Segment Information

As of June 30, 2017, we owned or had ownership interest in 305 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.

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 Properties 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 current calendar year.

Revenues and NOI for each reportable segment for the three- and six- month periods ended June 30, 2017 and 2016 were as follows (dollars in thousands):



	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Revenues:
Large Market Same Store	$	167,712		$	162,487		$	333,971		$	322,679
Secondary Market Same Store	87,231			84,770			173,377			168,863
Non-Same Store and Other	127,848			24,979			254,351			49,710
Total operating revenues	$	382,791		$	272,236		$	761,699		$	541,252

NOI:
Large Market Same Store	$	104,098		$	101,108		$	208,845		$	200,635
Secondary Market Same Store	54,544			52,745			108,781			106,139
Non-Same Store and Other	78,180			15,428			156,831			30,642
Total NOI	236,822			169,281			474,457			337,416
Depreciation and amortization	(126,360		)	(75,742		)	(256,357		)	(150,870		)
Acquisition expenses	—			(421		)	—			(1,134		)
Property management expenses	(10,745		)	(8,310		)	(21,726		)	(17,313		)
General and administrative expenses	(9,534		)	(7,014		)	(22,374		)	(13,596		)
Merger related expenses	(978		)	—			(3,849		)	—
Integration costs	(3,229		)	—			(6,519		)	—
Interest and other non-property income	650			62			3,329			94
Interest expense	(38,481		)	(32,039		)	(75,065		)	(64,250		)
Gain on debt extinguishment/modification	2,217			—			2,340			3
Gain on sale of depreciable real estate assets	274			68			201			823
Net casualty (loss) gain after insurance and other settlement proceeds	(240		)	1,760			(331		)	813
Income tax expense	(618		)	(457		)	(1,269		)	(745		)
Gain on sale of non-depreciable real estate assets	48			543			48			2,170
Gain (loss) from real estate joint ventures	329			(101		)	686			27
Net income attributable to noncontrolling interests	(1,840		)	(2,486		)	(3,351		)	(4,881		)
Preferred Dividends	(922		)	—			(1,844		)	—
Net income available for MAA common shareholders	$	47,393		$	45,144		$	88,376		$	88,557

Assets for each reportable segment as of June 30, 2017 and December 31, 2016, were as follows (dollars in thousands):



	June 30, 2017		December 31, 2016
Assets:
Large Market Same Store	$	4,060,183	$	4,126,885
Secondary Market Same Store	1,741,902		1,768,183
Non-Same Store and Other	5,550,019		5,479,780
Corporate assets	182,025		229,643
Total assets	$	11,534,129	$	11,604,491