form8-k.htm

0000912595-07-000118.txt : 20071101 0000912595-07-000118.hdr.sgml : 20071101 20071101170348 ACCESSION NUMBER: 0000912595-07-000118 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071101 DATE AS OF CHANGE: 20071101 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: 071207646 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 form8-k.htm 8K EARNINGS RELEASE 3Q07 form8-k.htm

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): November 1, 2007 (November 1, 2007)

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 November 1, 2007, the Registrant issued an earnings release for the three and nine months ended September 30, 2007, 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 November 1, 2007
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.
Date: November 1, 2007	/s/Simon R.C. Wadsworth
	Simon R.C. Wadsworth
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-99.1 2 ex99_1.htm PRESS RELEASE ex99_1.htm

MID-AMERICA APARTMENT COMMUNITIES, INC.

A self-managed equity REIT

PRESS RELEASE

MID-AMERICA REPORTS THIRD QUARTER RESULTS

Mid-America Apartment Communities, Inc. (NYSE: MAA), or Mid-America, reported net income available for common shareholders for the quarter ended September 30, 2007, of $8,409,000, or $0.33 per common share, as compared to net income available for common shareholders of $2,139,000, or $0.09 per common share, for the same quarter of 2006. In the third quarter of 2007, Mid-America recorded gains of $5,714,000 on the disposition of two properties.

For the nine months ended September 30, 2007, net income available for common shareholders was $21,870,000, or $0.86 per common share, as compared to $6,176,000, or $0.26 per common share, for the nine months ended September 30, 2006. In the first nine months of 2007, Mid-America recorded gains from the disposition of four properties, the sale of land, the sale of joint venture assets and an incentive fee totaling $15,819,000. During this same period, Mid-America recorded a charge of $123,000 for debt extinguishment compared to $551,000 in the same period a year ago.

Funds from operations, or FFO, the widely accepted measure of performance for real estate investment trusts, was $25,578,000, or $0.91 per share/unit, for the third quarter of 2007, as compared to $21,972,000, or $0.82 per share/unit, for the same quarter of 2006.

For the nine months ended September 30, 2007, FFO was $73,066,000, or $2.62 per share/unit, compared to $64,630,000, or $2.50 per share/unit, for the nine months ended September 30, 2006. Results for 2007 include FFO of $0.04 per share/unit of incentive fee from the successful ending of a joint venture and $0.01 per share/unit from the sale of excess land. In the first nine months of 2006, Mid-America recorded a charge of $0.02 per share/unit relating to debt extinguishment. A reconciliation of FFO to net income and an expanded discussion of the components of FFO can be found later in this release.

Highlights:

·	Strong operating results helped to generate an 11% increase in FFO per share/unit over the same quarter a year ago.

·	The third quarter FFO result is a record high quarterly performance for Mid-America.

·	Same store net operating income, or NOI, grew rapidly in the third quarter; increasing 7.1% over the same quarter in the prior year, despite the strong performance in the prior year.

·	Physical occupancy at the end of the quarter for the same store portfolio was 96.4%, up 0.6% compared to the same quarter a year ago.

·	Strong pricing momentum continued as leasing concessions declined 26% on a same store basis and effective rent increased by 3.4% from the third quarter of 2006.

·	Mid-America’s property repositioning initiative made good progress with 1,507 apartment units renovated year to date. Since the inception of the program, Mid-America has renovated a total of 2,732 apartment units, capturing rent increases averaging 15%.

·	During the quarter, Mid-America completed the acquisition of two properties, one in Houston, TX, and one (in lease-up) in a high-growth suburb of Charleston, SC. Mid-America sold two older communities in Jackson, MS.

·	Mid-America held a successful institutional investor day showcasing its properties in Raleigh, NC, including Brier Creek Phase II, a 200-unit development property which has substantially completed construction and was 67% leased for completed units at the end of the third quarter, ahead of plan.

·	Mid-America’s fixed charge coverage ratio was a record 2.3 for the quarter, up from 2.17 for the same quarter a year ago.

Acquisitions: Mid-America Acquires Two Additional Properties

Early in the third quarter, Mid-America purchased Chalet at Fall Creek, a 268-unit apartment community built in 2006 and located in the high-end planned community development of Fall Creek in the northeast Houston metro area. In late September, Mid-America completed the purchase of Farmington Village, a 280-unit new apartment community in a high-growth suburb of Charleston, SC, which was 78% occupied at the end of the third quarter and just finishing construction.

Dispositions: Mid-America Continues to Upgrade Portfolio

On July 16, 2007, Mid-America closed on the sale of Somerset and Woodridge, both communities located in Jackson, MS, with an average age of 23 years, for $14.6 million.

Fund I: Acquisition Candidates

Mid-America Multifamily Fund I, LLC, or Fund I, held off completing its first acquisition during the quarter due to market pricing uncertainty. Several acquisition candidates are under consideration, with the likelihood of a closing in the next few months.

New Development: Performing Ahead of Plan

Leasing continued to perform ahead of plan at Brier Creek II (200 apartments in Raleigh, NC), with construction now substantially complete. Leasing was ahead of schedule, with 119 units leased at the end of the quarter. St. Augustine II (124 apartments in Jacksonville, FL) and Copper Ridge I (216 apartments in Dallas, TX) commenced construction during the third quarter.

Property Redevelopment: Significant Upside Opportunity

Mid-America’s initiative at repositioning a number of existing communities continues to make steady progress and generate very attractive investment returns. Redevelopment of 1,507 apartment units at 44 apartment communities was completed in the first nine months of the year at an average cost of $4,950 per unit. Since the inception of the program, Mid-America has redeveloped 2,732 apartment units with an average monthly rent increase achieved on the renovated apartments of $103, representing a 15% increase from the prior average rent level.

Yield Management

Mid-America completed full installation of a new yield management pricing system at the end of the second quarter. Early results are favorable as revenue performance across various markets generally exceeded market averages.

Operating Results: Continued Strength

Eric Bolton, Chairman and CEO, said “We achieved excellent operating results in the third quarter. Growth in same store NOI of 7.1% for the third quarter, against a strong prior year comparison of 8.9% supports our belief that Mid-America’s repositioned portfolio, enhanced operating platform and various new revenue-enhancing initiatives, will continue to support good performance into next year. We expect the leasing environment will remain strong as our Sunbelt region captures steady job growth and the outlook for new construction is in-line with market absorption prospects.

“The significant slow-down in the single-family housing market triggered by the collapse of the sub-prime and Alt-A mortgage markets will, we believe, be beneficial to our leasing and revenue performance over the next few years. As discipline returns to the mortgage financing and home buying market, we expect to capture both higher new leasing activity and the ability to hold onto our existing residents longer. Within our particular markets and sub-markets, we think these benefits will outweigh the potential increase in the supply of rental houses and condominiums. Mid-America properties are relatively insulated from most of the markets and sub-markets where the major condominium development excesses occurred.

“Over the past five years we have expanded our investment in higher growth markets and made significant strides in improving Mid-America’s financial strength and capacity to fund growth. We anticipate that we will be able to use this capacity to increase moderately our acquisition activity, particularly in Fund I where our return on investment will be higher, our program to sell our older mature assets, and our high-return redevelopment program. We will also seek out additional added-value development projects, such as we currently have under way. Property sales and capital recycling efforts, especially into various new development projects such as Brier Creek, Copper Ridge and Talus Ranch, is forecast to dilute this year’s FFO roughly $0.11 per share/unit, but is clearly creating shareholder value and we expect it will set the foundation for even more robust long-term growth in FFO.”

Same Store Results: Strong Performance

Percent Change From Three Months Ended September 30, 2006 (Prior Year):
							Average
						Physical	Rental
Markets			Revenue⁽¹⁾	Expense	NOI⁽¹⁾	Occupancy	Rate
High Growth			4.9%	-0.4%	9.1%	0.4%	2.3%
Growth & Income			5.2%	0.6%	8.6%	0.8%	2.1%
Stable Income			3.6%	1.7%	4.8%	0.4%	1.6%
	Operating Same Store		4.8%	0.3%	8.1%	0.6%	2.1%
		Total Same Store	4.2%	0.3%	7.1%

⁽¹⁾ Revenue and NOI by market and for Operating Same Store are presented before the impact of straight-line revenue adjustments. Total Same Store includes straight-line revenue adjustments.

Same store revenue growth for the third quarter of 2007 was a solid 4.2% compared to the third quarter of 2006, with ending physical occupancy at an eleven-year high of 96.4%. Same-store lease concessions declined by 26% and dropped from 3.1% of net potential rent to 2.2%. Average rent per unit increased by 2.1% to $734 and effective pricing, considering the drop in concessions, was up a healthy 3.4%. The twelve-month rolling unit turnover at the end of the third quarter increased to 62.9% in 2007 from 61.3% in 2006.

Same store operating expenses (before property insurance and taxes) increased 3.6% compared to the prior year period, as expense growth returned to more normal levels. Property insurance costs dropped by 20%, reflecting the reduction in premiums effective July 1, 2007. Real estate tax expense dropped 3.2% compared to the same quarter a year ago as a result of tax rate reductions in Florida and some successful assessment negotiations and appeals, especially in Florida and Texas. Real estate tax expense on a full year basis is expected to increase in the range of 2.5%. Total property expenses increased by 0.3% compared to the prior year period.

NOI increased by 7.1% compared to the same quarter a year ago with strong performance in our Texas and Tennessee markets.

Excluded from the same-store group are seven properties which are part of Mid-America’s redevelopment program, and which are going through an extensive renovation. The supplementary schedules contain a report of same-store performance which includes this seven-property group.

Financing, Balance Sheet: Growing Flexibility

Mid-America’s fixed charge coverage continues to strengthen and was 2.30 for the third quarter of 2007, a quarterly record, compared to 2.17 for the same quarter a year ago, and above the sector median. At the end of the third quarter debt was 53% of gross fixed assets, down from 55% last year, and Mid-America had $186 million of unused debt capacity available.

In the third quarter, Mid-America gave notice of its intention to redeem its Series F Preferred Stock, ($11.9 million at 9.25%). The preferred stock has been reclassified as a liability on the September 30, 2007, balance sheet, and was accordingly redeemed on October 16, 2007.

AFFO and Capital Expenditures

Recurring capital expenditures totaled $5.6 million for the third quarter, approximately $0.20 per share/unit, resulting in AFFO of $0.71 per share/unit. Total property capital expenditures on existing properties were $7.7 million, plus $3.2 million of expenditures on the redevelopment program for the third quarter. Year to date, total property capital expenditures on existing properties were $20.9 million, plus redevelopment expenditures of $7.9 million.

Dividend: $2.42 Annual Rate

Mid-America declared its 55th consecutive quarterly common dividend payable on October 31, 2007, to holders of record on October 15, 2007.

Property Bonuses

Effective July 1, 2007, Mid-America reclassified its property bonuses from property management expenses to property operating expenses. Bonuses in prior periods have been reclassified accordingly.

Forecast

FFO per share/unit for the fourth quarter of 2007 is anticipated to be in a range of $0.87 to $0.95 per share/unit, which includes $0.02 of non-cash expense associated with redeeming the Series F Preferred Stock. Full year FFO is expected to be $3.49 to $3.57 per share/unit, with same-store NOI growth for the year of 5½% - 6% which is at the top end of prior guidance.

Supplemental Material and Conference Call

Supplemental data to this release can be found on the investor relations page of the Mid-America web site at www.maac.net. Mid-America will host a conference call to further discuss third quarter results and 2007 prospects on Friday, November 2, 2007, at 9:15 AM Central Time. The conference call-in number is 888-806-9459 and the moderator’s name is Eric Bolton.

About Mid-America Apartment Communities, Inc.

Mid-America is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 40,248 apartment units throughout the Sunbelt region of the U.S. For further details, please refer to the Mid-America 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.

Forward-Looking Statements

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, anticipated joint venture activity, anticipated revenue, NOI, FFO or AFFO growth, 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 Mid-America’s markets, a decrease in job growth in Mid-America’s 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		Nine months ended
	September 30,		September 30,
	2007	2006	2007	2006
Property revenues	$ 90,164	$ 82,130	$ 261,900	$ 239,212
Management and fee income, net	-	53	34	157
Property operating expenses	(37,227)	(35,181)	(108,642)	(99,372)
Depreciation	(21,959)	(19,481)	(64,355)	(57,507)
Property management expenses	(4,357)	(3,367)	(13,150)	(9,325)
General and administrative	(2,401)	(2,555)	(7,629)	(7,721)
Income from continuing operations before non-operating items	24,220	21,599	68,158	65,444
Interest and other non-property income	4	162	149	494
Interest expense	(16,147)	(15,398)	(48,195)	(46,736)
Loss on debt extinguishment	(71)	-	(123)	(551)
Amortization of deferred financing costs	(614)	(519)	(1,749)	(1,508)
Minority interest in operating partnership income	(1,034)	(375)	(2,835)	(1,196)
Loss from investments in real estate joint ventures	-	(16)	(58)	(135)
Incentive fee from real estate joint ventures	-	-	1,019	-
Net (loss) gain on insurance and other settlement proceeds	(197)	(54)	645	171
Gain on sale of non-depreciable assets	29	32	255	32
Gain on dispositions within real estate joint ventures	1	-	5,388	-
Income from continuing operations	6,191	5,431	22,654	16,015
Discontinued operations:
(Loss) income from discontinued operations	(5)	199	531	633
Gain on sale of discontinued operations	5,714	-	9,157	-
Net income	11,900	5,630	32,342	16,648
Preferred dividend distribution	(3,491)	(3,491)	(10,472)	(10,472)
Net income available for common shareholders	$ 8,409	$ 2,139	$ 21,870	$ 6,176

Weighted average common shares - Diluted	25,514	24,215	25,423	23,325
Net income per share available for common shareholders	$0.33	$0.09	$0.86	$0.26


FUNDS FROM OPERATIONS (in thousands except per share data)


	Three months ended		Nine months ended
	September 30,		September 30,
	2007	2006	2007	2006
Net income	$ 11,900	$ 5,630	$ 32,342	$ 16,648
Depreciation of real estate assets	21,652	19,154	63,404	56,498
Net loss (gain) on insurance and other settlement proceeds	197	54	(645)	(171)
Gain on dispositions within real estate joint ventures	(1)	-	(5,388)	-
Depreciation of real estate assets of discontinued operations ⁽¹⁾	1	132	133	552
Gain on sale of discontinued operations	(5,714)	-	(9,157)	-
Depreciation of real estate assets of real estate joint ventures	-	118	14	379
Preferred dividend distribution	(3,491)	(3,491)	(10,472)	(10,472)
Minority interest in operating partnership income	1,034	375	2,835	1,196
Funds from operations	25,578	21,972	73,066	64,630
Recurring capital expenditures	(5,585)	(6,720)	(14,649)	(15,472)
Adjusted funds from operations	$ 19,993	$ 15,252	$ 58,417	$ 49,158

Weighted average common shares and units - Diluted	27,996	26,716	27,909	25,835
Funds from operations per share and unit - Diluted	$0.91	$0.82	$2.62	$2.50
Adjusted funds from operations per share and unit - Diluted	$0.71	$0.57	$2.09	$1.90

⁽¹⁾Amounts represent depreciation expense prior to communities being classified as discontinued operations.

CONSOLIDATED BALANCE SHEETS (in thousands)

				September 30,	December 31,
				2007	2006
Assets
Real estate assets
	Land			$ 214,748	$ 206,635
	Buildings and improvements			2,023,609	1,921,462
	Furniture, fixtures and equipment			53,111	51,374
	Capital improvements in progress			23,724	20,689
	Accumulated depreciation			(594,870)	(543,802)
	Land held for future development			2,360	2,360
	Commercial properties, net			7,163	7,103
	Investments in and advances to real estate joint ventures			51	3,718
		Real estate assets, net		1,729,896	1,669,539
Cash and cash equivalents				4,041	5,545
Restricted cash				5,095	4,145
Deferred financing costs, net				15,695	16,033
Other assets				31,164	38,865
Goodwill				4,106	4,472
Assets held for sale				-	8,047
		Total assets		$ 1,789,997	$ 1,746,646

Liabilities and Shareholders' Equity
Liabilities
	Notes payable			$ 1,247,545	$ 1,196,349
	Accounts payable			1,931	2,773
	Accrued expenses and other liabilities			72,927	57,919
	Security deposits			8,535	7,670
	Liabilities associated with assets held for sale			-	269
		Total liabilities		1,330,938	1,264,980
Minority interest				30,161	32,600
Redeemable stock				2,920	3,418
Shareholders' equity
	Series F cumulative redeemable preferred stock⁽¹⁾			-	5
	Series H cumulative redeemable preferred stock			62	62
	Common stock			255	251
	Additional paid-in capital			827,466	814,006
	Accumulated distributions in excess of net income			(403,481)	(379,573)
	Accumulated other comprehensive income			1,676	10,897
		Total shareholders' equity		425,978	445,648
		Total liabilities and shareholders' equity		$ 1,789,997	$ 1,746,646

⁽¹⁾ Our Series F Cumulative Redeemable Preferred Stock was called for redemption during the third quarter and reclassified
	as a liability in accordance with GAAP. The shares were subsequently redeemed on October 16, 2007.

SHARE AND UNIT DATA (in thousands)

			Three months ended		Nine months ended
			September 30,		September 30,
			2007	2006	2007	2006

Weighted average common shares - Basic			25,362	23,990	25,247	23,099
Weighted average common shares - Diluted			25,514	24,215	25,423	23,325
Weighted average common shares and units - Basic			27,844	26,491	27,733	25,609
Weighted average common shares and units - Diluted			27,996	26,716	27,909	25,835
Common shares at September 30 - Basic			25,399	24,291	25,399	24,291
Common shares at September 30 - Diluted			25,550	24,520	25,550	24,520
Common shares and units at September 30 - Basic			27,881	26,784	27,881	26,784
Common shares and units at September 30 - Diluted			28,033	27,013	28,033	27,013

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 Emerging Issues Task Force

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-99.2 3 ex99_2.htm SUPPLEMENTAL DATA ex99_2.htm

COMMUNITY STATISTICS Dollars in thousands except Average Rental Rate


		As of September 30, 2007
				Percent to		Average
			Gross	Total of	Physical	Rental
		Units	Real Assets	Gross Assets	Occupancy	Rate

Dallas, TX		3,662	$ 200,579	8.7%	96.4%	$ 719.32
Atlanta, GA		2,693	$ 171,438	7.4%	95.4%	$ 762.95
Houston, TX		2,629	$ 166,665	7.2%	95.8%	$ 811.78
Nashville, TN		1,855	$ 122,444	5.3%	99.6%	$ 769.54
Greenville, SC		1,140	$ 48,995	2.1%	97.4%	$ 581.04
Tampa, FL		1,120	$ 67,691	2.9%	96.0%	$ 870.85
All Other		4,468	$ 324,968	14.2%	92.5%	$ 836.03
	High Growth Markets	17,567	$ 1,102,780	47.8%	95.5%	$ 775.52

Memphis, TN		4,021	$ 198,868	8.6%	97.2%	$ 690.12
Jacksonville, FL		3,347	$ 182,228	7.9%	95.2%	$ 821.94
Austin, TX		1,776	$ 103,873	4.5%	97.7%	$ 749.19
Jackson, MS		1,241	$ 56,699	2.5%	96.7%	$ 690.82
Chattanooga, TN		943	$ 37,760	1.6%	98.5%	$ 616.46
Augusta, GA/Aiken, SC		912	$ 39,645	1.7%	92.2%	$ 674.64
All Other		3,862	$ 213,073	9.2%	95.4%	$ 705.90
	Growth plus Income Markets	16,102	$ 832,146	36.0%	96.2%	$ 722.68

Columbus, GA		1,509	$ 75,034	3.3%	94.0%	$ 704.06
Lexington, KY		924	$ 59,682	2.6%	97.2%	$ 711.99
All Other		4,146	$ 237,338	10.3%	96.9%	$ 738.61
	Stable Income Markets	6,579	$ 372,054	16.2%	96.3%	$ 726.95

Total Portfolio		40,248	$ 2,306,980	100.0%	95.9%	$ 746.44

NUMBER OF APARTMENT UNITS

2007

2006

Sept 30

Jun 30

Mar 31

Dec 31

Sep 30

100% Owned Properties

40,248

40,036

39,971

39,771

39,465

Properties in Joint Ventures

522

Total Portfolio

40,248

40,036

39,971

40,293

39,987

SAME STORE (EXCLUDES SEVEN FULL RENOVATION COMMUNITIES) 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.

CURRENT PERIOD ACTUALS
As of September 30, 2007 unless otherwise noted

			Three Months Ended											Quarterly			Average		Twelve
			September 30, 2007								Physical			Economic			Rental		Month
	Units		Revenue			Expense		NOI			Occupancy			Occupancy ⁽¹⁾			Rate		Turn Rate
High Growth Markets
Dallas, TX		3,662	$	7,904		$	3,584	$	4,320			96.4	%		90.3	%	$	719.32		56.5	%
Atlanta, GA		2,693	$	6,353		$	2,662	$	3,691			95.4	%		91.5	%	$	762.95		60.7	%
Houston, TX		1,584	$	3,712		$	1,711	$	2,001			95.3	%		89.2	%	$	788.94		69.8	%
Nashville, TN		1,569	$	3,866		$	1,532	$	2,334			99.5	%		94.7	%	$	771.06		59.2	%
Greenville, SC		1,140	$	2,096		$	808	$	1,288			97.4	%		94.8	%	$	581.04		60.6	%
Tampa, FL		890	$	2,402		$	916	$	1,486			96.0	%		90.6	%	$	872.89		57.0	%
All Other		3,204	$	7,823		$	3,096	$	4,727			95.4	%		90.2	%	$	811.91		55.9	%
Subtotal		14,742	$	34,156		$	14,309	$	19,847			96.3	%		91.2	%	$	758.98		59.2	%

Growth plus Income Markets
Memphis, TN		3,650	$	7,582		$	3,452	$	4,130			97.1	%		92.3	%	$	690.95		60.4	%
Jacksonville, FL		3,011	$	7,631		$	2,670	$	4,961			95.2	%		92.6	%	$	822.06		65.2	%
Austin, TX		1,776	$	4,124		$	1,938	$	2,186			97.7	%		92.5	%	$	749.19		61.4	%
Jackson, MS		1,241	$	2,672		$	956	$	1,716			96.7	%		94.6	%	$	690.82		61.1	%
Chattanooga, TN		943	$	1,820		$	786	$	1,034			98.5	%		95.0	%	$	616.46		56.4	%
Augusta, GA/Aiken, SC		912	$	1,853		$	752	$	1,101			92.2	%		91.0	%	$	674.64		79.2	%
All Other		3,374	$	6,990		$	2,862	$	4,128			96.9	%		91.2	%	$	674.77		63.3	%
Subtotal		14,907	$	32,672		$	13,416	$	19,256			96.5	%		92.4	%	$	714.99		63.1	%

Stable Income Markets
Columbus, GA		1,509	$	3,250		$	1,461	$	1,789			94.0	%		90.1	%	$	704.06		94.5	%
Lexington, KY		924	$	2,005		$	706	$	1,299			97.2	%		94.0	%	$	711.99		61.9	%
All Other		3,840	$	8,680		$	3,409	$	5,271			96.9	%		93.6	%	$	728.51		63.7	%
Subtotal		6,273	$	13,935		$	5,576	$	8,359			96.3	%		92.8	%	$	720.19		70.8	%

Operating Same Store		35,922	$	80,763		$	33,301	$	47,462			96.4	%		92.0	%	$	733.95		62.9	%

Revenue Straight-line Adjustment ⁽²⁾			$	(469	)			$	(469	)
Total Same Store			$	80,294				$	46,993

⁽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 QUARTER ENDED JUNE 30, 2007 (PRIOR QUARTER) AND QUARTER ENDED SEPT 30, 2006 (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
High Growth Markets
Dallas, TX		2.3	%		8.0	%		1.6	%		-5.7	%		2.9	%		22.8	%		2.3	%		1.9	%		0.5	%		2.0	%
Atlanta, GA		1.1	%		4.2	%		5.8	%		7.1	%		-2.0	%		2.2	%		0.0	%		-0.4	%		0.4	%		2.2	%
Houston, TX		1.9	%		7.4	%		-0.7	%		3.3	%		4.3	%		11.2	%		-0.4	%		-1.1	%		0.2	%		1.3	%
Nashville, TN		4.0	%		6.0	%		5.5	%		0.7	%		3.1	%		9.8	%		2.6	%		2.5	%		1.3	%		3.0	%
Greenville, SC		2.3	%		4.7	%		-9.9	%		-3.5	%		11.9	%		10.7	%		1.3	%		-1.1	%		0.9	%		3.7	%
Tampa, FL		0.3	%		-0.9	%		-12.5	%		-7.0	%		10.2	%		3.3	%		3.0	%		2.0	%		-0.7	%		0.4	%
All Other		1.9	%		2.6	%		2.8	%		0.4	%		1.4	%		4.1	%		1.6	%		-0.7	%		0.7	%		3.1	%
Subtotal		2.0	%		4.9	%		0.9	%		-0.4	%		2.8	%		9.1	%		1.5	%		0.4	%		0.5	%		2.3	%

Growth plus Income Markets
Memphis, TN		1.4	%		10.9	%		4.3	%		2.3	%		-0.8	%		19.3	%		0.5	%		2.3	%		0.8	%		1.2	%
Jacksonville, FL		0.6	%		-0.3	%		-3.7	%		-4.8	%		3.0	%		2.4	%		0.9	%		-1.1	%		0.0	%		1.9	%
Austin, TX		4.1	%		9.3	%		-0.9	%		-1.2	%		9.0	%		20.7	%		2.1	%		1.2	%		1.8	%		4.0	%
Jackson, MS		0.9	%		7.7	%		2.2	%		0.6	%		0.2	%		12.0	%		-0.1	%		2.7	%		0.4	%		3.3	%
Chattanooga, TN		1.4	%		3.8	%		5.2	%		0.9	%		-1.2	%		6.2	%		0.3	%		0.4	%		0.9	%		3.6	%
Augusta, GA/Aiken, SC		0.2	%		5.2	%		-0.8	%		1.5	%		0.8	%		7.8	%		-1.6	%		-3.6	%		1.3	%		3.3	%
All Other		1.3	%		2.7	%		-0.6	%		5.0	%		2.7	%		1.1	%		2.4	%		1.0	%		0.0	%		0.9	%
Subtotal		1.4	%		5.2	%		0.4	%		0.6	%		2.1	%		8.6	%		1.0	%		0.8	%		0.6	%		2.1	%

Stable Income Markets
Columbus, GA		4.0	%		-0.2	%		4.3	%		6.6	%		3.8	%		-5.1	%		1.2	%		-0.8	%		0.3	%		0.9	%
Lexington, KY		2.5	%		7.6	%		-7.6	%		-6.9	%		9.0	%		17.6	%		-0.5	%		2.6	%		-0.1	%		0.5	%
All Other		0.8	%		4.1	%		1.2	%		1.6	%		0.6	%		5.8	%		1.0	%		0.3	%		0.6	%		2.1	%
Subtotal		1.8	%		3.6	%		0.7	%		1.7	%		2.5	%		4.8	%		0.9	%		0.4	%		0.4	%		1.6	%

Operating Same Store		1.7	%		4.8	%		0.7	%		0.3	%		2.5	%		8.1	%		1.2	%		0.6	%		0.5	%		2.1	%

Including revenue straight-line adjustment:
Total Same Store		1.8	%		4.2	%								2.6	%		7.1	%

SAME STORE (EXCLUDES SEVEN FULL RENOVATION COMMUNITIES)

Dollars in thousands		Three Months Ended September 30,		Percent
		2007	2006	Change
Revenues
	Operating	$ 80,763	$ 77,092	4.8%
	Straight-line adjustment ⁽¹⁾	(469)	(27)
	Total Same Store	$ 80,294	$ 77,065	4.2%

Expense		$ 33,301	$ 33,193	0.3%

NOI
	Operating	$ 47,462	$ 43,899	8.1%
	Straight-line adjustment ⁽¹⁾	(469)	(27)
	Total Same Store	$ 46,993	$ 43,872	7.1%

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

SAME STORE PLUS SEVEN EXCLUDED RENOVATION COMMUNITIES (Dollars in thousands)
Includes the seven full renovation communities (2,015 units).

		Three Months Ended September 30,		Percent
		2007	2006	Change
Revenues
	Operating	$ 85,883	$ 81,859	4.9%
	Straight-line adjustment ⁽²⁾	(526)	(1)
	Total Same Store	$ 85,357	$ 81,858	4.3%

Expense		$ 35,236	$ 34,993	0.7%

NOI
	Operating	$ 50,647	$ 46,866	8.1%
	Straight-line adjustment ⁽²⁾	(526)	(1)
	Total Same Store	$ 50,121	$ 46,865	6.9%

⁽²⁾ 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

EXPENDITURES

Units

Cost

per Unit

to Date

Brier Creek Phase II, Raleigh, NC

200

$ 24,119

$ 121

$ 22,743

St. Augustine Phase II, Jacksonville, FL

124

13,284

107

1,044

Copper Ridge Phase I, Dallas, TX

216

19,478

2,595

Total development

540

$ 56,881

$ 105

$ 26,382

Construction

Initial

Actual Units

FORECASTED TIMELINE

Start

Finish

Occupancy

Stabilization

Completed

Leased

Brier Creek Phase II, Raleigh, NC

2Q 2006

4Q 2007

2Q 2007

2Q 2008

178

119

St. Augustine Phase II, Jacksonville, FL

3Q 2007

3Q 2008

2Q 2008

4Q 2008

Copper Ridge Phase I, Dallas, TX

3Q 2007

4Q 2008

2Q 2008

2Q 2009

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

	Three Months
	Ended	Trailing
	Sept 30, 2007	4 Quarters
Net income	$ 11,900	$ 36,639
Depreciation	21,959	85,710
Interest expense	16,147	64,578
Loss on debt extinguishment	71	123
Amortization of deferred financing costs	614	2,277
Net gain on insurance and other settlement proceeds	197	(558)
Gain on sale of non-depreciable assets	(29)	(273)
Gain on dispositions within unconsolidated entities	(1)	(5,388)
Gain on sale of discontinued operations	(5,714)	(9,157)
EBITDA	$ 45,144	$ 173,951

	Three Months Ended September 30,
	2007	2006
EBITDA/Debt Service	2.68x	2.59x
Fixed Charge Coverage ⁽³⁾	2.30x	2.17x
Total Debt as % of Gross Real Estate Assets	53%	55%

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

DEBT AS OF SEPTEMBER 30, 2007
Dollars in thousands
			Average Years
		Principal	to Contract	Effective
		Balance	Maturity	Rate

Conventional - Fixed Rate or Swapped ^{(1) (2)}		$ 913,981	4.1	5.6%
Tax-free - Fixed Rate or Swapped ⁽¹⁾		73,355	4.3	4.3%
Conventional - Variable Rate		207,328	4.6	5.9%
Tax-free - Variable Rate		10,855	12.7	4.7%
Conventional - Variable Rate - Capped⁽³⁾		17,936	2.1	5.8%
Tax-free - Variable Rate - Capped ⁽³⁾		24,090	2.2	4.6%
	Total Debt Outstanding	$ 1,247,545	4.3	5.6%

⁽¹⁾ Maturities on existing swapped balances are calculated using the life of the underlying variable debt.
⁽²⁾ Includes $11.9 million related to the call of the 9 1/4% Series F Preferred Stock which was redeemed on October 16, 2007.
⁽³⁾ As the capped rates of 6.0% and 6.5% have not been reached, the average rate represents the rate on the underlying variable debt.

FIXED RATE MATURITIES
			Contract
		Balance	Rate

	Remainder of 2007	$ 29,662	6.1%
	2008	184,410	6.1%
	2009	100,230	6.5%
	2010	148,365	5.7%
	2011	133,000	5.3%
	2012	125,000	5.2%
	2013	125,000	5.3%
	2014	99,721	6.2%
	Thereafter	41,948	6.4%
	Total	$ 987,336	5.8%

OTHER DATA

PER SHARE DATA

Three Months Ended September 30,

Nine Months Ended September 30,

2007

2006

2007

2006

Dividend paid per common share

$0.605

$0.595

$1.815

$1.785

DIVIDEND INFORMATION (latest declaration)

Payment

Record

per Share

Date

Common Dividend - quarterly

$0.6050

10/31/2007

10/15/2007

Preferred Series H - quarterly

$0.51875

9/22/2007

9/13/2007

PREFERRED STOCK

Number of

Liquidation

Earliest

Shares Issued

Preference

Optional

and Outstanding

per Share

Call Date

8.30% Series H Cumulative Redeemable Preferred Stock

6,200,000

$ 25.00

8/11/2008