GERMANTOWN, Tenn., May 6, 2020 /PRNewswire/ -- Mid-America
Apartment Communities, Inc., or MAA (NYSE: MAA), today announced
operating results for the quarter ended March 31, 2020.
Net Income Available for Common Shareholders
For the quarter ended March 31, 2020, net income available
for MAA common shareholders was $35.7
million, or $0.31 per diluted
common share, compared to $62.7
million, or $0.55 per diluted
common share, for the quarter ended March 31, 2019. Results
for the quarter ended March 31, 2020, included $27.6 million, or $0.24 per diluted common share, of non-cash
expense related to the fair value adjustment of the embedded
derivative in the MAA Series I preferred shares compared to
$0.5 million of non-cash expense
related to the embedded derivative in the preferred shares
recognized in the quarter ended March 31, 2019
Core Funds from Operations (FFO) and FFO
Core FFO, which adjusts FFO for items that are not considered
part of MAA's core business operations, for the quarter
ended March 31, 2020 was $191.2 million,
or $1.62 per diluted common share and unit, or per Share,
as compared to $177.3 million, or $1.50 per Share, for
the quarter ended March 31, 2019. For the quarter ended
March 31, 2020, FFO was $162.1
million, or $1.37 per Share,
compared to $186.4 million, or
$1.58 per Share, for the quarter
ended March 31, 2019. FFO results for the quarter ended
March 31, 2020 included $27.6
million, or $0.23 per Share,
of non-cash expense related to the fair value adjustment of the
embedded derivative in the preferred shares as compared to
$0.5 million of non-cash expense
related to the embedded derivative in the preferred shares
recognized in the quarter ended March 31, 2019.
A reconciliation of FFO and Core FFO to net income available for
MAA common shareholders, and an expanded discussion of the
components of FFO and Core FFO, can be found later in this
release.
Eric Bolton, Chairman and Chief
Executive Officer, said, "Our focus over the past few weeks has
centered on a number of actions taken to protect and serve our
residents and our associates during this time of unprecedented
challenge. While there continues to be uncertainty as to when the
U.S. economy will reopen and begin to recover, we believe MAA is in
a strong position to work through the downturn. The
high quality of our properties diversified across the Sunbelt
region, the strength of our operating platform and our balance
sheet, and the commitment of our associates to serve all of our
constituents, positions MAA to successfully work through the
current challenge and drive higher value as the economy begins to
recover."
First Quarter 2020 Highlights
- Property revenues from the Same Store Portfolio increased 4.2%
during the first quarter of 2020 as compared to the same period in
the prior year. Results were driven by a 4.2% growth in Average
Effective Rent per Unit for the Same Store Portfolio.
- Property operating expenses for the Same Store Portfolio
increased 3.2% during the first quarter of 2020 as compared to the
same period in the prior year.
- Net Operating Income, or NOI, from the Same Store Portfolio
increased 4.8% during the first quarter of 2020 as compared to the
same period in the prior year.
- Resident turnover remained low as resident move outs for the
Same Store Portfolio for the first quarter of 2020 was 47.3% on a rolling twelve month basis.
- As of the end of the first quarter of 2020, MAA had seven
properties under development, representing 2,108 units once
complete, with a total projected cost of $489.5 million and an estimated $304.9 million remaining to be funded.
- As of the end of the first quarter of 2020, MAA had two
properties in their initial lease-up with physical occupancy
averaging 82.6%. One property is expected to stabilize in the
second quarter of 2020 and the other property is expected to
stabilize in the fourth quarter of 2020.
- During the first quarter of 2020, MAA completed renovation of
1,440 units under its redevelopment program, achieving average
rental rate increases of 9.4% above non-renovated units.
Recent Developments – COVID-19
In March of 2020, MAA began to take steps to respond to the
COVID-19 pandemic. The health and well-being of MAA's residents,
associates and all who visit MAA's properties are of highest
priority. In these unprecedented times, MAA believes the best way
it can help its residents is to work with those who have lost wages
or compensation due to the COVID-19 pandemic so that they can
remain in their homes. MAA has offered these residents an
amendment to their lease that provides payment flexibility of up to
60 days for April and May rent, waives late fees and interest
charges under the lease and reflects MAA's agreement not to pursue
remedies for nonpayment of April and May rent under the original
lease.
MAA's on-site leasing offices have remained open on a virtual
basis, operating with full staff to serve residents and prospective
new customers. MAA has encouraged its associates to wear face
coverings at work and to practice appropriate social distancing
while performing their job responsibilities. To support its
associates who have continued to work on-site on a daily basis, MAA
has provided those associates with enhanced leave and sick time
policies, enhanced flextime arrangements and additional COVID-19
paid time off, among other benefits. In addition, MAA has
made modifications to its health and retirement plans to assist all
of its associates and their families during this time of
crisis. Work is currently underway to ensure that MAA is
prepared to seamlessly return to normal operations as governmental
orders, directives and policies allow.
MAA's balance sheet remains very strong, with low leverage,
significant availability from its unsecured revolving credit
facility, and limited near-term debt maturities and funding
obligations. Operating metrics for the months of April and May
(through May 5, 2020) include the
following:
- Through May 5, 2020, combined,
rent cash collections and promises to pay under lease amendments
signed by residents financially impacted by COVID-19 represented
99.3% of billed rent for
April 2020. This compares to 99.4%
average cash collections in 2019 as of the 5th day of
the following month. Rent cash collections represented 98.0% of billed April
2020 rent and promises to pay by financially impacted
residents under lease amendments represented 1.3% of billed April
2020 rent.
- Through May 5, 2020, combined,
rent cash collections and promises to pay under lease amendments
signed by residents financially impacted by COVID-19 represented
94.2% of billed rent for
May 2020. This compares to 92.6%
combined collections of April 2020
rent at the same point in April and 94.3% cash collections of
March 2020 rent at the same point in
March 2020. Rent cash collections
represented 90.4% of billed
May 2020 rent and promises to pay by
financially impacted residents under lease amendments represented
3.8% of billed May 2020 rent.
- Average Physical Occupancy for the Same Store Portfolio was
strong at 95.4% for April 2020.
Additional metrics related to the impact of the COVID-19
pandemic on MAA's business in April
2020 are included in the supplemental schedules accompanying
this release.
First Quarter 2020 Same Store Portfolio Operating
Results
To ensure comparable reporting with prior periods, the Same
Store Portfolio includes properties that were stabilized and owned
by MAA at the beginning of the previous year.
The Same Store Portfolio revenue growth of 4.2% during the first
quarter of 2020 was primarily a result of a 4.2% increase in
Average Effective Rent per Unit, as compared to the same period in
the prior year. Rent growth for the Same Store Portfolio for
both new and renewing leases, as compared to the prior lease, on a
combined basis increased an average of 2.6% during the first
quarter of 2020. Average Physical Occupancy for the Same
Store Portfolio was 95.7% for the first quarter of 2020, as
compared to 95.9% in the same period in the prior year.
Property operating expenses increased 3.2% for the first quarter of
2020 as compared to the same period in the prior year. This
resulted in Same Store NOI growth of 4.8% for the first quarter of
2020 as compared to the same period in the prior year.
A reconciliation of NOI, including Same Store NOI, to net income
available for MAA common shareholders, and an expanded discussion
of the components of NOI, can be found later in this release.
Development and Lease-up Activity
As of the end of the first quarter of 2020, MAA had seven
development communities under construction. Total development
costs for the seven communities are projected to be $489.5 million, of which an estimated
$304.9 million remained to be funded
as of the end of the first quarter of 2020. The expected
average stabilized NOI yield on these communities is 6.2%. During
the first quarter of 2020, MAA funded $42.2
million of construction costs on current and completed
development projects. MAA expects to complete construction
for two of these developments in 2020, four in 2021 and one in
2022.
During the first quarter of 2020, two MAA multifamily
apartment community expansion developments, Post Parkside at Wade
III, located in Raleigh, North
Carolina, and 1201 Midtown II, located in Charleston, South Carolina, completed their
initial lease-up and moved into MAA's stabilized portfolio. As of
the end of the first quarter of 2020, MAA had two apartment
communities, representing a total of 350 units, remaining in
initial lease-up: Sync 36 II, located in Denver, Colorado, and The Greene, located in Greenville, South Carolina. Physical
occupancy for these lease-up projects averaged 82.6% at the end of
the first quarter of 2020.
Acquisition and Disposition Activity
In January 2020, MAA acquired a 22
acre land parcel located in the Austin,
Texas market for future development.
MAA did not dispose of any apartment communities, land parcels
or commercial properties during the three months ended
March 31, 2020.
Redevelopment Activity
MAA continued its redevelopment program at select apartment
communities throughout the portfolio. During the first
quarter of 2020, MAA redeveloped the interior of 1,440 units at an
average cost of $6,008 per unit,
achieving average rental rate increases of 9.4% above non-renovated
units. In addition, during the first quarter of 2020, MAA
installed SmartHome technology (mobile control of lights,
thermostat and security, as well as leak monitoring) in 8,017 units
at an average cost of approximately $1,350 per unit and an average rent increase
of $25 per unit. As of the
beginning of the second quarter of 2020, both of these programs
have been suspended as a result of the COVID–19 shelter-in-place
government directives and will restart at a later date.
During the first quarter of 2020, MAA initiated more extensive
upgrades and repositioning of ten properties involving renovations
of amenity and common areas with targeted plans to move all units
at the properties to higher rents that are expected to deliver
yields on cost averaging 8% beginning in calendar year 2021.
Repositioning work continues at five of these properties with plans
to initiate work at the other five properties later this year as
market conditions stabilize.
Capital Expenditures
Recurring capital expenditures totaled $14.6 million for the first quarter of 2020, or
approximately $0.13 per Share, as
compared to $12.6 million, or
$0.11 per Share, for the same period
in the prior year. These expenditures led to Core Adjusted
Funds from Operations, or Core AFFO, of $1.49 per Share for the first quarter of 2020,
compared to $1.40 per Share for the
same period in the prior year.
Redevelopment, revenue enhancing, commercial and other capital
expenditures during the first quarter of 2020 were $27.9 million, as compared to $25.9 million for the same period in the prior
year. These expenditures led to Funds Available for Distribution,
or FAD, of $148.8 million for the
first quarter of 2020, compared to $138.9
million for the same period in the prior year.
A reconciliation of FFO, Core FFO, Core AFFO and FAD to net
income available for MAA common shareholders, and an expanded
discussion of the components of FFO, Core FFO, Core AFFO and FAD,
can be found later in this release.
Financing Activities
As of March 31, 2020, MAA had approximately $931.8 million of combined cash and available
capacity under Mid-America Apartments, L.P.'s unsecured revolving
credit facility, net of commercial paper borrowings.
Mid-America Apartments, L.P. (referred to as MAALP) is MAA's
operating partnership.
Dividends and distributions paid on shares of common stock and
noncontrolling interests during the first quarter of 2020 were
$118.3 million, as compared to
$113.3 million for the same period in
the prior year.
Balance Sheet
As of March 31, 2020:
- Total debt to adjusted total assets (as defined in the
covenants for the bonds issued by MAALP) was 31.5%;
- Total debt outstanding was $4.5
billion with an average effective interest rate of
approximately 3.8%;
- 91.1% of total debt was fixed against rising interest rates for
an average of approximately 7.9 years; and
- Unencumbered NOI was 90.6% of total NOI.
105th Consecutive Quarterly Common Dividend Declared
MAA declared its 105th consecutive quarterly common dividend,
which was paid on April 30, 2020 to
holders of record on April 15,
2020. The current annual dividend rate is $4.00 per common share.
2020 Net Income per Diluted Common Share, Core FFO and Core
AFFO per Share Guidance
As a result of the material change in broad economic conditions
in the U.S., in late March MAA withdrew its calendar year 2020
guidance for Net income per diluted common share, Core FFO per
Share and Core AFFO per Share. At this point MAA is not
providing quarterly or full year 2020 guidance for Net income per
diluted common share, Core FFO per Share or Core AFFO per
Share. The supplemental schedules accompanying this release
include an update on certain April
2020 operating and financial metrics as well as limited
May 2020 operating data. The Company
will continue to monitor conditions associated with efforts by
federal, state and local governments to reopen the U.S. economy and
will reestablish full year guidance as more information becomes
available.
Supplemental Material and Conference Call
Supplemental data to this release can be found under the
"Filings and Financials" navigation tab on the "For Investors" page
of our website at www.maac.com. MAA will host a conference call to
further discuss first quarter results on Thursday, May 7, 2020, at 9:00 AM Central Time. The conference
call-in number is 877-876-9173. You may also join the live
webcast of the conference call by accessing the "For Investors"
page of our website at www.maac.com. MAA's filings with the
Securities and Exchange Commission, or SEC, are filed under the
registrant names of Mid-America Apartment Communities, Inc. and
Mid-America Apartments, L.P.
About MAA
MAA, an S&P 500 company, is a real estate investment trust,
or REIT, focused on delivering full-cycle and superior investment
performance for shareholders through the ownership, management,
acquisition, development and redevelopment of quality apartment
communities in the Southeast, Southwest, and Mid-Atlantic regions
of the United States. As of March 31, 2020, MAA had
ownership interest in 102,105 apartment units, including
communities currently in development, across 16 states and the
District of Columbia. 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, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor
Relations.
Forward-Looking Statements
Sections of this 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, 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
regarding the potential impact of the COVID-19 pandemic on our
business, statements regarding expected operating performance and
results, property stabilizations, property acquisition and
disposition activity, joint venture activity, development and
renovation activity and other capital expenditures, and capital
raising and financing activity, as well as lease pricing, revenue
and expense growth, occupancy, 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, as
described below, which may cause our 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. 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
release 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 actual
results, performance or achievements to differ materially from
those expressed or implied in the forward-looking statements:
- the COVID-19 pandemic and measures taken or that may be taken
by federal, state and local governmental authorities to combat the
spread of the disease;
- inability to generate sufficient cash flows due to unfavorable
economic and 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 and sector;
- 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 within
budget and on a timely basis, if at all, to lease-up as anticipated
or to achieve anticipated results;
- unexpected capital needs;
- changes in operating costs, including real estate taxes,
utilities and insurance costs;
- inability to obtain appropriate insurance coverage at
reasonable rates, or at all, or 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;
- the continuation of the good credit of our interest rate swap
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;
- the effect of the phase-out of the London Interbank Offered
Rate, or LIBOR, as a variable rate debt benchmark by the end of
2021 and the transition to a different benchmark interest
rate;
- 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 MAALP 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;
- cyber liability or potential liability for breaches of our or
our service providers' information technology systems, or business
operations disruptions;
- potential liability for environmental contamination;
- adverse legislative or regulatory developments;
- extreme weather, natural disasters, disease outbreak and public
health events;
- legal proceedings relating to various issues, which, among
other things, could result in a class action lawsuit;
- compliance costs associated with numerous federal, state and
local laws and regulations, including those costs associated with
laws requiring access for disabled persons; and
- other risks identified in this release and, from time to time,
in reports we file with the SEC or in other documents that we
publicly disseminate.
New factors may also emerge from time to time that could have a
material adverse effect on our business. Except as required
by law, we undertake no obligation to publicly update or revise
forward-looking statements contained in this release to reflect
events, circumstances or changes in expectations after the date of
this release.
FINANCIAL
HIGHLIGHTS
|
Dollars in
thousands, except per share data
|
|
Three months ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Rental and other
property revenues
|
|
$
|
418,098
|
|
|
$
|
401,178
|
|
|
|
|
|
|
|
|
|
|
Net income available
for MAA common shareholders
|
|
$
|
35,726
|
|
|
$
|
62,738
|
|
|
|
|
|
|
|
|
|
|
Total NOI
(1)
|
|
$
|
264,926
|
|
|
$
|
251,801
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: (2)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
Diluted
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per Share - diluted: (2)
|
|
|
|
|
|
|
|
|
FFO
(1)
|
|
$
|
1.37
|
|
|
$
|
1.58
|
|
Core FFO
(1)
|
|
$
|
1.62
|
|
|
$
|
1.50
|
|
Core AFFO
(1)
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
1.00
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
Dividends/Core FFO
(diluted) payout ratio
|
|
|
61.7
|
%
|
|
|
64.0
|
%
|
Dividends/Core AFFO
(diluted) payout ratio
|
|
|
67.1
|
%
|
|
|
68.6
|
%
|
|
|
|
|
|
|
|
|
|
Consolidated interest
expense
|
|
$
|
43,482
|
|
|
$
|
45,700
|
|
Mark-to-market debt
adjustment
|
|
|
34
|
|
|
|
85
|
|
Debt discount and
debt issuance cost amortization
|
|
|
(1,190)
|
|
|
|
(1,805)
|
|
Capitalized
interest
|
|
|
1,391
|
|
|
|
388
|
|
Total interest
incurred
|
|
$
|
43,717
|
|
|
$
|
44,368
|
|
|
|
|
|
|
|
|
|
|
Amortization of
principal on notes payable
|
|
$
|
1,740
|
|
|
$
|
1,847
|
|
|
|
(1)
|
A reconciliation of
the following items and an expanded discussion of their respective
components
can be found later in this release: (i) NOI to Net income available
for MAA common shareholders;
and (ii) FFO, Core FFO and Core AFFO to Net income available for
MAA common shareholders.
|
(2)
|
See the "Share and
Unit Data" section for additional information.
|
FINANCIAL
HIGHLIGHTS (CONTINUED)
|
Dollars in
thousands, except share price
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Gross Assets
(1)
|
|
$
|
14,236,426
|
|
|
$
|
14,185,703
|
|
Gross Real Estate
Assets (1)
|
|
$
|
14,080,141
|
|
|
$
|
13,996,700
|
|
Total debt
|
|
$
|
4,483,693
|
|
|
$
|
4,454,598
|
|
Common shares and
units outstanding
|
|
|
118,338,319
|
|
|
|
118,313,567
|
|
Share
price
|
|
$
|
103.03
|
|
|
$
|
131.86
|
|
Book equity
value
|
|
$
|
6,226,832
|
|
|
$
|
6,303,590
|
|
Market equity
value
|
|
$
|
12,192,397
|
|
|
$
|
15,600,827
|
|
Net Debt/Adjusted
EBITDAre (2)
|
|
4.71x
|
|
|
4.71x
|
|
|
|
(1)
|
A reconciliation of
Gross Assets to Total assets and Gross Real Estate Assets to Real
estate
assets, net, along with an expanded discussion of their components,
can be found later in this
release.
|
(2)
|
Adjusted
EBITDAre in this calculation represents the trailing twelve
month period for each date
presented. A reconciliation of the following items and an expanded
discussion of their respective
components can be found later in this release: (i) EBITDA,
EBITDAre and Adjusted EBITDAre
to Net income; and (ii) Net Debt to Unsecured notes payable and
Secured notes payable.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
Dollars in
thousands, except per share data
|
|
Three months ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rental and other
property revenues
|
|
$
|
418,098
|
|
|
$
|
401,178
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Operating expense,
excluding real estate taxes and insurance
|
|
|
91,368
|
|
|
|
89,793
|
|
Real estate taxes and
insurance
|
|
|
61,804
|
|
|
|
59,584
|
|
Depreciation and
amortization
|
|
|
126,388
|
|
|
|
122,789
|
|
Total property
operating expenses
|
|
|
279,560
|
|
|
|
272,166
|
|
Property management
expenses
|
|
|
14,643
|
|
|
|
13,842
|
|
General and
administrative expenses
|
|
|
13,264
|
|
|
|
12,337
|
|
Interest
expense
|
|
|
43,482
|
|
|
|
45,700
|
|
Loss on sale of
depreciable real estate assets
|
|
|
29
|
|
|
|
13
|
|
Loss (gain) on sale of
non-depreciable real estate assets
|
|
|
376
|
|
|
|
(8,963)
|
|
Other non-operating
expense (income)
|
|
|
28,532
|
|
|
|
(119)
|
|
Income before income
tax expense
|
|
|
38,212
|
|
|
|
66,202
|
|
Income tax
expense
|
|
|
(667)
|
|
|
|
(641)
|
|
Income from
continuing operations before real estate joint venture
activity
|
|
|
37,545
|
|
|
|
65,561
|
|
Income from real
estate joint venture
|
|
|
407
|
|
|
|
397
|
|
Net income
|
|
|
37,952
|
|
|
|
65,958
|
|
Net income
attributable to noncontrolling interests
|
|
|
1,304
|
|
|
|
2,298
|
|
Net income available
for shareholders
|
|
|
36,648
|
|
|
|
63,660
|
|
Dividends to MAA
Series I preferred shareholders
|
|
|
922
|
|
|
|
922
|
|
Net income available
for MAA common shareholders
|
|
$
|
35,726
|
|
|
$
|
62,738
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic:
|
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted:
|
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
SHARE AND UNIT
DATA
|
Shares and
units in thousands
|
|
Three months ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Net Income Shares
(1)
|
|
|
|
|
|
|
|
|
Weighted average
common shares - basic
|
|
|
114,111
|
|
|
|
113,726
|
|
Effect of dilutive
securities
|
|
|
383
|
|
|
|
207
|
|
Weighted average
common shares - diluted
|
|
|
114,494
|
|
|
|
113,933
|
|
Funds From
Operations Shares And Units
|
|
|
|
|
|
|
|
|
Weighted average
common shares and units - basic
|
|
|
118,176
|
|
|
|
117,837
|
|
Weighted average
common shares and units - diluted
|
|
|
118,344
|
|
|
|
118,018
|
|
Period End Shares
And Units
|
|
|
|
|
|
|
|
|
Common shares at
March 31,
|
|
|
114,279
|
|
|
|
113,916
|
|
Operating Partnership
units at March 31,
|
|
|
4,059
|
|
|
|
4,105
|
|
Total common shares
and units at March 31,
|
|
|
118,338
|
|
|
|
118,021
|
|
|
|
|
|
(1)
|
For additional
information on the calculation of diluted common shares and
earnings per
common share, please refer to the Notes to Condensed Consolidated
Financial Statements
in MAA's Quarterly Report on Form 10-Q for the three months ended
March 31, 2020,
expected to be filed with the SEC on or about May 7,
2020.
|
CONSOLIDATED
BALANCE SHEETS
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Real estate
assets:
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
1,910,637
|
|
|
$
|
1,905,757
|
|
Buildings and
improvements and other
|
|
|
11,897,869
|
|
|
|
11,841,978
|
|
Development and
capital improvements in progress
|
|
|
158,893
|
|
|
|
116,424
|
|
|
|
|
13,967,399
|
|
|
|
13,864,159
|
|
Less: Accumulated
depreciation
|
|
|
(3,080,449)
|
|
|
|
(2,955,253)
|
|
|
|
|
10,886,950
|
|
|
|
10,908,906
|
|
Undeveloped
land
|
|
|
34,548
|
|
|
|
34,548
|
|
Investment in real
estate joint venture
|
|
|
43,686
|
|
|
|
43,674
|
|
Real estate assets,
net
|
|
|
10,965,184
|
|
|
|
10,987,128
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
34,508
|
|
|
|
20,476
|
|
Restricted
cash
|
|
|
14,539
|
|
|
|
50,065
|
|
Other
assets
|
|
|
141,746
|
|
|
|
172,781
|
|
Total
assets
|
|
$
|
11,155,977
|
|
|
$
|
11,230,450
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Unsecured notes
payable
|
|
$
|
3,859,040
|
|
|
$
|
3,828,201
|
|
Secured notes
payable
|
|
|
624,653
|
|
|
|
626,397
|
|
Accrued expenses and
other liabilities
|
|
|
445,452
|
|
|
|
472,262
|
|
Total
liabilities
|
|
|
4,929,145
|
|
|
|
4,926,860
|
|
|
|
|
|
|
|
|
|
|
Redeemable common
stock
|
|
|
11,267
|
|
|
|
14,131
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
9
|
|
|
|
9
|
|
Common
stock
|
|
|
1,140
|
|
|
|
1,140
|
|
Additional paid-in
capital
|
|
|
7,170,148
|
|
|
|
7,166,073
|
|
Accumulated
distributions in excess of net income
|
|
|
(1,160,944)
|
|
|
|
(1,085,479)
|
|
Accumulated other
comprehensive loss
|
|
|
(12,934)
|
|
|
|
(13,178)
|
|
Total MAA
shareholders' equity
|
|
|
5,997,419
|
|
|
|
6,068,565
|
|
Noncontrolling
interests - Operating Partnership units
|
|
|
211,498
|
|
|
|
214,647
|
|
Total Company's
shareholders' equity
|
|
|
6,208,917
|
|
|
|
6,283,212
|
|
Noncontrolling
interest - consolidated real estate entities
|
|
|
6,648
|
|
|
|
6,247
|
|
Total
equity
|
|
|
6,215,565
|
|
|
|
6,289,459
|
|
Total liabilities and
equity
|
|
$
|
11,155,977
|
|
|
$
|
11,230,450
|
|
RECONCILIATION OF
FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA
COMMON SHAREHOLDERS
|
Amounts in
thousands, except per share and unit data
|
|
Three months ended
March 31,
|
|
|
|
2020
|
|
|
2019
|
|
Net income available
for MAA common shareholders
|
|
$
|
35,726
|
|
|
$
|
62,738
|
|
Depreciation and
amortization of real estate assets
|
|
|
124,846
|
|
|
|
121,210
|
|
Loss on sale of
depreciable real estate assets
|
|
|
29
|
|
|
|
13
|
|
Depreciation and
amortization of real estate assets of real estate joint
venture
|
|
|
152
|
|
|
|
145
|
|
Net income
attributable to noncontrolling interests
|
|
|
1,304
|
|
|
|
2,298
|
|
Funds from operations
attributable to the Company
|
|
|
162,057
|
|
|
|
186,404
|
|
Loss on embedded
derivative in preferred shares (1)
|
|
|
27,638
|
|
|
|
524
|
|
Loss (gain) on sale of
non-depreciable real estate assets
|
|
|
376
|
|
|
|
(8,963)
|
|
Loss from
unconsolidated limited partnerships (1)
|
|
|
77
|
|
|
|
145
|
|
Net casualty loss
(gain) and other settlement proceeds (1)
|
|
|
847
|
|
|
|
(1,544)
|
|
(Gain) loss on debt
extinguishment (1)
|
|
|
(1)
|
|
|
|
8
|
|
Non-routine legal
costs and settlements (1)
|
|
|
40
|
|
|
|
816
|
|
COVID-19 related costs
(1)
|
|
|
196
|
|
|
|
—
|
|
Mark-to-market debt
adjustment (2)
|
|
|
(34)
|
|
|
|
(85)
|
|
Core funds from
operations
|
|
|
191,196
|
|
|
|
177,305
|
|
Recurring capital
expenditures
|
|
|
(14,574)
|
|
|
|
(12,560)
|
|
Core adjusted funds
from operations
|
|
|
176,622
|
|
|
|
164,745
|
|
Redevelopment capital
expenditures
|
|
|
(13,948)
|
|
|
|
(12,445)
|
|
Revenue enhancing
capital expenditures
|
|
|
(7,928)
|
|
|
|
(8,039)
|
|
Commercial capital
expenditures
|
|
|
(395)
|
|
|
|
(1,419)
|
|
Other capital
expenditures
|
|
|
(5,590)
|
|
|
|
(3,977)
|
|
Funds available for
distribution
|
|
$
|
148,761
|
|
|
$
|
138,865
|
|
|
|
|
|
|
|
|
|
|
Dividends and
distributions paid
|
|
$
|
118,337
|
|
|
$
|
113,271
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares - diluted
|
|
|
114,494
|
|
|
|
113,933
|
|
FFO weighted average
common shares and units - diluted
|
|
|
118,344
|
|
|
|
118,018
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted:
|
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per Share - diluted
|
|
$
|
1.37
|
|
|
$
|
1.58
|
|
Core funds from
operations per Share - diluted
|
|
$
|
1.62
|
|
|
$
|
1.50
|
|
Core adjusted funds
from operations per Share - diluted
|
|
$
|
1.49
|
|
|
$
|
1.40
|
|
|
(1)
Included in Other non-operating expense (income) in the
Consolidated Statements of Operations.
|
(2)
Included in Interest expense in the Consolidated Statements of
Operations.
|
RECONCILIATION OF
NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON
SHAREHOLDERS
|
Dollars in
thousands
|
|
Three Months
Ended
|
|
|
|
March 31,
2020
|
|
|
December 31,
2019
|
|
|
March 31,
2019
|
|
Net Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
NOI
|
|
$
|
249,287
|
|
|
$
|
250,971
|
|
|
$
|
237,838
|
|
Non-Same Store
NOI
|
|
|
15,639
|
|
|
|
16,059
|
|
|
|
13,963
|
|
Total NOI
|
|
|
264,926
|
|
|
|
267,030
|
|
|
|
251,801
|
|
Depreciation and
amortization
|
|
|
(126,388)
|
|
|
|
(125,426)
|
|
|
|
(122,789)
|
|
Property management
expenses
|
|
|
(14,643)
|
|
|
|
(13,816)
|
|
|
|
(13,842)
|
|
General and
administrative expenses
|
|
|
(13,264)
|
|
|
|
(10,885)
|
|
|
|
(12,337)
|
|
Interest
expense
|
|
|
(43,482)
|
|
|
|
(43,698)
|
|
|
|
(45,700)
|
|
(Loss) gain on sale of
depreciable real estate assets
|
|
|
(29)
|
|
|
|
80,001
|
|
|
|
(13)
|
|
(Loss) gain on sale of
non-depreciable real estate assets
|
|
|
(376)
|
|
|
|
2,787
|
|
|
|
8,963
|
|
Other non-operating
(expense) income
|
|
|
(28,532)
|
|
|
|
(495)
|
|
|
|
119
|
|
Income tax
expense
|
|
|
(667)
|
|
|
|
(882)
|
|
|
|
(641)
|
|
Income from real
estate joint venture
|
|
|
407
|
|
|
|
444
|
|
|
|
397
|
|
Net income
attributable to noncontrolling interests
|
|
|
(1,304)
|
|
|
|
(5,471)
|
|
|
|
(2,298)
|
|
Dividends to MAA
Series I preferred shareholders
|
|
|
(922)
|
|
|
|
(922)
|
|
|
|
(922)
|
|
Net income available
for MAA common shareholders
|
|
$
|
35,726
|
|
|
$
|
148,667
|
|
|
$
|
62,738
|
|
RECONCILIATION OF
EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET
INCOME
|
Dollars in
thousands
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
March 31, 2020
|
|
|
March 31, 2019
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Net income
|
|
$
|
37,952
|
|
|
$
|
65,958
|
|
|
$
|
338,613
|
|
|
$
|
366,618
|
|
Depreciation and
amortization
|
|
|
126,388
|
|
|
|
122,789
|
|
|
|
500,443
|
|
|
|
496,843
|
|
Interest
expense
|
|
|
43,482
|
|
|
|
45,700
|
|
|
|
177,628
|
|
|
|
179,847
|
|
Income tax
expense
|
|
|
667
|
|
|
|
641
|
|
|
|
3,721
|
|
|
|
3,696
|
|
EBITDA
|
|
|
208,489
|
|
|
|
235,088
|
|
|
|
1,020,405
|
|
|
|
1,047,004
|
|
Loss (gain) on sale of
depreciable real estate assets
|
|
|
29
|
|
|
|
13
|
|
|
|
(80,971)
|
|
|
|
(80,988)
|
|
Adjustments to reflect
the Company's share of EBITDAre of unconsolidated
affiliates
|
|
|
336
|
|
|
|
338
|
|
|
|
1,349
|
|
|
|
1,351
|
|
EBITDAre
|
|
|
208,854
|
|
|
|
235,439
|
|
|
|
940,783
|
|
|
|
967,367
|
|
Loss (gain) on
embedded derivative in preferred shares (1)
|
|
|
27,638
|
|
|
|
524
|
|
|
|
9,228
|
|
|
|
(17,886)
|
|
Loss (gain) on sale of
non-depreciable real estate assets
|
|
|
376
|
|
|
|
(8,963)
|
|
|
|
(2,708)
|
|
|
|
(12,047)
|
|
Loss (gain) from
unconsolidated limited partnerships (1)
|
|
|
77
|
|
|
|
145
|
|
|
|
(3,022)
|
|
|
|
(2,954)
|
|
Net casualty loss
(gain) and other settlement proceeds (1)
|
|
|
847
|
|
|
|
(1,544)
|
|
|
|
(999)
|
|
|
|
(3,390)
|
|
(Gain) loss on debt
extinguishment (1)
|
|
|
(1)
|
|
|
|
8
|
|
|
|
244
|
|
|
|
253
|
|
Non-routine legal
costs and settlements (1)
|
|
|
40
|
|
|
|
816
|
|
|
|
1,500
|
|
|
|
2,276
|
|
COVID-19 related costs
(1)
|
|
|
196
|
|
|
|
—
|
|
|
|
196
|
|
|
|
—
|
|
Mark-to-market debt
adjustment (2)
|
|
|
(34)
|
|
|
|
(85)
|
|
|
|
(205)
|
|
|
|
(256)
|
|
Adjusted
EBITDAre
|
|
$
|
237,993
|
|
|
$
|
226,340
|
|
|
$
|
945,017
|
|
|
$
|
933,363
|
|
|
(1)
Included in Other non-operating expense (income) in the
Consolidated Statements of Operations.
|
(2)
Included in Interest expense in the Consolidated Statements of
Operations.
|
RECONCILIATION OF
NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES
PAYABLE
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Unsecured notes
payable
|
|
$
|
3,859,040
|
|
|
$
|
3,828,201
|
|
Secured notes
payable
|
|
|
624,653
|
|
|
|
626,397
|
|
Total debt
|
|
|
4,483,693
|
|
|
|
4,454,598
|
|
Cash and cash
equivalents
|
|
|
(34,508)
|
|
|
|
(20,476)
|
|
1031(b) exchange
proceeds included in Restricted cash (1)
|
|
|
—
|
|
|
|
(33,843)
|
|
Net Debt
|
|
$
|
4,449,185
|
|
|
$
|
4,400,279
|
|
|
(1)
Included in Restricted cash on the Condensed Consolidated Balance
Sheets.
|
RECONCILIATION OF
GROSS ASSETS TO TOTAL ASSETS
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Total
assets
|
|
$
|
11,155,977
|
|
|
$
|
11,230,450
|
|
Accumulated
depreciation
|
|
|
3,080,449
|
|
|
|
2,955,253
|
|
Gross
Assets
|
|
$
|
14,236,426
|
|
|
$
|
14,185,703
|
|
RECONCILIATION OF
GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
December 31,
2019
|
|
Real estate assets,
net
|
|
$
|
10,965,184
|
|
|
$
|
10,987,128
|
|
Accumulated
depreciation
|
|
|
3,080,449
|
|
|
|
2,955,253
|
|
Cash and cash
equivalents
|
|
|
34,508
|
|
|
|
20,476
|
|
1031(b) exchange
proceeds included in Restricted cash (1)
|
|
|
—
|
|
|
|
33,843
|
|
Gross Real Estate
Assets
|
|
$
|
14,080,141
|
|
|
$
|
13,996,700
|
|
|
(1)
Included in Restricted cash on the Condensed Consolidated Balance
Sheets.
|
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDAre
For purposes of calculations in this release, Adjusted Earnings
Before Interest, Income Taxes, Depreciation and Amortization for
real estate, or Adjusted EBITDAre, represents
EBITDAre further adjusted for items that are not considered
part of MAA's core operations such as adjustments related to the
fair value of the embedded derivative in the MAA Series I preferred
shares, loss or gain on sale of non-depreciable assets, adjustments
for gains or losses from unconsolidated limited partnerships, net
casualty gain or loss, loss or gain on debt extinguishment,
non-routine legal costs and settlements, COVID-19 related costs and
mark-to-market debt adjustments. As an owner and operator of
real estate, MAA considers Adjusted EBITDAre to be an
important measure of performance from core operations because
Adjusted EBITDAre does not include various income and
expense items that are not indicative of operating
performance. MAA's computation of Adjusted EBITDAre
may differ from the methodology utilized by other companies to
calculate Adjusted EBITDAre. Adjusted EBITDAre
should not be considered as an alternative to Net income as an
indicator of operating performance.
Core Adjusted Funds from Operations (Core AFFO)
Core AFFO is composed of Core FFO less recurring capital
expenditures. Core AFFO should not be considered as an alternative
to Net income available for MAA common shareholders as an indicator
of operating performance. As an owner and operator of real
estate, MAA considers Core AFFO to be an important measure of
performance from 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 as adjusted for items that are not
considered part of MAA's core business operations such as
adjustments related to the fair value of the embedded derivative in
the MAA Series I preferred shares, loss or gain on sale of
non-depreciable assets, adjustments for gains or losses from
unconsolidated limited partnerships, net casualty gain or loss,
loss or gain on debt extinguishment, non-routine legal costs and
settlements, COVID-19 related costs and mark-to-market debt
adjustments. While MAA's definition of Core FFO may be similar to
others in the industry, MAA's 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 available for MAA common
shareholders as an indicator of operating performance. MAA believes
that Core FFO is helpful in understanding its core operating
performance between periods in that it removes certain items that
by their nature are not comparable over periods and therefore tend
to obscure actual operating performance.
EBITDA
For purposes of calculations in this release, Earnings Before
Interest, Income Taxes, Depreciation and Amortization, or EBITDA,
is composed of net income plus depreciation and amortization,
interest expense, and income taxes. 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 expense items that are not indicative of operating
performance. EBITDA should not be considered as an alternative to
Net income as an indicator of operating performance.
EBITDAre
For purposes of calculations in this release, Earnings Before
Interest, Income Taxes, Depreciation and Amortization for real
estate, or EBITDAre, is composed of EBITDA, as defined
above, excluding the gain or loss on sale of depreciable asset
sales and plus adjustments to reflect MAA's share of
EBITDAre of unconsolidated affiliates. As an owner and
operator of real estate, MAA considers EBITDAre to be an
important measure of performance from core operations because
EBITDAre does not include various expense items that are not
indicative of operating performance. While MAA's definition of
EBITDAre is in accordance with NAREIT's definition, it may
differ from the methodology utilized by other companies to
calculate EBITDAre. EBITDAre should not be considered
as an alternative to Net income as an indicator of operating
performance.
Funds Available for Distribution (FAD)
FAD is composed of Core FFO less total capital expenditures,
excluding development spending and property acquisitions. FAD
should not be considered as an alternative to Net income available
for MAA common shareholders as an indicator of operating
performance. As an owner and operator of real estate, MAA
considers FAD to be an important measure of performance from core
operations because FAD measures the ability to control revenues,
expenses and total capital expenditures.
NON-GAAP FINANCIAL MEASURES (Continued)
Funds From Operations (FFO)
FFO represents net income available for MAA common shareholders
(calculated in accordance with GAAP) excluding gains or losses on
disposition of operating properties and asset impairment, plus
depreciation and amortization of real estate assets, net income
attributable to noncontrolling interests, and adjustments for joint
ventures. Because noncontrolling interest is added back, FFO,
when used in this document, represents FFO attributable to the
Company. While MAA's definition of FFO is in accordance with
NAREIT's definition, it may differ from the methodology for
calculating FFO utilized by other companies and, accordingly, may
not be comparable to such other companies. FFO should not be
considered as an alternative to Net income available for MAA common
shareholders as an indicator of operating performance. MAA
believes that FFO is helpful in understanding operating performance
in that FFO excludes depreciation and amortization 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.
Gross Assets
Gross Assets represents Total assets plus Accumulated
depreciation. MAA believes that Gross Assets can be used as a
helpful tool in evaluating its balance sheet positions. 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.
Gross Real Estate Assets
Gross Real Estate Assets represents Real estate assets, net plus
Accumulated depreciation and Cash and cash equivalents. MAA
believes that Gross Real Estate Assets can be used as a helpful
tool in evaluating its balance sheet positions. 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.
Net Debt
Net Debt represents Unsecured notes payable and Secured notes
payable less Cash and cash equivalents. MAA believes Net Debt
is a helpful tool in evaluating its debt position.
Net Operating Income (NOI)
Net Operating Income represents Rental and other property
revenues less Total property operating expenses, excluding
depreciation, for all properties held during the period, regardless
of their status as held for sale. NOI should not be considered as
an alternative to Net income available for MAA common
shareholders. MAA believes 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.
Same Store NOI
Same Store NOI represents Rental and other property revenues
less Total property operating expenses, excluding depreciation, for
all properties classified within the Same Store Portfolio during
the period. Same Store NOI should not be considered as an
alternative to Net income available for MAA common
shareholders. MAA believes Same Store NOI 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 KEY 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 respective period.
Development Communities
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 Communities portfolio.
Lease-up Communities
New acquisitions acquired during lease-up and newly developed
communities remain in the Lease-up Communities portfolio until
stabilized. Communities are considered stabilized after
achieving at least 90% occupancy for 90 days.
OTHER KEY DEFINITIONS (Continued)
Non-Same Store Portfolio
Non-Same Store Portfolio includes recent acquisitions,
communities that have been identified for disposition, communities
that have undergone a significant casualty loss, and stabilized
communities that do not meet the requirements defined by the Same
Store Portfolio.
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 are considered stabilized after achieving at least 90%
occupancy for 90 days. Communities that have been approved by MAA's
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.
Unencumbered NOI
Unencumbered NOI represents NOI generated by unencumbered assets
(as defined in MAALP's bond covenants).
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SOURCE MAA