Segment Information

9 Months Ended

Sep. 30, 2021

Notes To Financial Statements [Abstract]

Segment Information

11. Segment Information

As of September 30, 2021, the Company owned and operated 296 multifamily apartment communities (which does not include development communities under construction) in 15 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 includes communities that the Company has owned and have been stabilized for at least a full 12 months.

Non-Same Store and Other includes recently acquired communities, communities in development or lease-up, communities that have been identified for disposition, communities that have incurred a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. 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. Communities previously in development or lease-up are added to the Same Store segment on the first day of the calendar year after the community has been owned and stabilized for at least a full 12 months. Communities are considered stabilized after achieving 90% average physical occupancy for 90 days. Communities that have been identified for disposition are excluded from the Same Store segment.

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 directly related to property operating performance.

Revenues and NOI for each reportable segment for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Revenues:
Same Store
Rental revenues	$	431,030		$	403,574		$	1,249,053		$	1,197,610
Other property revenues		2,966			3,103			9,302			9,159
Total Same Store revenues		433,996			406,677			1,258,355			1,206,769
Non-Same Store and Other
Rental revenues		18,449			16,447			55,372			47,438
Other property revenues		130			75			780			116
Total Non-Same Store and Other revenues		18,579			16,522			56,152			47,554
Total rental and other property revenues	$	452,575		$	423,199		$	1,314,507		$	1,254,323
Net Operating Income:
Same Store NOI	$	269,393		$	244,513		$	779,194		$	747,581
Non-Same Store and Other NOI		10,344			8,872			31,246			26,285
Total NOI		279,737			253,385			810,440			773,866
Depreciation and amortization		(134,611	)		(127,679	)		(397,938	)		(381,257	)
Property management expenses		(13,831	)		(12,691	)		(40,522	)		(39,064	)
General and administrative expenses		(12,670	)		(11,360	)		(38,763	)		(35,181	)
Interest expense		(39,234	)		(41,010	)		(117,773	)		(126,610	)
(Loss) gain on sale of depreciable real estate assets		(313	)		20			134,515			(7	)
Gain on sale of non-depreciable real estate assets		170			1,366			202			995
Other non-operating income (expense)		10,344			242			14,557			(13,647	)
Income tax expense		(2,803	)		(665	)		(5,847	)		(2,532	)
Income from real estate joint venture		258			428			915			1,153
Net income attributable to noncontrolling interests		(2,568	)		(2,126	)		(11,636	)		(6,096	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders	$	83,557		$	58,988		$	345,384		$	168,854

Assets for each reportable segment as of September 30, 2021 and December 31, 2020 were as follows (in thousands):

	September 30, 2021		December 31, 2020
Assets:
Same Store	$	9,910,526	$	10,076,511
Non-Same Store and Other		1,140,873		937,375
Corporate assets		202,733		180,905
Total assets	$	11,254,132	$	11,194,791