Segment Information

6 Months Ended

Jun. 30, 2020

Notes To Financial Statements [Abstract]

Segment Information

11.Segment Information

As of June 30, 2020, the Company owned and operated 299 multifamily apartment communities in 16 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 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.  Properties in development or lease-up are added to the Same Store portfolio on the first day of the calendar year after a community 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 directly related to property operating performance.

Revenues and NOI for each reportable segment for the three and six months ended June 30, 2020 and 2019 were as follows (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Revenues:
Same Store
Rental revenues	$	386,581		$	378,146		$	776,288		$	751,611
Other property revenues		3,313			3,616			5,968			6,682
Total Same Store revenues		389,894			381,762			782,256			758,293
Non-Same Store and Other
Rental revenues		23,039			25,433			48,739			49,908
Other property revenues		93			195			129			367
Total Non-Same Store and Other revenues		23,132			25,628			48,868			50,275
Total rental and other property revenues	$	413,026		$	407,390		$	831,124		$	808,568
Net Operating Income:
Same Store NOI	$	242,713		$	238,016		$	492,000		$	475,854
Non-Same Store and Other NOI		12,842			15,232			28,481			29,195
Total NOI		255,555			253,248			520,481			505,049
Depreciation and amortization		(127,190	)		(123,944	)		(253,578	)		(246,733	)
Property management expenses		(11,730	)		(13,454	)		(26,373	)		(27,296	)
General and administrative expenses		(10,557	)		(10,398	)		(23,821	)		(22,735	)
Interest expense		(42,118	)		(45,936	)		(85,600	)		(91,636	)
Gain (loss) on sale of depreciable real estate assets		2			—			(27	)		(13	)
Gain (loss) on sale of non-depreciable real estate assets		5			297			(371	)		9,260
Other non-operating income (expense)		14,643			4,575			(13,889	)		4,694
Income tax expense		(1,200	)		(682	)		(1,867	)		(1,323	)
Income from real estate joint venture		318			435			725			832
Net income attributable to noncontrolling interests		(2,666	)		(2,224	)		(3,970	)		(4,522	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(1,844	)		(1,844	)
Net income available for MAA common shareholders	$	74,140		$	60,995		$	109,866		$	123,733

Assets for each reportable segment as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30, 2020		December 31, 2019
Assets:
Same Store	$	9,823,436	$	9,975,880
Non-Same Store and Other		1,146,811		1,049,029
Corporate assets		161,066		205,541
Total assets	$	11,131,313	$	11,230,450