Segment Information

9 Months Ended

Sep. 30, 2022

Notes To Financial Statements [Abstract]

Segment Information

11. Segment Information

As of September 30, 2022, the Company owned and operated 292 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 and storm related expenses related to Hurricane Ian.

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 nine months ended September 30, 2022 and 2021 were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021
Revenues:
Same Store
Rental revenues	$	492,215		$	429,267		$	1,412,358		$	1,243,540
Other property revenues		3,162			2,939			9,656			9,215
Total Same Store revenues		495,377			432,206			1,422,014			1,252,755
Non-Same Store and Other
Rental revenues		24,278			20,210			68,382			60,885
Other property revenues		1,128			159			1,505			867
Total Non-Same Store and Other revenues		25,406			20,369			69,887			61,752
Total rental and other property revenues	$	520,783		$	452,575		$	1,491,901		$	1,314,507
Net Operating Income:
Same Store NOI	$	315,616		$	268,882		$	910,496		$	777,147
Non-Same Store and Other NOI		13,744			10,855			38,885			33,293
Total NOI		329,360			279,737			949,381			810,440
Depreciation and amortization		(136,879	)		(134,611	)		(404,761	)		(397,938	)
Property management expenses		(16,262	)		(13,831	)		(48,429	)		(40,522	)
General and administrative expenses		(12,188	)		(12,670	)		(44,091	)		(38,763	)
Interest expense		(38,637	)		(39,234	)		(116,663	)		(117,773	)
(Loss) gain on sale of depreciable real estate assets		(1	)		(313	)		131,963			134,515
Gain on sale of non-depreciable real estate assets		431			170			809			202
Other non-operating (expense) income		(1,718	)		10,344			(19,248	)		14,557
Income tax benefit (expense)		1,256			(2,803	)		5,750			(5,847	)
Income from real estate joint venture		341			258			1,129			915
Net income attributable to noncontrolling interests		(3,392	)		(2,568	)		(12,025	)		(11,636	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders	$	121,389		$	83,557		$	441,049		$	345,384

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

	September 30, 2022		December 31, 2021
Assets:
Same Store	$	9,767,996	$	9,907,740
Non-Same Store and Other		1,390,173		1,106,039
Corporate assets		180,058		271,403
Total assets	$	11,338,227	$	11,285,182