Segment Information

As of September 30, 2017, we owned or had ownership interest in 303 multifamily apartment communities in 17 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.

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 nine- month periods ended September 30, 2017 and 2016 were as follows (dollars in thousands):



	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Revenues:
Large Market Same Store	$	169,105		$	165,046		$	503,076		$	487,725
Secondary Market Same Store	87,895			85,822			261,272			254,685
Non-Same Store and Other	127,550			26,030			381,901			75,740
Total operating revenues	$	384,550		$	276,898		$	1,146,249		$	818,150

NOI:
Large Market Same Store	$	104,574		$	101,595		$	313,419		$	302,230
Secondary Market Same Store	53,836			53,124			162,617			159,263
Non-Same Store and Other	76,961			15,533			233,792			46,175
Total NOI	235,371			170,252			709,828			507,668
Depreciation and amortization	(117,928		)	(76,959		)	(374,285		)	(227,829		)
Acquisition expenses	—			(1,033		)	—			(2,167		)
Property management expenses	(10,281		)	(7,908		)	(32,007		)	(25,221		)
General and administrative expenses	(8,361		)	(6,661		)	(30,735		)	(20,257		)
Merger related expenses	(128		)	(3,901		)	(3,977		)	(3,901		)
Integration costs	(4,002		)	—			(10,521		)	—
Interest and other non-property income	4,303			64			7,632			159
Interest expense	(39,940		)	(32,168		)	(115,005		)	(96,418		)
Gain on debt extinguishment/modification	828			—			3,168			3
Gain on sale of depreciable real estate assets	58,844			47,749			59,045			48,572
Net casualty gain (loss) after insurance and other settlement proceeds	564			(75		)	233			738
Income tax expense	(641		)	(454		)	(1,910		)	(1,200		)
(Loss) gain on sale of non-depreciable real estate assets	(6		)	—			42			2,170
Gain from real estate joint ventures	335			—			1,021			27
Net income attributable to noncontrolling interests	(4,249		)	(4,627		)	(7,600		)	(9,508		)
Preferred Dividends	(922		)	—			(2,766		)	—
Net income available for MAA common shareholders	$	113,787		$	84,279		$	202,163		$	172,836

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



	September 30, 2017		December 31, 2016
Assets:
Large Market Same Store	$	4,038,127	$	4,126,885
Secondary Market Same Store	1,731,050		1,768,183
Non-Same Store and Other	5,527,583		5,479,780
Corporate assets	236,041		229,643
Total assets	$	11,532,801	$	11,604,491