Segment Information

As of March 31, 2019, 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.


•	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 net operating income, or 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.

Revenues and NOI for each reportable segment for the three months ended March 31, 2019 and 2018 were as follows (in thousands):



	Three months ended March 31,
	2019			2018
Revenues:
Same Store
Rental revenues	$	372,441		$	341,095
Reimbursable property revenues ⁽¹⁾	—			23,002
Other property revenues	3,099			2,874
Total Same Store revenues	$	375,540		$	366,971
Non-Same Store and Other
Rental revenues	$	25,499		$	17,945
Reimbursable property revenues ⁽¹⁾	—			685
Other property revenues	139			416
Total Non-Same Store and Other revenues	$	25,638		$	19,046
Total rental and other property revenues	$	401,178		$	386,017

Net Operating Income:
Same Store NOI	$	237,439		$	231,655
Non-Same Store and Other NOI	14,362			9,958
Total NOI	251,801			241,613
Depreciation and amortization	(122,789		)	(120,744		)
Property management expenses	(13,842		)	(12,880		)
General and administrative expenses	(13,153		)	(10,132		)
Merger and integration expenses	—			(3,799		)
Interest expense	(45,700		)	(40,905		)
Loss on sale of depreciable real estate assets	(13		)	—
Gain on sale of non-depreciable real estate assets	8,963			150
Other non-operating income (expense)	935			(2,341		)
Income tax expense	(641		)	(640		)
Income from real estate joint venture	397			498
Net income attributable to noncontrolling interests	(2,298		)	(1,801		)
Dividends to MAA Series I preferred shareholders	(922		)	(922		)
Net income available for MAA common shareholders	$	62,738		$	48,097

⁽¹⁾ As a result of the adoption of ASC Topic 842 referenced in Note 1, for the three months ended March 31, 2019, Same Store and Non-Same Store reimbursable property revenues of $23.0 million and $0.8 million, respectively, are reflected as rental revenues.

Assets for each reportable segment as of March 31, 2019 and December 31, 2018 were as follows (in thousands):



	March 31, 2019		December 31, 2018
Assets:
Same Store	$	9,935,157	$	9,991,538
Non-Same Store and Other	1,178,083		1,163,083
Corporate assets	190,522		169,160
Total assets	$	11,303,762	$	11,323,781