MEMPHIS, Tenn., Feb. 1, 2017 /PRNewswire/ -- Mid-America
Apartment Communities, Inc., or MAA, (NYSE: MAA) today announced
operating results for the quarter and year ended December 31,
2016.
Net Income Available for Common Shareholders
For the
quarter ended December 31, 2016, net income available for MAA
common shareholders was $39.1
million, or $0.44 per diluted
common share, compared to $43.0
million, or $0.57 per diluted
common share, for the quarter ended December 31, 2015. Results
for the quarter ended December 31,
2016 included $31.8 million,
or $0.36 per diluted common share, of
gains related to the sale of real estate assets and $36.9 million, or $0.42 per diluted common share, of merger and
integration costs related to the merger transaction, or the Post
Properties Merger, with Post Properties, Inc., or Post Properties,
as compared to $0.1 million, or
$0.00 per diluted common share, of
losses related to the sale of real estate assets and no merger and
integration related costs for the quarter ended December 31, 2015.
For the year ended December 31, 2016, net income available
for MAA common shareholders was $211.9
million, or $2.69 per diluted
common share, compared to $332.3
million, or $4.41 per diluted
common share, for the year ended December 31, 2015. Results
for the year ended December 31, 2016 included $82.6 million, or $1.05 per diluted common share, of gains related
to the sale of real estate assets and $40.8
million, or $0.52 per diluted
common share, of merger and integration costs related to the merger
transaction with Post Properties, as compared to $190.1 million, or $2.53 per diluted common share, of gains related
to the sale of real estate assets and no merger and integration
costs for the year ended December 31, 2015.
Funds from Operations (FFO)
For the quarter ended
December 31, 2016, FFO was $104.2
million, or $1.13 per diluted
common share and unit, or per Share, compared to $118.6 million, or $1.49 per Share, for the quarter ended
December 31, 2015. Core Funds from Operations, or Core
FFO, which adjusts FFO for items that are not considered part of
our core business operations, for the quarter ended
December 31, 2016 was $138.5
million, or $1.50 per Share,
as compared to $115.5 million, or
$1.45 per Share, for the quarter
ended December 31, 2015. Core FFO for the quarter ended
December 31, 2016 was diluted by
$0.02 per Share due to the
December 1, 2016 closing of the Post
Properties Merger.
For the year ended December 31, 2016, FFO was $463.4 million, or $5.59 per Share, compared to $452.4 million, or $5.69 per Share, for the year ended
December 31, 2015. Core FFO for the year ended
December 31, 2016 was $490.3
million, or $5.91 per Share,
as compared to $438.6 million, or
$5.51 per Share, for the year ended
December 31, 2015. As discussed in the earnings release
for the third quarter of 2016, Core FFO guidance for the full year
2016 excluded the impact of the Post Properties Merger. Core
FFO for the year ended December 31,
2016 was diluted by $0.02 per
Share due to the December 1, 2016
closing of the Post Properties Merger.
A reconciliation of FFO and Core FFO to net income available for
MAA common shareholders, and an expanded discussion of the
components of FFO and Core FFO, can be found later in this
release.
Eric Bolton, Chairman and Chief
Executive Officer, said, "Results for the quarter were better than
expected. Core FFO of $1.50 per
share, which was one cent above the
mid-point of our prior guidance range, was achieved despite
dilution from the Post Properties Merger, which was not included in
our guidance. Solid leasing conditions and strong occupancy
levels continued across the portfolio. During the quarter we
successfully closed on one additional opportunistic property
acquisition, and we completed the disposition of five older
properties in line with our strategy of steadily recycling capital
and strengthening our long-term earnings profile.
We successfully closed the Post Properties Merger in line with
our expectations and the time frame provided in the August
announcement of the proposed transaction. Integration efforts
are well underway and we remain very enthusiastic about the
opportunities surrounding the combined company."
Highlights
- During the fourth quarter, MAA completed the previously
announced merger with Post Properties;
- Same Store NOI for the fourth quarter increased 4.2% as
compared to the same period in the prior year, based on a 3.6%
increase in revenue and a 2.6% increase in property operating
expenses.
- Average Effective Rent per Unit for the Same Store Portfolio
increased to $1,051 during the fourth
quarter, a 3.9% increase as compared to the same period in the
prior year, while Average Physical Occupancy was at 96.1% for the
fourth quarter, in line with the same period in the prior
year.
- Resident turnover for the Same Store Portfolio remained low for
the fourth quarter at 50.3% on a rolling twelve month basis.
- During the fourth quarter, in addition to the merger with Post
Properties, MAA acquired one property, a 302-unit community located
in Mt. Pleasant, South Carolina,
in the Charleston, South Carolina
market.
- During the fourth quarter, MAA sold five properties located in
the Dallas, Texas; Raleigh/Durham, North Carolina; and
Norfolk/Hampton/Virginia
Beach, Virginia markets, containing a total of 1,339
units.
- As of the end of the fourth quarter, MAA had nine development
projects underway. In total, MAA's development projects contain
2,816 units, with a total projected cost of approximately
$561.8 million of which approximately
$200.0 million remained to be spent
as of the end of the fourth quarter.
- As of the end of the fourth quarter, three properties remained
in lease-up, including the property acquired during the quarter,
with average quarter-end physical occupancy of 83.0% for the
group.
- During 2016, MAA completed renovation of 6,812 units under its
redevelopment program, achieving average rental rate increases of
9.8% above non-renovated units.
- During the fourth quarter, Standard & Poor's Ratings
Services upgraded MAA's senior unsecured rating to BBB+ with a
stable outlook.
- On December 1, 2016, after the
close of trading, MAA was added to the benchmark S&P 500
Index.
Fourth Quarter Same Store Portfolio Operating Results
The operating results for the Same Store Portfolio shown below do
not include the operating results for Post Properties communities.
Those Post Properties communities will not be eligible to enter the
Same Store Portfolio until January 1,
2018. Operating results for the Same Store Portfolio of
71,945 units in MAA's Large Market and Secondary Market segments of
the portfolio are presented below:
|
Percent Change
From
|
|
Three months
ended
|
|
Three months ended
December 31, 2015
|
|
December 31,
2016
|
|
|
|
|
|
|
|
Average
|
|
Average
|
|
|
|
|
|
|
|
Effective
|
|
Physical
|
|
Revenue
|
|
Expense
|
|
NOI
|
|
Rent per
Unit
|
|
Occupancy
|
Large
Market
|
4.1
|
%
|
|
2.5
|
%
|
|
5.1
|
%
|
|
4.3
|
%
|
|
96.1
|
%
|
Secondary
Market
|
2.7
|
%
|
|
2.7
|
%
|
|
2.6
|
%
|
|
2.8
|
%
|
|
96.1
|
%
|
Same Store
|
3.6
|
%
|
|
2.6
|
%
|
|
4.2
|
%
|
|
3.9
|
%
|
|
96.1
|
%
|
Same Store Portfolio revenue growth of 3.6% during the fourth
quarter of 2016 was primarily produced by a 3.9% increase in
Average Effective Rent per Unit, as compared to the same period in
the prior year. Average Physical Occupancy for the Same
Store Portfolio was 96.1% for the fourth quarter of 2016 as
compared to 96.1% in the same period of the prior year. Operating
expenses increased 2.6% for the fourth quarter of 2016, with the
largest portion of the growth related to property taxes and office
operations costs, partially offset by declining insurance costs,
repair and maintenance expenses, and marketing expenses.
A reconciliation of NOI, including Same Store NOI, to net income
available for MAA common shareholders, and an expanded discussion
of the components of NOI, can be found later in this release.
Acquisition and Disposition Activity
During the
fourth quarter of 2016, MAA acquired a new community, 1201 Midtown,
a 302-unit community located in the Charleston, South Carolina market, for a
purchase price of $70.3
million. During 2016, MAA acquired five properties
containing 1,626 units for an aggregate purchase price of
approximately $334.3 million.
During the fourth quarter of 2016, MAA closed on the disposition
of five multifamily properties averaging 28 years of age for a
combined sales price of $112.7
million. The properties were located in the Dallas, Texas; Raleigh/Durham, North Carolina; and
Norfolk/Hampton/Virginia
Beach, Virginia markets. During 2016, MAA sold 12
multifamily properties containing 3,263 units for an aggregate
sales price of approximately $264.7
million.
Development and Lease-up Activity
As of the end
of the fourth quarter of 2016, MAA had nine development communities
under construction, consisting of five expansion communities and
four new development communities. Total development costs for
the nine communities are projected to be $561.8 million, with an expected average
stabilized NOI yield of 6.4%. During the fourth quarter of 2016,
MAA funded $16.0 million of
construction costs leaving an estimated $200.0 million remaining to be funded. MAA
had three communities remaining in lease-up as of the end of the
fourth quarter of 2016: Residences at Fountainhead, located in the
Phoenix, Arizona market, which was
acquired in lease-up during the second quarter of 2016; Innovation
Apartment Homes, located in Greenville,
South Carolina, which was acquired in lease-up during the
third quarter of 2016; and 1201 Midtown, located in the
Charleston, South Carolina market,
which was acquired during the fourth quarter of 2016.
Physical occupancy for the three communities averaged 83.0% at the
end of the fourth quarter.
Redevelopment Activity
MAA continues its
interior redevelopment program at select communities throughout the
portfolio. During the fourth quarter of 2016, MAA redeveloped
a total of 1,349 units at an average cost of $4,666 per unit, bringing the total units
renovated during the year to 6,812, at an average cost of
$4,478 per unit, achieving average
rental rate increases of 9.8% above non-renovated units.
Capital Expenditures
Recurring capital
expenditures totaled $9.1 million for
the fourth quarter of 2016, or approximately $0.10 per Share, as compared to $8.6 million, or $0.11 per Share, for the same period in
2015. These expenditures led to Core Adjusted Funds from
Operations, or Core AFFO, of $1.40
per Share, for the fourth quarter of 2016, compared to $1.34 per Share for the same period in 2015.
Redevelopment, revenue enhancing and other capital expenditures
during the fourth quarter of 2016 were $15.5
million, as compared to $18.0
million for the same period in 2015. These
expenditures led to Funds Available for Distribution, or FAD, of
$113.9 million for the fourth quarter
of 2016, compared to $88.9 million
for the same period in 2015.
Recurring capital expenditures totaled $51.7 million for the year ended December 31, 2016, or approximately $0.62 per Share, as compared to $56.9 million, or $0.71 per Share, for the year ended December 31, 2015. These expenditures led
to Core AFFO of $5.29 per Share, for
the year ended December 31, 2016,
compared to $4.80 per Share for the
year ended December 31,
2015.
Redevelopment, revenue enhancing and other capital expenditures
during the year ended December 31,
2016, were $73.3 million, as
compared to $70.4 million for the
year ended December 31, 2015.
These expenditures led to FAD of $365.3
million for the year ended December
31, 2016, compared to $311.3
million for the year ended December
31, 2015.
A reconciliation of FFO, Core FFO, Core AFFO and FAD to net
income available for MAA common shareholders, and an expanded
discussion of the components of FFO, Core FFO, Core AFFO and FAD,
can be found later in this release.
Balance Sheet
As of December 31, 2016:
- Total debt to Total Market Capitalization was 28.1% (based on
the December 31, 2016 closing stock price), compared to 32.2%
as of December 31, 2015;
- Total debt to Gross Assets was 33.9% compared to 41.1% as of
December 31, 2015;
- Total debt outstanding was $4.5
billion at an average effective interest rate of 3.5%;
- 86.7% of total debt was fixed or hedged against rising interest
rates for an average of 3.6 years;
- Approximately $540.2 million
combined cash and capacity under MAA's unsecured credit facility
was available; and
- Unencumbered assets increased to 80.3% of Gross Assets, as
compared to 72.0% as of December 31,
2015.
A reconciliation of Gross Assets to Total Assets, and an
expanded discussion of their respective components, can be found
later in this release.
Merger Related Activities
In connection with the Post
Properties Merger that was consummated on December 1, 2016, MAA incurred a total of
$35.1 million, or $0.38 per Share, of merger costs during the
fourth quarter of 2016, consisting primarily of severance, legal,
professional and advisory costs. For the year ended
December 31, 2016, MAA incurred a
total of $39.0 million, or
$0.47 per Share of merger costs. The
largest portion of the merger related costs have been recognized,
with some final costs expected to be incurred during 2017 as
certain merger related activities are finalized.
Integration efforts are progressing well, with the Post
Properties portfolio now fully consolidated into the company's
operating structure and with activities to combine the operating
and financial system platforms well underway. During the fourth
quarter of 2016, MAA incurred $1.8
million, or $0.02 per Share,
of integration costs, which were primarily related to temporary
systems, staffing, facilities and consulting costs, necessary to
complete the integration of the companies' business
platforms. MAA expects to incur additional integration costs
during 2017 and integration efforts to continue through early
2018.
Once the business platforms are fully integrated, MAA forecasts
expected synergies of approximately $20
million in overhead costs (combined general and
administrative costs and property management expense savings) to be
realized. MAA also anticipates additional synergies and
savings to be gained from efficiencies due to increased portfolio
scale and concentrated footprint, from improvements to operating
practices, and from an improved cost of capital from the increased
strength and liquidity of the combined balance sheet.
92nd Consecutive Quarterly Common Dividend Declared
MAA declared its 92nd consecutive quarterly common dividend at an
annual rate of $3.48 per common
share, which was paid on January 31,
2017 to holders of record on January
13, 2017.
2017 Net Income per diluted common share and FFO and AFFO per
Share Guidance
MAA is providing initial 2017 guidance
for Net income per diluted common share, as well as FFO per Share
and AFFO per Share, which are non-GAAP measures. As outlined in the
definitions of non-GAAP measures accompanying this release, MAA's
definition of FFO is in accordance with the National Association of
Real Estate Investment Trusts', or NAREIT, definition. MAA believes
that FFO is helpful in understanding operating performance in that
FFO excludes depreciation expense of real estate assets and certain
other non-routine items.
MAA's guidance is based on management's current views and
expectations of company activities, the apartment market and
general economic conditions. Guidance is based on several key
assumptions, which are summarized below and further detailed in a
supplement to this release that can be found under the "Financial
Results" navigation tab on the "For Investors" page of MAA's
website at www.maac.com. MAA intends to update Net income per
diluted common share, FFO per Share and AFFO per Share guidance on
a quarterly basis.
Net income per diluted common share is expected to be in the
range of $1.82 to $2.02 per diluted
common share for the full year 2017.
FFO per Share is expected to be in the range of $5.72 to $5.92 per Share, or $5.82 per Share at the mid-point. This
initial guidance is based on projections for the Combined Adjusted
Same Store Portfolio consisting of property revenue growth of 3.0%
to 3.5%, property operating expense growth of 3.0% to 4.0%, and NOI
growth of 3.0% to 3.5%. Real estate taxes, which represent
over 30% of total property operating expenses, are projected to
increase 5.0% to 6.0%. MAA expects FFO for the first quarter
of 2017 to be in the range of $1.33 to
$1.43 per Share.
Guidance for 2017 includes expected dilution of approximately
$0.14 to $0.17 per Share due to
merger and integration expenses, which is projected to be
$16.0 million to $20.0 million in
total for the year.
MAA expects total recurring capital expenditures for the
full-year will be approximately $68.0
million to $72.0 million, which would produce expected AFFO
of $5.12 to $5.32 per Share.
Supplemental Material and Conference Call
Supplemental data to this release can be found under the "Financial
Results" navigation tab on the "For Investors" page of our website
at www.maac.com. MAA will host a conference call to further discuss
fourth quarter and the full year 2016 results on Thursday, February 2, 2017, at 9:00 AM Central Time. The conference
call-in number is 800-895-4790. You may also join the live
webcast of the conference call by accessing the "For Investors"
page of our website at www.maac.com. MAA's filings with the
Securities and Exchange Commission, or SEC, are filed under the
registrant names of Mid-America Apartment Communities, Inc. and
Mid-America Apartments, L.P.
About MAA
MAA, an S&P 500 company, is a real
estate investment trust focused on delivering full-cycle and
superior investment performance for shareholders through the
ownership, management, acquisition, development and redevelopment
of quality apartment communities throughout the United States. As of December 31, 2016, MAA had ownership interest in
101,509 apartment units, including communities currently in
development, across 17 states and the District of
Columbia. For further details, please visit the MAA website at
www.maac.com or contact Investor Relations at
investor.relations@maac.com, or via mail at MAA, 6584 Poplar Ave.,
Memphis, TN 38138, Attn:
Investor Relations.
Forward-Looking Statements
Sections of this release
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, with respect to
our expectations for future periods. Forward-looking statements do
not discuss historical fact, but instead include statements related
to expectations, projections, intentions or other items related to
the future. Such forward-looking statements include, without
limitation, statements about the anticipated benefits from the
completed merger with Post Properties and statements concerning
property acquisitions and dispositions, joint venture activity,
development and renovation activity as well as other capital
expenditures, capital raising activities, rent and expense growth,
occupancy, financing activities, operating performance and results
and interest rate and other economic expectations. Words such as
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," and variations of such words and similar expressions
are intended to identify such forward-looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from the
results of operations, financial conditions or plans expressed or
implied by such forward-looking statements. Such factors include,
among other things, unanticipated adverse business developments
affecting us, or our properties, adverse changes in the real estate
markets and general and local economies and business conditions.
Although we believe that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of
the assumptions could be inaccurate, and therefore such
forward-looking statements included in this release may not prove
to be accurate. In light of the significant uncertainties inherent
in the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by us
or any other person that the results or conditions described in
such statements or our objectives and plans will be achieved.
The following factors, among others, could cause our future
results to differ materially from those expressed in the
forward-looking statements:
- inability to generate sufficient cash flows due to market
conditions, changes in supply and/or demand, competition, uninsured
losses, changes in tax and housing laws, or other factors;
- exposure, as a multifamily focused REIT, to risks inherent in
investments in a single industry and sector;
- adverse changes in real estate markets, including, but not
limited to, the extent of future demand for multifamily units in
our significant markets, barriers of entry into new markets, which
we may seek to enter in the future, limitations on our ability to
increase rental rates, competition, our ability to identify and
consummate attractive acquisitions or development projects on
favorable terms, our ability to consummate any planned dispositions
in a timely manner on acceptable terms, and our ability to reinvest
sale proceeds in a manner that generates favorable returns;
- failure of new acquisitions to achieve anticipated results or
be efficiently integrated;
- failure of development communities to be completed, if at all,
within budget and on a timely basis or to lease-up as
anticipated;
- unexpected capital needs;
- changes in operating costs, including real estate taxes,
utilities and insurance costs;
- losses from catastrophes in excess of our insurance
coverage;
- ability to obtain financing at favorable rates, if at all, and
refinance existing debt as it matures;
- level and volatility of interest or capitalization rates or
capital market conditions;
- loss of hedge accounting treatment for interest rate swaps or
interest rate caps;
- the continuation of the good credit of our interest rate swap
and cap providers;
- price volatility, dislocations and liquidity disruptions in the
financial markets and the resulting impact on financing;
- the effect of any rating agency actions on the cost and
availability of new debt financing;
- significant decline in market value of real estate serving as
collateral for mortgage obligations;
- significant change in the mortgage financing market that would
cause single-family housing, either as an owned or rental product,
to become a more significant competitive product;
- our ability to continue to satisfy complex rules in order to
maintain our status as a REIT for federal income tax purposes, the
ability of our operating partnership to satisfy the rules to
maintain its status as a partnership for federal income tax
purposes, the ability of our taxable REIT subsidiaries to maintain
their status as such for federal income tax purposes, and our
ability and the ability of our subsidiaries to operate effectively
within the limitations imposed by these rules;
- inability to attract and retain qualified personnel;
- cyberliability or potential liability for breaches of our
privacy or information security systems;
- potential liability for environmental contamination;
- adverse legislative or regulatory tax changes;
- litigation and compliance costs associated with laws requiring
access for disabled persons;
- risks associated with unexpected costs or unexpected
liabilities that may arise from the merger with Post
Properties;
- risks associated with the merger, including the integration of
MAA's and Post Properties' businesses and achieving expected
revenue synergies and/or cost savings as a result of the merger;
and
- other risks identified in this press release and, from time to
time, in other reports we file with the SEC or in other documents
that we publicly disseminate.
We undertake no obligation to publicly update or revise these
forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this release.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
Dollars in
thousands, except per share data
|
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Total operating
revenues
|
$
|
307,198
|
|
|
$
|
263,337
|
|
|
$
|
1,125,348
|
|
|
$
|
1,042,779
|
|
|
|
|
|
|
|
|
|
Net income available
for MAA common shareholders
|
$
|
39,079
|
|
|
$
|
42,987
|
|
|
$
|
211,915
|
|
|
$
|
332,287
|
|
|
|
|
|
|
|
|
|
Total NOI
|
$
|
194,324
|
|
|
$
|
165,796
|
|
|
$
|
701,368
|
|
|
$
|
642,134
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:(1)
|
|
|
|
|
|
|
|
Basic
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
2.69
|
|
|
$
|
4.41
|
|
Diluted
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
2.69
|
|
|
$
|
4.41
|
|
|
|
|
|
|
|
|
|
Funds from operations
per Share (diluted):(1)
|
|
|
|
|
|
|
|
FFO
|
$
|
1.13
|
|
|
$
|
1.49
|
|
|
$
|
5.59
|
|
|
$
|
5.69
|
|
Core FFO
|
$
|
1.50
|
|
|
$
|
1.45
|
|
|
$
|
5.91
|
|
|
$
|
5.51
|
|
Core AFFO
|
$
|
1.40
|
|
|
$
|
1.34
|
|
|
$
|
5.29
|
|
|
$
|
4.80
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.87
|
|
|
$
|
0.82
|
|
|
$
|
3.33
|
|
|
$
|
3.13
|
|
|
|
|
|
|
|
|
|
Dividends/ Core FFO
(diluted) payout ratio
|
58.0
|
%
|
|
56.6
|
%
|
|
56.3
|
%
|
|
56.8
|
%
|
Dividends/ Core AFFO
(diluted) payout ratio
|
62.1
|
%
|
|
61.2
|
%
|
|
62.9
|
%
|
|
65.2
|
%
|
|
|
|
|
|
|
|
|
Consolidated interest
expense
|
$
|
33,529
|
|
|
$
|
30,834
|
|
|
$
|
129,947
|
|
|
$
|
122,344
|
|
Mark-to-market debt
adjustment
|
3,476
|
|
|
3,901
|
|
|
14,610
|
|
|
19,955
|
|
Debt discount and
debt issuance cost amortization(2)
|
(1,214)
|
|
|
(1,084)
|
|
|
(4,801)
|
|
|
(4,433)
|
|
Capitalized
interest
|
978
|
|
|
342
|
|
|
2,073
|
|
|
1,655
|
|
Total interest
incurred
|
$
|
36,769
|
|
|
$
|
33,993
|
|
|
$
|
141,829
|
|
|
$
|
139,521
|
|
|
|
|
|
|
|
|
|
Amortization of
principal on notes payable
|
$
|
2,515
|
|
|
$
|
1,934
|
|
|
$
|
8,401
|
|
|
$
|
8,244
|
|
|
|
|
|
|
|
|
|
(1) See
"Share and Unit Data" section for additional
information.
|
(2)
Amounts include $917,000 of debt issuance cost amortization
(previously disclosed as amortization of deferred financing costs)
and $297,000 of debt discount amortization for the fourth quarter
of 2016 and $871,000 of debt issuance cost amortization and
$264,000 of debt discount amortization for the fourth quarter of
2015. Full year amounts include $3,612,000 of debt issuance
cost amortization and $1,189,000 of debt discount amortization for
the year ended December 31, 2016, and $3,582,000 of debt issuance
cost amortization and $852,000 of debt discount amortization for
the year ended December 31, 2015.
|
FINANCIAL
HIGHLIGHTS (CONTINUED)
|
|
|
|
Dollars in
thousands, except per share data
|
|
|
|
|
As
of
|
|
December 31,
2016
|
|
December 31,
2015
|
Gross
Assets(1)
|
$
|
13,279,292
|
|
|
$
|
8,346,994
|
|
Gross Real Estate
Assets(1)
|
$
|
13,108,458
|
|
|
$
|
8,255,138
|
|
Total debt
|
$
|
4,499,712
|
|
|
$
|
3,427,568
|
|
Common shares and
units outstanding
|
117,738,615
|
|
|
79,571,567
|
|
Share
price
|
$
|
97.92
|
|
|
$
|
90.81
|
|
Book equity
value
|
$
|
6,652,174
|
|
|
$
|
3,166,073
|
|
Market equity
value
|
$
|
11,528,965
|
|
|
$
|
7,225,894
|
|
Net Debt/Recurring
EBITDA (2)
|
5.74x
|
|
|
5.79x
|
|
|
(1) A
reconciliation of Gross Assets to Total assets and Gross Real
Estate Assets to Real estate assets, net along with an expanded
discussion of their components, can be found later in this
release.
|
(2)
Recurring EBITDA in this calculation represents the trailing twelve
month period for each date presented. Since only one month of
Recurring EBITDA for the Post Properties communities is included in
the results for the year ended December 31, 2016, in calculating
the ratio as of December 31, 2016, we have adjusted Net Debt by
averaging the Net Debt for each quarter of 2016. A
reconciliation of the following items and an expanded discussion of
their respective components can be found later in this release: (i)
EBITDA and Recurring EBITDA to consolidated net income; and (ii)
Net Debt to Unsecured notes payable and Secured notes
payable.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Dollars in
thousands, except per share data
|
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
revenues:
|
|
|
|
|
|
|
|
Rental
revenues
|
$
|
284,457
|
|
|
$
|
241,421
|
|
|
$
|
1,033,609
|
|
|
$
|
952,196
|
|
Other property
revenues
|
22,741
|
|
|
21,916
|
|
|
91,739
|
|
|
90,583
|
|
Total operating
revenues
|
307,198
|
|
|
263,337
|
|
|
1,125,348
|
|
|
1,042,779
|
|
Property operating
expenses:
|
|
|
|
|
|
|
|
Personnel
|
28,455
|
|
|
24,967
|
|
|
106,745
|
|
|
103,000
|
|
Building repairs and
maintenance
|
8,140
|
|
|
7,329
|
|
|
31,296
|
|
|
30,524
|
|
Real estate taxes and
insurance
|
38,601
|
|
|
31,793
|
|
|
142,784
|
|
|
129,618
|
|
Utilities
|
23,930
|
|
|
22,327
|
|
|
93,000
|
|
|
89,769
|
|
Landscaping
|
4,801
|
|
|
4,426
|
|
|
19,816
|
|
|
19,458
|
|
Other
operating
|
8,947
|
|
|
6,699
|
|
|
29,715
|
|
|
28,276
|
|
Depreciation and
amortization
|
95,129
|
|
|
73,914
|
|
|
322,958
|
|
|
294,520
|
|
Total property
operating expenses
|
208,003
|
|
|
171,455
|
|
|
746,314
|
|
|
695,165
|
|
Acquisition
expenses
|
761
|
|
|
622
|
|
|
2,928
|
|
|
2,777
|
|
Property management
expenses
|
8,872
|
|
|
7,884
|
|
|
34,093
|
|
|
30,990
|
|
General and
administrative expenses
|
8,782
|
|
|
6,613
|
|
|
29,040
|
|
|
25,716
|
|
Merger related
expenses
|
35,133
|
|
|
—
|
|
|
39,033
|
|
|
—
|
|
Integration related
expenses
|
1,790
|
|
|
—
|
|
|
1,790
|
|
|
—
|
|
Income from
continuing operations before non-operating items
|
43,857
|
|
|
76,763
|
|
|
272,150
|
|
|
288,131
|
|
Interest and other
non-property income (expense)
|
565
|
|
|
(8)
|
|
|
724
|
|
|
(368)
|
|
Interest
expense
|
(33,529)
|
|
|
(30,834)
|
|
|
(129,947)
|
|
|
(122,344)
|
|
Loss on debt
extinguishment
|
(85)
|
|
|
(218)
|
|
|
(83)
|
|
|
(3,602)
|
|
Net casualty (loss)
gain after insurance and other settlement proceeds
|
(290)
|
|
|
(13)
|
|
|
448
|
|
|
473
|
|
Gain (loss) on sale
of depreciable real estate assets
|
31,825
|
|
|
(72)
|
|
|
80,397
|
|
|
189,958
|
|
Gain on sale of
non-depreciable real estate assets
|
—
|
|
|
—
|
|
|
2,171
|
|
|
172
|
|
Income before income
tax expense
|
42,343
|
|
|
45,618
|
|
|
225,860
|
|
|
352,420
|
|
Income tax
expense
|
(499)
|
|
|
(254)
|
|
|
(1,699)
|
|
|
(1,673)
|
|
Income from
continuing operations before joint venture activity
|
41,844
|
|
|
45,364
|
|
|
224,161
|
|
|
350,747
|
|
Gain (loss) from real
estate joint ventures
|
214
|
|
|
3
|
|
|
241
|
|
|
(2)
|
|
Net income
|
42,058
|
|
|
45,367
|
|
|
224,402
|
|
|
350,745
|
|
Net income
attributable to noncontrolling interests
|
2,672
|
|
|
2,380
|
|
|
12,180
|
|
|
18,458
|
|
Net income available
for shareholders
|
39,386
|
|
|
42,987
|
|
|
212,222
|
|
|
332,287
|
|
Dividends to
preferred shareholders
|
307
|
|
|
—
|
|
|
307
|
|
|
—
|
|
Net income available
for MAA common shareholders
|
$
|
39,079
|
|
|
$
|
42,987
|
|
|
$
|
211,915
|
|
|
$
|
332,287
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic:
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
2.69
|
|
|
$
|
4.41
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted:
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
2.69
|
|
|
$
|
4.41
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.87
|
|
|
$
|
0.82
|
|
|
$
|
3.33
|
|
|
$
|
3.13
|
|
SHARE AND UNIT
DATA
|
|
|
|
|
|
|
|
Shares and units
in thousands
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
NET INCOME
SHARES (1)
|
|
|
|
|
|
|
|
Weighted average
common shares - basic
|
88,109
|
|
|
75,203
|
|
|
78,502
|
|
|
75,176
|
|
Weighted average
partnership units outstanding
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Effect of dilutive
securities
|
283
|
|
|
197
|
|
|
298
|
|
|
—
|
|
Weighted average
common shares - diluted
|
88,392
|
|
|
75,400
|
|
|
78,800
|
|
|
75,176
|
|
FUNDS FROM
OPERATIONS SHARES AND UNITS
|
|
|
|
|
|
|
|
Weighted average
common shares and units - basic
|
92,277
|
|
|
79,378
|
|
|
82,661
|
|
|
79,361
|
|
Weighted average
common shares and units - diluted
|
92,535
|
|
|
79,575
|
|
|
82,918
|
|
|
79,551
|
|
PERIOD END SHARES
AND UNITS
|
|
|
|
|
|
|
|
Common shares at
December 31,
|
113,518
|
|
|
75,409
|
|
|
113,518
|
|
|
75,409
|
|
Partnership units at
December 31,
|
4,220
|
|
|
4,163
|
|
|
4,220
|
|
|
4,163
|
|
Total shares and
units at December 31,
|
117,738
|
|
|
79,572
|
|
|
117,738
|
|
|
79,572
|
|
|
(1) For additional
information on the calculation of diluted common shares and
earnings per common share, please refer to the Notes to
Consolidated Financial Statements in MAA's Annual Report on Form
10-K for the year ended December 31, 2016, expected to be filed
with the SEC on or about February 27, 2017.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
Dollars in
thousands
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
Real estate
assets
|
|
|
|
Land
|
$
|
1,816,008
|
|
|
$
|
926,532
|
|
Buildings and
improvements
|
10,523,762
|
|
|
6,939,288
|
|
Furniture, fixtures
and equipment
|
298,204
|
|
|
228,157
|
|
Capital improvements
in progress
|
231,224
|
|
|
44,355
|
|
|
12,869,198
|
|
|
8,138,332
|
|
Accumulated
depreciation
|
(1,656,071)
|
|
|
(1,482,368)
|
|
|
11,213,127
|
|
|
6,655,964
|
|
Undeveloped
land
|
71,464
|
|
|
51,779
|
|
Corporate property,
net
|
12,778
|
|
|
8,812
|
|
Investments in real
estate joint ventures
|
44,493
|
|
|
1,811
|
|
Real estate assets,
net
|
11,341,862
|
|
|
6,718,366
|
|
Cash and cash
equivalents
|
33,536
|
|
|
37,559
|
|
Restricted
cash
|
88,264
|
|
|
26,082
|
|
Deferred financing
cost, net
|
5,065
|
|
|
5,232
|
|
Other
assets
|
134,525
|
|
|
58,935
|
|
Goodwill
|
1,239
|
|
|
1,607
|
|
Total
assets
|
$
|
11,604,491
|
|
|
$
|
6,847,781
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Liabilities
|
|
|
|
Unsecured notes
payable
|
$
|
3,180,624
|
|
|
$
|
2,141,332
|
|
Secured notes
payable
|
1,319,088
|
|
|
1,286,236
|
|
Accounts
payable
|
11,970
|
|
|
5,922
|
|
Fair market value of
interest rate swaps
|
7,562
|
|
|
10,358
|
|
Accrued expenses and
other liabilities
|
414,244
|
|
|
226,237
|
|
Security
deposits
|
18,829
|
|
|
11,623
|
|
Total
liabilities
|
4,952,317
|
|
|
3,681,708
|
|
Redeemable
stock
|
10,073
|
|
|
8,250
|
|
Shareholders'
equity
|
|
|
|
Preferred
stock
|
9
|
|
|
—
|
|
Common
stock
|
1,133
|
|
|
753
|
|
Additional paid-in
capital
|
7,109,012
|
|
|
3,627,074
|
|
Accumulated
distributions in excess of net income
|
(707,479)
|
|
|
(634,141)
|
|
Accumulated other
comprehensive gain (loss)
|
1,144
|
|
|
(1,589)
|
|
Total MAA
shareholders' equity
|
6,403,819
|
|
|
2,992,097
|
|
Noncontrolling
interest - operating partnership units
|
235,976
|
|
|
165,726
|
|
Total Company's
shareholders' equity
|
6,639,795
|
|
|
3,157,823
|
|
Noncontrolling
interest - consolidated real estate entity
|
2,306
|
|
|
—
|
|
Total
equity
|
6,642,101
|
|
|
3,157,823
|
|
Total liabilities and
shareholders' equity
|
$
|
11,604,491
|
|
|
$
|
6,847,781
|
|
RECONCILIATION OF
FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME
|
Amounts in
thousands, except per share and unit data
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income available
for MAA common shareholders
|
$
|
39,079
|
|
|
$
|
42,987
|
|
|
$
|
211,915
|
|
|
$
|
332,287
|
|
Depreciation and
amortization of real estate assets
|
94,200
|
|
|
73,121
|
|
|
319,528
|
|
|
291,572
|
|
(Gain) loss on sale
of depreciable real estate assets
|
(31,825)
|
|
|
72
|
|
|
(80,397)
|
|
|
(189,958)
|
|
Loss (gain) on
disposition within unconsolidated entities
|
—
|
|
|
—
|
|
|
98
|
|
|
(12)
|
|
Depreciation and
amortization of real estate assets of real estate joint
ventures
|
50
|
|
|
6
|
|
|
61
|
|
|
25
|
|
Net income
attributable to noncontrolling interests
|
2,672
|
|
|
2,380
|
|
|
12,180
|
|
|
18,458
|
|
Funds from operations
attributable to the Company
|
104,176
|
|
|
118,566
|
|
|
463,385
|
|
|
452,372
|
|
Acquisition
expense
|
761
|
|
|
622
|
|
|
2,928
|
|
|
2,777
|
|
Merger related
expenses
|
35,133
|
|
|
—
|
|
|
39,033
|
|
|
—
|
|
Integration related
expenses
|
1,790
|
|
|
—
|
|
|
1,790
|
|
|
—
|
|
Gain on sale of
non-depreciable real estate assets
|
—
|
|
|
—
|
|
|
(2,300)
|
|
|
(172)
|
|
Mark-to-market debt
adjustment
|
(3,476)
|
|
|
(3,901)
|
|
|
(14,610)
|
|
|
(19,955)
|
|
Loss on debt
extinguishment
|
85
|
|
|
218
|
|
|
83
|
|
|
3,602
|
|
Core funds from
operations attributable to the Company
|
138,469
|
|
|
115,505
|
|
|
490,309
|
|
|
438,624
|
|
Recurring capital
expenditures
|
(9,099)
|
|
|
(8,565)
|
|
|
(51,732)
|
|
|
(56,888)
|
|
Core adjusted funds
from operations
|
129,370
|
|
|
106,940
|
|
|
438,577
|
|
|
381,736
|
|
Redevelopment and
revenue enhancing capital expenditures
|
(11,730)
|
|
|
(13,634)
|
|
|
(60,238)
|
|
|
(55,854)
|
|
Other capital
expenditures
|
(3,744)
|
|
|
(4,388)
|
|
|
(13,077)
|
|
|
(14,593)
|
|
Funds available for
distribution
|
$
|
113,896
|
|
|
$
|
88,918
|
|
|
$
|
365,262
|
|
|
$
|
311,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and
distributions paid
|
$
|
65,564
|
|
|
$
|
61,265
|
|
|
$
|
261,502
|
|
|
$
|
244,977
|
|
Weighted average
common shares - diluted
|
88,392
|
|
|
75,400
|
|
|
78,800
|
|
|
75,176
|
|
Weighted average
common shares and units - diluted
|
92,535
|
|
|
79,575
|
|
|
82,918
|
|
|
79,551
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted:
|
|
|
|
|
|
|
|
Net income available
for common shareholders
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
2.69
|
|
|
$
|
4.41
|
|
|
|
|
|
|
|
|
|
Funds from operations
per Share
|
$
|
1.13
|
|
|
$
|
1.49
|
|
|
$
|
5.59
|
|
|
$
|
5.69
|
|
Core funds from
operations per Share
|
$
|
1.50
|
|
|
$
|
1.45
|
|
|
$
|
5.91
|
|
|
$
|
5.51
|
|
Core adjusted funds
from operations per Share
|
$
|
1.40
|
|
|
$
|
1.34
|
|
|
$
|
5.29
|
|
|
$
|
4.80
|
|
RECONCILIATION OF
NET OPERATING INCOME TO NET INCOME
|
|
|
|
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
NOI
|
|
|
|
|
|
|
|
|
|
Same Store
NOI
|
$
|
156,564
|
|
|
$
|
152,560
|
|
|
$
|
150,212
|
|
|
$
|
611,340
|
|
|
$
|
581,407
|
|
Non-Same Store
NOI
|
37,760
|
|
|
17,692
|
|
|
15,584
|
|
|
90,028
|
|
|
60,727
|
|
Total NOI
|
194,324
|
|
|
170,252
|
|
|
165,796
|
|
|
701,368
|
|
|
642,134
|
|
Depreciation and
amortization
|
(95,129)
|
|
|
(76,959)
|
|
|
(73,914)
|
|
|
(322,958)
|
|
|
(294,520)
|
|
Acquisition
expense
|
(761)
|
|
|
(1,033)
|
|
|
(622)
|
|
|
(2,928)
|
|
|
(2,777)
|
|
Property management
expenses
|
(8,872)
|
|
|
(7,908)
|
|
|
(7,884)
|
|
|
(34,093)
|
|
|
(30,990)
|
|
General and
administrative expenses
|
(8,782)
|
|
|
(6,661)
|
|
|
(6,613)
|
|
|
(29,040)
|
|
|
(25,716)
|
|
Merger related
expenses
|
(35,133)
|
|
|
(3,901)
|
|
|
—
|
|
|
(39,033)
|
|
|
—
|
|
Integration related
expenses
|
(1,790)
|
|
|
—
|
|
|
—
|
|
|
(1,790)
|
|
|
—
|
|
Interest and other
non-property income (expense)
|
565
|
|
|
64
|
|
|
(8)
|
|
|
724
|
|
|
(368)
|
|
Interest
expense
|
(33,529)
|
|
|
(32,168)
|
|
|
(30,834)
|
|
|
(129,947)
|
|
|
(122,344)
|
|
Loss on debt
extinguishment
|
(85)
|
|
|
—
|
|
|
(218)
|
|
|
(83)
|
|
|
(3,602)
|
|
Gain (loss) on sale
of depreciable real estate assets
|
31,825
|
|
|
47,749
|
|
|
(72)
|
|
|
80,397
|
|
|
189,958
|
|
Net casualty (loss)
gain and other settlement proceeds
|
(290)
|
|
|
(75)
|
|
|
(13)
|
|
|
448
|
|
|
473
|
|
Income tax
expense
|
(499)
|
|
|
(454)
|
|
|
(254)
|
|
|
(1,699)
|
|
|
(1,673)
|
|
Gain on sale of
non-depreciable real estate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
2,171
|
|
|
172
|
|
Gain (loss) from real
estate joint ventures
|
214
|
|
|
—
|
|
|
3
|
|
|
241
|
|
|
(2)
|
|
Net income
attributable to noncontrolling interests
|
(2,672)
|
|
|
(4,627)
|
|
|
(2,380)
|
|
|
(12,180)
|
|
|
(18,458)
|
|
Preferred dividend
distributions
|
(307)
|
|
|
|
|
|
|
(307)
|
|
|
—
|
|
Net income available
for MAA common shareholders
|
$
|
39,079
|
|
|
$
|
84,279
|
|
|
$
|
42,987
|
|
|
$
|
211,291
|
|
|
$
|
332,287
|
|
RECONCILIATION OF
EBITDA AND RECURRING EBITDA TO CONSOLIDATED NET
INCOME
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Consolidated net
income
|
$
|
42,058
|
|
|
$
|
45,367
|
|
|
$
|
224,402
|
|
|
$
|
350,745
|
|
Depreciation and
amortization
|
95,129
|
|
|
73,914
|
|
|
322,958
|
|
|
294,520
|
|
Interest
expense
|
33,529
|
|
|
30,834
|
|
|
129,947
|
|
|
122,344
|
|
Loss on debt
extinguishment
|
85
|
|
|
218
|
|
|
83
|
|
|
3,602
|
|
Net casualty loss
(gain) and other settlement proceeds
|
290
|
|
|
13
|
|
|
(448)
|
|
|
(473)
|
|
Income tax
expense
|
499
|
|
|
254
|
|
|
1,699
|
|
|
1,673
|
|
Gain on sale of
non-depreciable assets
|
—
|
|
|
—
|
|
|
(2,171)
|
|
|
(172)
|
|
(Gain) loss on sale
of depreciable real estate assets
|
(31,825)
|
|
|
72
|
|
|
(80,397)
|
|
|
(189,958)
|
|
Gain on disposition
within unconsolidated entities
|
—
|
|
|
—
|
|
|
(28)
|
|
|
(12)
|
|
EBITDA
|
139,765
|
|
|
150,672
|
|
|
596,045
|
|
|
582,269
|
|
Acquisition
expense
|
761
|
|
|
622
|
|
|
2,928
|
|
|
2,777
|
|
Merger related
expenses
|
35,133
|
|
|
—
|
|
|
39,033
|
|
|
—
|
|
Integration related
expenses
|
1,790
|
|
|
—
|
|
|
1,790
|
|
|
—
|
|
Recurring
EBITDA
|
$
|
177,449
|
|
|
$
|
151,294
|
|
|
$
|
639,796
|
|
|
$
|
585,046
|
|
RECONCILIATION OF
NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES
PAYABLE
|
Dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Unsecured notes
payable
|
$
|
3,180,624
|
|
|
$
|
2,195,989
|
|
|
$
|
2,246,227
|
|
|
$
|
2,195,214
|
|
|
$
|
2,141,332
|
|
Secured notes
payable
|
1,319,088
|
|
|
1,238,168
|
|
|
1,243,198
|
|
|
1,247,749
|
|
|
1,286,236
|
|
Total debt
|
4,499,712
|
|
|
3,434,157
|
|
|
3,489,425
|
|
|
3,442,963
|
|
|
3,427,568
|
|
Cash and cash
equivalents
|
(33,536)
|
|
|
(27,817)
|
|
|
(26,279)
|
|
|
(28,184)
|
|
|
(37,559)
|
|
1031(b) exchange
proceeds included in Restricted Cash
|
(58,259)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Debt
|
$
|
4,407,917
|
|
|
$
|
3,406,340
|
|
|
$
|
3,463,146
|
|
|
$
|
3,414,779
|
|
|
$
|
3,390,009
|
|
RECONCILIATION OF
GROSS ASSETS TO TOTAL ASSETS
|
Dollars in
thousands
|
|
|
|
|
As
of
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
Total
assets
|
$
|
11,604,491
|
|
|
$
|
6,847,781
|
|
Accumulated
depreciation
|
1,656,071
|
|
|
1,482,368
|
|
Accumulated
depreciation for corporate property(1)
|
18,730
|
|
|
16,845
|
|
Gross
Assets
|
$
|
13,279,292
|
|
|
$
|
8,346,994
|
|
|
(1)
Included in Corporate property, net on the Consolidated Balance
Sheets
|
RECONCILIATION OF
GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
|
Dollars in
thousands
|
|
|
|
|
As
of
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
Real estate assets,
net
|
$
|
11,341,862
|
|
|
$
|
6,718,366
|
|
Accumulated
depreciation
|
1,656,071
|
|
|
1,482,368
|
|
Accumulated
depreciation for corporate property(1)
|
18,730
|
|
|
16,845
|
|
Cash and cash
equivalents
|
33,536
|
|
|
37,559
|
|
1031(b) exchange
proceeds included in Restricted Cash
|
58,259
|
|
|
—
|
|
Gross Real Estate
Assets
|
$
|
13,108,458
|
|
|
$
|
8,255,138
|
|
|
(1)
Included in Corporate property, net on the Consolidated Balance
Sheets
|
NON-GAAP FINANCIAL MEASURES
Adjusted Funds From Operations (AFFO)
AFFO is
composed of FFO less recurring capital expenditures. AFFO should
not be considered as an alternative to net income. As an
owner and operator of real estate, MAA considers AFFO to be an
important measure of performance from operations because AFFO
measures the ability to control revenues, expenses and recurring
capital expenditures.
Core Adjusted Funds From Operations (Core AFFO)
Core
AFFO is composed of Core FFO less recurring capital expenditures.
Core AFFO should not be considered as an alternative to net
income. As an owner and operator of real estate, MAA
considers Core AFFO to be an important measure of performance from
core operations because Core AFFO measures the ability to control
revenues, expenses and recurring capital expenditures.
Core Funds From Operations (Core FFO)
Core FFO
represents FFO further adjusted for items that are not considered
part of our core business operations such as acquisition, merger
and integration expenses, mark-to-market debt adjustments, loss or
gain on debt extinguishment, and loss or gain on sale of
non-depreciable assets. While MAA's definition of Core FFO is
similar to others in the industry, MAA's precise methodology for
calculating Core FFO may differ from that utilized by other REITs
and, accordingly, may not be comparable to such other REITs.
Core FFO should not be considered as an alternative to net
income. MAA believes that Core FFO is helpful in
understanding our core operating performance between periods in
that it removes certain items that by their nature are not
comparable over periods and therefore tend to obscure actual
operating performance.
EBITDA
For purposes of calculations in this document,
Earnings Before Interest, Income Taxes, Depreciation and
Amortization, or EBITDA, is composed of net income before net gain
on asset sales and insurance and other settlement proceeds, and
gain or loss on debt extinguishment, plus depreciation, interest
expense, income taxes, and amortization of deferred financing
costs. As an owner and operator of real estate, MAA considers
EBITDA to be an important measure of performance from core
operations because EBITDA does not include various income and
expense items that are not indicative of operating performance.
EBITDA should not be considered as an alternative to net income as
an indicator of financial performance. MAA's computation of EBITDA
may differ from the methodology utilized by other companies to
calculate EBITDA.
Funds Available for Distribution (FAD)
FAD is
composed of Core FFO less total capital expenditures, excluding
development spending and property acquisitions. FAD should not be
considered as an alternative to net income. As an owner and
operator of real estate, MAA considers FAD to be an important
measure of performance from core operations because FAD measures
the ability to control revenues, expenses and total capital
expenditures.
Funds From Operations (FFO)
FFO represents net income
available for common shareholders (computed in accordance with U.S.
generally accepted accounting principles, or GAAP) excluding
extraordinary items, asset impairment, gains or losses on
disposition of real estate assets, plus net income attributable to
noncontrolling interest, depreciation of real estate, and
adjustments for joint ventures to reflect FFO on the same
basis. Because noncontrolling interest is added back, FFO,
when used in this document, represents FFO attributable to the
Company. While MAA's definition of FFO is in accordance with
the National Association of Real Estate Investment Trusts'
definition, it may differ from the methodology for calculating FFO
utilized by other REITs and, accordingly, may not be comparable to
such other REITs. FFO should not be considered as an
alternative to net income as an indicator of operating
performance. MAA believes that FFO is helpful in
understanding operating performance in that FFO excludes
depreciation expense of real estate assets. MAA believes that
GAAP historical cost depreciation of real estate assets is
generally not correlated with changes in the value of those assets,
whose value does not diminish predictably over time, as historical
cost depreciation implies.
Gross Assets
Gross Assets represents Total assets
plus Accumulated depreciation and the accumulated depreciation for
corporate properties. MAA believes that Gross Assets can be
used as a helpful tool in evaluating its balance sheet
positions. MAA believes that GAAP historical cost
depreciation of real estate assets is generally not correlated with
changes in the value of those assets, whose value does not diminish
predictably over time, as historical cost depreciation implies.
Gross Real Estate Assets
Gross Real Estate Assets
represents Real estate assets, net plus Accumulated depreciation
and the accumulated depreciation for corporate properties, which is
included in Corporate property, net on the Consolidated Balance
Sheets, plus Cash and cash equivalents plus 1031(b) exchange
proceeds included in Restricted cash on the Consolidated Balance
Sheets. MAA believes that Gross Real Estate Assets can be
used as a helpful tool in evaluating its balance sheet
positions. MAA believes that GAAP historical cost
depreciation of real estate assets is generally not correlated with
changes in the value of those assets, whose value does not diminish
predictably over time, as historical cost depreciation implies.
Net Debt
Net Debt represents Unsecured notes payable
and Secured notes payable less Cash and cash equivalents and
1031(b) proceeds included in Restricted cash on the Consolidated
Balance Sheets. MAA believes Net Debt is a helpful tool in
evaluating its debt position.
Net Operating Income (NOI)
Net operating income
represents total property revenues less total property operating
expenses, excluding depreciation, for all properties held during
the period, regardless of their status as held for sale. MAA
believes NOI by market is a helpful tool in evaluating the
operating performance within MAA's markets because it measures the
core operations of property performance by excluding corporate
level expenses and other items not related to property operating
performance.
Recurring EBITDA
Recurring EBITDA represents EBITDA
further adjusted to exclude certain items that are not considered
part of our core business operations such as acquisition and merger
and integration expenses. MAA believes Recurring EBITDA is an
important performance measure as it adjusts for certain items that
by their nature are not comparable over periods and therefore tend
to obscure actual operating performance. Recurring EBITDA should
not be considered as an alternative to net income as an indicator
of operating performance. MAA's computation of Recurring EBITDA may
differ from the methodology utilized by other companies to
calculate Recurring EBITDA.
Same Store NOI
Same Store NOI represents total
property revenues less total property operating expenses, excluding
depreciation, for all properties classified as Same Store held
during the period. MAA believes Same Store NOI by portfolio is a
helpful tool in evaluating the operating performance within MAA's
markets because it measures the core operations of property
performance by excluding corporate level expenses and other items
not related to property operating performance.
OTHER KEY DEFINITIONS
Average Effective Rent per Unit
Average effective
rent per unit represents the average of gross rent amounts after
the effect of leasing concessions for occupied units plus prevalent
market rates asked for unoccupied units, divided by the total
number of units. Leasing concessions represent discounts to the
current market rate. MAA believes average effective rent is a
helpful measurement in evaluating average pricing. It does not
represent actual rental revenue collected per unit.
Average Physical Occupancy
Average physical occupancy
represents the average of the daily physical occupancy for the
quarter.
Combined Adjusted Same Store Portfolio
Combined
Adjusted Same Store Portfolio represents the MAA Same Store and the
Legacy-Post Same Store portfolios considered as a single portfolio,
as if the Legacy-Post Same Store portfolio was owned during all
periods presented.
Development Portfolio
Communities remain identified
as development until certificates of occupancy are obtained for all
units under development. Once all units are delivered and available
for occupancy, the community moves into the Lease-up Portfolio.
Lease-up Portfolio
New acquisitions acquired during
lease-up and newly developed communities remain in the Lease-up
Portfolio until stabilized.
Legacy-Post Same Store
Legacy-Post Same Store
represents the Post Properties same store portfolio which was in
place immediately prior to the merger with Post Properties.
Because these properties have only been owned by MAA since
December 1, 2016, they are not
included in the MAA Same Store portfolio. See Same Store
Portfolio for more information regarding inclusion. These
properties have been identified in certain tables to provide
Combined Adjusted Same Store results as if the properties had been
owned by MAA in prior periods. These properties will be
eligible to join the MAA Same Store portfolio in January 2018.
Other Non-Same Store Portfolio
Other Non-Same Store
Portfolio includes recent acquisitions, communities in development
or lease-up, communities that have undergone a significant casualty
loss, and commercial assets.
Same Store Portfolio (or MAA Same Store)
MAA reviews
its Same Store Portfolio at the beginning of each calendar year, or
as significant transactions warrant. Communities are generally
added into the Same Store Portfolio if they were owned and
stabilized at the beginning of the previous year. Communities
that have been approved by MAA's Board of Directors for disposition
are excluded from the Same Store Portfolio. Communities that
have undergone a significant casualty loss are also excluded from
the Same Store Portfolio. Within the Same Store Portfolio
communities are designated as operating in Large or Secondary
Markets:
Large Market Same Store
communities are generally those communities in markets with a
population of at least one million and at least 1% of the total
public multifamily REIT units.
Secondary Market Same Store
communities are generally those communities in markets with either
a population less than one million or less than 1% of the total
public multifamily REIT units, or both.
Stabilized Communities
Communities are considered
stabilized after achieving 90% occupancy for 90 days.
Total Market Capitalization
Total Market
Capitalization equals the number of shares of common stock plus
units not held by MAA at period end multiplied by the closing stock
price at period end, plus total debt outstanding.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/maa-reports-fourth-quarter-and-year-end-results-300400867.html
SOURCE MAA