MAA Reports Third Quarter Results

                      MAA Reports Third Quarter Results

PR Newswire

MEMPHIS, Tenn., Nov. 1, 2012

MEMPHIS, Tenn., Nov. 1, 2012 /PRNewswire/ -- MAA, (NYSE: MAA), today announced
earnings results for the third quarter of 2012.

Net income available for common shareholders for the quarter ended September
30, 2012 was $30.9 million, or $0.74 per diluted common share, as compared to
$13.8 million, or $0.37 per diluted common share, for the quarter ended
September 30, 2011. Net income results for the quarter ended September 30,
2012 included $16.1 million, or $0.37 per diluted common share, related to
gains on the sale of real estate, while net income results for the quarter
ended September 30, 2011 included $4.9 million, or $0.13 per diluted common
share, related to gains on the sale of real estate.

(Logo: http://photos.prnewswire.com/prnh/20110614/CL19184LOGO)

Funds from operations, or FFO, a widely accepted measure of performance for
real estate investment trusts, was $48.2 million, representing $1.11 per
diluted share/unit, or per Share, for the quarter ended September 30, 2012, as
compared to $39.2 million, or $1.00 per Share, for the quarter ended September
30, 2011.

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

Third Quarter Highlights

  oFFO per Share increased 11% as compared to the same quarter in the prior
    year. As a result of the strong third quarter performance, management has
    raised FFO guidance for the year to a new range of $4.46 to $4.56 per
    share.
  oSame store net operating income, or NOI, for the third quarter grew 6.7%
    as compared to the prior year.
  oPhysical occupancy for the same store portfolio averaged 96.1% for the
    quarter, while average effective rent grew 5.2% over the same period in
    the prior year.
  oResident turnover remained historically low at 56.6% on a trailing twelve
    month basis.
  oMAA acquired four new wholly-owned communities during the third quarter
    for a total investment of $218 million, and sold five wholly-owned
    communities for $47.3 million in total proceeds.
  oConstruction and lease-up continues on four communities under
    development. At the end of the third quarter, $108.8 million of the
    $143.8 million estimated total cost was funded, with 632 of the 1,220
    total units completed and 64% leased.
  oDuring the third quarter, MAA received a first-time issuer investment
    grade rating of Baa2 from Moody's Investors Service and issued $175
    million of privately placed Senior Unsecured Notes, with an average term
    of 9.5 years and average interest rate of 4.02%, using the proceeds to
    further reduce secured debt outstanding. 
  oMAA's Board of Directors approved the payment of the 75^th consecutive
    quarterly common dividend at an annual rate of $2.64 per share. For 75
    consecutive quarters MAA's cash dividend paid to common shareholders has
    never been suspended or reduced.

Eric Bolton, Chairman and Chief Executive Officer, said, "Strong leasing
conditions continue to drive solid occupancy and robust rent growth throughout
the portfolio. We expect continued favorable leasing conditions across our
markets, increasing levels of earnings from our new development pipeline and a
strong balance sheet will enable MAA to capture another record year of
earnings performance in 2013."

Third Quarter Same Store Operating Results

Same store operating results include 40,609 units in 136 communities that have
comparable results for periods presented.

Percent Change From Three Months Ended September 30, 2011
(Prior Year):
                                                                 Average
                                                     Physical    Effective
Markets              Revenue      Expense    NOI     Occupancy   Rent per Unit
Large                5.8%         2.7%       8.3%    0.0%        6.3%
Secondary            2.4%         -0.9%      4.9%    -0.2%       3.8%
      Total Same     4.2%         1.0%       6.7%    -0.1%       5.2%
      Store



Same store NOI for the third quarter of 2012 grew 6.7% over the same period a
year ago, based on 4.2% growth in revenues and 1.0% growth in operating
expenses for the quarter. Revenue growth for the same store portfolio was
primarily related to a 5.2% increase in the average effective rent per unit
for the third quarter, compared to the prior year. Physical occupancy for the
same store portfolio ended the third quarter of 2012 at 96.1%, compared to
96.2% for the same period a year prior. Effective occupancy for the third
quarter was 94.7%, compared to 95.1% in the prior year. Repair and
maintenance and utilities costs for the quarter declined from the prior year,
while real estate tax expense reflected favorable valuation assessments
received during the third quarter, all moderating quarterly growth over the
prior year. 

On a sequential quarterly basis, same store NOI grew 0.1%, based on a 1.5%
growth in revenues and a 3.5% growth in operating expenses from the prior
quarter, primarily related to seasonal factors.

A reconciliation of 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 four new wholly-owned apartment
communities, averaging approximately four years of age, for a total investment
of $218 million, the Allure at Brookwood, a 349-unit urban style community
located in Atlanta, Georgia, the Retreat at Lake Nona, a 394-unit garden
style community located in Orlando, Florida, the Haven at Blanco, a 436-unit
garden style community located in San Antonio, Texas, and Market Station, a
323-unit urban style community located in Kansas City, Missouri, which
represents a new market for the company.

As part of the annual recycling plan, MAA also sold five wholly-owned
communities during the third quarter, averaging approximately 25 years of age,
for total proceeds of $47.3 million. The communities sold include three
located in the Atlanta metropolitan area, Hidden Lake, Westbury Springs, and
Park Walk, as well as two communities located in the Cincinnati metropolitan
area, Fairways at Royal Oak and TPC Florence. The company has one additional
community, Walden Run located in the Atlanta metropolitan area, currently
under contract to sell, which is expected to close during the fourth quarter.

This activity brings MAA's year-to-date acquisition volume to $345 million,
including one community acquired from Fund II, and year-to-date disposition
volume to $99.6 million. 

Development Activity

Construction and lease-up on the four communities currently under development
continues to progress well. During the third quarter, MAA funded an
additional $11.7 million of development costs, bringing the total investment
to-date in the four communities to $108.8 million of the estimated $143.8
million full cost of the projects. Construction on Ridge at Chenal Valley, in
Little Rock, was completed during the third quarter with 69% of the units
leased at quarter-end. Cool Springs, in Nashville, was 75% delivered at
quarter end, with 60% of the delivered units leased. Subsequent to
quarter-end, MAA entered an agreement and purchased a 2.0 acre tract of land
to develop an additional 294-unit community located in Jacksonville, Florida.
The planned community, 220 Riverside, is an urban infill project which is part
of a larger redevelopment of Jacksonville's Central Business District and
surrounding area that benefits from financial incentives provided by the
city. The total investment for the new community is expected to be
approximately $39.5 million on completion. Construction is expected to begin
during the fourth quarter of 2012 with the first units projected to be
delivered mid-2014.

Financing Activity

MAA completed several important financing initiatives during the third
quarter. In July, Moody's Investors Service assigned MAA a first time issuer
rating of Baa2. This new rating, combined with the existing BBB rating from
Fitch Ratings, allowed the company's unsecured credit facility and unsecured
term loan to revert to a "built-in" investment grade pricing option, reducing
costs of outstanding borrowings. Also in July, MAA expanded its existing
unsecured credit facility to $325 million, providing additional unsecured debt
capacity for development and acquisition activity.

In August, MAA issued $175 million of Senior Unsecured Notes, privately
placed. The notes were issued in four separate tranches, bearing an average
interest rate of 4.02% and an average maturity of 9.5 years. Funding for the
notes occurs over three separate funding dates with a total of $121 million
funded during the third quarter and the remaining $54 million to be funded in
November. The proceeds from the notes will be used primarily to refinance
outstanding secured debt, further expanding MAA's unencumbered portfolio, as
well as to fund development and acquisition activity.

Also during the third quarter, MAA issued approximately 813,000 common shares
through its At-the-Market, or ATM equity program, generating $53.7 million in
net proceeds. The shares were issued at an average price of $67.07 per share,
and the funds were primarily used to fund MAA's acquisition and development
activity.

Balance Sheet Strength

As of September 30, 2012, MAA's ratio of debt-to-market capitalization was 37%
(based on the September 28, 2012 closing stock price of $65.31), and MAA's
debt-to-gross assets ratio (based on gross book value at quarter end) was
45%. At the end of the quarter, total debt of $1.7 billion was outstanding at
an average interest rate of 3.7%, with 90% of the total fixed or hedged
against rising interest rates. Following the credit facility expansion in
July, MAA has almost $230 million of capacity from cash and additional
unsecured borrowing availability under current credit facilities. For the
third quarter, MAA's EBITDA covered fixed charges 4.3 times. Year-to-date MAA
has reduced outstanding secured debt balances by $322 million, or 21%, and
increased the companies unencumbered asset pool to 51% of total gross assets,
from 24% a year ago.

Capital Expenditures

MAA continues its redevelopment program at select communities throughout the
portfolio. During the third quarter, MAA renovated 1,055 units at an average
cost of approximately $4,160 per unit, achieving rental rate increases of 9.4%
above non-renovated units. To date, over 16,400 units have been renovated
through this program, achieving an average projected unleveraged internal rate
of return of approximately 11% for the entire program.

Recurring capital expenditures totaled $6.0 million for the third quarter of
2012, approximately $0.14 per Share, resulting in adjusted funds from
operations, or AFFO, of $0.98 per Share for the quarter, a 20% increase over
the same period in the prior year. On a year-to-date basis, recurring capital
expenditures totaled $22.9 million for 2012, approximately $0.54 per Share,
resulting in adjusted funds from operations, or AFFO, of $2.82 per Share for
the nine month period, a 21% increase over the same period in the prior year.

Total property capital expenditures for the third quarter of 2012 were $10.6
million on existing properties, an additional $4.2 million on the
redevelopment program, and $11.7 million on the new development projects.

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

75th Consecutive Quarterly Common Dividend Declared

MAA's Board of Directors voted to continue the quarterly dividend at an annual
rate of $2.64 per common share/unit, and declared its 75th consecutive
quarterly common dividend which was paid on October 31, 2012 to holders of
record on October 15, 2012.

2012 FFO per Share Guidance Increased

MAA is updating its FFO per Share guidance for 2012 based on the company's
performance during the third quarter and its updated expectations for the
remainder of the year. Management now expects full-year 2012 FFO per Share to
range from $4.46 to $4.56, which is a $0.04 per Share increase over the prior
guidance mid-point. FFO per Share is now expected to be in the $1.10 to $1.20
range for the fourth quarter. 

Management continues to forecast full year 2012 same store NOI growth in the
5.0% to 6.0% range, now expecting performance at the top end of the range.
Revenue growth is projected to be in the range 4.5% to 5.5%, consistent with
earlier guidance, with expense growth now expected to range 2.5% to 3.5% for
the year.

Given the increased acquisition activity during the third quarter, the company
now expects wholly-owned acquisition volume to range between $345 million and
$400 million for the full year 2012, while dispositions are projected to be
approximately $113 million. 

Consistent with prior guidance, MAA projects funding for its development
pipeline to be in a range of $80 million to $85 million for the year, and
total capital expenditures at existing communities, including the
redevelopment program, to range between $55 million and $57 million for the
full year.

MAA projects total leverage, defined as net-debt-to-gross assets, to end the
year in the 44% to 46% range, with average interest costs expected to range
between 3.7% and 3.8% for the full year.

Supplemental Material and Conference Call

Supplemental data to this release can be found on the investor relations page
of the MAA web site at www.maac.com. MAA will host a conference call to
further discuss third quarter results on Friday, November 2, 2012, at 9:00 AM
Central Time. The conference call-in number is 866-219-5885 and the
moderator's name is Leslie Wolfgang. MAA's filings with the Securities and
Exchange Commission are filed under the registrant name of Mid-America
Apartment Communities, Inc.

About MAA

MAA is a self-administered, self-managed apartment-only real estate investment
trust, which currently owns or has ownership interest in 49,723 apartment
units throughout the Sunbelt region of the U.S. For further details, please
visit the MAA website at www.maac.com or contact Investor Relations at
investor.relations@maac.com. 6584 Poplar Ave., Memphis, TN 38138.

Forward-Looking Statements

We consider portions of this press release to be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, 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, development and renovation activity as well as
other capital expenditures, capital raising activities, rent growth, occupancy
and rental expense growth.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 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 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 herein 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:

  oinability 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;
  othe availability or not of credit, including mortgage financing, and the
    liquidity of the debt markets, including a material deterioration of the
    financial condition of the Federal National Mortgage Association and the
    Federal Home Loan Mortgage Corporation;
  oinability to replace financing with the Federal National Mortgage
    Association and the Federal Home Loan Mortgage Corporation should their
    investment in the multifamily industry shrink or cease to exist;
  oinability to acquire funding through the capital markets;
  ofailure of new acquisitions to achieve anticipated results or be
    efficiently integrated into us;
  ofailure of development communities to be completed, if at all, on a timely
    basis or to lease-up as anticipated;
  oincreasing real estate taxes and insurance costs;
  oinability of a joint venture to perform as expected;
  oinability to acquire additional or dispose of existing apartment units on
    favorable economic terms;
  ounexpected capital needs;
  olosses from catastrophes in excess of our insurance coverage;
  ochanges in interest rate levels, including that of variable rate debt,
    such as extensively used by us;
  oloss of hedge accounting treatment for interest rate swaps and interest
    rate caps;
  oinability to pay required distributions to maintain REIT status;
  othe continuation of the good credit of our interest rate swap and cap
    providers;
  oinability to meet loan covenants;
  osignificant decline in market value of real estate serving as collateral
    for mortgage obligations;
  oimposition of federal taxes if we fail to qualify as a REIT under the
    Internal Revenue Code in any taxable year or foregone opportunities to
    ensure REIT status;
  oinability to attract and retain qualified personnel;
  opotential liability for environmental contamination;
  oadverse legislative or regulatory tax changes; and
  olitigation and compliance costs associated with laws requiring access for
    disabled persons.

Reference is hereby made to the filings of Mid-America Apartment Communities,
Inc., with the Securities and Exchange Commission, including quarterly reports
on Form 10-Q, reports on Form 8-K, and its annual report on Form 10-K,
particularly including the risk factors contained in its reports on Form 10-Q
and Form 10-K.



CONSOLIDATED STATEMENTS OF
OPERATIONS
In thousands except per
share data
                              Three months ended        Nine months ended
                              September 30,             September 30,
                              2012         2011         2012        2011
Property revenues             $126,901     $110,056     $364,056    $315,984
Management fee income         209          265          687         751
Property operating expenses   (52,832)     (47,982)     (150,571)   (135,027)
Depreciation and              (31,984)     (28,052)     (92,687)    (81,103)
amortization
Acquisition expense           (1,343)      (592)        (1,574)     (2,331)
Property management           (5,460)      (4,904)      (16,484)    (15,242)
expenses
General and administrative    (3,527)      (3,996)      (10,436)    (14,045)
expenses
Income from continuing
operations before             31,964       24,795       92,991      68,987
non-operating items
Interest and other            89           140          343         599
non-property income
Interest expense              (14,698)     (15,183)     (42,978)    (42,681)
(Loss) gain on debt           -            (63)         5           (111)
extinguishment
Amortization of deferred      (971)        (724)        (2,611)     (2,146)
financing costs
Net casualty gains (loss)
and other settlement          (22)         (286)        (24)        (692)
proceeds
Gain (loss) on sale of
non-depreciable and           48           147          45          163
non-real assets
Income from continuing
operations before
   loss from real estate      16,410       8,826        47,771      24,119
   joint ventures
Loss from real estate joint   (72)         (107)        (170)       (530)
ventures
Income from continuing        16,338       8,719        47,601      23,589
operations
Discontinued operations:
   (Loss) income from
   discontinued operations    (451)        805          500         2,777
   before gain
   Net casualty loss and
   other settlement
   proceeds in
         discontinued         99           -            43          (7)
         operations
   Gain on sale of            16,092       4,927        38,474      4,927
   discontinued operations
Consolidated net income       32,078       14,451       86,618      31,286
   Net income attributable
   to noncontrolling          (1,212)      (660)        (3,702)     (1,223)
   interests
Net income available for      $ 30,866    $ 13,791    $ 82,916   $ 30,063
common shareholders
Earnings per share -          43,221       39,300       42,567      38,722
Diluted shares
Net income per share
available for common          $0.74        $0.37        $2.03       $0.81
shareholders - Diluted ^(1)
^(1) Equals the more dilutive of the treasury stock or two class methods. The
impact of partnership units is included in dilutive earnings
   per share calculations for the periods when it is dilutive to earnings per
   share.

FUNDS FROM OPERATIONS
In thousands except per share data
                                   Three months ended    Nine months ended
                                   September 30,         September 30,
                                   2012       2011       2012       2011
Net income attributable to MAA     $ 30,866  $ 13,791  $ 82,916  $ 30,063
Depreciation and amortization of   31,404     27,490     90,924     79,460
real estate assets
Net casualty loss and other        22         286        24         692
settlement proceeds
Net casualty (gain) loss and
other settlement proceeds
   in discontinued operations      (99)       -          (43)       7
Depreciation and amortization of
real estate assets
   of discontinued operations      416        1,381      2,414      4,226
Gain on sale of discontinued       (16,092)   (4,927)    (38,474)   (4,927)
operations
Depreciation and amortization of
real estate assets
   of real estate joint ventures   442        567        1,437      1,708
Net income attributable to         1,212      660        3,702      1,223
noncontrolling interests
Funds from operations              48,171     39,248     142,900    112,452
   Recurring capital expenditures  (6,006)    (7,181)    (22,932)   (22,414)
Adjusted funds from operations     $ 42,165  $ 32,067  $119,968   $ 90,038
Weighted average common shares     43,221     39,300     42,567     38,722
and units - Diluted
Funds from operations per share    $1.11      $1.00      $3.36      $2.90
and unit - Diluted
Adjusted funds from operations     $0.98      $0.82      $2.82      $2.33
per share and unit - Diluted



CONSOLIDATED BALANCE SHEETS
In thousands
                                          Sept 30, 2012   Dec 31, 2011
Assets
Real estate assets
  Land                                    $   388,007  $  333,846
  Buildings and improvements              3,133,211       2,879,289
  Furniture, fixtures and equipment       96,372          92,170
  Capital improvements in progress        61,801          53,790
                                          3,679,391       3,359,095
  Accumulated depreciation                (995,479)       (961,724)
                                          2,683,912       2,397,371
  Land held for future development        1,205           1,306
  Commercial properties, net              7,835           8,125
  Investments in real estate joint        5,160           17,006
  ventures
      Real estate assets, net             2,698,112       2,423,808
Cash and cash equivalents                 13,422          57,317
Restricted cash                           1,299           1,362
Deferred financing costs, net             15,252          14,680
Other assets                              33,484          29,195
Goodwill                                  4,106           4,106
Assets held for sale                      10,160          -
      Total assets                        $  2,775,835   $ 2,530,468
Liabilities and Shareholders' Equity
Liabilities
  Secured notes payable                   $  1,192,258   $ 1,514,755
  Unsecured notes payable                 514,000         135,000
  Accounts payable                        5,637           2,091
  Fair market value of interest rate      25,816          33,095
  swaps
  Accrued expenses and other              101,075         91,718
  liabilities
  Security deposits                       6,745           6,310
  Liabilities associated with assets      299             -
  held for sale
      Total liabilities                   1,845,830       1,782,969
Redeemable stock                          4,633           4,037
Shareholders' equity
  Common stock                            419             389
  Additional paid-in capital              1,520,250       1,375,623
  Accumulated distributions in excess of  (596,027)       (621,833)
  net income
  Accumulated other comprehensive         (30,467)        (35,848)
  losses
      Total MAA shareholders' equity      894,175         718,331
  Noncontrolling interest                 31,197          25,131
      Total equity                        925,372         743,462
      Total liabilities and               $  2,775,835   $ 2,530,468
      shareholders' equity

SHARE AND UNIT DATA
In thousands
                         Three months ended      Nine months ended
                         September 30,           September 30,
                         2012         2011       2012        2011
NET INCOME SHARES
^(1)
 Weighted average
 common shares -         41,405       37,274     40,634      36,612
 Basic
 Weighted average
 partnership units       1,781        1,946      1,859       2,009
 outstanding
 Effect of dilutive      35           80         74          101
 securities
 Weighted average
 common shares -         43,221       39,300     42,567      38,722
 Diluted
FUNDS FROM
OPERATIONS SHARES
AND UNITS
 Weighted average
 common shares and       43,186       39,220     42,493      38,620
 units - Basic
 Weighted average
 common shares and       43,221       39,300     42,567      38,722
 units - Diluted
PERIOD END SHARES
AND UNITS
 Common shares at        41,925       37,824     41,925      37,824
 September 30,
 Partnership units       1,775        1,942      1,775       1,942
 at September 30,
(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 Form 10-Q filed with the
 Securities and Exchange Commission.



NON-GAAP FINANCIALS AND OTHER DEFINITIONS

Adjusted Funds From Operations (AFFO)

For purposes of these computations, AFFO is composed of FFO less recurring
capital expenditures, the amount charged to retire preferred stock in excess
of carrying values and asset impairment. As an owner and operator of real
estate, we consider AFFO to be an important measure of performance from core
operations because AFFO measures our ability to control revenues, expenses and
recurring capital expenditures.

Average Effective Rent

Average effective rent per unit is equal to 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. We believe
average effective rent is a helpful measurement in evaluating average pricing.
It does not represent actual rental revenue collected per unit.

Development Portfolio

Communities remain identified as development until certificates of occupancies
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 these computations, 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, and
amortization of deferred financing costs. EBITDA is a non-GAAP financial
measure we use as a performance measure. As an owner and operator of real
estate, we consider 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 our operating performance. EBITDA should not be
considered as an alternative to net income as an indicator of financial
performance. Our computation of EBITDA may differ from the methodology
utilized by other companies to calculate EBITDA.

Funds From Operations (FFO)

FFO represents net income (computed in accordance with U.S. generally accepted
accounting principles, or GAAP) excluding extraordinary items, net income
attributable to noncontrolling interest, asset impairment, gains or losses on
disposition of real estate assets, plus depreciation of real estate and
adjustments for joint ventures to reflect FFO on the same basis.

Disposition of real estate assets includes sales of real estate included in
discontinued operations as well as proceeds received from insurance and other
settlements from property damage.

Our calculation of FFO 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 our 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.

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 our 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 which are being extensively renovated in which at
least $5,500 per apartment unit is being invested on at least 50% of unit
turns and communities which have been approved by the Board of Directors for
disposition.

Same Store Portfolio

We review our Same Store Portfolio at the beginning of each calendar year.
Communities are generally added into the Same Store Portfolio after they have
been owned and have been stabilized for at least 12 months.

Communities which are being extensively renovated in which at least $5,500 per
apartment unit is being invested on at least 50% of unit turns are excluded
from the Same Store Portfolio. Twelve months after the renovations at a
community are substantially complete, communities are returned to the Same
Store Portfolio beginning the next calendar year.

Also excluded from our Same Store Portfolio are communities that have been
approved by the Board of Directors for disposition.

Communities are designated within our Same Store Portfolio 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.

SOURCE MAA

Website: http://www.maac.com
Contact: Investor Relations of MAA, +1-901-682-6600,
investor.relations@maac.com
 
Press spacebar to pause and continue. Press esc to stop.