Segment Information

6 Months Ended

Jun. 30, 2014

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

As of June 30, 2014, we owned or had an ownership interest in 271 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; 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 1 million but less than 1% of the total public multifamily REIT units or in markets with a population of less than 1 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, communities that have been identified for disposition, and communities that have undergone a significant casualty loss. 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, a non-GAAP financial measure, 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 either 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 which are done with an expectation to maintain the current level of quality at the property. There is no specified plan in place for routine renovations.

Revenues and NOI for each reportable segment for the three- and six-month periods ended June 30, 2014 and 2013 were as follows (dollars in thousands):

	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Revenues
Large Market Same Store	$	62,351		$	59,936		$	123,695		$	118,878
Secondary Market Same Store	61,971			61,298			123,502			121,697
Non-Same Store and Other	120,171			10,425			240,686			18,827
Total property revenues	244,493			131,659			487,883			259,402
Management fee income	61			142			158			319
Total operating revenues	$	244,554		$	131,801		$	488,041		$	259,721
NOI
Large Market Same Store	$	37,074		$	35,487		$	73,353		$	70,628
Secondary Market Same Store	36,466			37,006			74,043			74,080
Non-Same Store and Other	72,695			9,172			146,465			17,371
Total NOI	146,235			81,665			293,861			162,079
Discontinued operations NOI included above	636			(2,827		)	(963		)	(6,019		)
Management fee income	61			142			158			319
Depreciation and amortization	(69,631		)	(32,222		)	(159,644		)	(64,417		)
Acquisition expense	(947		)	(489		)	(958		)	(499		)
Property management expense	(9,579		)	(5,223		)	(16,590		)	(10,331		)
General and administrative expense	(5,212		)	(3,389		)	(9,554		)	(6,628		)
Merger related expenses	(795		)	(5,737		)	(2,871		)	(5,737		)
Integration costs	(3,151		)	—			(6,993		)	—
Interest and other non-property income	921			23			1,081			70
Interest expense	(30,163		)	(15,189		)	(60,839		)	(30,734		)
Loss on debt extinguishment/modification	—			—			—			(169		)
Amortization of deferred financing costs	(1,174		)	(803		)	(2,485		)	(1,607		)
Gain on sale of depreciable real estate assets excluded from discontinued operations	3,658			—			6,222			—
Net casualty (loss) gain after insurance and other settlement proceeds	(295		)	439			(305		)	455
Income tax expense	(523		)	(223		)	(793		)	(446		)
(Loss) gain on sale of non-depreciable real estate assets	(22		)	—			535			—
Gain from real estate joint ventures	2,919			47			2,895			101
Discontinued operations	448			44,814			6,343			46,596
Net income attributable to noncontrolling interests	(1,773		)	(1,939		)	(2,621		)	(2,764		)
Net income attributable to MAA	$	31,613		$	59,089		$	46,479		$	80,269

Assets for each reportable segment as of June 30, 2014 and December 31, 2013, were as follows (dollars in thousands):

	June 30, 2014		December 31, 2013
Assets
Large Market Same Store	$	1,232,186	$	1,252,575
Secondary Market Same Store	782,078		796,697
Non-Same Store and Other	4,657,067		4,638,892
Corporate assets	111,790		153,761
Total assets	$	6,783,121	$	6,841,925