Segment Information

6 Months Ended

Jun. 30, 2022

Notes To Financial Statements [Abstract]

Segment Information

11. Segment Information

As of June 30, 2022, the Company owned and operated 290 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. The Company has aggregated its operating segments into two reportable segments as management believes the apartment communities in each reportable segment generally have similar economic characteristics, facilities, services and residents.

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 as of the first day of the calendar year.

•Non-Same Store and Other includes recently acquired communities, communities being developed or in lease-up, communities that have been disposed of or identified for disposition, communities that have experienced 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 when achieving 90% average physical occupancy for 90 days.

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 six months ended June 30, 2022 and 2021 were as follows (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Revenues:
Same Store
Rental revenues	$	468,427		$	412,079		$	920,143		$	814,273
Other property revenues		3,733			3,324			6,494			6,276
Total Same Store revenues		472,160			415,403			926,637			820,549
Non-Same Store and Other
Rental revenues		22,705			21,088			44,104			40,675
Other property revenues		175			436			377			708
Total Non-Same Store and Other revenues		22,880			21,524			44,481			41,383
Total rental and other property revenues	$	495,040		$	436,927		$	971,118		$	861,932
Net Operating Income:
Same Store NOI	$	300,238		$	256,325		$	594,880		$	508,265
Non-Same Store and Other NOI		13,125			11,841			25,141			22,438
Total NOI		313,363			268,166			620,021			530,703
Depreciation and amortization		(134,144	)		(131,824	)		(267,882	)		(263,327	)
Property management expenses		(15,630	)		(13,752	)		(32,167	)		(26,691	)
General and administrative expenses		(15,580	)		(13,114	)		(31,903	)		(26,093	)
Interest expense		(38,905	)		(38,867	)		(78,026	)		(78,539	)
Gain on sale of depreciable real estate assets		131,965			134,828			131,964			134,828
Gain on sale of non-depreciable real estate assets		355			32			378			32
Other non-operating (expense) income		(28,325	)		20,126			(17,530	)		4,213
Income tax benefit (expense)		3,052			(2,045	)		4,494			(3,044	)
Income from real estate joint venture		409			325			788			657
Net income attributable to noncontrolling interests		(5,858	)		(7,397	)		(8,633	)		(9,068	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(1,844	)		(1,844	)
Net income available for MAA common shareholders	$	209,780		$	215,556		$	319,660		$	261,827

Assets for each reportable segment as of June 30, 2022 and December 31, 2021 were as follows (in thousands):

	June 30, 2022		December 31, 2021
Assets:
Same Store	$	9,798,283	$	9,907,740
Non-Same Store and Other		1,125,506		1,106,039
Corporate assets		356,612		271,403
Total assets	$	11,280,401	$	11,285,182