
%
 
$
874

 
1,368

 
 
Greenville, SC
 
$
95,954

 
1.2
%
 
95.5
%
 
$
766

 
1,748

 
 
All Other Secondary Markets by State (individual markets <1% gross real assets)
 
 
 
 
 
 
Florida
 
$
140,684

 
1.8
%
 
96.6
%
 
$
969

 
1,790

 
 
Kentucky
 
$
90,421

 
1.1
%
 
97.6
%
 
$
824

 
1,308

 
 
Mississippi
 
$
71,683

 
0.9
%
 
97.4
%
 
$
853

 
1,241

 
 
North Carolina
 
$
71,478

 
0.9
%
 
97.1
%
 
$
682

 
1,172

 
 
Alabama
 
$
59,602

 
0.8
%
 
96.7
%
 
$
916

 
628

 
 
Virginia
 
$
47,973

 
0.6
%
 
97.2
%
 
$
1,362

 
251

 
 
Tennessee
 
$
46,760

 
0.6
%
 
97.9
%
 
$
772

 
943

 
 
South Carolina
 
$
35,706

 
0.4
%
 
97.6
%
 
$
760

 
576

 
 
Secondary Markets
 
$
2,677,325

 
33.7
%
 
96.6
%
 
$
931

 
30,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subtotal
$
7,760,381

 
97.5
%
 
96.6
%
 
$
999

 
77,993

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phoenix, AZ
Large
$
55,879

 
0.7
%
 
87.4
%
 
$
1,316

 
325

 
325

Nashville, TN
Large
$
38,705

 
0.5
%
 
91.4
%
 
$
1,215

 
220

 
220

Orlando, FL
Large
$
7,429

 
0.1
%
 
0.0
%
 
$
—

 
—

 
314

Richmond, VA
Secondary
$
43,326

 
0.5
%
 
95.3
%
 
$
1,179

 
254

 
254

Jacksonville, FL
Secondary
$
40,017

 
0.5
%
 
75.0
%
 
$
1,375

 
232

 
294

Fredericksburg, VA
Secondary
$
11,907

 
0.1
%
 
0.0
%
 
$
—

 
—

 
120

Charleston, SC
Secondary
$
6,166

 
0.1
%
 
0.0
%
 
$
—

 
—

 
78

Lease-up and Development
$
203,429

 
2.5
%
 
87.4
%
 
$
1,274

 
1,031

 
1,605

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholly Owned Multifamily Communities
$
7,963,810

 
100.0
%
 
96.5
%
 
$
1,003

 
79,024

 
79,598


Supplemental Data S-2



COMPONENTS OF PROPERTY NET OPERATING INCOME
Dollars in thousands
 
Apartment
 
Gross Real
 
Three Months Ended
 
Units
 
Estate Assets
 
September 30, 2015

 
September 30, 2014

 
Percent Change
Property Revenue
 
 
 
 
 
 
 
 
 
Same Store Communities
71,376

 
$
6,795,647

 
$
232,136

 
$
218,865

 
6.1
%
Non-Same Store Communities
6,617

 
964,734

 
24,951

 
29,387

 

Lease up/Development Communities
1,031

 
203,429

 
3,420

 
1

 

Total Multifamily Portfolio
79,024

 
$
7,963,810

 
$
260,507

 
$
248,253

 
 
Commercial Property/Land
—

 
$
50,644

 
$
1,491

 
$
1,310

 
 
Total Property Revenue
79,024

 
$
8,014,454

 
$
261,998

 
$
249,563

 

 
 
 
 
 
 
 
 
 
 
Property Expenses
 
 
 
 
 
 
 
 
 
Same Store Communities
71,376

 
$
6,795,647

 
$
90,035

 
$
87,416

 
3.0
%
Non-Same Store Communities
6,617

 
964,734

 
9,481

 
13,079

 

Lease up/Development Communities
1,031

 
203,429

 
1,487

 
55

 

Total Multifamily Portfolio
79,024

 
$
7,963,810

 
$
101,003

 
$
100,550

 
 
Commercial Property/Land
—

 
$
50,644

 
$
596

 
$
332

 
 
Total Property Expenses
79,024

 
$
8,014,454

 
$
101,599

 
$
100,882

 

 
 
 
 
 
 
 
 
 
 
Property Net Operating Income
 
 
 
 
 
 
 
 
 
Same Store Communities
71,376

 
$
6,795,647

 
$
142,101

 
$
131,449

 
8.1
%
Non-Same Store Communities
6,617

 
964,734

 
15,470

 
16,308

 

Lease up/Development Communities
1,031

 
203,429

 
1,933

 
(54
)
 

Total Multifamily Portfolio
79,024

 
$
7,963,810

 
$
159,504

 
$
147,703

 
 
Commercial Property/Land
—

 
$
50,644

 
$
895

 
$
978

 
 
Total Property Net Operating Income
79,024

 
$
8,014,454

 
$
160,399

 
$
148,681

 
7.9
%


COMPONENTS OF SAME STORE PROPERTY EXPENSES
Dollars in thousands

 
Three Months Ended
 
Nine Months Ended
 
September 30, 2015
 
September 30, 2014
 
Percent Increase/(Decrease)
 
September 30, 2015
 
September 30, 2014
 
Percent Increase/(Decrease)
Personnel
$
23,650

 
$
22,699

 
4.2
 %
 
$
68,328

 
$
65,147

 
4.9
 %
Building Repair and Maintenance
11,409

 
11,203

 
1.8
 %
 
33,324

 
32,752

 
1.7
 %
Utilities
21,441

 
20,598

 
4.1
 %
 
60,007

 
58,266

 
3.0
 %
Marketing
2,701

 
2,901

 
(6.9
)%
 
8,472

 
8,242

 
2.8
 %
Office Operations
3,300

 
2,965

 
11.3
 %
 
9,847

 
8,980

 
9.7
 %
Property Taxes
24,620

 
24,178

 
1.8
 %
 
75,650

 
72,539

 
4.3
 %
Insurance
2,914

 
2,872

 
1.5
 %
 
8,723

 
8,790

 
(0.8
)%
Total Property Expenses
$
90,035

 
$
87,416

 
3.0
 %
 
$
264,351

 
$
254,716

 
3.8
 %


Supplemental Data S-3



NOI CONTRIBUTION PERCENTAGE BY REGION

 
 
Average Physical Occupancy
 
Percent of Same Store
 
Three months ended September 30, 2015
 
Three months ended September 30, 2014
Atlanta, GA
8.6
%
 
96.2
%
 
95.6
%
Austin, TX
8.0
%
 
96.5
%
 
96.4
%
Charlotte, NC
6.9
%
 
96.7
%
 
96.1
%
Raleigh/Durham, NC
6.7
%
 
96.6
%
 
95.1
%
Fort Worth, TX
5.9
%
 
96.5
%
 
95.7
%
Dallas, TX
5.6
%
 
96.4
%
 
95.4
%
Nashville, TN
5.3
%
 
96.6
%
 
96.6
%
Orlando, FL
4.5
%
 
96.9
%
 
96.0
%
Tampa, FL
4.5
%
 
97.3
%
 
96.2
%
Houston, TX
3.6
%
 
95.7
%
 
96.1
%
Phoenix, AZ
2.8
%
 
96.6
%
 
95.7
%
South Florida
1.0
%
 
96.2
%
 
95.2
%
Las Vegas, NV
0.9
%
 
96.0
%
 
95.6
%
Large Markets
64.3
%
 
96.5
%
 
95.9
%
 
 
 
 
 
 
Jacksonville, FL
4.4
%
 
97.0
%
 
95.7
%
Charleston, SC
4.2
%
 
96.7
%
 
96.3
%
Savannah, GA
3.2
%
 
96.9
%
 
96.1
%
Richmond, VA
2.4
%
 
96.7
%
 
96.1
%
Memphis, TN
2.0
%
 
96.4
%
 
94.4
%
Birmingham, AL
2.0
%
 
96.3
%
 
94.6
%
Greenville, SC
1.9
%
 
96.5
%
 
96.2
%
Little Rock, AR
1.7
%
 
96.2
%
 
94.3
%
San Antonio, TX
1.6
%
 
96.8
%
 
95.7
%
Jackson, MS
1.5
%
 
97.1
%
 
96.2
%
Huntsville, AL
1.4
%
 
94.9
%
 
94.2
%
Norfolk, Hampton, VA Beach, VA
1.4
%
 
96.5
%
 
94.2
%
Lexington, KY
1.1
%
 
97.3
%
 
95.3
%
Chattanooga, TN
1.0
%
 
96.9
%
 
95.1
%
Other
5.9
%
 
96.7
%
 
95.2
%
Secondary Markets
35.7
%
 
96.6
%
 
95.4
%
 
 
 
 
 
 
Total Same Store
100.0
%
 
96.6
%
 
95.7
%


Supplemental Data S-4



NOI BRIDGE
 
 
 
 
 
 
 
 
 
Dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2015
 
June 30, 2015
 
September 30, 2014
 
September 30, 2015
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
NOI
 
 
 
 
 
 
 
 
 
MAA same store
$
142,101

 
$
138,331

 
$
131,449

 
$
416,741

 
$
388,987

Non-same store
18,298

 
19,704

 
17,232

 
59,597

 
54,666

Total NOI
160,399

 
158,035

 
148,681

 
476,338

 
443,653

Held for sale NOI included above
—

 
—

 
—

 
—

 
(1,102
)
Management fee income
—

 
—

 
11

 
—

 
154

Depreciation and amortization
(73,098
)
 
(74,396
)
 
(70,222
)
 
(220,606
)
 
(229,866
)
Acquisition expense
(656
)
 
(1,159
)
 
(13
)
 
(2,155
)
 
(971
)
Property management expenses
(7,628
)
 
(6,986
)
 
(7,429
)
 
(23,106
)
 
(24,019
)
General and administrative expenses
(5,879
)
 
(6,657
)
 
(6,511
)
 
(19,103
)
 
(16,065
)
Merger related expenses
—

 
—

 
(331
)
 
—

 
(3,202
)
Integration related expenses
—

 
—

 
(147
)
 
—

 
(7,140
)
Interest and other non-property (expense) income
(179
)
 
29

 
37

 
(359
)
 
1,077

Interest Expense
(29,342
)
 
(29,528
)
 
(28,251
)
 
(88,801
)
 
(89,090
)
Loss on debt extinguishment
(5
)
 
(3
)
 
(2,586
)
 
(3,384
)
 
(2,586
)
Amortization of deferred financing costs
(887
)
 
(905
)
 
(1,000
)
 
(2,710
)
 
(3,485
)
Gain on sale of depreciable real estate assets excluded from discontinued operations
54,621

 
105,182

 
36,032

 
190,031

 
42,254

Net casualty (loss) gain and other settlement proceeds
(5
)
 
510

 
(126
)
 
485

 
(431
)
Income tax expense
(512
)
 
(398
)
 
(442
)
 
(1,419
)
 
(1,235
)
Gain on sale of non-depreciable real estate assets
—

 
172

 
—

 
172

 
535

(Loss) gain from real estate joint ventures
(1
)
 
(23
)
 
3,124

 
(5
)
 
6,019

Discontinued operations
—

 
—

 
(108
)
 
—

 
5,319

Net income attributable to noncontrolling interests
(5,094
)
 
(7,574
)
 
(3,743
)
 
(16,078
)
 
(6,364
)
Net income attributable to MAA
$
91,734

 
$
136,299

 
$
66,976

 
$
289,300

 
$
113,455




Supplemental Data S-5



MULTIFAMILY SAME STORE QUARTER OVER QUARTER COMPARISONS
Dollars in thousands, except per unit data
 
Revenues
 
Expenses
 
NOI
 
Revenue per Occupied Unit
 
Effective Rent per Unit
 
Q3 2015
 
Q3 2014
 
% Chg
 
Q3 2015
 
Q3 2014
 
% Chg
 
Q3 2015
 
Q3 2014
 
% Chg
 
Q3 2015
 
Q3 2014
 
% Chg
 
Q3 2015
 
Q3 2014
 
% Chg
Atlanta, GA
$
19,971

 
$
18,347

 
8.9
%
 
$
7,781

 
$
7,736

 
0.6
 %
 
$
12,190

 
$
10,611

 
14.9
 %
 
$
1,237

 
$
1,143

 
8.2
 %
 
$
1,054

 
$
980

 
7.6
 %
Austin, TX
20,324

 
19,238

 
5.6
%
 
8,964

 
8,745

 
2.5
 %
 
11,360

 
10,493

 
8.3
 %
 
1,203

 
1,139

 
5.6
 %
 
1,049

 
994

 
5.5
 %
Charlotte, NC
14,809

 
13,958

 
6.1
%
 
5,044

 
4,948

 
1.9
 %
 
9,765

 
9,010

 
8.4
 %
 
1,099

 
1,042

 
5.5
 %
 
962

 
914

 
5.3
 %
Raleigh/Durham, NC
14,734

 
13,939

 
5.7
%
 
5,194

 
4,893

 
6.2
 %
 
9,540

 
9,046

 
5.5
 %
 
1,090

 
1,048

 
4.0
 %
 
947

 
920

 
2.9
 %
Fort Worth, TX
14,697

 
13,704

 
7.2
%
 
6,306

 
5,925

 
6.4
 %
 
8,391

 
7,779

 
7.9
 %
 
1,123

 
1,056

 
6.3
 %
 
973

 
914

 
6.5
 %
Dallas, TX
14,085

 
13,262

 
6.2
%
 
6,135

 
5,692

 
7.8
 %
 
7,950

 
7,570

 
5.0
 %
 
1,224

 
1,164

 
5.2
 %
 
1,082

 
1,029

 
5.2
 %
Nashville, TN
11,490

 
11,033

 
4.1
%
 
3,964

 
3,738

 
6.0
 %
 
7,526

 
7,295

 
3.2
 %
 
1,236

 
1,188

 
4.0
 %
 
1,090

 
1,047

 
4.1
 %
Orlando, FL
10,020

 
9,210

 
8.8
%
 
3,679

 
3,554

 
3.5
 %
 
6,341

 
5,656

 
12.1
 %
 
1,268

 
1,177

 
7.7
 %
 
1,123

 
1,038

 
8.2
 %
Tampa, FL
10,359

 
9,717

 
6.6
%
 
4,030

 
3,824

 
5.4
 %
 
6,329

 
5,893

 
7.4
 %
 
1,233

 
1,170

 
5.4
 %
 
1,078

 
1,022

 
5.5
 %
Houston, TX
8,663

 
8,285

 
4.6
%
 
3,575

 
3,538

 
1.0
 %
 
5,088

 
4,747

 
7.2
 %
 
1,162

 
1,106

 
5.1
 %
 
1,023

 
974

 
5.0
 %
Phoenix, AZ
6,177

 
5,724

 
7.9
%
 
2,142

 
2,253

 
(4.9
)%
 
4,035

 
3,471

 
16.2
 %
 
1,079

 
1,009

 
6.9
 %
 
935

 
878

 
6.5
 %
South Florida
2,272

 
2,137

 
6.3
%
 
809

 
738

 
9.6
 %
 
1,463

 
1,399

 
4.6
 %
 
1,640

 
1,558

 
5.3
 %
 
1,504

 
1,435

 
4.8
 %
Las Vegas, NV
2,041

 
1,898

 
7.5
%
 
782

 
782

 
—
 %
 
1,259

 
1,116

 
12.8
 %
 
983

 
918

 
7.1
 %
 
818

 
776

 
5.4
 %
Large Markets
$
149,642

 
$
140,452

 
6.5
%
 
$
58,405

 
$
56,366

 
3.6
 %
 
$
91,237

 
$
84,086

 
8.5
 %
 
$
1,179

 
$
1,114

 
5.8
 %
 
$
1,029

 
$
974

 
5.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jacksonville, FL
$
9,668

 
$
9,115

 
6.1
%
 
$
3,500

 
$
3,495

 
0.1
 %
 
$
6,168

 
$
5,620

 
9.8
 %
 
$
1,038

 
$
992

 
4.6
 %
 
$
944

 
$
910

 
3.7
 %
Charleston, SC
9,232

 
8,607

 
7.3
%
 
3,214

 
3,252

 
(1.2
)%
 
6,018

 
5,355

 
12.4
 %
 
1,202

 
1,125

 
6.8
 %
 
1,041

 
983

 
5.9
 %
Savannah, GA
7,302

 
6,857

 
6.5
%
 
2,704

 
2,645

 
2.2
 %
 
4,598

 
4,212

 
9.2
 %
 
1,132

 
1,072

 
5.6
 %
 
982

 
946

 
3.8
 %
Richmond, VA
5,312

 
5,081

 
4.5
%
 
1,899

 
1,838

 
3.3
 %
 
3,413

 
3,243

 
5.2
 %
 
1,098

 
1,057

 
3.9
 %
 
951

 
928

 
2.5
 %
Memphis, TN
5,079

 
4,891

 
3.8
%
 
2,256

 
2,253

 
0.1
 %
 
2,823

 
2,638

 
7.0
 %
 
970

 
954

 
1.7
 %
 
857

 
848

 
1.1
 %
Birmingham, AL
4,664

 
4,542

 
2.7
%
 
1,857

 
1,843

 
0.8
 %
 
2,807

 
2,699

 
4.0
 %
 
1,104

 
1,095

 
0.8
 %
 
939

 
951

 
(1.3
)%
Greenville, SC
4,525

 
4,210

 
7.5
%
 
1,791

 
1,699

 
5.4
 %
 
2,734

 
2,511

 
8.9
 %
 
894

 
834

 
7.2
 %
 
766

 
724

 
5.8
 %
Little Rock, AR
3,855

 
3,801

 
1.4
%
 
1,409

 
1,390

 
1.4
 %
 
2,446

 
2,411

 
1.5
 %
 
976

 
982

 
(0.6
)%
 
874

 
881

 
(0.8
)%
San Antonio, TX
3,950

 
3,783

 
4.4
%
 
1,664

 
1,595

 
4.3
 %
 
2,286

 
2,188

 
4.5
 %
 
1,157

 
1,121

 
3.2
 %
 
1,032

 
1,007

 
2.5
 %
Jackson, MS
3,573

 
3,434

 
4.0
%
 
1,377

 
1,299

 
6.0
 %
 
2,196

 
2,135

 
2.9
 %
 
989

 
959

 
3.1
 %
 
853

 
834

 
2.3
 %
Huntsville, AL
3,533

 
3,425

 
3.2
%
 
1,537

 
1,413

 
8.8
 %
 
1,996

 
2,012

 
(0.8
)%
 
899

 
878

 
2.4
 %
 
753

 
742

 
1.5
 %
Norfolk, Hampton, VA Beach, VA
3,356

 
3,285

 
2.2
%
 
1,381

 
1,368

 
1.0
 %
 
1,975

 
1,917

 
3.0
 %
 
1,122

 
1,125

 
(0.3
)%
 
970

 
967

 
0.3
 %
Lexington, KY
2,521

 
2,374

 
6.2
%
 
907

 
919

 
(1.3
)%
 
1,614

 
1,455

 
10.9
 %
 
935

 
899

 
4.0
 %
 
837

 
813

 
3.0
 %
Chattanooga, TN
2,458

 
2,399

 
2.5
%
 
1,092

 
1,074

 
1.7
 %
 
1,366

 
1,325

 
3.1
 %
 
896

 
892

 
0.4
 %
 
772

 
743

 
3.9
 %
Other
13,466

 
12,609

 
6.8
%
 
5,042

 
4,967

 
1.5
 %
 
8,424

 
7,642

 
10.2
 %
 
980

 
932

 
5.2
 %
 
858

 
831

 
3.2
 %
Secondary Markets
$
82,494

 
$
78,413

 
5.2
%
 
$
31,630

 
$
31,050

 
1.9
 %
 
$
50,864

 
$
47,363

 
7.4
 %
 
$
1,033

 
$
994

 
3.9
 %
 
$
903

 
$
878

 
2.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Same Store
$
232,136

 
$
218,865

 
6.1
%
 
$
90,035

 
$
87,416

 
3.0
 %
 
$
142,101

 
$
131,449

 
8.1
 %
 
$
1,123

 
$
1,068

 
5.1
 %
 
$
980

 
$
937

 
4.6
 %






Supplemental Data S-6




MULTIFAMILY SAME STORE SEQUENTIAL QUARTER COMPARISONS
Dollars in thousands, except per unit data
 
Revenues
 
Expenses
 
NOI
 
Revenue per Occupied Unit
 
Effective Rent per Unit
 
Q3 2015
 
Q2 2015
 
% Chg
 
Q3 2015
 
Q2 2015
 
% Chg
 
Q3 2015
 
Q2 2015
 
% Chg
 
Q3 2015
 
Q2 2015
 
% Chg
 
Q3 2015
 
Q2 2015
 
% Chg
Atlanta, GA
$
19,971

 
$
19,278

 
3.6
 %
 
$
7,781

 
$
7,575

 
2.7
 %
 
$
12,190

 
$
11,703

 
4.2
 %
 
$
1,237

 
$
1,195

 
3.5
 %
 
$
1,054

 
$
1,028

 
2.5
 %
Austin, TX
20,324

 
19,705

 
3.1
 %
 
8,964

 
8,948

 
0.2
 %
 
11,360

 
10,757

 
5.6
 %
 
1,203

 
1,176

 
2.3
 %
 
1,049

 
1,031

 
1.7
 %
Charlotte, NC
14,809

 
14,566

 
1.7
 %
 
5,044

 
4,993

 
1.0
 %
 
9,765

 
9,573

 
2.0
 %
 
1,099

 
1,079

 
1.9
 %
 
962

 
942

 
2.1
 %
Raleigh/Durham, NC
14,734

 
14,501

 
1.6
 %
 
5,194

 
4,982

 
4.3
 %
 
9,540

 
9,519

 
0.2
 %
 
1,090

 
1,078

 
1.1
 %
 
947

 
935

 
1.3
 %
Fort Worth, TX
14,697

 
14,311

 
2.7
 %
 
6,306

 
6,092

 
3.5
 %
 
8,391

 
8,219

 
2.1
 %
 
1,123

 
1,103

 
1.8
 %
 
973

 
952

 
2.2
 %
Dallas, TX
14,085

 
13,689

 
2.9
 %
 
6,135

 
5,718

 
7.3
 %
 
7,950

 
7,971

 
(0.3
)%
 
1,224

 
1,194

 
2.5
 %
 
1,082

 
1,061

 
2.0
 %
Nashville, TN
11,490

 
11,168

 
2.9
 %
 
3,964

 
3,756

 
5.5
 %
 
7,526

 
7,412

 
1.5
 %
 
1,236

 
1,209

 
2.2
 %
 
1,090

 
1,074

 
1.5
 %
Orlando, FL
10,020

 
9,721

 
3.1
 %
 
3,679

 
3,710

 
(0.8
)%
 
6,341

 
6,011

 
5.5
 %
 
1,268

 
1,231

 
3.0
 %
 
1,123

 
1,090

 
3.0
 %
Tampa, FL
10,359

 
10,079

 
2.8
 %
 
4,030

 
3,883

 
3.8
 %
 
6,329

 
6,196

 
2.1
 %
 
1,233

 
1,212

 
1.7
 %
 
1,078

 
1,061

 
1.6
 %
Houston, TX
8,663

 
8,565

 
1.1
 %
 
3,575

 
3,853

 
(7.2
)%
 
5,088

 
4,712

 
8.0
 %
 
1,162

 
1,144

 
1.6
 %
 
1,023

 
1,015

 
0.8
 %
Phoenix, AZ
6,177

 
6,003

 
2.9
 %
 
2,142

 
2,176

 
(1.6
)%
 
4,035

 
3,827

 
5.4
 %
 
1,079

 
1,058

 
2.0
 %
 
935

 
919

 
1.7
 %
South Florida
2,272

 
2,262

 
0.4
 %
 
809

 
847

 
(4.5
)%
 
1,463

 
1,415

 
3.4
 %
 
1,640

 
1,627

 
0.8
 %
 
1,504

 
1,491

 
0.9
 %
Las Vegas, NV
2,041

 
1,973

 
3.4
 %
 
782

 
708

 
10.5
 %
 
1,259

 
1,265

 
(0.5
)%
 
983

 
957

 
2.7
 %
 
818

 
808

 
1.2
 %
Large Markets
$
149,642

 
$
145,821

 
2.6
 %
 
$
58,405

 
$
57,241

 
2.0
 %
 
$
91,237

 
$
88,580

 
3.0
 %
 
$
1,179

 
$
1,154

 
2.2
 %
 
$
1,029

 
$
1,010

 
1.9
 %
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 

Jacksonville, FL
$
9,668

 
$
9,463

 
2.2
 %
 
$
3,500

 
$
3,519

 
(0.5
)%
 
$
6,168

 
$
5,944

 
3.8
 %
 
$
1,038

 
$
1,021

 
1.7
 %
 
$
944

 
$
932

 
1.3
 %
Charleston, SC
9,232

 
9,025

 
2.3
 %
 
3,214

 
3,125

 
2.8
 %
 
6,018

 
5,900

 
2.0
 %
 
1,202

 
1,176

 
2.2
 %
 
1,041

 
1,017

 
2.4
 %
Savannah, GA
7,302

 
7,157

 
2.0
 %
 
2,704

 
2,704

 
—
 %
 
4,598

 
4,453

 
3.3
 %
 
1,132

 
1,118

 
1.3
 %
 
982

 
970

 
1.2
 %
Richmond, VA
5,312

 
5,220

 
1.8
 %
 
1,899

 
1,790

 
6.1
 %
 
3,413

 
3,430

 
(0.5
)%
 
1,098

 
1,083

 
1.4
 %
 
951

 
944

 
0.7
 %
Memphis, TN
5,079

 
5,008

 
1.4
 %
 
2,256

 
2,278

 
(1.0
)%
 
2,823

 
2,730

 
3.4
 %
 
970

 
958

 
1.3
 %
 
857

 
852

 
0.6
 %
Birmingham, AL
4,664

 
4,608

 
1.2
 %
 
1,857

 
1,981

 
(6.3
)%
 
2,807

 
2,627

 
6.9
 %
 
1,104

 
1,091

 
1.2
 %
 
939

 
936

 
0.3
 %
Greenville, SC
4,525

 
4,405

 
2.7
 %
 
1,791

 
1,808

 
(0.9
)%
 
2,734

 
2,597

 
5.3
 %
 
894

 
875

 
2.2
 %
 
766

 
755

 
1.5
 %
Little Rock, AR
3,855

 
3,776

 
2.1
 %
 
1,409

 
1,418

 
(0.6
)%
 
2,446

 
2,358

 
3.7
 %
 
976

 
972

 
0.4
 %
 
874

 
876

 
(0.2
)%
San Antonio, TX
3,950

 
3,873

 
2.0
 %
 
1,664

 
1,657

 
0.4
 %
 
2,286

 
2,216

 
3.2
 %
 
1,157

 
1,146

 
1.0
 %
 
1,032

 
1,024

 
0.8
 %
Jackson, MS
3,573

 
3,553

 
0.6
 %
 
1,377

 
1,332

 
3.4
 %
 
2,196

 
2,221

 
(1.1
)%
 
989

 
988

 
0.1
 %
 
853

 
843

 
1.2
 %
Huntsville, AL
3,533

 
3,501

 
0.9
 %
 
1,537

 
1,390

 
10.6
 %
 
1,996

 
2,111

 
(5.4
)%
 
899

 
892

 
0.8
 %
 
753

 
751

 
0.3
 %
Norfolk, Hampton, VA Beach, VA
3,356

 
3,401

 
(1.3
)%
 
1,381

 
1,357

 
1.8
 %
 
1,975

 
2,044

 
(3.4
)%
 
1,122

 
1,140

 
(1.6
)%
 
970

 
969

 
0.1
 %
Lexington, KY
2,521

 
2,488

 
1.3
 %
 
907

 
939

 
(3.4
)%
 
1,614

 
1,549

 
4.2
 %
 
935

 
925

 
1.1
 %
 
837

 
830

 
0.8
 %
Chattanooga, TN
2,458

 
2,456

 
0.1
 %
 
1,092

 
1,051

 
3.9
 %
 
1,366

 
1,405

 
(2.8
)%
 
896

 
895

 
0.1
 %
 
772

 
756

 
2.1
 %
Other
13,466

 
13,228

 
1.8
 %
 
5,042

 
5,062

 
(0.4
)%
 
8,424

 
8,166

 
3.2
 %
 
980

 
965

 
1.6
 %
 
858

 
847

 
1.3
 %
Secondary Markets
$
82,494

 
$
81,162

 
1.6
 %
 
$
31,630

 
$
31,411

 
0.7
 %
 
$
50,864

 
$
49,751

 
2.2
 %
 
$
1,033

 
$
1,020

 
1.3
 %
 
$
903

 
$
893

 
1.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Same Store
$
232,136

 
$
226,983

 
2.3
 %
 
$
90,035

 
$
88,652

 
1.6
 %
 
$
142,101

 
$
138,331

 
2.7
 %
 
$
1,123

 
$
1,102

 
1.9
 %
 
$
980

 
$
965

 
1.6
 %

Supplemental Data S-7




MULTIFAMILY SAME STORE YEAR TO DATE COMPARISONS AS OF SEPTEMBER 30, 2015
Dollars in thousands, except per unit data
 
Revenues
 
Expenses
 
NOI
 
Revenue per Occupied Unit
 
Effective Rent per Unit
 
YTD 2015
 
YTD 2014
 
% Chg
 
YTD 2015
 
YTD 2014
 
% Chg
 
YTD 2015
 
YTD 2014
 
% Chg
 
YTD 2015
 
YTD 2014
 
% Chg
 
YTD 2015
 
YTD 2014
 
% Chg
Atlanta, GA
$
58,189

 
$
53,305

 
9.2
%
 
$
22,916

 
$
22,430

 
2.2
 %
 
$
35,273

 
$
30,875

 
14.2
 %
 
$
1,203

 
$
1,117

 
7.7
%
 
$
1,028

 
$
962

 
6.9
 %
Austin, TX
59,316

 
55,808

 
6.3
%
 
26,463

 
25,339

 
4.4
 %
 
32,853

 
30,469

 
7.8
 %
 
1,177

 
1,113

 
5.8
%
 
1,030

 
974

 
5.7
 %
Charlotte, NC
43,579

 
41,093

 
6.0
%
 
14,734

 
14,308

 
3.0
 %
 
28,845

 
26,785

 
7.7
 %
 
1,079

 
1,023

 
5.5
%
 
943

 
899

 
4.9
 %
Raleigh/Durham, NC
43,328

 
41,082

 
5.5
%
 
14,821

 
14,021

 
5.7
 %
 
28,507

 
27,061

 
5.3
 %
 
1,075

 
1,036

 
3.8
%
 
935

 
914

 
2.3
 %
Fort Worth, TX
43,000

 
40,390

 
6.5
%
 
18,403

 
17,548

 
4.9
 %
 
24,597

 
22,842

 
7.7
 %
 
1,103

 
1,041

 
6.0
%
 
953

 
898

 
6.1
 %
Dallas, TX
41,303

 
39,076

 
5.7
%
 
17,629

 
16,857

 
4.6
 %
 
23,674

 
22,219

 
6.5
 %
 
1,201

 
1,145

 
4.9
%
 
1,063

 
1,014

 
4.8
 %
Nashville, TN
33,383

 
32,218

 
3.6
%
 
11,270

 
10,916

 
3.2
 %
 
22,113

 
21,302

 
3.8
 %
 
1,209

 
1,162

 
4.0
%
 
1,073

 
1,028

 
4.4
 %
Orlando, FL
29,184

 
27,149

 
7.5
%
 
10,927

 
10,458

 
4.5
 %
 
18,257

 
16,691

 
9.4
 %
 
1,232

 
1,162

 
6.0
%
 
1,093

 
1,028

 
6.3
 %
Tampa, FL
30,406

 
28,672

 
6.0
%
 
11,802

 
11,269

 
4.7
 %
 
18,604

 
17,403

 
6.9
 %
 
1,214

 
1,157

 
4.9
%
 
1,060

 
1,010

 
5.0
 %
Houston, TX
25,705

 
24,315

 
5.7
%
 
11,177

 
10,536

 
6.1
 %
 
14,528

 
13,779

 
5.4
 %
 
1,146

 
1,083

 
5.8
%
 
1,013

 
955

 
6.1
 %
Phoenix, AZ
18,102

 
16,881

 
7.2
%
 
6,452

 
6,462

 
(0.2
)%
 
11,650

 
10,419

 
11.8
 %
 
1,059

 
1,002

 
5.7
%
 
920

 
869

 
5.9
 %
South Florida
6,761

 
6,354

 
6.4
%
 
2,459

 
2,322

 
5.9
 %
 
4,302

 
4,032

 
6.7
 %
 
1,618

 
1,546

 
4.7
%
 
1,484

 
1,432

 
3.6
 %
Las Vegas, NV
5,928

 
5,508

 
7.6
%
 
2,190

 
2,129

 
2.9
 %
 
3,738

 
3,379

 
10.6
 %
 
958

 
907

 
5.6
%
 
806

 
777

 
3.7
 %
Large Markets
$
438,184

 
$
411,851

 
6.4
%
 
$
171,243

 
$
164,595

 
4.0
 %
 
$
266,941

 
$
247,256

 
8.0
 %
 
$
1,156

 
$
1,096

 
5.5
%
 
$
1,010

 
$
960

 
5.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jacksonville, FL
$
28,485

 
$
27,124

 
5.0
%
 
$
10,430

 
$
10,405

 
0.2
 %
 
$
18,055

 
$
16,719

 
8.0
 %
 
$
1,022

 
$
988

 
3.4
%
 
$
932

 
$
905

 
3.0
 %
Charleston, SC
26,952

 
25,105

 
7.4
%
 
9,411

 
9,130

 
3.1
 %
 
17,541

 
15,975

 
9.8
 %
 
1,175

 
1,097

 
7.1
%
 
1,019

 
957

 
6.5
 %
Savannah, GA
21,380

 
20,097

 
6.4
%
 
7,863

 
7,510

 
4.7
 %
 
13,517

 
12,587

 
7.4
 %
 
1,114

 
1,048

 
6.3
%
 
970

 
927

 
4.6
 %
Richmond, VA
15,648

 
14,956

 
4.6
%
 
5,489

 
5,208

 
5.4
 %
 
10,159

 
9,748

 
4.2
 %
 
1,085

 
1,039

 
4.4
%
 
942

 
915

 
3.0
 %
Memphis, TN
14,930

 
14,577

 
2.4
%
 
6,718

 
6,614

 
1.6
 %
 
8,212

 
7,963

 
3.1
 %
 
960

 
948

 
1.3
%
 
851

 
840

 
1.3
 %
Birmingham, AL
13,766

 
13,380

 
2.9
%
 
5,609

 
5,243

 
7.0
 %
 
8,157

 
8,137

 
0.2
 %
 
1,091

 
1,071

 
1.9
%
 
936

 
940

 
(0.4
)%
Greenville, SC
13,216

 
12,360

 
6.9
%
 
5,249

 
5,026

 
4.4
 %
 
7,967

 
7,334

 
8.6
 %
 
876

 
821

 
6.7
%
 
754

 
712

 
5.9
 %
Little Rock, AR
11,419

 
11,325

 
0.8
%
 
4,203

 
4,155

 
1.2
 %
 
7,216

 
7,170

 
0.6
 %
 
975

 
972

 
0.3
%
 
875

 
876

 
(0.1
)%
San Antonio, TX
11,665

 
11,195

 
4.2
%
 
5,005

 
4,726

 
5.9
 %
 
6,660

 
6,469

 
3.0
 %
 
1,145

 
1,110

 
3.2
%
 
1,022

 
998

 
2.4
 %
Jackson, MS
10,576

 
10,085

 
4.9
%
 
3,990

 
3,827

 
4.3
 %
 
6,586

 
6,258

 
5.2
 %
 
981

 
949

 
3.4
%
 
845

 
824

 
2.5
 %
Huntsville, AL
10,492

 
10,316

 
1.7
%
 
4,281

 
4,094

 
4.6
 %
 
6,211

 
6,222

 
(0.2
)%
 
892

 
876

 
1.8
%
 
748

 
741

 
0.9
 %
Norfolk, Hampton, VA Beach, VA
10,088

 
9,766

 
3.3
%
 
4,028

 
3,949

 
2.0
 %
 
6,060

 
5,817

 
4.2
 %
 
1,130

 
1,115

 
1.3
%
 
968

 
965

 
0.3
 %
Lexington, KY
7,428

 
6,974

 
6.5
%
 
2,731

 
2,639

 
3.5
 %
 
4,697

 
4,335

 
8.4
 %
 
923

 
880

 
4.9
%
 
827

 
804

 
2.9
 %
Chattanooga, TN
7,340

 
7,112

 
3.2
%
 
3,184

 
3,140

 
1.4
 %
 
4,156

 
3,972

 
4.6
 %
 
891

 
878

 
1.5
%
 
757

 
740

 
2.3
 %
Other
39,523

 
37,480

 
5.5
%
 
14,917

 
14,455

 
3.2
 %
 
24,606

 
23,025

 
6.9
 %
 
966

 
923

 
4.7
%
 
846

 
821

 
3.0
 %
Secondary Markets
$
242,908

 
$
231,852

 
4.8
%
 
$
93,108

 
$
90,121

 
3.3
 %
 
$
149,800

 
$
141,731

 
5.7
 %
 
$
1,020

 
$
981

 
4.0
%
 
$
893

 
$
867

 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Same Store
$
681,092

 
$
643,703

 
5.8
%
 
$
264,351

 
$
254,716

 
3.8
 %
 
$
416,741

 
$
388,987

 
7.1
 %
 
$
1,103

 
$
1,051

 
4.9
%
 
$
965

 
$
924

 
4.4
 %



Supplemental Data S-8



MULTIFAMILY DEVELOPMENT PIPELINE
Dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units as of September 30, 2015
 
 
 
Initial
 
 
 
 
 
Development Costs
 
 
 
 
 
 
 
 
 
Start
 
Occupancy
 
Completion
 
Stabilization
 
Total
 
Thru
 
 
 
Location
 
Total
 
Delivered
 
Leased
 
Date
 
Date
 
Date
 
Date
 
Cost
 
Q3 2015
 
After
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
220 Riverside
Jacksonville, Florida
 
294

 
232

 
247

 
4Q12
 
2Q15
 
4Q15
 
2Q16
 
$
43,400

 
$
40,017

 
$
3,383

Station Square at Cosner's Corner II
Fredericksburg, Virginia
 
120

 
—

 
15

 
1Q15
 
4Q15
 
1Q16
 
4Q16
 
20,100

 
11,907

 
8,193

River's Walk Phase II
Charleston, South Carolina
 
78

 
—

 
—

 
2Q15
 
2Q16
 
3Q16
 
4Q16
 
14,700

 
6,166

 
8,534

CG at Randal Lakes Phase II
Orlando, Florida
 
314

 
—

 
—

 
2Q15
 
3Q16
 
2Q17
 
4Q17
 
41,300

 
7,429

 
33,871

Total Active
 
 
806

 
232

 
262

 
 
 
 
 
 
 
 
 
$
119,500

 
$
65,519

 
$
53,981


MULTIFAMILY LEASE-UP COMMUNITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2015
 
 
 
 
 
 
 
Total
 
Percent
 
Construction
 
Expected
 
MSA
 
Units
 
Occupied
 
Finished
 
Stabilized
CG at Bellevue Phase II
Nashville, Tennessee
 
220

 
91.4
%
 
2Q15
 
4Q15
Retreat at West Creek
Richmond, Virginia
 
254

 
95.3
%
 
(1) 
 
4Q15
SkySong
Phoenix, Arizona
 
325

 
87.4
%
 
(1) 
 
1Q16
Total
 
 
799

 
91.0
%
 
 
 
 

(1) Properties were acquired while still in lease-up and construction was complete prior to acquisition by MAA.

2015 ACQUISITION ACTIVITY

Multifamily Acquisitions
 
Location
 
Apartment Units
 
Year Built
 
Closing Date
Residences at Burlington Creek
 
Kansas City, Missouri
 
298
 
2014
 
January 15, 2015
SkySong
 
Scottsdale, Arizona
 
325
 
2014
 
June 11, 2015
Retreat at West Creek
 
Richmond, Virginia
 
254
 
2015
 
June 15, 2015
Radius
 
Norfolk/Hampton/Virgina Beach, Virginia MSA
 
252
 
2012
 
July 28, 2015
Haven at Prairie Trace
 
Kansas City, Missouri-Kansas MSA
 
280
 
2015
 
July 30, 2015
Total Multifamily Acquisitions
 
 
 
1,409
 
 
 
 


Land Acquisitions
 
Location
 
Acres
 
Year Built
 
Closing Date
River's Walk (4 outparcels)
 
Charleston, South Carolina
 
2.5
 
 
 
Q1/Q2 2015 - various
Total Land Acquisitions
 
 
 
2.5
 
 
 
 


Supplemental Data S-9



2015 DISPOSITION ACTIVITY


Multifamily Dispositions
 
Location
 
Apartment Units
 
Year Built
 
Closing Date
Vistas
 
Macon, Georgia
 
144
 
1985
 
February 26, 2015
Austin Chase
 
Macon, Georgia
 
256
 
1996
 
February 26, 2015
Fairways at Hartland
 
Bowling Green, Kentucky
 
240
 
1996
 
February 26, 2015
Fountain Lake
 
Brunswick, Georgia
 
113
 
1983
 
March 25, 2015
Westbury Creek
 
Augusta, Georgia
 
120
 
1984
 
April 1, 2015
Bradford Pointe
 
Augusta, Georgia
 
192
 
1986
 
April 1, 2015
Woodwinds
 
Aiken, South Carolina
 
144
 
1988
 
April 1, 2015
Colony at South Park
 
Aiken, South Carolina
 
184
 
1989
 
April 1, 2015
Huntington Chase
 
Warner Robbins, Georgia
 
200
 
1997
 
April 29, 2015
Southland Station
 
Warner Robbins, Georgia
 
304
 
1988
 
April 29, 2015
Sutton Place
 
Memphis, Tennessee MSA
 
253
 
1991
 
April 29, 2015
Oaks
 
Jackson, Tennessee
 
100
 
1978
 
April 29, 2015
Bradford Chase
 
Jackson, Tennessee
 
148
 
1987
 
April 29, 2015
Woods of Post House
 
Jackson, Tennessee
 
122
 
1997
 
April 29, 2015
Post House North
 
Jackson, Tennessee
 
145
 
1987
 
April 29, 2015
Post House Jackson
 
Jackson, Tennessee
 
150
 
1987
 
April 29, 2015
Anatole
 
Daytona Beach, Florida
 
208
 
1986
 
April 29, 2015
Paddock Park
 
Ocala, Florida
 
480
 
1986
 
April 29, 2015
Whisperwood
 
Columbus, Georgia
 
1,008
 
1986
 
July 1, 2015
Colonial Grand at Wilmington
 
Wilmington, North Carolina
 
390
 
2002
 
July 1, 2015
Savannah Creek
 
Memphis, Tennessee MSA
 
204
 
1989
 
July 1, 2015
Total Multifamily Dispositions
 
 
 
5,105
 
 
 
 

Commercial Dispositions
 
Location
 
Square Feet
 
Year Built
 
Closing Date
Colonial Promenade Craft Farms
 
Gulf Shores, Alabama
 
67,735
 
2010
 
April 28, 2015
Total Commercial Dispositions
 
 
 
67.735
 
 
 
 

Land Dispositions
 
Location
 
Acres
 
Year Built
 
Closing Date
Colonial Promenade Craft Farms
 
Gulf Shores, Alabama
 
0.23
 
 
 
April 28, 2015
Total Land Dispositions
 
 
 
0.23
 
 
 
 


Supplemental Data S-10



DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2015
Dollars in thousands
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF OUTSTANDING INTEREST RATE MATURITIES
 
 
 
 
 
 
 
Average
 
 
 
 
 
Years
 
 
 
Principal
 
to Rate
 
Effective
 
Balance
 
Maturity
 
Rate
Secured Debt
 
 
 
 
 
Fixed Rate or Swapped
$
1,102,868

 
3.7

 
4.0
%
Variable Rate - Capped (1)
125,000

 
1.4

 
0.8
%
Total Secured Fixed or Hedged Rate Debt
1,227,868

 
3.4

 
3.6
%
Variable Rate
145,786

 
0.1

 
0.8
%
Total Secured Debt
1,373,654

 
3.1

 
3.3
%
Unsecured Debt
 
 
 
 
 
Fixed Rate or Swapped
1,867,481

 
4.7

 
4.0
%
Variable Rate
184,000

 
0.1

 
1.3
%
Total Unsecured Debt
2,051,481

 
4.3

 
3.8
%
Total Debt
$
3,425,135

 
3.8

 
3.6
%
Total Fixed or Hedged Debt
$
3,095,349

 
4.2

 
3.9
%

(1) 
The effective rate represents the average rate on the underlying variable debt unless the cap rates are reached, which average 4.6% of LIBOR for conventional caps.

OTHER SUMMARIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective
 
Average Years
 
 
 
 
Percent of
 
Interest
 
to Rate
 
 
Balance
 
Total
 
Rate
 
Maturity
Floating Versus Fixed Rate or Hedged Debt
 
 
 
 
 
 
 
 
Fixed rate or swapped debt
 
$
2,970,349

 
86.7
%
 
4.0
%
 
4.3

Capped debt
 
125,000

 
3.7
%
 
0.8
%
 
1.4

Floating (unhedged) debt
 
329,786

 
9.6
%
 
1.1
%
 
0.1

Total
 
$
3,425,135

 
100.0
%
 
3.6
%
 
3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective
 
Average Years
 
 
 
 
Percent of
 
Interest
 
to Contract
 
 
Balance
 
Total
 
Rate
 
Maturity
Secured Versus Unsecured Debt
 
 
 
 
 
 
 
 
Unsecured Debt
 
$
2,051,481

 
59.9
%
 
3.8
%
 
4.6

Secured Debt
 
1,373,654

 
40.1
%
 
3.3
%
 
3.2

Total
 
$
3,425,135

 
100.0
%
 
3.6
%
 
4.0

 
 
 
 
 
 
 
 
 
 
 
Total
 
Percent of
 
Q3 2015
 
Percent of
 
 
Cost
 
Total
 
NOI
 
Total
Unencumbered Versus Encumbered Assets
 
 
 
 
 
 
 
 
Unencumbered gross assets
 
$
5,791,108

 
70.6
%
 
$
111,073

 
69.2
%
Encumbered gross assets
 
2,415,527

 
29.4
%
 
49,326

 
30.8
%
Total
 
$
8,206,635

 
100.0
%
 
$
160,399

 
100.0
%

Supplemental Data S-11



DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2015 (CONTINUED)
Dollars in thousands

 
 
 
 
FIXED OR HEDGED INTEREST RATE MATURITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
Fixed
 
Interest
 
Total
 
 
 
Interest
 
Total
 
Years to
 
 
Rate
 
Rate
 
Fixed Rate
 
Contract
 
Rate
 
Fixed or
 
Rate
Maturity
 
Debt
 
Swaps
 
Balances
 
Rate
 
Caps
 
Hedged
 
Maturity
2015
 
$
184,932

 
$
—

 
$
184,932

 
5.5
%
 
$
—

 
$
184,932

 
 
2016
 
109,600

 
—

 
109,600

 
5.9
%
 
75,000

 
184,600

 
 
2017
 
129,544

 
300,000

 
429,544

 
3.0
%
 
25,000

 
454,544

 
 
2018
 
142,426

 
250,000

 
392,426

 
3.6
%
 
25,000

 
417,426

 
 
2019
 
571,615

 
—

 
571,615

 
5.7
%
 
—

 
571,615

 
 
Thereafter
 
1,282,232

 
—

 
1,282,232

 
4.4
%
 
—

 
1,282,232

 
 
Total
 
$
2,420,349

 
$
550,000

 
$
2,970,349

 
4.5
%
 
$
125,000

 
$
3,095,349

 
4.3


DEBT MATURITIES OF OUTSTANDING BALANCES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facilities
 
 
 
 
 
 
 
 
Fannie Mae Secured
 
Key Bank Unsecured
 
Other Secured
 
Other Unsecured
 
Total
2015
 
$
80,785

 
$
—

 
$
—

 
$
184,932

 
$
265,717

2016
 
80,000

 
—

 
34,354

 
78,911

 
193,265

2017
 
80,000

 
184,000

 
61,544

 
168,039

 
493,583

2018
 
80,000

 
—

 
92,426

 
300,188

 
472,614

2019
 
—

 
—

 
551,615

 
20,000

 
571,615

Thereafter
 
—

 
—

 
312,930

 
1,115,411

 
1,428,341

Total
 
$
320,785

 
$
184,000

 
$
1,052,869

 
$
1,867,481

 
$
3,425,135


DEBT COVENANT ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
 
 
Public Bond Covenants
 
Required
 
Actual
 
Compliance
Limit on Incurrence of Total Debt
 
60% or less
 
41.3%
 
Yes
Limit on Incurrence of Secured Debt
 
40% or less
 
16.6%
 
Yes
Ratio of Consolidated Income Available for Debt Service/Annual Debt Service Charge
 
1.5:1 or greater for trailing 4 quarters
 
4.83x
 
Yes
Maintenance of Unencumbered Total Asset Value
 
Greater than 150%
 
281.8%
 
Yes


Supplemental Data S-12



EBITDA AND BALANCE SHEET RATIOS
 
 
 
Dollars in thousands
 
 
 
 
Three Months
 
Twelve Months
 
Ended
 
Ended
 
September 30,
 
September 30,
 
2015
 
2015
Consolidated net income
$
96,828

 
$
341,836

Depreciation and amortization
73,098

 
292,551

Interest expense
29,342

 
119,175

Loss on debt extinguishment
5

 
3,384

Amortization of deferred financing costs
887

 
3,713

Net casualty loss (gain) and other settlement proceeds
5

 
(441
)
Income tax expense
512

 
2,235

Loss on sale of non-depreciable assets
—

 
13

Gain on sale of depreciable real estate assets excluded from discontinued operations
(54,621
)
 
(190,426
)
Gain on disposition within unconsolidated entities
—

 
(2
)
Gain on sale of discontinued operations
—

 
(16
)
EBITDA
146,056

 
572,022

Acquisition expense
656

 
3,571

Merger related expenses
—

 
(50
)
Integration related expenses
—

 
1,255

Recurring EBITDA
$
146,712

 
$
576,798

 
 
 
 
 
Three Months Ended
 
September 30,
 
2015
 
2014
Recurring EBITDA/Debt Service
4.01x
 
3.91x
Fixed Charge Coverage (1)
4.23x
 
4.09x
Total Debt/Total Capitalization (2)
34.5%
 
39.7%
Total Debt/Total Gross Assets
41.2%
 
42.4%
Total Net Debt (3)/Total Gross Assets
39.9%
 
41.3%
Total Net Debt (3)/Recurring EBITDA (4)
5.76x
 
6.19x
Unencumbered Assets/Gross Real Estate Assets
70.6%
 
67.2%

(1) 
Fixed charge coverage represents Recurring EBITDA divided by interest expense adjusted for mark-to-market debt adjustment and any preferred dividends.
(2) 
Total Capitalization equals the number of shares of common stock and units at period end times the closing stock price at period end plus total debt outstanding.
(3) 
Total Net Debt equals Total Debt less cash and cash equivalents.
(4) 
Recurring EBITDA represents the twelve months ended September 30, 2015.


Supplemental Data S-13



2015 GUIDANCE
 
 
 
 
Full Year 2015
Earnings
 
Core FFO per Share - diluted
$5.39 to $5.49
Midpoint
$5.44
Core AFFO per Share - diluted
$4.71 to $4.81
Midpoint
$4.76
 
 
Same Store Communities:
 
Number of units
71,376
Property revenue growth
5.0% to 6.0%
Property operating expense growth
3.5% to 4.5%
Property NOI growth
6.0% to 7.0%
Real estate tax expense growth
4.5% to 5.5%
 
 
Corporate Expenses:
 
General and administrative and property management expenses
$56.0 to $57.5 million
Income tax expense
$1.5 to $2.5 million
 
 
Transaction/Investment Volume:
 
Acquisition volume (multifamily)
$300 to $400 million
Disposition volume (multifamily)
$354 million
Commercial / land disposition volume
$10 to $15 million
Development investment
$35 to $45 million
 
 
Debt:
 
Average Interest Rate (excluding mark-to-market debt adjustment)
3.9% to 4.1%
Average Effective Interest Rate
3.3% to 3.5%
Capitalized Interest
$1.0 to $2.0 million
Leverage (Total Net Debt/Total Gross Assets)
41% to 42%
Unencumbered Asset Pool (Percent of Total Gross Assets)
70% to 74%
 
 
Non Core Items:
 
Acquisition expense
$2.0 to $3.5 million
Loss on debt extinguishment/modification
$3.5 to $4.0 million
Projected amortization of debt mark-to-market
$21 to $22 million

MAA provides guidance on Core FFO per Share but does not forecast net income available for common shareholders per diluted share. It is not possible to reasonably predict the timing and certainty of acquisitions and dispositions that would materially affect depreciation, capital gains or losses, merger and acquisition expenses and net income attributable to noncontrolling interests or to forecast extraordinary items, which, combined, generally represent the difference between net income available for common shareholders and Core FFO.








Supplemental Data S-14



CREDIT RATINGS
 
 
 
 
 
 
 
 
Rating
 
Outlook
Fitch Ratings (1)
BBB
 
Positive
Moody's Investors Service (2)
Baa2
 
Stable
Standard & Poor's Ratings Services (1)
BBB
 
Stable

(1) 
Corporate credit rating assigned to Mid-America Apartment Communities, Inc. and its primary operating partnership, Mid-America Apartments, LP.
(2) 
Corporate credit rating assigned to Mid-America Apartments, LP, the primary operating partnership of Mid-America Apartment Communities, Inc.

COMMON STOCK
 
 
 
 
 
 
 
 
 
 
Stock Symbol:
MAA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchange Traded:
NYSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Future Dates:
Q4 2015
 
Q1 2016
 
Q2 2016
 
Q3 2016
 
 
Earnings release & conference call
Early February
 
Late April
 
Early August
 
Early November
 
 
 
 
 
 
 
 
 
 
 
 
Dividend Information - Common Shares:
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Declaration Date
9/11/2014

 
12/3/2014

 
3/12/2015

 
5/19/2015

 
9/24/2015

Record Date
10/15/2014

 
1/15/2015

 
4/15/2015

 
7/15/2015

 
10/15/2015

Payment Date
10/31/2014

 
1/30/2015

 
4/30/2015

 
7/31/2015

 
10/30/2015

Distributions Per Share
$
0.73

 
$
0.77

 
$
0.77

 
$
0.77

 
$
0.77


INVESTOR RELATIONS DATA
 
 
 
 
 
 
 
 
 
 
 
MAA does not send quarterly reports to shareholders, but provides quarterly reports, earnings releases and supplemental data upon request.
 
 
 
 
 
 
 
 
 
 
 
For recent press releases, 10-Q's, 10-K's and other information call 866-576-9689 (toll free) or email investor.relations@maac.com. This information, as well as access to MAA's quarterly conference call, is also available on the "For Investors" page of our website at www.maac.com.
 
 
 
 
 
 
 
 
 
 
 
For Questions Contact:
 
 
 
 
 
 
 
 
 
 
Name
 
Title
 
Tim Argo
 
Senior Vice President, Director of Finance
 
Jennifer Patrick
 
Investor Relations


Supplemental Data S-15

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