Segment Information

9 Months Ended

Sep. 30, 2013

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

As of September 30, 2013, we owned or had an ownership interest in 160 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 nine-month periods ended September 30, 2013 and 2012 were as follows (dollars in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Revenues
Large Market Same Store	$	64,823		$	61,707		$	191,246		$	181,446
Secondary Market Same Store	52,344			50,904			155,650			150,869
Non-Same Store and Other	19,127			10,370			50,891			19,992
Total property revenues	136,294			122,981			397,787			352,307
Management fee income	146			209			465			687
Total operating revenues	$	136,440		$	123,190		$	398,252		$	352,994
NOI
Large Market Same Store	$	38,159		$	35,700		$	113,707		$	105,675
Secondary Market Same Store	30,349			29,816			92,547			89,109
Non-Same Store and Other	12,470			9,015			36,798			22,657
Total NOI	80,978			74,531			243,052			217,441
Discontinued operations NOI included above	(837		)	(2,839		)	(5,655		)	(11,198		)
Management fee income	146			209			465			687
Depreciation and amortization	(33,000		)	(30,979		)	(97,883		)	(89,701		)
Acquisition expense	—			(1,343		)	(499		)	(1,574		)
Property management expense	(5,193		)	(5,460		)	(15,970		)	(16,484		)
General and administrative expense	(3,976		)	(3,527		)	(10,604		)	(10,436		)
Merger related expenses	(5,561		)	—			(11,298		)	—
Integration Costs	(35		)	—			(35		)	—
Interest and other non-property income	16			89			86			343
Interest expense	(14,941		)	(14,530		)	(45,715		)	(42,428		)
(Loss) gain on debt extinguishment	(218		)	—			(387		)	5
Amortization of deferred financing costs	(820		)	(971		)	(2,427		)	(2,611		)
Net casualty (loss) gain after insurance and other settlement proceeds	—			(22		)	455			(24		)
Gain on sale of non-depreciable assets	—			48			—			45
Gain (loss) from real estate joint ventures	60			(72		)	161			(170		)
Discontinued operations	29,437			16,944			75,343			42,723
Net income attributable to noncontrolling interests	(1,772		)	(1,212		)	(4,536		)	(3,702		)
Net income attributable to MAA	$	44,284		$	30,866		$	124,553		$	82,916

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

	September 30, 2013		December 31, 2012
Assets
Large Market Same Store	$	1,265,355	$	1,108,827
Secondary Market Same Store	806,170		654,315
Non-Same Store and Other	674,432		949,398
Corporate assets	282,300		38,528
Total assets	$	3,028,257	$	2,751,068