-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RwQrmqqCcHk1mzHEKGRUguJ9OjcURifRYUD5406/V3gHdtuN5zPlSrBWL0lMdicf +Fzzc78N7Ce8q8TPDSpcmw== 0000912595-01-000003.txt : 20010224 0000912595-01-000003.hdr.sgml : 20010224 ACCESSION NUMBER: 0000912595-01-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010216 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MID AMERICA APARTMENT COMMUNITIES INC CENTRAL INDEX KEY: 0000912595 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 621543819 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-12762 FILM NUMBER: 1548886 BUSINESS ADDRESS: STREET 1: 6584 POPLAR AVE STREET 2: STE 340 CITY: MEMPHIS STATE: TN ZIP: 38138 BUSINESS PHONE: 9016826600 MAIL ADDRESS: STREET 1: 6584 POPLAR AVE STREET 2: SUITE 340 CITY: MEMPHIS STATE: TN ZIP: 38138 8-K 1 0001.txt 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 February 16, 2001 Date of Report (Date of earliest event reported) MID-AMERICA APARTMENT COMMUNITIES, INC. (Exact Name of Registrant as Specified in Charter) TENNESSEE 1-12762 62-1543819 --------- ------- ---------- (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) 6584 POPLAR AVENUE, SUITE 340 MEMPHIS, TENNESSEE 38138 (Address of principal executive offices) (901) 682-6600 Registrant's telephone number, including area code (Former name or address, if changed since last report) Item 7. Financial Statements and Exhibits c. Exhibits Exhibit 99.1 Press Release Exhibit 99.2 Supplemental Data Item 9. Regulation FD On February 15, 2001, the Registrant issued a press release announcing its results for the fourth quarter of 2000. The related press release is attached hereto as Exhibit 99.1. Attached as Exhibit 99.2 is supplemental data to the financial information contained in the February 15, 2001 press release. On February 16, 2001, the Registrant held its fourth quarter 2000 conference call. The following is the script from that conference call. Fourth Quarter 2000 Conference Call February 16, 2001 Welcome to this commentary on Mid-America's fourth quarter earnings release yesterday afternoon. This is George Cates, CEO, and with me are Eric Bolton, President and COO, and Simon Wadsworth, CFO. We'll not repeat particulars from that release, only a few highlights. For a copy of the release and supplemental data, please contact Michelle Sargent at Mid-America or check our web-site at www.maac.net. Before we begin, I'm required to note that our remarks will involve some forward-looking statements. Please refer to the safe-harbor language included in our press release and our 34-Act filings with the Securities and Exchange Commission which describe certain risk factors that may impact future results. This call is being recorded and members of the press may be participating. Highlights of our release yesterday include: o FFO for the quarter was 71(cent)/share, and for the year $2.80, in line with estimates o Development properties are continuing to mature, creating greater balance sheet flexibility and adding to share value throughout 2001 and thereafter o Our award-winning portfolio is in outstanding condition and our business is sound o Capital outlays continue to fall, due both to the completion of our acquisition refurbishment program and of the development pipeline. The resulting higher cash retention provides us with additional earnings opportunities and contributes to earnings growth as this year progresses o Our internet service provider has pulled out of the apartment business. Our markets as a whole are a little softer than a year ago. Even with interest cost savings, these two factors led us to lower our forecast for 2001 Eric Bolton: During the fourth quarter we continued to experience new supply excesses in several of our markets which pressured revenue performance. In addition, in December we noted a higher than normal dip in leasing traffic. The always slow leasing holiday period was weakened further by harsher than normal weather in several markets. October and November results were in line with expectations, but with December's weak leasing traffic the quarter's revenue was not as strong as we had expected. One month isn't a trend, but it is a caution signal. While occupancy, rent growth and unit turnover were all satisfactory, new supply pressures were evidenced by higher concession costs and an increase of two days in the average number of days vacant between residents. We have seen leasing traffic pick back up in January and early February, this is always a tough time of the year to make up lost ground before the traditional seasonal upturn in the second quarter. New supply is above absorption levels in the Memphis and Jackson, MS markets, which together represent about 19% of our portfolio. We expect a fairly soft market for Memphis throughout the year. Jackson could improve by summer as new development additions have slowed in that market. Overall occupancy is steady compared to last year, and we've seen improvement in several markets. Occupancy in both Columbus, GA and Columbia SC is improving. Our Georgia properties; Nashville TN; and all of our Texas markets are also performing well. The Florida portfolio is steady and performing at a satisfactory level, as are the Carolinas. In general, markets continue to behave in the normal pattern of being out of balance for only sort periods, but they are still slightly tougher than a year ago. We maximize revenue by maintaining occupancy, so any weakness, wherever it occurs, shows itself in higher concessions and marketing costs. Overall, our new development properties continued to meet lease-up expectations through the fourth quarter. The most significant market pressures of the group are at Grand Reserve, 370 units in Lexington, KY, which was 57% leased by year end, and at the 244-unit second phase of our Reserve at Dexter Lake property in Memphis which was 83% leased by year end. The lease-up at Dexter Lake represents our most significant challenge, as we will begin receiving the first apartments in the third and final phase, representing another 244 units, this summer. While facing a tough lease-up environment, we remain very enthusiastic about this community, once stabilized. Located in a high growth corridor of the region and near a successful new regional mall, it should stabilize in 2002 at 95% occupancy and will be a solid long term contributor to share value. Lease up at Kenwood Club, 320 units in Katy, TX is on target. Leased occupancy was 83% at yearend. Lease-up is well underway at Grande View in Nashville, TN and continues to exceed our expectations. By yearend, occupancy was 70% of completed units. We remain comfortable with the current forecast calling for full stabilization of this 433-unit property by the spring of next year. Operating expenses remain under tight control. The only areas of operating expense pressure during the quarter were advertising and marketing costs as competitive pressures intensified in several markets. Offsetting these pressures were very strong results in repair and maintenance expenses which were up only 0.4% for the quarter and continued progress with our utility expense management initiatives. Same store utility expenses were down 2.6% for the fourth quarter; marking the ninth straight quarter we've reduced costs in this important area of property operations. Early last year we initiated a program to implement high-speed internet access service throughout our portfolio. We earned 3.8(cent) per share of access fees and a small amount of revenue participation during 2000 with no capital outlay whatsoever by Mid-America. By yearend, however, we determined that our internet service provider was unable to fulfill their commitment, and the agreement was terminated last month. We expect shortly to announce a replacement program with installation starting by mid-year. As a result, we have revised our forecast for 2001 with this fee stream to resume in early 2002. Simon Wadsworth. We are reducing our internal forecast from $2.90 to a range of $2.83 to $2.87, as detailed in our press release. Last year, our internet services provider generated 3.8(cent) of income. We are pleased to have received that income in 2000...and that we did not make the mistake of putting any cash into the volatile broadband business. While same store occupancy is at about the same as last year, we are taking a more cautious forward view, trimming same store NOI growth forecasts by 50 bp to 2% for 2001. We are also projecting slightly slower lease-up and higher concessions at two of our development properties (the final two phases of Reserve at Dexter Lake in Memphis and Grande Reserve in Lexington), reflective again of local market conditions. For these reasons, we have adjusted our forecast accordingly. These changes should be offset partially by the favorable impact of lower interest rates, resulting in a net reduction of our original $2.90 forecast of almost 4(cent) from the gap in internet income and about 3(cent) from market conditions. Thus our internal forecasts are currently for FFO in the $2.83 to $2.87 range for 2001. We now expect to stabilize the development properties that have been completed and are coming on line at around a 9.5% yield in the current concessionary environment. The coming summer months will be critically important toward achievement of that estimate. Over the past couple of months as interest rates have dropped, cap rates may have also improved, again making asset sales attractive. Based on our actual asset sales experience we continue to believe that our net asset value is at least $27/share, well above current market share price. We have several refinancings planned for this year, only one of which, the maturity of a $40 million loan mid-year, is required. However, we have several opportunities to reduce our borrowing costs. Our forecasts take into account a total of $160 million of refinancings this year at current interest rates, and assume a further 25 bp favorable adjustment in short rates mid-year. George Cates. Our $290 million new development pipeline nears completion. With its steadily increasing stabilization, we continue to gain considerably more balance sheet flexibility as the year develops. We persistently explore options to create share value, and to capture it for our owners. We may well continue to sell assets both to capture some of the value that we've created, as well as to improve our portfolio quality, the latter being an ongoing and normal part of the business for many years. Share repurchases may be attractive if accompanying share value creation is substantial. Our current thinking is that asset sale proceeds would most likely be used to reduce our liabilities - debt and preferred, as well as common - more or less pro rata to their present levels on our balance sheet, thus lessening the benefit of devoting the entire proceeds to share repurchase, thus increasing our aggregate debt and preferred level. Insiders continue to be buyers of Mid-America shares. As owners now of 16% of the business, we believe that our stock is the place to be, including during a possible recession. The last serious real estate recession came in 1989-93, and Mid-America's predecessor continued to grow revenues and NOI throughout that harsh period. Given our stable and diversified markets, and our major reduction in new development exposure beginning in 1999, we are strongly positioned to provide a high, growing, and well-covered dividend and continued solid value growth. We invite your questions. (Q & A Followed) 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: February 16, 2001 /s/ Simon R.C. Wadsworth ----------------- ----------------------------- Simon R.C. Wadsworth Executive Vice President (Principal Financial and Accounting Officer) EX-99.1 2 0002.txt EXHIBIT 99.1 FEBRUARY 15, 2001. MEMPHIS, TN . MID-AMERICA APARTMENT COMMUNITIES (NYSE:MAA) FFO per share +6% for 4th quarter 2000 versus prior year and +2% versus 1999 o Funds From Operations (FFO) per share: 71(cent) for 4th quarter, $2.80 for full year 2000 o 94.5% same-store occupancy. Average rent per unit 3.0% above prior year. o Development pipeline almost complete - only $17 million remaining in 2001 Mid-America Apartment Communities today announced FFO of 71(cent) per share for the fourth quarter ending December 31, 2000, 6% above the comparable quarter a year earlier. For the year 2000, FFO per share was $2.80 compared to $2.75 in 1999. Each was as anticipated. "As forecast throughout the past two years, we continue to expect FFO and value growth per share to accelerate later this year. Three of our five remaining new development properties should then be stabilized; the other two will bring further growth in 2002," said George E. Cates, Chairman and CEO. "Our internet broadband supplier recently announced their discontinuation of service to the apartment industry. That is a disappointment, since FFO from that source was almost 4(cent) per share last year, now not to repeat in 2001. Along with some mild oversupply in the southeast and Texas, we have adjusted our internal FFO forecasts cautiously." H. Eric Bolton, Jr., President & COO: "Our new development properties continued to lease up in line with overall expectations. At year end, leased occupancy at Grande View in Nashville, TN was 70% of completed units, 24% ahead of forecast. Offsetting this was some slippage in the pace of leasing at Grand Reserve in Lexington, KY (at 57% leased of delivered units) and The Reserve at Dexter Lake Phase II, Memphis, TN (83%). We expect a continuation of these trends through this first quarter, 2001, with improvement expected as the traditionally stronger summer leasing season arrives. Lease up at Kenwood Club (Katy, TX) remains on target, 83% leased at year-end. We expect to stabilize occupancy by the end of the second quarter at this new property." "Our 27,997 stabilized units continued to post solid occupancy performance. Same store occupancy was 94.5% at year-end, matching a year earlier. Overall portfolio occupancy continues to exceed local market averages, as detailed in the attached supplemental schedules (and at our web site www.maac.net). We also continued to post satisfactory rent growth for our region; same store rent was up 3.0% during the fourth quarter as compared to the same 1999 period. Resident turnover fell almost 5% (same store) as compared to 1999. Offsetting these favorable trends were growing leasing concessions and marketing costs, in response to competitive pressures from excessive new supply in several markets. Additionally, during the fourth quarter we saw an increase in the number of days vacant between turns as a result of weaker markets. Thus same store revenue growth for the quarter was 1.9%." "Excess supply areas include Memphis and Jackson, MS, which both experienced a 3 1/2% occupancy decline compared to last year. Memphis should remain a bit weak throughout 2001. Improvement is expected in Jackson by the second half of the year. We expect sluggish revenue growth for the entire portfolio in the current quarter before picking up in the second quarter." "Same store operating expenses were up 2.9% versus the comparable 1999 quarter, due mostly to marketing costs. As a result of the continued expansion of our water sub-metering initiative and reduced customer turnover, utility costs fell nearly 3%. Repair and maintenance costs remained under tight control, growing only 0.4%. For the quarter, and despite the revenue growth pressures, operating margin for the entire portfolio was a solid 62.8%, consistent with the prior year period. Same store NOI growth for the quarter was 1.4%, and 2.8% for all of 2000." "Arrangements were completed in early 2000 with an established supplier of broadband services, to provide a full scope of internet services throughout our portfolio. We earned 3.8(cent) per share of fees (and a small amount of revenue participation) during 2000 with no capital outlay whatsoever by MAA. By year-end, however, we determined that our technology provider was unable to fulfill their commitment, and the agreement was terminated last month. We expect shortly to conclude a replacement arrangement with a proven provider. This remains a focus area; ancillary income should continue its long-term rapid growth (in 2000, 50% above 1999), though slowed for now. We forecast a gap in broadband-related earnings in 2001." Simon R. C. Wadsworth, CFO: "We've taken advantage of an improved interest rate environment over the past four months, fixing the rate on $140 million of debt. Our average interest rate is currently just under 7.1%. Variable rate debt has been reduced to 12% of our total debt outstanding. This year, we plan to refinance $160 million of debt with more favorable terms and we've incorporated that into our forecast." "For 2000, our free cash flow per share (FFO less recurring capex, before depreciation and amortization) was $2.35 compared to a $2.32 dividend, and up from $2.30 in 1999. FAD/share (funds available for distribution, which excludes the very favorable impact of our profitable asset sales) was $2.19 compared to $2.15 in 1999, but our gain on sale of assets was 56(cent) per share (47(cent) in 1999) which provided us with significant further liquidity. Our dividend coverage is safe and improving steadily as the development properties mature." "Our shareholders also benefit from the value being created from the continual, substantial upgrading of our portfolio, now among the newest of the publicly traded companies and supported by appropriate capital spending. Excluding development, capital outlays dropped from $34 million in 1999 to $17 million in 2000; we are forecasting only a $1 million increase this year. Development capital spending should drop to $17 million in 2001 from $62 million in 2000." "Due to a continued albeit mild excess of new development, our southeastern and Texas markets have steadily become more competitive, as long foreseen. The 3.8(cent) per share reduction from 2000's broadband-related income cannot be avoided or replaced quickly. All in all, we believe that 2001 FFO per share will be in the range of $2.83 - $ 2.87, with the following quarterly ranges per share: first quarter, 68(cent)-69(cent); second quarter, 71(cent)-73(cent); third quarter, 70(cent)-72(cent); and fourth quarter, 71(cent)-73(cent)." Key variables include NOI growth rate, the pace of new development lease-up, and even (though now to a lesser extent) interest rates." "As the strategic upgrade of our #1 award-winning portfolio continued in the fourth quarter, we sold three small communities (totaling 274 units) in Georgia, bringing the total sold last year to 1,902 units with net proceeds of $58.7 million at an average sales capitalization rate of 8.7%. The weighted average age of the communities sold last year was 9 years above the overall portfolio's average. We were well pleased with the proceeds achieved, an endorsement of the sound maintenance of our properties. Our return on assets at 8.8% continues to exceed our peer group." "We continually assess the dynamics which impact productive share repurchases" said Cates, "including MAA's share price which remains significantly below our net asset value, generally estimated independently between $27-$29 per share. We repurchased almost 8% of our outstanding shares in 1999-2000. We will resume repurchases any time we can add significantly to underlying intrinsic share value while enhancing our considerable, improving balance sheet strength." MAA is a self-administered, self-managed apartment-only real estate investment trust which owns or has ownership interest in 34,025 apartment units throughout the southeastern and midwest U.S. and in Texas, including 413 units in the development pipeline. For further details, please refer to our website at www.maac.net or contact Simon R. C. Wadsworth at (901) 682-6668, ext. 104. 6584 Poplar Ave., suite 340, Memphis, TN 38138. Certain matters in this press release may constitute forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about anticipated growth rate of revenues and expenses at Mid-America's properties, anticipated lease-up (and rental concessions) at development properties, costs remaining to complete development properties, planned disposition, disposition pricing, and planned acquisitions and developments. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including a downturn in general economic conditions or the capital markets, competitive factors including overbuilding or other supply/demand imbalances in some or all of our markets, construction delays that could cause new and add-on apartment units to reach the market later than anticipated, changes in interest rates and other items that are difficult to control such as insurance rates, increases in real estate taxes in many of our markets, as well as the other general risks inherent in the apartment and real estate businesses. 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 the latter filing. MID-AMERICA APARTMENT COMMUNITIES, INC. ("MAA") CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands - except per share data)
Three months ended December 31, Twelve months ended December 31, ------------------------------- ----------------------------------------- 2000 1999 2000 1999 -------------- --------------- -------------------- -------------------- Property revenues $ 55,979 $ 55,400 $ 222,532 $ 224,214 Property operating expenses 20,844 20,603 83,446 84,885 - -------------------------------------------------------------------------------------------------------------------------------- Net operating income 35,135 34,797 139,086 139,329 Interest and other non-property income 503 355 1,526 1,388 Management and development income, net 190 179 739 751 FFO from real estate joint ventures 330 238 1,053 712 General & adminstrative 3,600 4,486 14,826 14,479 Interest expense 13,192 11,990 50,736 48,302 Preferred dividend distribution 4,027 4,030 16,114 16,114 Depreciation and amortization non-real estate assets 155 96 514 385 Amortization of deferred financing costs 606 795 2,758 2,854 - -------------------------------------------------------------------------------------------------------------------------------- Funds from operations 14,578 14,172 57,456 60,046 Depreciation and amortization 12,834 11,953 51,330 49,188 Other nonrecurring items - - - 332 Joint venture depreciation adjustment included in FFO 308 303 1,210 741 Preferred dividend distribution add back (4,027) (4,030) (16,114) (16,114) - ------------------------------------------------------------------------------------------------------------------------------- Income before gain on sale of assets, minority interest and extraordinary item 5,463 5,946 21,030 25,899 Net gain on sale of assets 1,083 4,780 11,587 10,237 Minority interest in operating partnership income (346) (798) (2,626) (2,497) - -------------------------------------------------------------------------------------------------------------------------------- Net income before extraordinary item 6,200 9,928 29,991 33,639 Ex item - Loss on debt extinguishment , net of MI - - 204 67 Preferred dividend distribution 4,027 4,030 16,114 16,114 - -------------------------------------------------------------------------------------------------------------------------------- Net income available for common shareholders $ 2,173 $ 5,898 $ 13,673 $ 17,458 ================================================================================================================================ PER SHARE DATA: Funds from operations per share - Basic $ 0.71 $ 0.67 $ 2.80 $ 2.76 Funds from operations per share - Fully Diluted $ 0.71 $ 0.67 $ 2.80 $ 2.75 Net income available for common shareholders before extraordinary items - Basic $ 0.12 $ 0.29 $ 0.79 $ 0.93 Net income available for common shareholders after extraordinary items - Basic $ 0.12 $ 0.29 $ 0.78 $ 0.93 Dividend declared per common share $ 0.585 $ 0.580 $ 2.325 $ 2.305 OTHER DATA: Weighted average common shares and units - Basic 20,426 21,263 20,498 21,794 Weighted average common shares and units - Fully Diluted 20,458 21,280 20,551 21,817 Number of apartment units with ownership interest, excluding development units not delivered 33,612 33,901 33,612 33,901 Apartment units added (sold) during period, net (115) (832) (289) 70
CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
(Unaudited) December 31, 2000 December 31, 1999 -------------------- -------------------- Assets: Real estate assets, net $1,244,475 $1,248,051 Cash and cash equivalents, including restricted cash 33,567 26,629 Other assets 25,729 24,143 - -------------------------------------------------------------------------------------------------------------------------------- Total assets $1,303,771 $1,298,823 ================================================================================================================================ Liabilities: Bonds and notes payable $ 781,089 $ 744,238 Other liabilities 37,306 34,641 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 818,395 778,879 Shareholders' equity and minority interest 485,376 519,944 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities & shareholders' equity $1,303,771 $1,298,823 ================================================================================================================================
EX-99.2 3 0003.txt EXHIBIT 99.2 Supplementary Financial Information 4th Quarter 2000 Financial Statistics ( in 000's, except per share data) - --------------------------------------------------------------------------------------------------------------------------------
Payment Payment Record Dividends Information (latest declaration): per share Date Date ---------------- ---------------- ----------------- Common Dividend - quarterly $0.5850 1/31/01 1/24/01 Preferred Series A - monthly $0.1979 2/15/01 2/1/01 Preferred Series B - monthly $0.1849 2/15/01 2/1/01 Preferred Series C - quarterly $0.5859 1/15/01 1/1/01
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Annualized ROA: 4th Qtr 2000 Trailing 4 Qtrs ---------------- ----------------- Gross Real Estate Assets, Average $1,428,244 $1,410,070 EBITDA $ 129,000 $ 126,667 EBITDA/Gross Real Estate Assets (%) 9.0% 9.0%
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4th Qtr 2000 4th Qtr 1999 ---------------- ---------------- Common and Preferred Dividends as % of FFO 86% 87% EBITDA/Debt Service (1) 2.13 2.22 EBITDA/Fixed Charges (2) 1.68 1.73 Total Debt as % of Gross Real Estate Assets 55% 53% MAA portion of JV debt $27,353 $27,575 Capitalized Interest YTD $ 3,730 $ 3,967
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FAD: 4th Qtr 2000 4th Qtr 1999 Full Year 2000 Full Year 1999 ---------------- ---------------- ---------------------------------- FFO $14,578 $14,172 $57,456 $60,046 Average Units 30,875 31,506 30,924 32,734 Average Shares - Fully Diluted 20,458 21,280 20,551 21,817 Capex at annual $400/Unit $ 100 $ 100 $ 400 $ 400 Recurring Capex (annual $400/unit) $ 3,088 $ 3,151 $12,370 $13,094 FAD $11,490 $11,021 $45,086 $46,952 Free Cash Flow (3) $12,251 $11,912 $48,358 $50,191 Per Share (Diluted): FFO $ 0.71 $ 0.67 $ 2.80 $ 2.75 FAD $ 0.56 $ 0.52 $ 2.19 $ 2.15 Free Cash Flow (3) $ 0.60 $ 0.56 $ 2.35 $ 2.30 Distribution $ 0.585 $ 0.575 $ 2.325 $ 2.310
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Principal Average Years Debt: Balance To Maturity Average Rate ---------------- ---------------- ------------------ Fixed Rate -Conventional $504,328 8.6 7.4% Fixed Rate -Tax-free 94,442 22.6 6.2% Line of Credit - Swapped to Fixed Rate 75,000 4.3 6.9% Variable Rate - Tax-free 31,817 26.8 5.8% Variable Rate - Conventional 75,502 6.7 8.0% ---------------------------------------------------- Total $781,089 10.7 7.2% ====================================================
Scheduled Avg. Rate for Future Payments as of December 31, 2000: Amortization Maturities Total Maturities ---------------- ----------------- ----------------- ---------------- 2001 $ 4,694 $ 49,544 $ 54,238 8.1% 2002 4,721 18,822 23,543 6.9% 2003 4,473 161,821 166,294 6.6% 2004 4,368 71,168 75,536 7.7% 2005 4,193 61,299 65,492 7.3% Thereafter 168,716 227,270 395,986 7.0% --------------------------------------------------------------------- Total $191,165 $589,924 $781,089 7.2% - --------------------------------------------------------------------------------------------------------------------------------
(1) Annualized EBITDA for trailing six months to annualized debt service (aggregate of principal and interest) for same period. (2) Annualized EBITDA for trailing six months to annualized fixed charges (aggregate of preferred distributions, principal and interest) for same period. (3) Includes addback of other non-cash items, primarily non-real depreciation and amortization. Supplementary Financial Information 4th Quarter 2000 Apartment Data (end of period) - -------------------------------------------------------------------------------------------------------
All Properties: 2000 1999 Percent Change ----------- -------------- ---------------- Total Units, including ownership interests 33,612 33,901 -0.9% Average Rental Rate (1) (2) $642.00 $620.80 3.4% Physical Occupancy (1) (2) 94.2% 94.6% -0.4%
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Same Store (1): 4th Qtr 2000 4th Qtr 1999 ------------- --------------- Revenue $50,629 $49,670 1.9% -------------------------------------------------- Operating Expenses 12,913 12,495 3.3% RE Taxes and Insurance 5,317 5,216 1.9% -------------------------------------------------- Total Expenses 18,230 17,711 2.9% -------------------------------------------------- NOI $32,399 $31,959 1.4% ================================================== Units 27,997 27,997 Average Rental Rate $636.68 $618.38 3.0% Physical Occupancy 94.5% 94.5% 0.0%
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September 2000 ------------------------------ December 2000 MAA Market Average Occupancy by Geographic Market: Occupancy (2) Occupancy (2) Occupancy ---------------- ------------------ ------------- Alabama 93.5% 95.3% 91.6% Arkansas & Missouri 94.4% 96.9% 96.2% Chattanooga, TN 95.7% 95.0% 96.5% Florida (except JAX) 93.5% 95.5% 95.6% Georgia 94.9% 95.1% 92.7% Jackson, TN 95.6% 95.9% 93.9% Jacksonville, FL 95.1% 94.7% 94.9% Kentucky & Ohio 94.2% 96.5% 93.8% Memphis, TN 92.4% 94.8% 92.0% Mississippi 91.3% 94.6% 92.6% N. Carolina & Virginia 96.0% 95.6% 95.1% Nashville, TN 94.3% 96.3% 95.4% S. Carolina 94.4% 95.6% 94.9% Texas 96.6% 96.0% 95.7%
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MAA Average Rental Rate by Geographic Market (1) (2): December 2000 December 1999 Percent Change ---------------- ---------------- --------------- Alabama $640.60 $633.40 1.1% Arkansas & Missouri $585.30 $567.90 3.1% Chattanooga, TN $648.80 $633.90 2.4% Florida (except JAX) $683.20 $664.40 2.8% Georgia $695.00 $677.50 2.6% Jackson, TN $602.70 $583.60 3.3% Jacksonville, FL $654.80 $635.50 3.0% Kentucky & Ohio $625.80 $609.40 2.7% Memphis, TN $617.50 $591.80 4.3% Mississippi $561.80 $549.20 2.3% N. Carolina & Virginia $639.10 $600.30 6.5% Nashville, TN $678.50 $628.10 8.0% S. Carolina $609.90 $592.30 3.0% Texas $642.50 $623.60 3.0%
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MAA Owned Properties, including Ownership Interests As of December 31, 2000 Properties Apartments Percent of Total -------------- -------------- ----------------- Memphis, TN 13 4,667 14% Chattanooga, TN 4 943 3% Nashville, TN 4 1,230 4% Jackson, TN 5 664 2% Georgia 22 5,707 17% Texas 15 4,312 13% S. Carolina 12 2,604 8% Jacksonville, FL 8 2,726 8% Florida (except JAX) 13 3,758 11% Mississippi 8 1,925 5% Kentucky & Ohio 8 1,962 6% Arkansas & Missouri 4 1,128 3% N. Carolina & Virginia 4 1,034 3% Alabama 4 952 3% ----------------------------------------------- Total 124 33,612 100% - -------------------------------------------------------------------------------------------------------
(1) Prior year information restated to represent units currently owned. (2) Information represents owned properties not in lease-up. Supplementary Financial Information 4th Quarter 2000 Development Pipeline Summary ($ in 000's) - ------------------------------------------------------------------------------------------------------------------------------------
Current Actual/Forecast ------------------------------------ Total Estimated Cost to Construction Initial Stabil- Apartments -------------------------- Units Cost Date Start Finish Occupancy ization Available Leased Occupied ------ --------- ------- -------- ------- ---------- ------- ---------- ------ --------- Development Communities: In Lease-up Location Grand Reserve Lexington Lexington, KY 370 33,355 32,500 3Q 1998 3Q 2000 4Q 1999 3Q 2001 370 211 197 Reserve at Dexter Lake Phs II Memphis, TN 244 16,743 16,536 2Q 1999 4Q 2000 1Q 2000 2Q 2001 244 203 198 Kenwood Club at the Park Katy, TX 320 18,243 18,243 2Q 1999 2Q 2000 1Q 2000 2Q 2001 320 264 251 Grande View Nashville Nashville, TN 433 36,217 33,465 1Q 1999 1Q 2001 3Q 2000 1Q 2002 264 186 168 -------------------------- --------------------------- 1,367 $104,558 $100,744 1,198 864 814 -------------------------- --------------------------- Under Construction / Pre-development: Reserve at Dexter Lake Phase Memphis, TN 244 16,869 3,206 3Q 2000 4Q 2001 2Q 2001 3Q 2002 -------------------------- 244 $ 16,869 $ 3,206 -------------------------- -------------------------- Total 1,611 $121,427 $103,950 1,198 864 814 =========================== =========================== - ------------------------------------------------------------------------------------------------------------------------------------
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