8K Earnings Release 2Q06

0000912595-06-000122.txt : 20060803 0000912595-06-000122.hdr.sgml : 20060803 20060803170455 ACCESSION NUMBER: 0000912595-06-000122 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060803 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060803 DATE AS OF CHANGE: 20060803 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: 061002798 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 form_8k.htm 8K EARNINGS RELEASE 2Q06 8K Earnings Release 2Q06

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): August 3, 2006 (August 3, 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 August 3, 2006, the Registrant issued an earnings release for the three and six months ended June 30, 2006, 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

Exhibit

Number Description

---------- -------------------------------------------

99.1	Press Release dated August 3, 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: August 3, 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 ex99.htm PRESS RELEASE Press Release

MID-AMERICA APARTMENT COMMUNITIES, INC.

A self-managed equity REIT

PRESS RELEASE

SUBJECT: MID-AMERICA REPORTS STRONG SECOND QUARTER OPERATING RESULTS

Memphis, TN: August 3, 2006. Mid-America Apartment Communities, Inc. (NYSE: MAA) (the “Company”) reported net income available for common shareholders for the quarter ended June 30, 2006, of $2,401,000, or $0.10 per common share. For the same quarter a year ago, net income available for common shareholders was $4,558,000, or $0.21 per common share; these prior year results include $4,757,000, or $0.22 per common share of gain and incentive fee from the sale of communities in a joint venture. Funds from operations (“FFO”), the widely accepted measure of performance for real estate investment trusts, was $21,877,000, or $0.85 per share/unit, for the second quarter of 2006, as compared to $20,502,000, or $0.85 per share/unit, for the same quarter a year ago. Included in prior year FFO is a total of 8 ½ cents per share/unit from the joint venture incentive fee and the sale of land; adjusting for these one-time items, FFO per share/unit increased by 11.8%, driven primarily by strong operating results. Results were 1 cent per share/unit ahead of the mid-point of the Company’s guidance. A reconciliation of FFO to net income and an expanded discussion of the components of FFO can be found later in this release.

Highlights:

·	Growth in same store net operating income of 7.2% is the highest second quarter performance in the history of the Company.

·	Same store occupancy of 95.0% at the end of the second quarter was the highest second quarter same store occupancy in six years.

·	Total portfolio average rent per unit of $715.63 is a record high for the Company.

·	Second quarter FFO of $0.85 per share/unit equals the Company’s record high in any quarter.

·	The Company’s fixed charge coverage increased to 2.15x in the second quarter from 2.11x in the same period a year ago.

·	During the quarter, the Company completed the acquisition of Grand Courtyards in Dallas, Texas.

·	The Company has broken ground on the development of a 200-unit addition to its Brier Creek community in Raleigh, North Carolina.

Eric Bolton, Chairman and CEO said, “We’re pleased with the continued very strong operating results being generated by our portfolio of high-quality properties. The strategic improvements made over the last three years to our portfolio quality, along with major enhancement to key components of our operating platform, put us in great shape to capture increasing growth in value as market conditions recover. We have a number of initiatives underway that we believe will further enhance operating results and are excited about the prospects for continued strong performance from our existing portfolio of properties. Additionally, with the balance sheet in terrific shape and our deal flow very active, we are optimistic about increasing prospects for more robust new growth for the company.”

Simon Wadsworth, Executive Vice President and CFO said, “We’ve tightened our forecast for 2006 FFO per share/unit to a range of $3.21 to $3.37, and the mid-point continues to be $3.29. Our guidance for each of the third and fourth quarters is a range of $0.76 to $0.84, with a mid-point of $0.80, reflecting same-store NOI growth for the second half of the year of 4% to 5%. We’ll review our forecast in more detail during the 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 second quarter results on Friday, August 4, 2006, at 9:15 AM Central Time. The conference call-in number is 866-206-6509 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 39,179 apartment units throughout the Sunbelt region of the 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.

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 June 30,						Six months ended June 30,
		2006			2005			2006			2005
Property revenues	$	80,312		$	72,414		$	158,258		$	143,338
Management and fee income, net		52			103			104			221
Property operating expenses		(32,668	)		(30,229	)		(63,859	)		(59,552	)
Depreciation		(19,515	)		(18,244	)		(38,286	)		(36,135	)
Property management expenses		(3,464	)		(2,892	)		(5,975	)		(5,700	)
General and administrative		(2,682	)		(2,163	)		(6,043	)		(4,819	)
Income from continuing operations before non-operating items		22,035			18,989			44,199			37,353
Interest and other non-property income		215			130			332			287
Interest expense		(15,833	)		(14,404	)		(31,534	)		(28,073	)
Loss on debt extinguishment		(1	)		(90	)		(551	)		(94	)
Amortization of deferred financing costs		(504	)		(489	)		(989	)		(949	)
Minority interest in operating partnership income		(408	)		(778	)		(821	)		(1,038	)
(Loss) income from investments in real estate joint ventures		(35	)		(193	)		(119	)		125
Incentive fee from real estate joint ventures		-			1,723			-			1,723
Net gain (loss) on insurance and other settlement proceeds		225			(16	)		225			(9	)
Gain on sale of non-depreciable assets		-			334			-			334
Gain on dispositions within real estate joint ventures		-			3,034			-			3,034
Income from continuing operations		5,694			8,240			10,742			12,693
Discontinued operations:
Gain from discontinued operations		198			102			276			94
Asset impairment of discontinued operations		-			(149	)		-			(243	)
Net loss on insurance and other settlement proceeds of
discontinued operations		-			-			-			(25	)
Net income		5,892			8,193			11,018			12,519
Preferred dividend distribution		(3,491	)		(3,635	)		(6,981	)		(7,348	)
Net income available for common shareholders	$	2,401		$	4,558		$	4,037		$	5,171

Weighted average common shares - Diluted		23,374			21,625			22,873			21,419
Net income per share available for common shareholders	$	0.10		$	0.21		$	0.18		$	0.24

FUNDS FROM OPERATIONS (in thousands except per share data)


		Three months ended June 30,						Six months ended June 30,
		2006			2005			2006			2005
Net income	$	5,892		$	8,193		$	11,018		$	12,519
Addback: Depreciation of real estate assets		19,171			17,909			37,604			35,469
Subtract: Net gain (loss) on insurance and other settlement proceeds		225			(16	)		225			(9	)
Subtract: Gain on dispositions within real estate joint ventures		-			3,034			-			3,034
Subtract: Net loss on insurance and other settlement
proceeds of discontinued operations		-			-			-			(25	)
Addback: Depreciation of real estate assets
of discontinued operations⁽¹⁾		1			160			160			318
Addback: Depreciation of real estate assets
of real estate joint ventures		121			115			261			247
Subtract: Preferred dividend distribution		3,491			3,635			6,981			7,348
Addback: Minority interest in operating partnership income		408			778			821			1,038
Funds from operations		21,877			20,502			42,658			39,243
Recurring capex		(6,900	)		(4,404	)		(9,882	)		(7,209	)
Adjusted funds from operations	$	14,977		$	16,098		$	32,776		$	32,034

Weighted average common shares and units - Diluted		25,884			24,258			25,387			24,053
Funds from operations per share and unit - Diluted	$	0.85		$	0.85		$	1.68		$	1.63
Adjusted funds from operations per share and unit - Diluted	$	0.58		$	0.66		$	1.29		$	1.33

⁽¹⁾Amounts represent depreciation taken before communities classified as discontinued operations.

CONSOLIDATED BALANCE SHEETS (in thousands)

		June 30,			December 31,
		2006			2005
Assets
Real estate assets
Land	$	190,862		$	179,523
Buildings and improvements		1,813,395			1,740,818
Furniture, fixtures and equipment		48,115			46,301
Capital improvements in progress		2,981			4,175
Accumulated depreciation		(503,793	)		(473,421	)
Land held for future development		1,366			1,366
Commercial properties, net		7,156			7,345
Investments in and advances to real estate joint ventures		3,926			4,182
Real estate assets, net		1,564,008			1,510,289
Cash and cash equivalents		11,366			14,064
Restricted cash		4,586			5,534
Deferred financing costs, net		15,935			15,338
Other assets		22,645			20,181
Goodwill		5,051			5,051
Assets held for sale		7,328			-
Total assets	$	1,630,919		$	1,570,457

Liabilities and Shareholders' Equity
Liabilities
Notes payable	$	1,125,235		$	1,140,046
Accounts payable		5,986			3,278
Accrued expenses and other liabilities		29,012			28,380
Security deposits		7,209			6,429
Liabilities associated with assets held for sale		290			-
Total liabilities		1,167,732			1,178,133
Minority interest		31,935			29,798
Shareholders' equity
Series F cumulative redeemable preferred stock		5			5
Series H cumulative redeemable preferred stock		62			62
Common stock		240			220
Additional paid-in capital		757,581			671,885
Other		-			(2,422	)
Accumulated distributions in excess of net income		(351,269	)		(314,352	)
Accumulated other comprehensive income		24,633			7,128
Total shareholders' equity		431,252			362,526
Total liabilities and shareholders' equity	$	1,630,919		$	1,570,457

SHARE AND UNIT DATA (in thousands)

	Three months ended June 30,		Six months ended June 30,

	2006	2005	2006	2005

Weighted average common shares - Basic	23,152	21,351	22,645	21,140
Weighted average common shares - Diluted	23,374	21,625	22,873	21,419
Weighted average common shares and units - Basic	25,662	23,984	25,160	23,774
Weighted average common shares and units - Diluted	25,884	24,258	25,387	24,053
Common shares at June 30 - Basic	23,826	21,518	23,826	21,518
Common shares at June 30 - Diluted	24,054	21,822	24,054	21,822
Common shares and units at June 30 - Basic	26,335	24,151	26,335	24,151
Common shares and units at June 30 - Diluted	26,562	24,455	26,562	24,455


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 ex99_1.htm SUPPLEMENTAL DATA Supplemental Data

COMMUNITY STATISTICS Dollars in thousands except Average Rental Rate


	As of June 30, 2006
					Percent to					Average
				Gross	Total of		Physical			Rental
		Units		Real Assets	Gross Assets		Occupancy			Rate

Atlanta		2,693	$	170,008	8.1	%	94.5	%	$	739.45
Dallas		4,184	$	242,753	11.5	%	93.7	%	$	748.55
Houston		1,584	$	82,646	3.9	%	96.3	%	$	773.14
Orlando		288	$	12,976	0.6	%	98.6	%	$	738.02
Tampa		1,120	$	66,117	3.1	%	97.9	%	$	841.96
South Florida		480	$	51,941	2.5	%	97.9	%	$	1,154.00
Large Tier Markets		10,349	$	626,441	29.7	%	95.1	%	$	778.57

Austin		1,776	$	101,109	4.8	%	93.2	%	$	715.94
Greenville		1,492	$	62,422	2.9	%	97.1	%	$	566.78
Jacksonville		3,347	$	175,260	8.3	%	96.9	%	$	792.46
Memphis		4,405	$	213,588	10.1	%	93.4	%	$	664.69
Nashville		1,855	$	119,618	5.7	%	96.6	%	$	733.41
Raleigh/Durham		828	$	65,071	3.1	%	98.3	%	$	705.60
All other middle		1,838	$	81,779	3.9	%	94.6	%	$	661.18
Middle Tier Markets		15,541	$	818,847	38.8	%	95.3	%	$	698.63

Augusta/Aiken		912	$	38,703	1.8	%	95.5	%	$	648.42
Chattanooga		943	$	36,953	1.7	%	97.6	%	$	587.49
Columbus		1,293	$	62,840	3.0	%	92.3	%	$	707.70
Jackson, MS		1,577	$	69,129	3.3	%	94.7	%	$	648.56
Lexington		924	$	58,708	2.8	%	94.3	%	$	706.27
Little Rock		808	$	38,871	1.8	%	96.7	%	$	653.82
Macon/Warner Robins		904	$	50,124	2.4	%	95.8	%	$	691.68
All other small		5,928	$	310,627	14.7	%	94.1	%	$	714.17
Small Tier Markets		13,289	$	665,955	31.5	%	94.6	%	$	686.50

Total Portfolio
(including JV properties)		39,179	$	2,111,243	100.0	%	95.0	%	$	715.63



NUMBER OF APARTMENT UNITS

		2006					2005
		Jun 30		Mar 31	Dec 31		Sep 30			Jun 30

100% Owned Properties		38,657		38,267	37,705		37,705			36,843
Properties in Joint Ventures		522		522	522		522			522
Total Portfolio		39,179		38,789	38,227		38,227			37,365

SAME STORE Dollars in thousands except Average Rental Rate
Revenues by market are presented before the impact of straight-line adjustments. A reconciliation to total revenue is provided below.
Excludes six renovation communities.

CURRENT PERIOD ACTUALS
As of June 30, 2006 unless otherwise noted

				Three Months Ended										Quarterly			Average		Twelve
				June 30, 2006								Physical		Economic			Rental		Month
	Units			Revenue			Expense			NOI		Occupancy		Occupancy⁽¹⁾			Rate		Turn Rate

Atlanta	2,693		$	6,011		$	2,335		$	3,676		94.5	%	90.3	%	$	739.45		61.6	%
Dallas	2,794		$	5,310		$	2,447		$	2,863		94.0	%	85.3	%	$	679.15		52.5	%
Houston	1,584		$	3,373		$	1,590		$	1,783		96.3	%	83.8	%	$	773.14		68.8	%
Orlando	288		$	678		$	251		$	427		98.6	%	97.9	%	$	738.02		47.9	%
Tampa	890		$	2,393		$	929		$	1,464		97.4	%	94.7	%	$	854.11		56.2	%
South Florida	480		$	1,734		$	643		$	1,091		97.9	%	96.7	%	$	1,154.00		41.9	%
Large Tier Markets	8,729		$	19,499		$	8,195		$	11,304		95.3	%	88.9	%	$	760.70		57.9	%

Austin	1,464		$	2,928		$	1,422		$	1,506		93.6	%	85.0	%	$	706.17		58.5	%
Greenville	1,492		$	2,581		$	1,122		$	1,459		97.1	%	92.6	%	$	566.78		63.3	%
Jacksonville	3,011		$	7,398		$	2,546		$	4,852		96.9	%	94.1	%	$	795.19		68.1	%
Memphis	4,034		$	7,534		$	3,451		$	4,083		93.4	%	86.2	%	$	666.80		58.2	%
Nashville	1,569		$	3,447		$	1,423		$	2,024		96.2	%	89.4	%	$	737.49		62.8	%
Raleigh/Durham	194		$	370		$	167		$	203		97.9	%	92.2	%	$	645.38		49.5	%
All other middle	1,542		$	2,753		$	1,188		$	1,565		94.6	%	87.0	%	$	624.90		60.5	%
Middle Tier Markets	13,306		$	27,011		$	11,319		$	15,692		95.2	%	89.3	%	$	692.14		61.7	%

Augusta/Aiken	912		$	1,735		$	699		$	1,036		95.5	%	89.4	%	$	648.42		71.8	%
Chattanooga	943		$	1,704		$	723		$	981		97.6	%	93.9	%	$	587.49		53.2	%
Columbus	1,293		$	2,833		$	1,063		$	1,770		92.3	%	93.8	%	$	707.70		94.4	%
Jackson, MS	1,577		$	3,152		$	1,166		$	1,986		94.7	%	93.9	%	$	648.56		64.2	%
Lexington	924		$	1,823		$	677		$	1,146		94.3	%	86.0	%	$	706.27		62.1	%
Little Rock	808		$	1,556		$	599		$	957		96.7	%	90.7	%	$	653.82		55.6	%
Macon/Warner Robins	904		$	1,851		$	723		$	1,128		95.8	%	90.6	%	$	691.68		57.6	%
All other small	5,720		$	12,238		$	4,665		$	7,573		94.3	%	91.1	%	$	709.67		63.4	%
Small Tier Markets	13,081		$	26,892		$	10,315		$	16,577		94.7	%	91.4	%	$	684.10		65.8	%
Operating Same Store	35,116		$	73,402		$	29,829		$	43,573		95.0	%	89.9	%	$	706.19		62.3	%

Revenue Straight-line Adjustment ⁽²⁾			$	(475	)				$	(475	)
Total Same Store			$	72,927					$	43,098

⁽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 and certain fee revenues on a straight-line basis.

PERCENT CHANGE FROM THREE MONTHS ENDED MARCH 31, 2006 (PRIOR QUARTER ) AND JUNE 30, 2005 (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	0.9	%		7.1	%		4.4	%		1.0	%	-1.2	%	11.5	%		0.3	%	0.7	%	1.2	%	-0.7	%
Dallas	0.7	%		10.2	%		-1.4	%		1.7	%	2.5	%	18.6	%		-0.4	%	3.8	%	0.1	%	0.7	%
Houston	0.3	%		10.5	%		-3.3	%		-1.7	%	3.8	%	24.3	%		0.5	%	3.1	%	0.9	%	2.0	%
Orlando	4.6	%		9.2	%		18.4	%		14.6	%	-2.1	%	6.2	%		-1.1	%	-0.4	%	4.0	%	9.2	%
Tampa	1.8	%		9.5	%		1.2	%		3.1	%	2.2	%	14.0	%		0.7	%	1.3	%	2.4	%	5.1	%
South Florida	3.1	%		9.2	%		2.4	%		12.6	%	3.5	%	7.3	%		-1.5	%	2.1	%	5.2	%	9.5	%
Large Tier Markets	1.2	%		9.1	%		0.9	%		2.1	%	1.3	%	14.8	%		0.0	%	2.2	%	1.4	%	2.0	%

Austin	-1.0	%		9.3	%		0.9	%		0.6	%	-2.7	%	19.0	%		-1.6	%	0.8	%	0.9	%	2.1	%
Greenville	1.5	%		8.7	%		4.8	%		2.8	%	-0.8	%	13.7	%		-0.4	%	2.5	%	1.7	%	4.7	%
Jacksonville	1.3	%		4.1	%		0.9	%		3.4	%	1.5	%	4.5	%		0.5	%	0.7	%	1.5	%	3.6	%
Memphis	1.0	%		2.6	%		0.9	%		4.8	%	1.0	%	0.8	%		0.3	%	0.8	%	1.1	%	3.1	%
Nashville	-1.3	%		0.2	%		0.5	%		3.6	%	-2.5	%	-2.1	%		0.9	%	0.7	%	1.0	%	2.6	%
Raleigh/Durham	1.9	%		11.8	%		1.8	%		0.6	%	2.0	%	23.0	%		1.5	%	3.6	%	2.9	%	5.9	%
All other middle	2.8	%		7.9	%		3.5	%		-2.9	%	2.2	%	17.8	%		0.7	%	2.2	%	0.9	%	2.3	%
Middle Tier Markets	0.8	%		4.6	%		1.5	%		2.7	%	0.3	%	6.0	%		0.2	%	1.2	%	1.2	%	3.2	%

Augusta/Aiken	2.7	%		7.5	%		6.4	%		8.4	%	0.3	%	6.9	%		0.5	%	0.7	%	1.9	%	5.4	%
Chattanooga	1.8	%		7.7	%		3.6	%		5.5	%	0.5	%	9.4	%		1.3	%	3.1	%	0.9	%	2.7	%
Columbus	-0.6	%		13.0	%		-3.4	%		5.4	%	1.1	%	18.2	%		-4.0	%	-0.7	%	1.0	%	2.9	%
Jackson, MS	-0.3	%		7.4	%		6.7	%		5.0	%	-4.0	%	8.8	%		-1.7	%	1.5	%	1.2	%	3.0	%
Lexington	4.4	%		2.2	%		7.1	%		3.4	%	2.9	%	1.6	%		4.0	%	-0.2	%	0.8	%	1.4	%
Little Rock	-0.6	%		2.1	%		9.7	%		10.3	%	-6.1	%	-2.4	%		1.4	%	1.3	%	1.5	%	3.0	%
Macon/Warner Robins	-0.6	%		-2.5	%		4.0	%		3.1	%	-3.3	%	-5.8	%		1.2	%	-1.2	%	1.3	%	2.0	%
All other small	0.3	%		5.1	%		2.7	%		2.7	%	-1.1	%	6.6	%		-1.8	%	-1.2	%	1.4	%	3.8	%
Small Tier Markets	0.5	%		5.5	%		3.5	%		4.3	%	-1.2	%	6.3	%		-0.8	%	-0.2	%	1.3	%	3.3	%
Operating Same Store	0.8	%		6.1	%		2.0	%		3.1	%	0.0	%	8.3	%		-0.3	%	0.9	%	1.3	%	2.9	%

Including revenue straight-line adjustment:
Total Same Store	1.1	%		5.5	%							0.5	%	7.2	%

SAME STORE (Dollars in thousands)
Excludes six renovation communities.

		Three Months Ended June 30,					Percent
		2006			2005		Change
Revenues
Operating	$	73,402		$	69,190		6.1	%
Straight-line adjustment ⁽¹⁾		(475	)		(46	)
Total Same Store	$	72,927		$	69,144		5.5	%

Expense	$	29,829		$	28,941		3.1	%

NOI
Operating	$	43,573		$	40,249		8.3	%
Straight-line adjustment ⁽¹⁾		(475	)		(46	)
Total Same Store	$	43,098		$	40,203		7.2	%

⁽¹⁾ Represents the aggregate adjustment necessary to record cash concessions and certain fee revenues on a straight-line basis.

DEVELOPMENT (Dollars in thousands)

			Current		Estimated
	Total		Estimated		Cost		Cost
EXPENDITURES	Units		Cost		per Unit		to Date
Brier Creek Phase II, Raleigh, NC	200	$	22,510	$	113	$	3,065
St. Augustine Phase II, Jacksonville, FL	124		11,340		91		51
Boulder Ridge Phase II, Dallas, TX	216		18,600		86		1,138
Total development	540	$	52,450	$	97	$	4,254

	Forecast
	Construction				Initial			Actual Units
TIMELINE	Start		Finish		Occupancy		Stabilization	Completed	Leased
Brier Creek Phase II, Raleigh, NC	2Q 2006		4Q 2007		2Q 2007		2Q 2008	-	-
St. Augustine Phase II, Jacksonville, FL	1Q 2007		1Q 2008		4Q 2007		3Q 2008	-	-
Boulder Ridge Phase II, Dallas, TX	2Q 2007		3Q 2008		1Q 2008		1Q 2009	-	-

RENOVATION (Dollars in thousands)

					Units	Average
			Spending	Units	Leased or	Rent
	Communities		to Date	Completed	Pre-Leased	Increase
Same store renovations	22	$	1,270	277	251	15.4	%
Non-same store renovations ⁽²⁾	6		1,265	218	211	18.6	%
Total renovation	28	$	2,535	495	462	16.9	%

⁽²⁾These have been excluded from the same store portfolio due to the scope of their renovation programs.

OPERATING RESULTS (Dollars and shares in thousands except per share data)

		Three Months
		Ended			Trailing
		June 30, 2006			4 Quarters
Net income	$	5,892		$	18,243
Depreciation		19,515			76,564
Interest expense		15,833			61,903
Loss on debt extinguishment		1			866
Amortization of deferred financing costs		504			2,051
Net (gain) loss on insurance and other settlement proceeds		(225	)		(983	)
EBITDA	$	41,520		$	158,644

		Three Months Ended June 30,
		2006			2005
EBITDA/Debt Service		2.53x			2.52x
Fixed Charge Coverage ⁽³⁾		2.15x			2.11x
Total Debt as % of Gross Real Estate Assets		54	%		57	%

⁽³⁾Fixed charge coverage represents EBITDA divided by interest expense and preferred dividends.

DEBT AS OF JUNE 30, 2006
Dollars in thousands
			Average Years
		Principal	to Contract	Average
		Balance	Maturity	Rate

Conventional - Fixed Rate or Swapped ⁽¹⁾	$	876,063	4.9	5.7	%
Tax-free - Fixed Rate or Swapped ⁽¹⁾		73,640	5.6	4.3	%
Conventional - Variable Rate		122,651	5.9	6.0	%
Tax-free - Variable Rate		10,855	13.9	4.5	%
Conventional - Variable Rate - Capped⁽²⁾		17,936	3.4	6.0	%
Tax-free - Variable Rate - Capped ⁽²⁾		24,090	3.4	4.3	%
Total Debt Outstanding	$	1,125,235	5.2	5.6	%

Forward swaps ⁽³⁾	$	10,000	7.7	5.7	%


⁽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.

FIXED RATE MATURITIES
Includes forward swaps

			Balance		Rate

	2006	$	45,000		6.7	%
	2007		92,800		5.9	%
	2008		187,983		6.1	%
	2009		100,230		6.5	%
	2010		98,365		5.5	%
	2011		133,000		5.3	%
	2012		125,000		5.2	%
	2013		100,000		5.2	%
	Thereafter		77,325		6.4	%
	Total	$	959,703		5.8	%



OTHER DATA


			Three Months Ended June 30,					Six Months Ended June 30,
			2006		2005			2006		2005
PER SHARE DATA
Dividend paid per common share		$	0.595	$	0.585		$	1.190	$	1.170


DIVIDEND INFORMATION (latest declaration)
			Payment		Payment			Record
			per Share		Date			Date
Common Dividend - quarterly		$	0.5950		7/31/2006			7/20/2006
Preferred Series F - monthly		$	0.1927		8/15/2006			8/1/2006
Preferred Series H - quarterly		$	0.51875		6/23/2006			6/13/2006