Segment Information

As of December 31, 2018, the Company owned and operated 303 multifamily apartment communities in 17 different states from which it derived all significant sources of earnings and operating cash flows. The Company views each consolidated apartment community as an operating segment. The Company's chief operating decision maker, which is the Company’s Chief Executive Officer, evaluates performance and determines resource allocations of each of the apartment communities on a 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 the apartment communities generally has similar economic characteristics, facilities, services, and tenants. The following reflects the two reportable segments for the Company:


•	Same Store communities are communities that the Company has owned and have been stabilized for at least a full 12 months as of the first day of the calendar year.


•	Non-Same Store and Other includes recent acquisitions, communities in development or lease-up, communities that have been identified for disposition, and communities that have incurred a significant casualty loss. Also included in Non-Same Store and Other are non-multifamily activities.

On the first day of each calendar year, the Company determines the composition of its Same Store and Non-Same Store and Other reportable segments for that year as well as adjusts the previous year, which allows the Company to evaluate full period-over-period operating comparisons. Properties in development or lease-up are added to the Same Store portfolio on the first day of the calendar year after it has 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 the Same Store portfolio.

The chief operating decision maker utilizes NOI in evaluating the performance of its operating 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. Management believes that NOI is a helpful tool in evaluating the operating performance of the segments because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Effective January 1, 2018, the Company revised its reportable segment presentation. The revision eliminated the distinction between large and secondary same store markets and combined the two previously reported segments into the Same Store reportable segment referred to above. The communities acquired in the merger with Post Properties became eligible for the same store designation on January 1, 2018 as the properties had been owned and stabilized for a full 12 months and are predominantly located in large markets, resulting in a more homogeneous property portfolio in terms of market dynamics. The chief operating decision maker no longer makes decisions about capital resource allocations and does not assess operating performance by large and secondary same store markets. Further, the chief operating decision maker no longer reviews financial information segregating the Company’s operating segments into large and secondary same store markets. The change in the Company’s portfolio caused the distinction between large and secondary markets to no longer be meaningful. As a result, the Company now discloses two reportable segments: Same Store and Non-Same Store and Other. There were no changes in the structure of the Company’s internal organization that prompted the change in reportable segments. Prior year amounts have been revised to conform to the current year presentation shown below.

Revenues and NOI for each reportable segment for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands):



	2018			2017			2016 ⁽¹⁾
Revenues:
Same Store
Rental revenues	$	1,340,914		$	1,313,836		$	909,688
Reimbursable property revenues	89,281			88,774			74,814
Other property revenues	11,616			12,229			8,219
Total Same Store revenues	$	1,441,811		$	1,414,839		$	992,721
Non-Same Store and Other
Rental revenues	$	123,112		$	105,865		$	121,964
Reimbursable property revenues	5,483			5,282			8,733
Other property revenues	940			3,001			1,930
Total Non-Same Store and Other revenues	$	129,535		$	114,148		$	132,627
Total rental and other property revenues	$	1,571,346		$	1,528,987		$	1,125,348

Net Operating Income:
Same Store NOI	$	905,756		$	889,176		$	620,567
Non-Same Store and Other NOI	71,002			63,080			81,425
Total NOI	976,758			952,256			701,992
Depreciation and amortization	(489,759		)	(493,708		)	(322,958		)
Property management expenses	(47,633		)	(43,588		)	(34,093		)
General and administrative expenses	(34,786		)	(40,194		)	(29,040		)
Merger and integration expenses	(9,112		)	(19,990		)	(40,823		)
Interest expense	(173,594		)	(154,751		)	(129,947		)
(Loss) gain on sale of depreciable real estate assets	(39		)	127,386			80,397
Gain on sale of non-depreciable real estate assets	4,532			21			2,171
Other non-operating income (expense)	5,434			14,353			(1,839		)
Income tax expense	(2,611		)	(2,619		)	(1,699		)
Income from real estate joint ventures	1,832			1,370			241
Net income attributable to noncontrolling interests	(8,123		)	(12,157		)	(12,180		)
Dividends to MAA Series I preferred shareholders	(3,688		)	(3,688		)	(307		)
Net income available for MAA common shareholders	$	219,211		$	324,691		$	211,915

⁽¹⁾ The 2016 column shows the segment break down based on the 2017 Same Store portfolio. A comparison using the 2018 Same Store portfolio would not be comparative due to the nature of the segment classifications.

Assets for each reportable segment as of December 31, 2018 and 2017 were as follows (in thousands):



	December 31, 2018		December 31, 2017
Assets:
Same Store	$	9,589,141	$	9,864,321
Non-Same Store and Other	1,565,480		1,427,778
Corporate assets	169,160		199,820
Total assets	$	11,323,781	$	11,491,919