Segment Information

3 Months Ended

Mar. 31, 2017

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

As of March 31, 2017, we owned or had ownership interest in 304 multifamily apartment communities in 16 different states and the District of Columbia from which we derived all significant sources of earnings and operating cash flows. Senior management evaluates performance and determines resource allocations of each of our apartment communities on a Large Market Same Store, Secondary Market Same Store, and Non-Same Store and Other basis, as well as an individual apartment community basis. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. The following are the three reportable operating segments for MAA and the Operating Partnership:

• 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.

• 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.

• 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's net operating income, or NOI.

On the first day of each calendar year, we determine the composition of our same store operating segments for that year as well as adjust 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 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.

Note that all properties acquired from Post 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 as of the first day of the calendar year.

Revenues and NOI for each reportable segment for the three month periods ended March 31, 2017 and 2016 were as follows (dollars in thousands):

	Three months ended March 31,
	2017			2016
Revenues:
Large Market Same Store	$	166,258		$	160,192
Secondary Market Same Store	86,147			84,093
Non-Same Store and Other	126,503			24,731
Total operating revenues	$	378,908		$	269,016
NOI:
Large Market Same Store	$	104,747		$	99,527
Secondary Market Same Store	54,238			53,394
Non-Same Store and Other	78,650			15,214
Total NOI	237,635			168,135
Depreciation and amortization	(129,997		)	(75,127		)
Acquisition expenses	—			(713		)
Property management expenses	(10,981		)	(9,004		)
General and administrative expenses	(12,840		)	(6,582		)
Merger related expenses	(2,871		)	—
Integration costs	(3,290		)	—
Interest and other non-property income	2,679			32
Interest expense	(36,584		)	(32,211		)
Gain on debt extinguishment/modification	123			3
(Loss) gain on sale of depreciable real estate assets	(73		)	755
Net casualty loss after insurance and other settlement proceeds	(91		)	(947		)
Income tax expense	(651		)	(288		)
Gain on sale of non-depreciable real estate assets	—			1,627
Gain from real estate joint ventures	357			128
Net income attributable to noncontrolling interests	(1,511		)	(2,395		)
Preferred Dividends	(922		)	—
Net income available for MAA common shareholders	$	40,983		$	43,413

Assets for each reportable segment as of March 31, 2017 and December 31, 2016, were as follows (dollars in thousands):

	March 31, 2017		December 31, 2016
Assets:
Large Market Same Store	$	4,083,791	$	4,126,885
Secondary Market Same Store	1,752,043		1,768,183
Non-Same Store and Other	5,549,507		5,479,780
Corporate assets	174,358		229,643
Total assets	$	11,559,699	$	11,604,491