Segment Information

9 Months Ended

Sep. 30, 2020

Notes To Financial Statements [Abstract]

Segment Information

11.Segment Information

As of September 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 nine months ended September 30, 2020 and 2019 were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2020			2019			2020			2019
Revenues:
Same Store
Rental revenues	$	394,556		$	386,356		$	1,170,844		$	1,137,967
Other property revenues		3,044			3,244			9,012			9,926
Total Same Store revenues		397,600			389,600			1,179,856			1,147,893
Non-Same Store and Other
Rental revenues		25,465			25,917			74,204			75,825
Other property revenues		134			115			263			482
Total Non-Same Store and Other revenues		25,599			26,032			74,467			76,307
Total rental and other property revenues	$	423,199		$	415,632		$	1,254,323		$	1,224,200
Net Operating Income:
Same Store NOI	$	238,702		$	241,362		$	730,702		$	717,216
Non-Same Store and Other NOI		14,683			14,731			43,164			43,926
Total NOI		253,385			256,093			773,866			761,142
Depreciation and amortization		(127,679	)		(124,684	)		(381,257	)		(371,417	)
Property management expenses		(12,691	)		(13,899	)		(39,064	)		(41,195	)
General and administrative expenses		(11,360	)		(10,225	)		(35,181	)		(32,960	)
Interest expense		(41,010	)		(44,513	)		(126,610	)		(136,149	)
Gain (loss) on sale of depreciable real estate assets		20			1,000			(7	)		987
Gain on sale of non-depreciable real estate assets		1,366			—			995			9,260
Other non-operating income (expense)		242			18,800			(13,647	)		23,494
Income tax expense		(665	)		(1,491	)		(2,532	)		(2,814	)
Income from real estate joint venture		428			378			1,153			1,210
Net income attributable to noncontrolling interests		(2,126	)		(2,814	)		(6,096	)		(7,336	)
Dividends to MAA Series I preferred shareholders		(922	)		(922	)		(2,766	)		(2,766	)
Net income available for MAA common shareholders	$	58,988		$	77,723		$	168,854		$	201,456

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

	September 30, 2020		December 31, 2019
Assets:
Same Store	$	9,740,808	$	9,975,880
Non-Same Store and Other		1,198,693		1,049,029
Corporate assets		189,203		205,541
Total assets	$	11,128,704	$	11,230,450