MEMPHIS, Tenn., Feb. 4 /PRNewswire-FirstCall/ -- Mid-America
Apartment Communities, Inc. (NYSE:MAA), or Mid-America, reported
net income available for common shareholders for the quarter ended
December 31, 2009, of $6,090,000, or $0.21 per diluted common
share, as compared to net income available for common shareholders
of $4,517,000, or $0.16 per diluted common share, for the fourth
quarter of 2008. Funds from operations, or FFO, the widely accepted
measure of performance for real estate investment trusts, was
$28,698,000 or $0.92 per diluted share/unit, or per Share, for the
fourth quarter of 2009, as compared to $28,102,000 or $0.92 per
Share for the same quarter of 2008. Fourth quarter 2009 FFO per
Share was $0.05 ahead of the mid-point of Mid-America's guidance. A
reconciliation of FFO to net income attributable to Mid-America
Apartment Communities, Inc. and an expanded discussion of the
components of FFO can be found later in this release. For the year
ended December 31, 2009, net income available for common
shareholders was $24,346,000, or $0.85 per diluted common share, as
compared to $17,384,000, or $0.64 per diluted common share, for the
year ended December 31, 2008. For the full year 2009 Mid-America
recorded gains from the disposition of three properties totaling
$4,649,000; without these gains, net income available per diluted
common share for the year 2009 would have been $0.69. For the year
ended December 31, 2009, FFO was $116,665,000, or $3.79 per Share,
compared to $109,749,000, or $3.73 per Share, for the year ended
December 31, 2008, an increase of 1.6%. Highlights: -- Stronger
than expected operating performance drove FFO per Share for the
fourth quarter of 2009 to $0.92 which is $0.05 per Share ahead of
the mid-point of previous guidance. -- As a result of the stronger
than expected operating results, FFO per Share for the full year
2009 was $3.79, which is a record performance for Mid-America and
represents a 1.6% increase over the full year 2008. -- Physical
occupancy for the same store portfolio ended the year at a solid
95.1%, which is 1.7% ahead of the same period in 2008. -- For the
year ended December 31, 2009, same store revenue averaged a decline
of 1.2%, and net operating income, or NOI, averaged a decline of
1.5%. -- Despite continued weak economic conditions, same store net
collection loss remained historically low at only 0.4% of net
potential rent during the fourth quarter of 2009. -- Same store
walk-in leasing traffic during the fourth quarter of 2009 increased
5.6% from the same period in 2008. -- Resident move-outs reached a
record low of 58% at year-end 2009. This compares to a 61% resident
move-out rate for year-end 2008. -- Mid-America completed the
renovation and repositioning of 368 units in the fourth quarter of
2009, bringing the total for the full year to 2,019 units with rent
increases averaging 9%. -- Taking advantage of an improved market
for making attractive acquisitions, Mid-America acquired three
high-quality properties during the fourth quarter totaling 1,311
units for $107.3 million. -- During the fourth quarter, Mid-America
raised an additional $8.2 million of new equity through the
company's continuous equity offering program at an average price of
$47.60 per share, net of fees. -- Mid-America's fixed charge
coverage ratio was 2.68 for the fourth quarter of 2009 and the
balance sheet remains well positioned to capture new growth
opportunities. Wholly-owned Acquisitions: Three High-End Properties
Added to the Portfolio On October 9, 2009, Mid-America acquired
Park Crest at Innisbrook, a 432-unit upscale community located in
the Palm Harbor suburb of Tampa, Florida. The property was built in
2000, has a superior location at the entrance of the Innisbrook
Resort and Golf Club, and is located near top schools, retail and
employment centers in the market. On December 4, 2009, Mid-America
acquired Stone Ranch at Westover Hills, a new 400-unit upscale
community completed in 2009. The property is located in the
prestigious Westover Hills neighborhood of San Antonio, Texas,
overlooking the high-end Hyatt Hill Country Golf Club. The property
was recently stabilized and was 93% occupied when acquired. On
December 30, 2009, Mid-America acquired Legacy at Western Oaks, an
upscale 479-unit community in Austin, Texas. The community is
located in a desirable southwest Austin sub-market with quick
access to major roads and area employers and was built in 2001. In
January, Mid-America transferred ownership of the property to
Mid-America Multifamily Fund II, LLC, or Fund II, one of the
companies' joint ventures. The combined investment in the 1,311
units acquired during the fourth quarter totaled $107.3 million, or
about $82,000 per unit, well below replacement costs for these
three high-quality communities. Mid-America remains active
underwriting several other investment opportunities in its target
markets. Development: Completed Remaining Project Construction of
the 45-unit expansion of Copper Ridge I in Dallas, Texas, the one
remaining development project in process, was completed during the
fourth quarter with an additional investment of $1.7 million.
Leasing of the added units went well during the quarter, with
occupancy on the entire 261-unit property reaching 95% at year-end.
No further development projects are planned at this time. Property
Redevelopment: Continuing to Create Strong Investment Returns
Redevelopment of 2,019 apartment units at 53 apartment communities
was completed in 2009 at an average cost of $4,125 per unit. The
average monthly rent increase achieved on the renovated units was
$70 representing a 9% increase from the average rent level of
non-renovated apartment units. The projected unleveraged internal
rate of return on the renovation program is approximately 10%.
Dispositions: Completed Planned Recycling As part of its long-term
strategy of maintaining a portfolio of newer, high-quality
properties, Mid-America completed the sale of a 25-year old
property with 440 units located in Memphis, Tennessee during the
fourth quarter. This transaction along with the sale of two other
properties earlier in the year in Greensboro, North Carolina and in
Grenada, Mississippi, completed Mid-America's disposition plans for
the year. The total sales proceeds for all three assets was
approximately $30 million representing a blended cap rate of
approximately 7.0% Operating Results: Exceeding Expectations Eric
Bolton, Chairman and Chief Executive Officer, said "During the
fourth quarter and throughout 2009, despite the economic downturn,
Mid-America's performance held up well and generated results that
were well ahead of expectations. This solid performance is
attributable to our strategy of diversifying capital across the
high-growth Sunbelt region, supported by a strong operating
platform capable of capturing performance and long-term value
creation exceeding market norms. "These same attributes and
capabilities position the company to weather what is expected to be
a slow recovery in apartment leasing fundamentals. Mid-America's
disciplined approach to deploying capital, sophisticated operating
platform and solid balance sheet put the company in position to not
only hold up well during this down part of the cycle, but also
aggressively participate in the recovery cycle for the apartment
business expected to get underway in late 2010 and into 2011. We
are excited about the terrific new investments captured over the
last half of 2009 and we look forward to executing on additional
growth opportunities in 2010." Al Campbell, Executive Vice
President and Chief Financial Officer, said "Our balance sheet
continues to be in a strong position with debt to total market
capitalization at 46% and our fixed charge coverage ratio at 2.68,
well ahead of the prior year level of 2.51. We have completed the
negotiations of our only debt maturity for 2010, the $50 million
bank credit facility, and expect to close the renewal in the first
quarter of 2010." Fourth Quarter 2009 Same Store Results Percent
Change From Three Months Ended December 31, 2008 (Prior Year):
Average Effective Physical Rent per Markets Revenue(1) Expense
NOI(1) Occupancy Unit ------- ---------- ------- ------ ---------
--------- Large -3.1% -1.4% -4.3% 1.6% -5.2% Secondary -0.9% 0.6%
-1.9% 1.9% -3.4% ---------- ------- ------ --------- ---------
Operating Same Store -2.0% -0.4% -3.1% 1.7% -4.3% Total Same Store
-1.7% -0.4% -2.6% (1) Revenue and NOI by market and for Operating
Same Store are presented before the impact of straight-line revenue
adjustments. Total Same Store includes straight-line revenue
adjustments. A reconciliation of NOI to net income attributable to
Mid-America Apartment Communities, Inc. and an expanded discussion
of the components of NOI can be found later in this release. Same
store results for the fourth quarter of 2009 reflect the continued
impact of re-pricing the portfolio to the weaker market conditions
as compared to the prior year. Same store revenues for the fourth
quarter of 2009 declined 1.7% compared to the same period in 2008.
The decline was primarily related to a 4.3% reduction in average
effective rents which declined to $719 per unit during the fourth
quarter of 2009 from $751 per unit for the same period in 2008.
Although declining during the fourth quarter of 2008, the steepest
decline in lease re-pricing occurred in the second quarter of 2009.
Since then, rents have remained fairly stable, considering seasonal
impact, but re-pricing the portfolio to current levels should
continue to produce unfavorable comparisons for another few
quarters. Strong occupancy offset a large portion of the pricing
decline, as the same store portfolio ended the year at 95.1%
occupancy, as compared to 93.4% at the same point in the prior
year. Contributions from some of Mid-America's new fee initiatives
during the fourth quarter also contributed to off-setting some of
the decline in rents as compared to prior year. Same store
operating expenses remained under control during the fourth quarter
of 2009, declining 0.4% from the prior year. Real estate tax
expense continued to reflect the favorable impact of successful
prior year appeals and assessment challenges, providing the
majority of the reduction in operating expenses compared to the
prior year. Same store NOI decreased by 2.6% in the fourth quarter
of 2009 compared to the same quarter a year ago. Excluded from the
same store group are six properties that are part of Mid-America's
redevelopment program that are going through an extensive
renovation. The supplementary schedules contain an additional
performance chart which adds this six-property group back to same
store. Financing, Balance Sheet: Continued Strength and Capacity
for Growth Mid-America's balance sheet continues to show strength
with the fixed charge coverage reaching 2.68, compared to 2.51 for
the same quarter a year ago. As of December 31, 2009, total debt
was 50% of gross assets and Mid-America had approximately $100
million of excess cash and available capacity under current credit
facilities. Mid-America's only debt maturity for 2010 is its $50
million bank line of credit, maturing in May. Terms have been
negotiated and renewal is expected late in the first quarter of
2010. On November 1, 2009, Mid-America replaced a $65 million
security under its Fannie Mae credit facility, which had a fixed
rate of 7.7%, using variable rate borrowings under the same
facility. A combination of fixed rate agency financing and interest
rate caps are planned to fix or hedge the interest rate on the new
borrowings, which are expected to produce annual savings between
$0.08 and $0.10 of FFO per Share. At December 31, 2009, 81.2% of
Mid-America's debt was fixed or hedged against rising interest
rates. An additional 1.8% was hedged with a $25 million interest
rate cap traded in January 2010. Mid-America raised a total of $8.2
million of additional common equity during the fourth quarter of
2009 at an average price of $47.60 per share net of issuance costs
using our long established continuous equity offering program.
Adjusted Funds from Operations and Capital Expenditures Recurring
capital expenditures totaled $3.0 million for the fourth quarter of
2009, approximately $0.10 per Share, resulting in adjusted funds
from operations, or AFFO, of $0.82 per Share compared to AFFO of
$0.81 per Share in the fourth quarter of last year. Total property
capital expenditures on existing properties were $4.9 million, plus
$1.5 million of expenditures on the redevelopment program for the
fourth quarter. For all of 2009, recurring capital expenditures
totaled $21.9 million, approximately $0.71 per Share, resulting in
AFFO of $3.08 per Share compared to $2.99 per Share for 2008. For
the year ended December 31, 2009, total property capital
expenditures on existing properties were $31.3 million, plus
redevelopment expenditures of $9.7 million. A reconciliation of
AFFO to net income attributable to Mid-America Apartment
Communities, Inc. and an expanded discussion of the components of
AFFO can be found later in this release. Common Dividend: $2.46
Annual Rate Mid-America's Board of Directors voted to continue the
quarterly common dividend at the existing annual rate of $2.46 per
common share/unit, and declared its 64th consecutive quarterly
common dividend to be paid on January 29, 2010 to holders of record
on January 15, 2010. 2010 Guidance The forecast for 2010 is built
on several key assumptions. Mid-America's management believes that
unemployment will remain near the current high levels through most
of 2010 causing continued weak leasing demand in most markets.
Growth in the supply of new apartments is also expected to remain
muted in most markets in 2010, setting the stage for strong
recovery beginning in 2011. Given expected weak pricing power in
2010, the focus through much of the year will be on protecting
occupancy and controlling operating expenses. Although new lease
prices are projected to be essentially stable, pricing actions
taken in 2009 will continue to put pressure on rental revenues
through much of 2010 until the portfolio is fully re-priced late in
the year. Management expects FFO per Share for 2010 to be in the
range of $3.45 to $3.65, at the mid-point a 6.3% reduction from
2009 results. FFO for the first quarter is anticipated to be in the
range of $0.86 to $0.96 per Share, in the second quarter $0.84 to
$0.94 per Share, for the third quarter $0.80 to $0.90 per Share,
and for the fourth quarter $0.85 to $0.95 per Share. 2010 Same
Store Projections Total same store NOI for 2010 is forecast to
decline in a range of 5% to 7%, which compares to an average
decline of 1.5% for 2009. The continued roll-out of Mid-America's
bulk cable program is projected to have a positive impact in 2010,
with $750,000 net contribution expected to NOI for the full year.
Under this new program gross revenues and expenses will now be
reported on separate line items. Consequently, revenue and expense
comparisons to prior year will be presented considering this
change. Before the impact of the bulk cable program, revenues for
2010 are projected to decline in a range of 2% to 3%, and property
operating expenses for 2010 are projected to grow between 2% and
3%. Including bulk cable, total revenues are projected to be flat
to a decline of 1%, and total expenses are projected to grow
between 7% and 8%. Real estate tax expense is expected to increase
approximately 4% as management anticipates more aggressive state
and local government rate increases for 2010. Redevelopment
Management anticipates that it will continue its moderated pace on
the program to renovate selected properties, and expects to invest
approximately $9 million in 2,000 apartment units during 2010,
achieving incremental rent increases averaging 8% to 9%. Joint
Venture Management expects to add $150 million in assets to Fund II
during 2010, including Legacy at Western Oaks in Austin, Texas,
which was purchased by Mid-America in December 2009 and transferred
to Fund II in January 2010. Acquisitions, Dispositions and
Development Management projects the acquisition of approximately
$150 million of wholly-owned properties in 2010. No dispositions or
new development projects are currently planned for 2010. General
and Administrative Expense Property management expense combined
with general and administrative expense, or G&A, are projected
to increase from $28.5 million in 2009 to between $29 million and
$30 million in 2010. Since Mid-America includes performance bonuses
for multi- site and home-office management within G&A, total
costs will change based on actual company and property results.
Interest Expense Management projects interest rates based on the
forward yield curve, and anticipates that its average borrowing
cost will be in the range of 4.1% to 4.3% for 2010. Approximately
$148 million of interest rate swaps mature during 2010 at an
average rate of 5.7%. Mid-America plans to replace these maturities
with a combination of fixed rate financings and interest rate caps
with a blended cost at or below the existing swap rates. AFFO and
Balance Sheet Recurring capital expenditures are forecast to be
$23.1 million, or approximately $0.72 cents per Share, indicating a
range for AFFO of $2.73 to $2.93 per Share. The current annual
dividend rate of $2.46 per common share is forecast to remain
consistent in 2010. Total capital expenditures at existing
properties are forecast to be approximately $32.3 million,
excluding the redevelopment program mentioned above. Management
plans to finance the investment programs through additional
borrowings under Mid-America's credit facilities and fixed rate
agency financings. Supplemental Material and Conference Call
Supplemental data to this release can be found on the investor
relations page of the Mid-America web site at http://www.maac.net/.
Mid-America will host a conference call to further discuss fourth
quarter results and 2010 prospects on Friday, February 5, 2010, at
9:15 AM Central Time. The conference call-in number is 866-793-1342
and the moderator's name is Eric Bolton. About Mid-America
Apartment Communities, Inc. Mid-America is a self-administered,
self-managed apartment-only real estate investment trust, which
currently owns or has ownership interest in 43,604 apartment units
throughout the Sunbelt region of the U.S. For further details,
please refer to the Mid-America website at http://www.maac.net/ or
contact Investor Relations at . 6584 Poplar Ave., Memphis, TN
38138. Forward-Looking Statements We consider portions of this
press release to be forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, 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 concerning property acquisitions and
dispositions, development activity and capital expenditures,
capital raising activities, rent growth, occupancy, and rental
expense growth. 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 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 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 press 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; -- increasing real estate taxes and
insurance costs; -- failure of new acquisitions to achieve
anticipated results or be efficiently integrated into us; --
failure of development communities to lease-up as anticipated; --
inability of a joint venture to perform as expected; -- inability
to acquire additional or dispose of existing apartment units on
favorable economic terms; -- losses from catastrophes in excess of
our insurance coverage; -- unexpected capital needs; -- inability
to attract and retain qualified personnel; -- potential liability
for environmental contamination; -- adverse legislative or
regulatory tax changes; -- litigation and compliance costs
associated with laws requiring access for disabled persons; --
imposition of federal taxes if we fail to qualify as a REIT under
the Internal Revenue Code in any taxable year or foregone
opportunities to ensure REIT status; -- inability to acquire
funding through the capital markets; -- inability to pay required
distributions to maintain REIT status due to required debt
payments; -- changes in interest rate levels, including that of
variable rate debt, such as extensively used by us; -- loss of
hedge accounting treatment for interest rate swaps; -- the
continuation of the good credit of our interest rate swap and cap
providers; -- the availability of credit, including mortgage
financing, and the liquidity of the debt markets, including a
material deterioration of the financial condition of the Federal
National Mortgage Association and the Federal Home Loan Mortgage
Corporation, at present operating under the conservatorship of the
United States Government; and -- inability to meet loan covenants.
Reference is hereby made to the filings of Mid-America Apartment
Communities, Inc., with the Securities and Exchange Commission,
including quarterly reports on Form 10-Q, reports on Form 8-K, and
its annual report on Form 10-K, particularly including the risk
factors contained in the latter filing. CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands except per share data)
-------------------------------------------------------------------
Three months Twelve months ended ended December 31, December 31,
------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ----
Property revenues $95,231 $93,893 $378,251 $369,805 Management and
fee income, net 88 59 293 206 Property operating expenses (40,351)
(39,475) (159,705) (155,310) Depreciation (24,703) (23,623)
(96,019) (90,168) Acquisition expenses (811) - (950) - Property
management expenses (4,469) (3,924) (17,220) (16,799) General and
administrative (3,014) (3,090) (11,320) (11,837)
-------------------------- ------ ------ ------- ------- Income
from continuing operations before non-operating items 21,971 23,840
93,330 95,897 Interest and other non-property income 76 170 385 509
Interest expense (14,022) (15,731) (57,094) (62,010) Loss on debt
extinguishment - (113) (140) (116) Amortization of deferred
financing costs (593) (607) (2,374) (2,307) Net casualty gain
(loss) and other settlement proceeds 285 340 32 (247) Gain (loss)
on sale of non- depreciable assets 14 - 15 (3)
--------------------------- -- - -- -- Income from continuing
operations before loss from real estate joint ventures 7,731 7,899
34,154 31,723 Loss from real estate joint ventures (176) (288)
(816) (844) --------------------------- ---- ---- ---- ---- Income
from continuing operations 7,555 7,611 33,338 30,879 Discontinued
operations: Income from discontinued operations 176 578 1,234 1,312
Gains (loss) on sales of discontinued operations 2,049 - 4,649
(120) -------------------------- ----- - ----- ---- Consolidated
net income 9,780 8,189 39,221 32,071 Net income attributable to
noncontrolling interests (474) (456) (2,010) (1,822)
---------------------------- ---- ---- ------ ------ Net income
attributable to Mid- America Apartment Communities, Inc. 9,306
7,733 37,211 30,249 Preferred dividend distribution (3,216) (3,216)
(12,865) (12,865) ------------------------------- ------ ------
------- ------- Net income available for common shareholders $6,090
$4,517 $24,346 $17,384 =============================== ======
====== ======= ======= Weighted average common shares - Diluted
28,885 28,158 28,348 27,084 Net income per share available for
common shareholders - Diluted $0.21 $0.16 $0.85 $0.64 FUNDS FROM
OPERATIONS (in thousands except per share data)
---------------------------------------------------------- Three
months Twelve months ended ended December 31, December 31,
------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ----
Net income attributable to Mid- America Apartment Communities, Inc.
$9,306 $7,733 $37,211 $30,249 Depreciation of real estate assets
24,188 23,167 94,020 88,555 Net casualty (gain) loss and other
settlement proceeds (285) (340) (32) 247 Gains on dispositions
within real estate joint ventures - - - (38) Depreciation of real
estate assets of discontinued operations (1) - - - 706 (Gains) loss
on sales of discontinued operations (2,049) - (4,649) 120
Depreciation of real estate assets of real estate joint ventures
280 302 970 953 Preferred dividend distribution (3,216) (3,216)
(12,865) (12,865) Net income attributable to noncontrolling
interests 474 456 2,010 1,822 -------------------------- --- ---
----- ----- Funds from operations 28,698 28,102 116,665 109,749
Recurring capital expenditures (3,024) (3,494) (21,873) (21,533)
------------------------------ ------ ------ ------- -------
Adjusted funds from operations $25,674 $24,608 $94,792 $88,216
------------------------------ ------- ------- ------- -------
Weighted average common shares and units - Diluted 31,221 30,524
30,802 29,459 Funds from operations per share and unit - Diluted
$0.92 $0.92 $3.79 $3.73 Adjusted funds from operations per share
and unit - Diluted $0.82 $0.81 $3.08 $2.99 (1) Amounts represent
depreciation expense prior to communities being classified as
discontinued operations. CONSOLIDATED BALANCE SHEETS (in thousands)
------------------------------------------ Dec 31, 2009 Dec 31,
2008 ------------ ------------ Assets Real estate assets Land
$255,425 $240,426 Buildings and improvements 2,364,918 2,198,063
Furniture, fixtures and equipment 73,975 65,540 Capital
improvements in progress 10,517 25,268
-------------------------------- ------ ------ 2,704,835 2,529,297
Accumulated depreciation (788,260) (694,054)
------------------------ -------- -------- 1,916,575 1,835,243 Land
held for future development 1,306 1,306 Commercial properties, net
8,721 7,958 Investments in real estate joint ventures 8,619 6,824
----------------------------------------- ----- ----- Real estate
assets, net 1,935,221 1,851,331 Cash and cash equivalents 13,819
9,426 Restricted cash 561 414 Deferred financing costs, net 13,369
15,681 Other assets 19,731 16,840 Goodwill 4,106 4,106 Assets held
for sale 19 24,157 -------------------- -- ------ Total assets
$1,986,826 $1,921,955 ============ ========== ==========
Liabilities and Shareholders' Equity Liabilities Notes payable
$1,399,596 $1,323,056 Accounts payable 1,702 1,234 Fair market
value of interest rate swaps 51,160 76,961 Accrued expenses and
other liabilities 69,528 66,982 Security deposits 8,789 8,705
Liabilities associated with assets held for sale 23 595
--------------------------------------- -- --- Total liabilities
1,530,798 1,477,533 Redeemable stock 2,802 1,805 Shareholders'
equity Series H cumulative redeemable preferred stock 62 62 Common
stock 290 282 Additional paid-in capital 988,642 954,127
Accumulated distributions in excess of net income (510,993)
(464,617) Accumulated other comprehensive income (47,435) (72,885)
-------------------------------------- ------- ------- Total
Mid-America Apartment Communities, Inc. shareholders' equity
430,566 416,969 Noncontrolling interest 22,660 25,648
----------------------- ------ ------ Total equity 453,226 442,617
------------ ------- ------- Total liabilities and shareholders'
equity $1,986,826 $1,921,955 ===================================
========== ========== SHARE AND UNIT DATA (in thousands)
---------------------------------- Three months ended Twelve months
ended December 31, December 31, ------------ ------------ 2009 2008
2009 2008 ---- ---- ---- ---- NET INCOME SHARES Weighted average
common shares - Basic 28,801 28,053 28,341 26,943 Weighted average
common shares - Diluted 28,885 28,158 28,348 27,084 FUNDS FROM
OPERATIONS SHARES AND UNITS Weighted average common shares and
units - Basic 31,137 30,458 30,725 29,356 Weighted average common
shares and units - Diluted 31,221 30,524 30,802 29,459 PERIOD END
SHARES AND UNITS Common shares at December 31, 29,095 28,225 29,095
28,225 Limited partnership units at December 31, 2,306 2,404 2,306
2,404 Outstanding options at December 31, 23 26 23 26 Unvested
shares in share based plans at December 31, 84 139 84 139 NON-GAAP
FINANCIAL AND OTHER DEFINITIONS Funds From Operations (FFO) FFO
represents net income (computed in accordance with U.S. generally
accepted accounting principles, or GAAP) excluding extraordinary
items, net income attributable to noncontrolling interest, gains or
losses on disposition of real estate assets, plus depreciation of
real estate and adjustments for joint ventures to reflect FFO on
the same basis. This definition of FFO is in accordance with the
National Association of Real Estate Investment Trust's definition.
Disposition of real estate assets includes sales of real estate
included in discontinued operations as well as proceeds received
from insurance and other settlements from property damage. Our
calculation of FFO 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. Mid-America believes that FFO is helpful in
understanding our operating performance in that FFO excludes
depreciation expense of real estate assets. Mid-America 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. In response to the SEC's Staff Policy
Statement relating to Emerging Issues Task Force Topic D-42
concerning the calculation of earnings per share for the redemption
of preferred stock, Mid-America has included the amount charged to
retire preferred stock in excess of carrying values in its FFO
calculation. We believe, however, that FFO before amount charged to
retire preferred stock in excess of carrying values is also an
important measure of operating performance as the amount charged to
retire preferred stock in excess of carrying values is a non-cash
adjustment representing issuance costs in prior periods for
preferred stock. Adjusted Funds From Operations (AFFO) For purposes
of these computations, AFFO is composed of FFO less recurring
capital expenditures and the amount charged to retire preferred
stock in excess of carrying values. As an owner and operator of
real estate, we consider AFFO to be an important measure of
performance from core operations because AFFO measures our ability
to control revenues, expenses and recurring capital expenditures.
Earnings Before Interest Taxes Depreciation and Amortization
(EBITDA) For purposes of these computations, 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, and amortization of deferred
financing costs. EBITDA is a non-GAAP financial measure we use as a
performance measure. As an owner and operator of real estate, we
consider 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 our operating performance.
EBITDA should not be considered as an alternative to net income as
an indicator of financial performance. Our computation of EBITDA
may differ from the methodology utilized by other companies to
calculate EBITDA. Same Store Portfolio Apartment communities are
generally added into our Same Store Portfolio the quarter following
12 months of ownership. In the case of newly developed apartment
communities, or communities acquired in lease-up, they become part
of the Same Store Portfolio beginning the first full quarter 12
months after achieving 90% occupancy for 90 days. Communities which
are being extensively renovated in which at least $5,500 per
apartment unit is being invested on at least 50% of turns are
excluded from the Same Store Portfolio. Twelve months after the
renovations at a community are substantially complete, communities
are returned to the Same Store Portfolio beginning in the next full
quarter. Also excluded from our Same Store Portfolio are
communities that have been approved by the Board of Directors for
disposition. DATASOURCE: Mid-America Apartment Communities, Inc.
CONTACT: Investor Relations of Mid-America Apartment Communities,
+1-901-682-6600, Web Site: http://www.maac.net/
Copyright
