Segment Information

12 Months Ended

Dec. 31, 2013

Notes To Financial Statements [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

As of December 31, 2013, we owned or had an ownership interest in 275 multifamily apartment communities in 14 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 1 million and at least 1% of the total public multifamily REIT units 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 1 million but less than 1% of the total public multifamily REIT units or markets with populations of less than 1 million 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 generally includes recent acquisitions, communities in development or lease-up and communities that have been classified as held for sale. 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.

A redevelopment community is a community with a specific plan in place to upgrade at least half of the community's units over a period of time with new finishes, fixtures, and appliances, among other upgrades.  These plans include spending a pre-defined amount of capital per unit to achieve a rent increase as a result of the upgrades.  We separately identify redevelopment communities that would cause a material distortion of normal same store operating results. Routine renovations occur at a property as items need to be replaced as a normal part of operations and is done with an expectation to maintain the current level of quality at the property. There is no specified plan in place for routine renovations.

Note that all properties acquired from Colonial have been placed in our Non-Same Store and Other operating segment, as the properties are recent acquisitions and have not been owned and stabilized for at least 12 months.  Also note that management looks at segments for the parent company and does not breakout segments for the Operating Partnership, therefore the presentation below is for MAA only.

Revenues and NOI for each reportable segment for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands):

	2013			2012			2011 (1)
Revenues
Large Market Same Store	$	256,141		$	243,721		$	213,800
Secondary Market Same Store	207,572			201,834			187,202
Non-Same Store and Other	170,374			29,434			28,787
Total property revenues	634,087			474,989			429,789
Management fee income	647			899			1,017
Total operating revenues	$	634,734		$	475,888		$	430,806
NOI
Large Market Same Store	$	152,725		$	143,060		$	122,447
Secondary Market Same Store	123,787			119,764			108,024
Non-Same Store and Other	112,500			34,252			27,565
Total NOI	389,012			297,076			258,036
Discontinued operations NOI included above	(8,239		)	(16,236		)	(22,834		)
Management fee income	647			899			1,017
Depreciation and amortization	(186,979		)	(121,211		)	(106,009		)
Acquisition expense	(1,393		)	(1,581		)	(3,319		)
Property management expense	(23,083		)	(21,281		)	(19,973		)
General and administrative expense	(15,569		)	(13,762		)	(18,123		)
Merger related expenses	(32,403		)	—			—
Integration costs	(5,102		)	—			—
Interest and other non-property income	488			430			802
Interest expense	(75,915		)	(57,937		)	(56,383		)
Loss on debt extinguishment/modification	(426		)	(654		)	(755		)
Amortization of deferred financing costs	(3,063		)	(3,552		)	(2,902		)
Net casualty loss after insurance and other settlement proceeds	(143		)	(6		)	(619		)
Income tax expense	(893		)	(803		)	(727		)
Gain on sale of non-depreciable assets	—			45			1,084
Gain (loss) from real estate joint ventures	338			(223		)	(593		)
Discontinued operations	82,002			48,621			22,529
Net income attributable to noncontrolling interests	(3,998		)	(4,602		)	(2,410		)
Net income attributable to MAA	$	115,281		$	105,223		$	48,821

⁽¹⁾ The 2011 column shows the segment break down based on the 2012 same store portfolios. A comparison using the 2013 same store portfolio would not be comparative due to the nature of the classifications.

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

	December 31, 2013		December 31, 2012
Assets
Large Market Same Store	$	1,252,575	$	1,108,827
Secondary Market Same Store	796,697		654,315
Non-Same Store and Other	4,638,892		949,398
Corporate assets	153,761		38,528
Total assets	$	6,841,925	$	2,751,068