Segment Information

6 Months Ended

Jun. 30, 2013

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

As of June 30, 2013, we owned or had an ownership interest in 164 multifamily apartment communities in 13 different states from which we derived all significant sources of earnings and operating cash flows. Senior management evaluates performance and determines resource allocations by reviewing apartment communities individually and in the following reportable operating segments:

• Large market same store communities are generally communities:

◦ in markets with a population of at least one million and at least 1% of the total public multifamily REIT units; and

◦ that we have owned and have been stabilized for at least a full 12 months and have not been classified as held for sale.

• Secondary market same store communities are generally communities:

◦ in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or in markets with a population of less than one million; and

◦ that we have owned and have been stabilized for at least a full 12 months and have not been classified as held for sale.

• Non same store communities and other includes recent acquisitions, communities in development or lease-up and communities that have been identified for disposition. Also included in non same store communities are non multifamily activities, which represent less than 1% of our portfolio.

On the first day of each calendar year, we determine the composition of our same store operating segments for that year as well as adjusting the previous year, which allows us to evaluate full period-over-period operating comparisons. Properties in development or lease-up will be added to the same store portfolio on the first day of the calendar year after they have been owned and stabilized for at least a full 12 months. Communities are considered stabilized after achieving 90% occupancy for 90 days. Communities that have been identified for disposition are excluded from our same store portfolio. We utilize net operating income, or NOI, in evaluating the performance of the segments.  Total NOI represents total property revenues less total property operating expenses, excluding depreciation and amortization, for all properties held during the period regardless of their status as held for sale. We believe NOI is a helpful tool in evaluating the operating performance of our segments because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Revenues and NOI for each reportable segment for the three- and six-month periods ended June 30, 2013 and 2012 were as follows (dollars in thousands):

	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Revenues
Large Market Same Store	$	63,720		$	60,485		$	126,423		$	119,739
Secondary Market Same Store	51,964			50,318			103,306			99,965
Non-Same Store and Other	18,286			7,996			34,308			12,133
Total property revenues	133,970			118,799			264,037			231,837
Management fee income	142			209			319			478
Total operating revenues	$	134,112		$	119,008		$	264,356		$	232,315
NOI
Large Market Same Store	$	37,793		$	35,376		$	75,548		$	69,975
Secondary Market Same Store	31,149			29,981			62,198			59,293
Non-Same Store and Other	12,722			8,037			24,331			13,642
Total NOI	81,664			73,394			162,077			142,910
Discontinued operations NOI included above	(1,446		)	(3,319		)	(3,189		)	(6,775		)
Management fee income	142			209			319			478
Depreciation and amortization	(32,730		)	(30,246		)	(65,406		)	(59,228		)
Acquisition expense	(489		)	(865		)	(499		)	(231		)
Property management expense	(5,446		)	(5,570		)	(10,777		)	(11,024		)
General and administrative expense	(3,389		)	(3,462		)	(6,628		)	(6,909		)
Merger related expenses	(5,737		)	—			(5,737		)	—
Interest and other non-property income	23			112			70			254
Interest expense	(15,271		)	(14,073		)	(30,906		)	(28,058		)
(Loss) gain on debt extinguishment	—			(15		)	(169		)	5
Amortization of deferred financing costs	(803		)	(869		)	(1,607		)	(1,640		)
Net casualty gain (loss) after insurance and other settlement proceeds	439			2			455			(2		)
Loss on sale of non-depreciable assets	—			(3		)	—			(3		)
Gain (loss) from real estate joint ventures	47			(67		)	101			(98		)
Discontinued operations	44,024			14,244			44,929			24,861
Net income attributable to noncontrolling interests	(1,939		)	(1,312		)	(2,764		)	(2,490		)
Net income attributable to MAA	$	59,089		$	28,160		$	80,269		$	52,050

Assets for each reportable segment as of June 30, 2013 and December 31, 2012, were as follows (dollars in thousands):

	June 30, 2013		December 31, 2012
Assets
Large Market Same Store	$	1,272,055	$	1,108,827
Secondary Market Same Store	809,478		654,315
Non-Same Store and Other	692,655		949,398
Corporate assets	60,029		38,528
Total assets	$	2,834,217	$	2,751,068