-----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, VhVWspAdtemGTiI0Se6LrqujiB/Zo3XoZBU4np0My48m3yrxGwpiS/5UDP7ZKAfF 8gBvtKsnK+UfiL693llcMw== 0000912595-06-000019.txt : 20060202 0000912595-06-000019.hdr.sgml : 20060202 20060202170434 ACCESSION NUMBER: 0000912595-06-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060202 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060202 DATE AS OF CHANGE: 20060202 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: 1934 Act SEC FILE NUMBER: 001-12762 FILM NUMBER: 06574405 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 form8k.htm 8-K ER 2-2-06 8-K ER 2-2-06

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

FORM 8-K
___________________

CURRENT REPORT

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

Date of Report (Date of earliest event reported): February 2, 2006


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


TENNESSEE
1-12762
62-1543819
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
 

 
6584 Poplar Avenue, Suite 300
  
Memphis, Tennessee
38138
(Address of Principal Executive Offices)
(Zip Code)


(Registrant's telephone number, including area code): (901) 682-6600


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


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

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 

ITEM 2.02 Results of Operations and Financial Condition

On February 2, 2006, the Registrant issued an earnings release for the three and twelve months ended December 31, 2005, a copy of which is furnished as Exhibit 99.1 to this Current Report.

This release is furnished by the Registrant pursuant to Item 2.02 of Form 8-K and is not to be considered "filed" under the Exchange Act, and shall not be incorporated by reference into any previous or future filing by the Registrant under the Securities Act or the Exchange Act.

ITEM 9.01 Financial Statements and Exhibits
 
(c) Exhibits

Exhibit
Number Description
----------  -------------------------------------------
99.1  
Press Release dated February 2, 2006
99.2  
Supplemental Data Schedules

 
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.


 
MID-AMERICA APARTMENT COMMUNITIES, INC.
Date: February 2, 2006
/s/Simon R.C. Wadsworth
 
Simon R.C. Wadsworth
 
Executive Vice President and Chief Financial Officer
 
(Principal Financial and Accounting Officer) 


EX-99 2 ex-99.htm PRESS RELEASE Press Release

MID-AMERICA APARTMENT COMMUNITIES, INC.
A self-managed equity REIT


PRESS RELEASE


 
MID-AMERICA ANNOUNCES FOURTH QUARTER AND CALENDAR YEAR 2005 RESULTS
 

Memphis, TN: February 2, 2006. Mid-America Apartment Communities, Inc. (NYSE: MAA) (the “Company”) reported net income available for common shareholders for the year ended December 31, 2005 of $5,415,000, or $0.25 per common share, as compared to $10,373,000, or $0.50 per common share for the year ended December 31, 2004. Results for 2005 include $5,481,000 related to gains on sales, insurance settlement proceeds, and a joint venture promote fee; results for 2004 include $12,283,000 related to gains on sales and insurance settlement proceeds. Funds from operations (“FFO”), the widely accepted measure of performance for real estate investment trusts, was $77,414,000, or $3.20 per share/unit for 2005 compared to $70,025,000 or $3.00 per share/unit for the prior year, a 6.7% growth in annual FFO per share/unit. This is a record high FFO performance for the Company, and is 4 cents ahead of First Call’s estimate based on the revised upward guidance the Company issued on December 20, 2005.

For the fourth quarter of 2005, the Company reported net income available for common shareholders of $119,000, or $0.01 per common share, compared to net income available for common shareholders of $8,314,000 or $0.40 per common share for the same quarter of 2004. Results for the fourth quarter of 2005 include a loss from insurance settlement proceeds of ($116,000); results for the fourth quarter of 2004 include $8,653,000 related to gains on sales and loss on insurance settlement proceeds. FFO for the fourth quarter of 2005 was $19,872,000, or $0.81 per share/unit, a record high for any fourth quarter, compared to $18,124,000, or $0.77 per share/unit for the same quarter a year ago. Fourth quarter 2005 FFO includes a charge of ($344,000), for refinancing costs. This compares to a charge for refinancing costs of ($45,000) in the fourth quarter of 2004. A reconciliation of FFO to net income and an expanded discussion of the components of FFO can be found later in this release.

Highlights:

·   
FFO results for the year of $3.20 per share/unit is the best performance in the company’s twelve-year history as a public company.
·  
Total shareholder return for 2005 was 24.8% and represents the best performance among the Company’s multifamily REIT peers (excluding announced REIT buy-out transactions).
·   
The Company reported very strong same-store growth of net operating income for the fourth quarter; the highest quarterly net operating income performance over the prior nine years.
·   
Same store physical occupancy at year-end was 94.7%, up from 93.7% at the end of 2004.
·  
Same store average rent per unit for the fourth quarter increased by 1.7% over the same period last year; the best performance since the fourth quarter of 2001.
·   
The Company’s fixed charge coverage increased to 2.1 from 2.0 a year ago, and approximates the sector median of 2.2.
·  
The Company completed the purchase of the upscale 250-unit Brier Creek Apartments in the Raleigh-Durham Research Triangle area on January 19, 2006 and announced plans for a 200-unit expansion.


Eric Bolton, Chairman and CEO said, “Operating results for the fourth quarter were strong and support our belief that Mid-America’s portfolio is poised to deliver improving internal growth. With the leasing environment quickly improving, and a number of enhancements to our operating platform successfully implemented, we expect to capture continued robust revenue growth. Because of the discipline maintained in protecting resident profile, pricing structure and the maintenance needs at our communities over the last three years of weak market conditions, Mid-America’s properties are very well positioned to take advantage of the increasing demand for apartment housing.”

Simon Wadsworth, Executive Vice-President and CFO said, “Fourth quarter results were at the high-end of revised guidance issued in December and significantly better than our original forecast for the quarter. In the fourth quarter we recorded a non-cash adjustment associated with prior year leasing concessions which increased same store revenues by $1.33 million. Without this adjustment, fourth quarter same store net operating income growth would have been reduced from 11.7% to 8.2%, compared to the same period a year ago. Additionally in the fourth quarter we recorded an $887,000 non-cash charge to amortize the cumulative cost of a long-term senior management incentive plan. Strong occupancy, improved performance in collections and our consistent focus on expense control all factored into the terrific results for the quarter. Our debt is just 46% of our total market capitalization, and 85% is fixed rate or otherwise hedged which places us in a strong financial position going into 2006.
 
“We are providing initial FFO guidance for 2006 of $3.18 to $3.32 per share/unit. Key assumptions in this guidance include same store net operating income growth of 3.5% to 4.5%, average interest cost of 5.5% and $170 million of acquisitions. We anticipate FFO in the range of $0.77 to $0.82 for the first quarter, $0.82 to $0.87 for the second quarter, $0.77 to $0.82 for the third quarter, and $0.79 to $0.84 for the fourth quarter. We’ll review our 2005 results and our 2006 forecast assumptions in more detail during our conference call and will post our prepared comments on our web-site.”

Supplemental data to this release can be found on the investors page of our web site at www.maac.net. The Company will host a conference call to further discuss fourth quarter results on Friday, February 3, 2006 at 9:15 AM Central Time. The conference call-in number is 866-206-7202 and the moderator’s name is Eric Bolton.
 
MAA is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 38,477 apartment units throughout the southeast and south central U.S. For further details, please refer to our website at www.maac.net or contact Investor Relations at investor.relations@maac.net or (901) 435-5371. 6584 Poplar Ave., Suite 300, Memphis, TN 38138.
 
 
“Total Shareholder Return” is defined as market price appreciation plus dividends paid. 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 market conditions, anticipated acquisitions and/or dispositions, renovation and development opportunities, and property financing. 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, shortage of acceptable property acquisition candidates, changes in interest rates, real estate taxes, insurance costs, and other items that are difficult to control, 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.
 
 
 
 

 
CONSOLIDATED STATEMENTS OF OPERATIONS  (in thousands except per share data)
              
                   
                   
   
Three months ended
  
Twelve months ended
  
   
December 31,
  
December 31,
  
     
2005
   
2004
   
2005
   
2004
 
Property revenues
  
$
77,944
  
$
68,551
  
$
297,130
  
$
267,202
  
Management and fee income, net
    
53
   
139
   
325
   
582
 
Property operating expenses
    
(31,772
)
  
(29,091
)
  
(123,716
)
  
(112,748
)
Depreciation
    
(19,421
)
  
(17,592
)
  
(75,050
)
  
(68,653
)
Property management expenses
    
(3,422
)
  
(2,389
)
  
(11,871
)
  
(10,357
)
General and administrative
    
(3,206
)
  
(2,401
)
  
(10,354
)
  
(9,240
)
Income from continuing operations before non-operating items
    
20,176
   
17,217
   
76,464
   
66,786
 
Interest and other non-property income
    
141
   
159
   
498
   
593
 
Interest expense
    
(15,214
)
  
(13,619
)
  
(58,751
)
  
(50,858
)
Gain (loss) on debt extinguishment
    
(327
)
  
1,274
   
(409
)
  
1,095
 
Amortization of deferred financing costs
    
(600
)
  
(452
)
  
(2,011
)
  
(1,753
)
Minority interest in operating partnership income
    
(442
)
  
(846
)
  
(1,571
)
  
(2,264
)
Income (loss) from investments in unconsolidated entities
    
(8
)
  
(152
)
  
65
   
(287
)
Incentive fee from unconsolidated entity
    
-
   
-
   
1,723
   
-
 
Net gain (loss) on insurance and other settlement proceeds
    
(116
)
  
(421
)
  
749
   
2,683
 
Gain on sale of non-depreciable assets
    
-
   
-
   
334
   
-
 
Gain on dispositions within unconsolidated entities
    
-
   
3,249
   
3,034
   
3,249
 
Income from continuing operations
    
3,610
   
6,409
   
20,125
   
19,244
 
Discontinued operations:
                          
Loss from discontinued operations
    
-
   
(14
)
  
(113
)
  
(197
)
Asset impairment of discontinued operations
    
-
   
(200
)
  
(243
)
  
(200
)
Net gain (loss) on insurance and other settlement proceeds of
                          
discontinued operations
    
-
   
-
   
(25
)
  
526
 
Gain on sale of discontinued operations
    
-
   
5,825
   
-
   
5,825
 
Net income
    
3,610
   
12,020
   
19,744
   
25,198
 
Preferred dividend distribution
    
(3,491
)
  
(3,706
)
  
(14,329
)
  
(14,825
)
Net income available for common shareholders
  
$
119
  
$
8,314
  
$
5,415
  
$
10,373
  
                           
Weighted average common shares - Diluted
    
21,995
   
20,969
   
21,607
   
20,652
 
Net income (loss) per share available for common shareholders
  
$
0.01
  
$
0.40
  
$
0.25
  
$
0.50
  
                           
                           
FUNDS FROM OPERATIONS (in thousands except per share data)
                          
                           
                           
Net income
  
$
3,610
  
$
12,020
  
$
19,744
  
$
25,198
  
Addback: Depreciation of real estate assets
    
19,076
   
17,262
   
73,704
   
67,302
 
Subtract: Net gain on insurance and other settlement proceeds
    
(116
)
  
(421
)
  
749
   
2,683
 
Subtract: Gain on dispositions within unconsolidated entities
    
-
   
3,249
   
3,034
   
3,249
 
Subtract: Net gain (loss) on insurance and other settlement
                          
proceeds of discontinued operations
    
-
   
-
   
(25
)
  
526
 
Addback: Depreciation of real estate assets
                          
of discontinued operations (1)
    
-
   
-
   
-
   
681
 
Subtract: Gain on sale of discontinued operations
    
-
   
5,825
   
-
   
5,825
 
Addback: Depreciation of real estate assets
                          
of unconsolidated entities
    
119
   
355
   
482
   
1,688
 
Subtract: Preferred dividend distribution
    
3,491
   
3,706
   
14,329
   
14,825
 
Addback: Minority interest in operating partnership income
    
442
   
846
   
1,571
   
2,264
 
Funds from operations
    
19,872
   
18,124
   
77,414
   
70,025
 
Recurring capex
    
(3,733
)
  
(2,275
)
  
(15,676
)
  
(12,966
)
Adjusted funds from operations
  
$
16,139
  
$
15,849
  
$
61,738
  
$
57,059
  
                           
Weighted average common shares and units - Diluted
    
24,588
   
23,612
   
24,227
   
23,316
 
Funds from operations per share and unit - Diluted
  
$
0.81
  
$
0.77
  
$
3.20
  
$
3.00
  
Adjusted funds from operations per share and unit - Diluted
  
$
0.66
  
$
0.67
  
$
2.55
  
$
2.45
  
                           
(1) Amounts represent depreciation taken before communities classified as discontinued operations.
                    

 
 
 
 

CONSOLIDATED BALANCE SHEETS (in thousands)
                  
                   
       
December 31,
  
December 31,
      
       
2005
  
2004
      
Assets
                          
Real estate assets
                          
Land 
        
$
179,523
  
$
163,381
        
Buildings and improvements 
          
1,740,818
   
1,625,194
       
Furniture, fixtures and equipment 
          
46,301
   
41,682
       
Capital improvements in progress 
          
4,175
   
6,519
       
Accumulated depreciation 
          
(473,421
)
  
(399,762
)
      
Land held for future development 
          
1,366
   
1,366
       
Commercial properties, net 
          
7,345
   
7,429
       
Investments in and advances to real estate joint ventures 
          
4,182
   
14,143
       
 Real estate assets, net
          
1,510,289
   
1,459,952
       
Cash and cash equivalents
          
14,064
   
9,133
       
Restricted cash
          
5,534
   
6,041
       
Deferred financing costs, net
          
15,338
   
16,365
       
Other assets
          
20,181
   
16,837
       
Goodwill
          
5,051
   
5,400
       
Assets held for sale
          
-
   
8,579
       
 Total assets
        
$
1,570,457
  
$
1,522,307
        
                           
Liabilities and Shareholders' Equity
                          
Liabilities
                          
Notes payable 
        
$
1,140,046
  
$
1,083,473
        
Accounts payable 
          
3,278
   
767
       
Accrued expenses and other liabilities 
          
28,380
   
43,381
       
Security deposits 
          
6,429
   
5,821
       
Liabilities associated with assets held for sale 
          
-
   
164
       
 Total liabilities
          
1,178,133
   
1,133,606
       
Minority interest
          
29,798
   
31,376
       
Series G cumulative redeemable preferred stock
          
-
   
10,000
       
Shareholders' equity
                          
Series F cumulative redeemable preferred stock 
          
5
   
5
       
Series H cumulative redeemable preferred stock 
          
62
   
62
       
Common stock 
          
220
   
209
       
Additional paid-in capital 
          
671,885
   
634,520
       
Other 
          
(2,422
)
  
(3,252
)
      
Accumulated distributions in excess of net income 
          
(314,352
)
  
(269,482
)
      
Accumulated other comprehensive income (loss) 
          
7,128
   
(14,737
)
      
 Total shareholders' equity
          
362,526
   
347,325
       
 Total liabilities and shareholders' equity
        
$
1,570,457
  
$
1,522,307
        
                           
                           
                           
SHARE AND UNIT DATA (in thousands)
                          
                           
 
              
 
      
 
    
Three months ended
December 31, 
    
Twelve months ended
December 31,
  
     
2005
   
2004
   
2005
   
2004
 
                           
Weighted average common shares - Basic
    
21,782
   
20,612
   
21,405
   
20,317
 
Weighted average common shares - Diluted
    
21,995
   
20,969
   
21,607
   
20,652
 
Weighted average common shares and units - Basic
    
24,375
   
23,255
   
24,025
   
22,981
 
Weighted average common shares and units - Diluted
    
24,588
   
23,612
   
24,227
   
23,316
 
Common shares at December 31 - Basic
    
22,048
   
20,857
   
22,048
   
20,857
 
Common shares at December 31 - Diluted
    
22,265
   
21,226
   
22,265
   
21,226
 
Common shares and units at December 31 - Basic
    
24,574
   
23,492
   
24,574
   
23,492
 
Common shares and units at December 31 - Diluted
    
24,792
   
23,861
   
24,792
   
23,861
 
 
 
 
 

NON-GAAP FINANCIAL DEFINITIONS
                      
                         
                         
Funds From Operations (FFO)
                      
 
FFO represents net income (computed in accordance with U.S. generally accepted accounting principles,
      
 
or GAAP) excluding extraordinary items, minority interest in Operating Partnership income,
       
 
gain on disposition of real estate assets, plus depreciation of real estate and adjustments for joint ventures
      
 
to reflect FFO on the same basis. This definition of FFO is in accordance with the National Association
      
 
of Real Estate Investment Trust's definition.
                  
                         
 
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.
                      
                         
 
The Company believes that FFO is helpful in understanding the Company's operating performance in that FFO
     
 
excludes depreciation expense of real estate assets. The Company 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.
            
                         
 
While the Company has included the amount charged to retire preferred stock in excess of carrying values
      
 
in its FFO calculation in response to the SEC's Staff Policy Statement relating to EITF Topic D-42
          
 
concerning the calculation of earnings per share for the redemption of preferred stock, the Company believes
      
 
that FFO before amount charged to retire preferred stock in excess of carrying values is also an important
      
 
measure of operating performance as the amount charged to retire preferred stock in excess of carrying
      
 
values is a non-cash adjustment representing issuance costs in prior periods for preferred stock.
      
                         
                         
Adjusted Funds From Operations (AFFO)
                      
 
For purposes of these computations, AFFO is composed of FFO less recurring capital expenditures.
          
 
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.
                      
                         
                         
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.
              
EX-99.1 3 suppldata.htm SUPPLEMENTAL DATA Supplemental Data

COMMUNITY STATISTICS Dollars in thousands except Average Rental Rate
                  
                       
                       
   
As of  December 31, 2005
           
Percent to
      
Average
  
       
Gross
  
Total of
  
Physical
 
Rental
  
   
Units
  
Real Assets
  
Gross Assets
  
Occupancy
 
Rate
  
                                 
Atlanta
    
2,693
 
$
169,395
    
8.4
%
  
94.3
%
$
728.23
  
Dallas
    
3,794
 
$
215,747
    
10.7
%
  
93.5
%
$
734.83
  
Houston
    
1,584
 
$
82,053
    
4.1
%
  
94.9
%
$
764.75
  
Tampa
    
1,120
 
$
65,807
    
3.3
%
  
97.1
%
$
811.32
  
South Florida
    
480
 
$
51,627
    
2.5
%
  
99.6
%
$
1,077.05
  
Large Tier Markets
    
9,671
 
$
584,629
    
29.0
%
  
94.7
%
$
763.74
  
                                 
Austin
    
1,464
 
$
72,309
    
3.6
%
  
95.6
%
$
697.51
  
Greenville
    
1,492
 
$
61,845
    
3.1
%
  
96.6
%
$
552.87
  
Jacksonville
    
3,347
 
$
173,990
    
8.6
%
  
96.0
%
$
775.03
  
Memphis
    
4,405
 
$
210,666
    
10.5
%
  
91.5
%
$
654.63
  
Nashville
    
1,855
 
$
120,128
    
6.0
%
  
95.1
%
$
721.77
  
All other middle
    
2,704
 
$
129,496
    
6.4
%
  
94.0
%
$
645.32
  
Middle Tier Markets
    
15,267
 
$
768,434
    
38.2
%
  
94.3
%
$
681.70
  
                                 
Augusta/Aiken
    
912
 
$
38,288
    
1.9
%
  
93.6
%
$
632.01
  
Chattanooga
    
943
 
$
36,641
    
1.8
%
  
96.1
%
$
580.16
  
Columbia
    
576
 
$
29,992
    
1.5
%
  
94.1
%
$
677.13
  
Columbus
    
1,293
 
$
62,261
    
3.1
%
  
91.8
%
$
697.12
  
Huntsville
    
544
 
$
27,349
    
1.4
%
  
93.2
%
$
622.18
  
Jackson, MS
    
1,577
 
$
68,333
    
3.4
%
  
96.4
%
$
637.52
  
Jackson, TN
    
664
 
$
32,511
    
1.6
%
  
97.7
%
$
608.14
  
Lexington
    
924
 
$
58,395
    
2.9
%
  
91.5
%
$
704.56
  
Little Rock
    
808
 
$
38,553
    
1.9
%
  
94.8
%
$
639.64
  
Macon/Warner Robins
    
904
 
$
49,923
    
2.5
%
  
94.6
%
$
672.99
  
Southeast Georgia
    
566
 
$
26,291
    
1.3
%
  
95.4
%
$
623.83
  
All other small
    
3,578
 
$
192,481
    
9.5
%
  
96.5
%
$
738.46
  
Small Tier Markets
    
13,289
 
$
661,018
    
32.8
%
  
95.0
%
$
672.29
  
                                 
Total Portfolio
                                
(including JV properties)
    
38,227
 
$
2,014,081
    
100.0
%
  
94.6
%
$
699.18
  
                                 
                                 
                                 
NUMBER OF APARTMENT UNITS
                                
                                 
     
2005
   
2004
 
 
     December 31     
September 30
   
June 30
   
March 31
    
December 31
  
                                 
100% Owned Properties
    
37,705
   
37,705
   
36,843
   
37,275
   
36,618
 
Properties in Joint Ventures
    
522
   
522
   
522
   
1,286
   
1,286
 
Total Portfolio
    
38,227
   
38,227
   
37,365
   
38,561
   
37,904
 
                                 
 
 
 
 

SAME STORE Dollars in thousands except Average Rental Rate
  
Revenues by market are presented before the impact of the adjustment to straight-line concessions. A reconciliation to total revenue is provided below.
          
                                           
CURRENT PERIOD ACTUALS
                                          
As of December 31, 2005 unless otherwise noted
                                          
                                           
       
Three Months Ended
          
Quarterly
  
Average
  
Twelve
  
       
December 31, 2005
      
Physical
  
Economic
  
Rental
  
Month
  
   
Units
  
Revenue
      
Expense
  
NOI
      
Occupancy
  
Occupancy (1)
  
Rate
  
Turn Rate
  
                                           
Atlanta
    
2,036
 
$
4,256
        
$
1,861
  
$
2,395
          
94.5
%
  
87.9
%
$
717.10
    
61.3
%
Dallas
    
2,794
 
$
5,048
        
$
2,582
  
$
2,466
          
94.1
%
  
80.6
%
$
675.20
    
54.1
%
Houston
    
1,310
 
$
2,593
        
$
1,354
  
$
1,239
          
95.1
%
  
81.0
%
$
740.43
    
66.9
%
Tampa
    
1,120
 
$
2,863
        
$
1,042
  
$
1,821
          
97.1
%
  
95.0
%
$
811.32
    
52.9
%
Large Tier Markets
    
7,260
 
$
14,760
        
$
6,839
  
$
7,921
          
94.9
%
  
85.3
%
$
719.72
    
58.3
%
                                                               
Austin
    
1,254
 
$
2,348
        
$
1,230
  
$
1,118
          
95.7
%
  
87.1
%
$
648.25
    
56.8
%
Greenville
    
1,492
 
$
2,455
        
$
1,077
  
$
1,378
          
96.6
%
  
90.2
%
$
552.87
    
63.5
%
Jacksonville
    
3,347
 
$
7,993
        
$
2,735
  
$
5,258
          
96.0
%
  
94.8
%
$
775.03
    
65.3
%
Memphis
    
4,405
 
$
8,009
        
$
3,684
  
$
4,325
          
91.5
%
  
85.7
%
$
654.63
    
58.0
%
Nashville
    
1,855
 
$
4,113
        
$
1,591
  
$
2,522
          
95.1
%
  
92.2
%
$
721.77
    
59.8
%
All other middle
    
2,320
 
$
4,361
        
$
1,777
  
$
2,584
          
94.0
%
  
87.1
%
$
651.30
    
60.0
%
Middle Tier Markets
    
14,673
 
$
29,279
        
$
12,094
  
$
17,185
          
94.3
%
  
89.7
%
$
679.16
    
60.7
%
                                                               
Augusta/Aiken
    
912
 
$
1,698
        
$
671
  
$
1,027
          
93.6
%
  
88.4
%
$
632.01
    
68.6
%
Chattanooga
    
943
 
$
1,668
        
$
684
  
$
984
          
96.1
%
  
93.6
%
$
580.16
    
52.0
%
Columbia
    
576
 
$
1,114
        
$
516
  
$
598
          
94.1
%
  
85.4
%
$
677.13
    
64.1
%
Columbus
    
1,293
 
$
2,595
        
$
1,176
  
$
1,419
          
91.8
%
  
88.6
%
$
697.12
    
99.6
%
Huntsville
    
544
 
$
946
        
$
382
  
$
564
          
93.2
%
  
84.1
%
$
622.18
    
55.9
%
Jackson, TN
    
664
 
$
1,158
        
$
544
  
$
614
          
97.7
%
  
90.6
%
$
608.14
    
63.1
%
Jackson, MS
    
1,577
 
$
3,203
        
$
1,062
  
$
2,141
          
96.4
%
  
96.4
%
$
637.52
    
58.6
%
Lexington
    
924
 
$
1,756
        
$
702
  
$
1,054
          
91.5
%
  
83.5
%
$
704.56
    
58.1
%
Little Rock
    
808
 
$
1,580
        
$
536
  
$
1,044
          
94.8
%
  
93.7
%
$
639.64
    
56.6
%
Macon/Warner Robins
    
904
 
$
1,839
        
$
735
  
$
1,104
          
94.6
%
  
91.6
%
$
672.99
    
59.0
%
All other small
    
4,144
 
$
9,235
        
$
3,238
  
$
5,997
          
96.3
%
  
94.0
%
$
722.81
    
62.5
%
Small Tier Markets
    
13,289
 
$
26,792
        
$
10,246
  
$
16,546
          
95.0
%
  
91.5
%
$
672.29
    
64.4
%
                                                               
Operating Same Store
    
35,222
 
$
70,831
        
$
29,179
  
$
41,652
          
94.7
%
  
89.4
%
$
684.93
    
61.6
%
                                                               
Concession Straight-line Adjustment (2)
        
$
1,232
    
(3)
 
      
$
1,232
    
(3)
 
                        
Total Same Store
        
$
72,063
              
$
42,884
                                
                                                               
(1) Economic Occupancy represents Net Potential Rent less Delinquencies, Vacancies and Cash Concessions divided by Net Potential Rent.
                  
(2) Represents the aggregate adjustment necessary to record cash concessions on a straight-line basis.
                                  
(3) Consists of $1.33 million of revenue associated with prior year leasing concessions, less $97,000 to straight-line current period activity.
                  
 
PERCENT CHANGE FROM THREE MONTHS ENDED SEPTEMBER 30, 2005 (PRIOR QUARTER ) AND DECEMBER 31, 2004 (PRIOR YEAR)
                  
                                                                 
 
    
Revenue 
    
Expense
  
NOI
  
Physical Occupancy
  
Average Rental Rate
 
    
Prior
  
Prior
    
Prior
  
Prior
  
Prior
  
Prior
Prior
  
Prior
  
Prior
  
Prior
 
     Quarter   
Year
    
Quarter
  
Year
  
Quarter
  
Year
  
Quarter
  
Year
  
Quarter
  
Year
Atlanta
    
5.5
%
  
2.2
%
    
-3.7
%
  
10.9
%
  
13.9
%
  
-3.7
%
  
-1.7
%
  
-0.3
%
  
-0.1
%
  
-2.2
%
Dallas
    
7.5
%
  
6.2
%
    
-4.1
%
  
-3.4
%
  
23.1
%
  
18.6
%
  
-0.6
%
  
4.5
%
  
0.1
%
  
1.3
%
Houston
    
6.6
%
  
11.0
%
    
0.1
%
  
3.8
%
  
14.6
%
  
20.3
%
  
-0.9
%
  
3.3
%
  
-0.1
%
  
1.7
%
Tampa
    
1.7
%
  
11.7
%
    
-5.4
%
  
-6.7
%
  
6.3
%
  
26.0
%
  
0.2
%
  
1.4
%
  
0.6
%
  
2.2
%
Large Tier Markets
    
5.6
%
  
6.8
%
    
-3.4
%
  
1.0
%
  
14.8
%
  
12.5
%
  
-0.9
%
  
2.5
%
  
0.1
%
  
0.5
%
                                                                 
Austin
    
8.0
%
  
11.3
%
    
-2.0
%
  
6.3
%
  
21.7
%
  
17.4
%
  
2.7
%
  
1.9
%
  
0.5
%
  
2.6
%
Greenville
    
3.0
%
  
4.6
%
    
-1.7
%
  
6.2
%
  
7.0
%
  
3.3
%
  
-0.7
%
  
1.9
%
  
1.1
%
  
2.4
%
Jacksonville
    
1.7
%
  
8.5
%
    
-2.5
%
  
6.3
%
  
3.9
%
  
9.7
%
  
-1.7
%
  
2.7
%
  
0.7
%
  
2.0
%
Memphis
    
2.4
%
  
2.7
%
    
1.4
%
  
4.2
%
  
3.3
%
  
1.5
%
  
-2.3
%
  
-2.2
%
  
0.7
%
  
2.9
%
Nashville
    
1.2
%
  
5.4
%
    
-5.6
%
  
1.8
%
  
6.0
%
  
7.8
%
  
-3.2
%
  
-0.9
%
  
0.7
%
  
1.9
%
All other middle
    
3.3
%
  
7.0
%
    
-3.4
%
  
13.9
%
  
8.4
%
  
2.7
%
  
-1.7
%
  
-1.0
%
  
0.6
%
  
1.8
%
Middle Tier Markets
    
2.6
%
  
6.1
%
    
-1.8
%
  
6.1
%
  
6.0
%
  
6.1
%
  
-1.6
%
  
0.0
%
  
0.7
%
  
2.3
%
                                                                 
Augusta/Aiken
    
2.6
%
  
5.8
%
    
-0.4
%
  
6.3
%
  
4.7
%
  
5.4
%
  
-4.1
%
  
-0.4
%
  
1.0
%
  
4.3
%
Chattanooga
    
5.8
%
  
8.5
%
    
-6.2
%
  
0.3
%
  
16.0
%
  
15.0
%
  
-2.1
%
  
2.3
%
  
1.0
%
  
1.7
%
Columbia
    
-2.3
%
  
10.4
%
    
-1.1
%
  
0.8
%
  
-3.2
%
  
20.3
%
  
-1.9
%
  
1.4
%
  
0.5
%
  
3.3
%
Columbus
    
-1.6
%
  
1.2
%
    
12.2
%
  
8.2
%
  
-10.6
%
  
-4.0
%
  
-4.2
%
  
-1.9
%
  
0.5
%
  
1.7
%
Huntsville
    
-0.3
%
  
7.3
%
    
-3.0
%
  
-3.0
%
  
1.6
%
  
15.6
%
  
-1.1
%
  
8.1
%
  
0.0
%
  
-0.8
%
Jackson, TN
    
0.8
%
  
6.6
%
    
-5.1
%
  
2.8
%
  
6.6
%
  
10.2
%
  
1.1
%
  
3.9
%
  
1.0
%
  
2.4
%
Jackson, MS
    
8.0
%
  
9.5
%
    
-7.6
%
  
-1.6
%
  
17.9
%
  
16.0
%
  
-2.0
%
  
0.7
%
  
0.6
%
  
2.6
%
Lexington
    
-0.6
%
  
1.4
%
    
5.6
%
  
10.9
%
  
-4.3
%
  
-4.1
%
  
-1.6
%
  
-0.3
%
  
0.8
%
  
1.8
%
Little Rock
    
0.3
%
  
3.9
%
    
-3.8
%
  
2.5
%
  
2.6
%
  
4.6
%
  
-2.5
%
  
1.7
%
  
0.5
%
  
0.9
%
Macon/Warner Robbins
    
-1.3
%
  
2.1
%
    
2.4
%
  
3.8
%
  
-3.7
%
  
1.0
%
  
-2.1
%
  
-2.4
%
  
-1.2
%
  
0.3
%
All other small
    
2.2
%
  
7.7
%
    
-2.8
%
  
1.6
%
  
5.1
%
  
11.2
%
  
-0.9
%
  
2.2
%
  
0.8
%
  
1.7
%
Small Tier Markets
    
1.8
%
  
6.1
%
    
-1.1
%
  
2.8
%
  
3.7
%
  
8.3
%
  
-1.8
%
  
1.2
%
  
0.6
%
  
1.8
%
                                                                 
Operating Same Store
    
2.9
%
  
6.3
%
    
-1.9
%
  
3.7
%
  
6.6
%
  
8.1
%
  
-1.5
%
  
1.0
%
  
0.5
%
  
1.7
%
                                                                 
Including concession straight-line adjustment:
                                                
Total Same Store
    
4.0
%
  
8.3
%
                
8.5
%
  
11.7
%
                        
                                                                 
 
 
 
 

SAME STORE (Dollars in thousands)
    
                       
   
Three Months Ended December 31,
  
Percent
      
   
2005
      
2004
  
Change
      
Revenues
                                
Operating
  
$
70,831
        
$
66,655
    
6.3
%
      
Straight-line adjustment (1)
    
1,232
   
(2)
 
  
(121
)
            
Total Same Store
  
$
72,063
        
$
66,534
    
8.3
%
      
                                 
Expense
  
$
29,179
        
$
28,139
    
3.7
%
      
                                 
NOI
                                
Operating
  
$
41,652
        
$
38,516
    
8.1
%
      
Straight-line adjustment (1)
    
1,232
   
(2)
 
  
(121
)
            
Total Same Store
  
$
42,884
        
$
38,395
    
11.7
%
      
                                 
(1) Represents the aggregate adjustment necessary to record cash concessions on a straight-line basis.
                        
(2) Consists of $1.33 million of revenue associated with prior year leasing concessions, less $97,000 to straight-line current period activity.
              
                                 
OPERATING RESULTS (Dollars and shares in thousands except per share data)
      
                                 
   
Three Months Ended
                  
 
 
 
December 31, 2005
    
Trailing 4 Quarters
              
                                 
Net income
  
$
3,610
        
$
19,744
              
Depreciation
    
19,421
         
75,050
             
Interest expense
    
15,214
         
58,751
             
Loss on debt extinguishment
    
327
         
409
             
Amortization of deferred financing costs
    
600
         
2,011
             
Net (gain) loss on insurance and other
                                
settlement proceeds
    
116
         
(749
)
            
Gain on sale of non-depreciable assets
    
-
         
(334
)
            
Gain on dispositions within unconsolidated entities
    
-
         
(3,034
)
            
Net loss on insurance and other settlement
                                
proceeds of discontinued operations
    
-
         
25
             
EBITDA
  
$
39,288
        
$
151,873
              
                                 
                                 
 
    
Three Months Ended December 31,
              
     
2005
          
2004
              
                                 
EBITDA/Debt Service
    
2.49x
          
2.39x
              
Fixed Charge Coverage (1)
    
2.10x
          
1.95x
              
Total Debt as % of Gross Real Estate Assets
    
57
%
        
58
%
            
                                 
(1) Fixed charge coverage represents EBITDA divided by interest expense and preferred dividends.
                         
                                 
                                 
OTHER DATA
    
                                 
   
Three Months Ended December 31,
    
Twelve Months Ended December 31,
  
     
2005
         
2004
   
2005
   
2004
 
PER SHARE DATA
                                
Dividend declared per common share
  
$
0.595
        
$
0.585
  
$
2.350
  
$
2.340
  
                                 
                                 
DIVIDEND INFORMATION (latest declaration)
                                
 
Payment
 
 
 
 
 
Payment
 
 
Record
 
 
 
 
 
 
 
per share
          
Date
    
Date
        
Common Dividend - quarterly
  
$
0.5950
          
1/31/2006
    
1/20/2006
        
Preferred Series F - monthly
  
$
0.1927
          
2/15/2006
    
2/1/2006
        
Preferred Series H - quarterly
  
$
0.51875
          
12/23/2005
    
12/13/2005
        
                                 
 
 
 
 
 
DEBT AS OF DECEMBER 31, 2005
  
Dollars in thousands
                  
           
Average Years
      
       
Principal
  
to Contract
  
Average
  
       
Balance
  
Maturity
  
Rate
  
                           
Conventional - Fixed Rate or Swapped (1)
        
$
847,355
    
5.3
    
5.7
%
Tax-free - Fixed Rate or Swapped (1)
          
87,015
   
7.5
    
4.5
%
Preferred Series G - Called May 26, 2006
          
10,000
   
0.4
    
8.6
%
Conventional - Variable Rate
          
162,246
   
6.5
    
4.8
%
Tax-free - Variable Rate
          
10,855
   
14.4
    
4.0
%
Conventional - Variable Rate - Capped (2)
          
11,720
   
3.2
    
4.9
%
Tax-free - Variable Rate - Capped (2)
          
10,855
   
2.3
    
3.9
%
Total Debt Outstanding
        
$
1,140,046
    
5.7
   
5.4
%
                           
Forward Swaps (3)
        
$
25,000
    
7.1
    
5.3
%
                           
                           
(1) Maturities on existing swapped balances are calculated using the life of the underlying variable debt.
                    
(2) As the capped rate of 6.0% has not been reached, the average rate represents the rate on the underlying variable debt.
              
(3) Represents swaps on existing debt outstanding which have not gone into effect yet.
                   
                           
                           
                           
                           
FIXED RATE MATURITIES
                          
Includes forward swaps
                          
                           
 
          
Balance 
    
Rate
       
                           
     
2006
  
$
59,518
    
7.2
%
      
     
2007
    
92,800
   
5.9
%
      
     
2008
    
189,386
   
6.1
%
      
     
2009
    
100,230
   
6.5
%
      
     
2010
    
98,365
   
5.0
%
      
     
2011
    
133,000
   
5.3
%
      
     
2012
    
125,000
   
5.2
%
      
     
2013
    
100,000
   
5.2
%
      
   
Thereafter
    
71,071
   
6.2
%
      
 
    
Total
  
$
969,370
    
5.8
%
      
                           
-----END PRIVACY-ENHANCED MESSAGE-----