TENNESSEE
|
62-1543819
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
6584
POPLAR AVENUE, SUITE 300
|
|
MEMPHIS, TENNESSEE
|
38138
|
(Address
of principal executive offices)
|
(Zip
Code)
|
N/A
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer þ
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
(Do not check if a smaller reporting company)
|
Smaller
Reporting Company ¨
|
Number
of Shares Outstanding
|
||
Class
|
at April 20,
2010
|
|
Common
Stock, $0.01 par value
|
30,107,239
|
Page
|
|||
PART
I – FINANCIAL INFORMATION
|
|||
Item
1.
|
Financial
Statements.
|
||
Condensed
Consolidated Balance Sheets as of March 31, 2010 (Unaudited) and December
31, 2009
|
2
|
||
Condensed
Consolidated Statements of Operations for the three months ended March 31,
2010 (Unaudited) and 2009 (Unaudited).
|
3
|
||
Condensed
Consolidated Statements of Cash Flows for the three months ended March 31,
2010 (Unaudited) and 2009 (Unaudited).
|
4
|
||
Notes
to Condensed Consolidated Financial Statements
(Unaudited).
|
5
|
||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations.
|
14
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk.
|
26
|
|
Item
4.
|
Controls
and Procedures.
|
26
|
|
Item
4T.
|
Controls
and Procedures.
|
26
|
|
PART
II – OTHER INFORMATION
|
|||
Item
1.
|
Legal
Proceedings.
|
27
|
|
Item
1A.
|
Risk
Factors.
|
27
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds.
|
35
|
|
Item
3.
|
Defaults
Upon Senior Securities.
|
35
|
|
Item
4.
|
(Removed
and Reserved).
|
35
|
|
Item
5.
|
Other
Information.
|
35
|
|
Item
6.
|
Exhibits.
|
36
|
|
Signatures
|
37
|
March
31, 2010
|
December
31, 2009
|
|||||||
Assets:
|
||||||||
Real
estate assets:
|
||||||||
Land
|
$ | 251,051 | $ | 255,425 | ||||
Buildings
and improvements
|
2,337,178 | 2,364,918 | ||||||
Furniture,
fixtures and equipment
|
75,851 | 73,975 | ||||||
Capital
improvements in progress
|
8,152 | 10,517 | ||||||
2,672,232 | 2,704,835 | |||||||
Less
accumulated depreciation
|
(812,614 | ) | (788,260 | ) | ||||
1,859,618 | 1,916,575 | |||||||
Land
held for future development
|
1,306 | 1,306 | ||||||
Commercial
properties, net
|
8,200 | 8,721 | ||||||
Investments
in real estate joint ventures
|
14,077 | 8,619 | ||||||
Real
estate assets, net
|
1,883,201 | 1,935,221 | ||||||
Cash
and cash equivalents
|
32,329 | 13,819 | ||||||
Restricted
cash
|
844 | 561 | ||||||
Deferred
financing costs, net
|
13,869 | 13,369 | ||||||
Other
assets
|
21,642 | 19,731 | ||||||
Goodwill
|
4,106 | 4,106 | ||||||
Assets
held for sale
|
- | 19 | ||||||
Total
assets
|
$ | 1,955,991 | $ | 1,986,826 | ||||
Liabilities
and Shareholders' Equity:
|
||||||||
Liabilities:
|
||||||||
Notes
payable
|
$ | 1,358,733 | $ | 1,399,596 | ||||
Accounts
payable
|
1,158 | 1,702 | ||||||
Fair
market value of interest rate swaps
|
52,691 | 51,160 | ||||||
Accrued
expenses and other liabilities
|
65,355 | 69,528 | ||||||
Security
deposits
|
8,842 | 8,789 | ||||||
Liabilities
associated with assets held for sale
|
- | 23 | ||||||
Total
liabilities
|
1,486,779 | 1,530,798 | ||||||
Redeemable
stock
|
2,805 | 2,802 | ||||||
Shareholders'
equity:
|
||||||||
Preferred
stock, $0.01 par value per share, 20,000,000 shares authorized, $155,000
or $25 per share liquidation preference; 8.30% Series H Cumulative
Redeemable Preferred Stock, 6,200,000 shares authorized, 6,200,000 shares
issued and outstanding
|
62 | 62 | ||||||
Common
stock, $0.01 par value per share, 50,000,000 shares authorized; 29,684,303
and 29,095,251 shares issued and outstanding at March 31, 2010 and
December 31, 2009, respectively (1)
|
296 | 290 | ||||||
Additional
paid-in capital
|
1,017,163 | 988,642 | ||||||
Accumulated
distributions in excess of net income
|
(523,298 | ) | (510,993 | ) | ||||
Accumulated
other comprehensive income
|
(50,713 | ) | (47,435 | ) | ||||
Total
Mid-America Apartment Communities, Inc. shareholders'
equity
|
443,510 | 430,566 | ||||||
Noncontrolling
interest
|
22,897 | 22,660 | ||||||
Total
Equity
|
466,407 | 453,226 | ||||||
Total
liabilities and equity
|
$ | 1,955,991 | $ | 1,986,826 |
(1)
|
Number
of shares issued and outstanding represent total shares of common stock
regardless of classification on the consolidated balance sheet. The number
of shares classified as redeemable stock on the consolidated balance sheet
for March 31, 2010 and December 31, 2009 are 54,167 and 58,038,
respectively.
|
Three
months ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Operating
revenues:
|
||||||||
Rental
revenues
|
$ | 90,308 | $ | 89,198 | ||||
Other
property revenues
|
7,020 | 4,402 | ||||||
Total
property revenues
|
97,328 | 93,600 | ||||||
Management
fee income
|
136 | 64 | ||||||
Total
operating revenues
|
97,464 | 93,664 | ||||||
Property
operating expenses:
|
||||||||
Personnel
|
12,358 | 11,364 | ||||||
Building
repairs and maintenance
|
3,327 | 2,812 | ||||||
Real
estate taxes and insurance
|
11,898 | 11,984 | ||||||
Utilities
|
5,599 | 5,508 | ||||||
Landscaping
|
2,515 | 2,304 | ||||||
Other
operating
|
5,854 | 4,323 | ||||||
Depreciation
|
25,080 | 23,585 | ||||||
Total
property operating expenses
|
66,631 | 61,880 | ||||||
Acquisition
expenses
|
(24 | ) | 2 | |||||
Property
management expenses
|
4,277 | 4,241 | ||||||
General
and administrative expenses
|
2,811 | 2,457 | ||||||
Income
from continuing operations before non-operating items
|
23,769 | 25,084 | ||||||
Interest
and other non-property income
|
315 | 80 | ||||||
Interest
expense
|
(13,891 | ) | (14,229 | ) | ||||
Gain
on debt extinguishment
|
- | 3 | ||||||
Amortization
of deferred financing costs
|
(595 | ) | (606 | ) | ||||
Net
casualty gain (loss) and other settlement proceeds
|
527 | (144 | ) | |||||
Income
from continuing operations before loss from real estate joint
ventures
|
10,125 | 10,188 | ||||||
Loss
from real estate joint ventures
|
(276 | ) | (196 | ) | ||||
Income
from continuing operations
|
9,849 | 9,992 | ||||||
Discontinued
operations:
|
||||||||
Income
from discontinued operations before gain on sale
|
- | 421 | ||||||
Gain
on sale of discontinued operations
|
- | 1,432 | ||||||
Consolidated
net income
|
9,849 | 11,845 | ||||||
Net
income attributable to noncontrolling interests
|
437 | 706 | ||||||
Net
income attributable to Mid-America Apartment Communities,
Inc.
|
9,412 | 11,139 | ||||||
Preferred
dividend distributions
|
3,216 | 3,216 | ||||||
Net
income available for common shareholders
|
$ | 6,196 | $ | 7,923 | ||||
Weighted
average shares outstanding (in thousands):
|
||||||||
Basic
|
29,130 | 28,085 | ||||||
Effect
of dilutive securities
|
74 | 80 | ||||||
Diluted
|
29,204 | 28,165 | ||||||
Net
income available for common shareholders
|
$ | 6,196 | $ | 7,923 | ||||
Discontinued
property operations
|
- | (1,853 | ) | |||||
Income
from continuing operations available for common
shareholders
|
$ | 6,196 | $ | 6,070 | ||||
Earnings
per share - basic:
|
||||||||
Income
from continuing operations available for common
shareholders
|
$ | 0.21 | $ | 0.21 | ||||
Discontinued
property operations
|
- | 0.07 | ||||||
Net
income available for common shareholders
|
$ | 0.21 | $ | 0.28 | ||||
Earnings
per share - diluted:
|
||||||||
Income
from continuing operations available for common
shareholders
|
$ | 0.21 | $ | 0.21 | ||||
Discontinued
property operations
|
- | 0.07 | ||||||
Net
income available for common shareholders
|
$ | 0.21 | $ | 0.28 | ||||
Dividends
declared per common share
|
$ | 0.615 | $ | 0.615 |
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Consolidated
net income
|
$ | 9,849 | $ | 11,845 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization of deferred financing costs
|
25,675 | 24,191 | ||||||
Stock
compensation expense
|
348 | 303 | ||||||
Redeemable
stock issued
|
92 | 84 | ||||||
Amortization
of debt premium
|
(90 | ) | (90 | ) | ||||
Loss
from investments in real estate joint ventures
|
276 | 196 | ||||||
Gain
on debt extinguishment
|
- | (3 | ) | |||||
Derivative
interest expense (income)
|
140 | (396 | ) | |||||
Gain
on sale of discontinued operations
|
- | (1,432 | ) | |||||
Net
casualty (gains) loss and other settlement proceeds
|
(527 | ) | 144 | |||||
Changes
in assets and liabilities:
|
||||||||
Restricted
cash
|
(283 | ) | (288 | ) | ||||
Other
assets
|
(734 | ) | 3,372 | |||||
Accounts
payable
|
(559 | ) | 223 | |||||
Accrued
expenses and other
|
(9,108 | ) | (6,395 | ) | ||||
Security
deposits
|
54 | 233 | ||||||
Net
cash provided by operating activities
|
25,133 | 31,987 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of real estate and other assets
|
(100 | ) | (163 | ) | ||||
Improvements
to existing real estate assets
|
(8,425 | ) | (8,426 | ) | ||||
Renovations
to existing real estate assets
|
(1,247 | ) | (2,332 | ) | ||||
Development
|
- | (3,256 | ) | |||||
Distributions
from real estate joint ventures
|
159 | 44 | ||||||
Contributions
to real estate joint ventures
|
(5,894 | ) | (115 | ) | ||||
Proceeds
from disposition of real estate assets
|
47,007 | 11,337 | ||||||
Net
cash provided by (used in) investing activities
|
31,500 | (2,911 | ) | |||||
Cash
flows from financing activities:
|
||||||||
Net
change in credit lines
|
(60,000 | ) | 31,815 | |||||
Proceeds
from notes payable
|
19,500 | - | ||||||
Principal
payments on notes payable
|
(273 | ) | (535 | ) | ||||
Payment
of deferred financing costs
|
(4,381 | ) | (136 | ) | ||||
Repurchase
of common stock
|
(506 | ) | (220 | ) | ||||
Proceeds
from issuances of common shares and units
|
30,106 | 284 | ||||||
Distributions
to noncontrolling interests
|
(1,467 | ) | (1,561 | ) | ||||
Dividends
paid on common shares
|
(17,886 | ) | (17,267 | ) | ||||
Dividends
paid on preferred shares
|
(3,216 | ) | (3,216 | ) | ||||
Net
cash (used in) provided by financing activities
|
(38,123 | ) | 9,164 | |||||
Net
increase in cash and cash equivalents
|
18,510 | 38,240 | ||||||
Cash
and cash equivalents, beginning of period
|
13,819 | 9,426 | ||||||
Cash
and cash equivalents, end of period
|
$ | 32,329 | $ | 47,666 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Interest
paid
|
$ | 14,186 | $ | 12,682 | ||||
Supplemental
disclosure of noncash investing and financing activities:
|
||||||||
Accrued
construction in progress
|
$ | 5,451 | $ | 5,987 | ||||
Interest
capitalized
|
$ | - | $ | 62 | ||||
Marked-to-market
adjustment on derivative instruments
|
$ | (3,570 | ) | $ | 5,852 | |||
Reclass
of redeemable stock from equity and redeemable stock to
liabilities
|
$ | 273 | $ | - |
Three months ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
Revenues
|
||||||||
Same
Store
|
$ | 87,368 | $ | 87,511 | ||||
Non-Same
Store
|
9,960 | 6,089 | ||||||
Total
property revenues
|
97,328 | 93,600 | ||||||
Management
fee income
|
136 | 64 | ||||||
Total
operating revenues
|
$ | 97,464 | $ | 93,664 | ||||
NOI
|
||||||||
Same
Store
|
$ | 50,016 | $ | 51,804 | ||||
Non-Same
Store
|
5,761 | 3,947 | ||||||
Total
NOI
|
55,777 | 55,751 | ||||||
Discontinued
operations NOI included above
|
- | (446 | ) | |||||
Management
fee income
|
136 | 64 | ||||||
Depreciation
|
(25,080 | ) | (23,585 | ) | ||||
Acquisition
expense
|
24 | (2 | ) | |||||
Property
management expense
|
(4,277 | ) | (4,241 | ) | ||||
General
and administrative expense
|
(2,811 | ) | (2,457 | ) | ||||
Interest
and other non-property income
|
315 | 80 | ||||||
Interest
expense
|
(13,891 | ) | (14,229 | ) | ||||
Gain
on debt extinguishment
|
- | 3 | ||||||
Amortization
of deferred financing costs
|
(595 | ) | (606 | ) | ||||
Net
casualty gains (loss) and other settlement proceeds
|
527 | (144 | ) | |||||
Loss
from real estate joint ventures
|
(276 | ) | (196 | ) | ||||
Discontinued
operations
|
- | 1,853 | ||||||
Nest
income attributable to noncontrolling interests
|
(437 | ) | (706 | ) | ||||
Net
income attributable to Mid-America Apartment Communities,
Inc.
|
$ | 9,412 | $ | 11,139 | ||||
Assets
|
||||||||
Same
Store
|
$ | 1,593,034 | $ | 1,635,136 | ||||
Non-Same
Store
|
293,149 | 231,657 | ||||||
Corporate
assets
|
69,808 | 73,022 | ||||||
Total
assets
|
$ | 1,955,991 | $ | 1,939,815 |
Mid-America Apartment Communities, Inc. Shareholders
|
||||||||||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Distributions
|
Other
|
||||||||||||||||||||||||||||||
Comprehensive
|
Preferred
|
Common
|
Paid-In
|
in
Excess of
|
Comprehensive
|
Noncontrolling
|
||||||||||||||||||||||||||
Total
|
Income
|
Stock
|
Stock
|
Capital
|
Net
Income
|
Income
(Loss)
|
Interest
|
|||||||||||||||||||||||||
EQUITY
AT DECEMBER 31, 2009
|
$ | 453,226 | $ | 62 | $ | 290 | $ | 988,642 | $ | (510,993 | ) | $ | (47,435 | ) | $ | 22,660 | ||||||||||||||||
Equity
Activity Excluding Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Issuance
and registration of common shares
|
30,094 | 6 | 30,088 | |||||||||||||||||||||||||||||
Shares
repurchased and retired
|
(506 | ) | (506 | ) | ||||||||||||||||||||||||||||
Exercise
of stock options
|
12 | 12 | ||||||||||||||||||||||||||||||
Shares
issued in exchange for units
|
- | 35 | (35 | ) | ||||||||||||||||||||||||||||
Redeemable
stock fair market value
|
(180 | ) | (180 | ) | ||||||||||||||||||||||||||||
Adjustment
for Noncontrolling Interest Ownership in operating
partnership
|
- | (1,452 | ) | 1,452 | ||||||||||||||||||||||||||||
Amortization
of unearned compensation
|
344 | 344 | ||||||||||||||||||||||||||||||
Dividends
on common stock ($0.615 per share)
|
(18,321 | ) | (18,321 | ) | ||||||||||||||||||||||||||||
Dividends
on noncontrolling interest units ($0.615 per unit)
|
(1,465 | ) | (1,465 | ) | ||||||||||||||||||||||||||||
Dividends
on preferred stock
|
(3,216 | ) | (3,216 | ) | ||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
9,849 | 9,849 | 9,412 | 437 | ||||||||||||||||||||||||||||
Other
comprehensive income - derivative instruments (cash flow
hedges)
|
(3,430 | ) | (3,430 | ) | (3,278 | ) | (152 | ) | ||||||||||||||||||||||||
Comprehensive
income
|
6,419 | 6,419 | ||||||||||||||||||||||||||||||
EQUITY
BALANCE MARCH 31, 2010
|
$ | 466,407 | $ | 62 | $ | 296 | $ | 1,017,163 | $ | (523,298 | ) | $ | (50,713 | ) | $ | 22,897 |
Mid-America Apartment Communities, Inc. Shareholders
|
||||||||||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||
Additional
|
Distributions
|
Other
|
||||||||||||||||||||||||||||||
Comprehensive
|
Preferred
|
Common
|
Paid-In
|
in
Excess of
|
Comprehensive
|
Noncontrolling
|
||||||||||||||||||||||||||
Total
|
Income
|
Stock
|
Stock
|
Capital
|
Net
Income
|
Income
(Loss)
|
Interest
|
|||||||||||||||||||||||||
EQUITY
AT DECEMBER 31, 2008
|
$ | 442,617 | $ | 62 | $ | 282 | $ | 954,127 | $ | (464,617 | ) | $ | (72,885 | ) | $ | 25,648 | ||||||||||||||||
Equity
Activity Excluding Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Issuance
and registration of common shares
|
278 | 278 | ||||||||||||||||||||||||||||||
Shares
repurchased and retired
|
(220 | ) | (220 | ) | ||||||||||||||||||||||||||||
Exercise
of stock options
|
10 | 10 | ||||||||||||||||||||||||||||||
Shares
issued in exchange for units
|
- | - | - | |||||||||||||||||||||||||||||
Redeemable
stock fair market value
|
301 | 301 | ||||||||||||||||||||||||||||||
Adjustment
for Noncontrolling Interest Ownership in operating
partnership
|
- | 298 | (298 | ) | ||||||||||||||||||||||||||||
Amortization
of unearned compensation
|
314 | 314 | ||||||||||||||||||||||||||||||
Dividends
on common stock ($0.615 per share)
|
(17,268 | ) | (17,268 | ) | - | |||||||||||||||||||||||||||
Dividends
on noncontrolling interest units ($0.615 per unit)
|
(1,561 | ) | (1,561 | ) | ||||||||||||||||||||||||||||
Dividends
on preferred stock
|
(3,216 | ) | (3,216 | ) | ||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
11,845 | 11,845 | 11,139 | 706 | ||||||||||||||||||||||||||||
Other
comprehensive income - derivative instruments (cash flow
hedges)
|
5,456 | 5,456 | 5,131 | 325 | ||||||||||||||||||||||||||||
Comprehensive
income
|
17,301 | 17,301 | ||||||||||||||||||||||||||||||
EQUITY
BALANCE MARCH 31, 2009
|
$ | 438,556 | $ | 62 | $ | 282 | $ | 954,807 | $ | (473,661 | ) | $ | (67,754 | ) | $ | 24,820 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
Revenues
|
||||||||
Rental
revenues
|
$ | - | $ | 969 | ||||
Other
revenues
|
- | 37 | ||||||
Total
revenues
|
- | 1,006 | ||||||
Expenses
|
||||||||
Property
operating expenses
|
- | 560 | ||||||
Depreciation
|
- | - | ||||||
Interest
expense
|
- | 25 | ||||||
Total
expense
|
- | 585 | ||||||
Income
from discontinued operations before gain on sale
|
- | 421 | ||||||
Gain
(loss) on sale of discontinued operations
|
- | 1,432 | ||||||
Income
from discontinued operations
|
$ | - | $ | 1,853 |
Interest
Rate Derivatives
|
Number
of Instruments
|
Notional
|
||||||
Interest
Rate Cap
|
19
|
$ | 222,286,000 | |||||
Interest
Rate Swap
|
33
|
$ | 843,165,000 |
Asset
Derivatives
|
Liability
Derivatives
|
||||||||||||||||||
31-Mar-10
|
31-Dec-09
|
31-Mar-10
|
31-Dec-09
|
||||||||||||||||
Balance
|
Balance
|
||||||||||||||||||
Derivatives
designated as
|
Sheet
|
Sheet
|
|||||||||||||||||
hedging
instruments
|
Location
|
Fair
Value
|
Fair
Value
|
Location
|
Fair
Value
|
Fair
Value
|
|||||||||||||
Fair
market
|
|||||||||||||||||||
value
of
|
|||||||||||||||||||
interest
rate
|
|||||||||||||||||||
Interest
rate contracts
|
Other
assets
|
$ | 4,676 | $ | 3,430 |
swaps
|
$ | 52,691 | $ | 51,160 | |||||||||
Total
derivatives designated as hedging instruments
|
$ | 4,676 | $ | 3,430 | $ | 52,691 | $ | 51,160 |
Location of Gain or
|
||||||||||||||||||||||||||
(Loss) Recognized in
|
||||||||||||||||||||||||||
Location of Gain
|
Income on Derivative
|
Amount of Gain or
|
||||||||||||||||||||||||
or (Loss)
|
Amount of Gain or
|
(Ineffective Portion
|
(Loss) Recognized in
|
|||||||||||||||||||||||
Amount of Gain or
|
Reclassified from
|
(Loss) Reclassified
|
and Amount
|
Income on Derivative
|
||||||||||||||||||||||
(Loss) Recognized in
|
Accumulated OCI
|
from Accumulated OCI
|
Excluded from
|
(Ineffective Portion and
|
||||||||||||||||||||||
Derivative
in Cash Flow
|
OCI on Derivative
|
into Income
|
into Income (Effective
|
Effectiveness
|
amount Excluded from
|
|||||||||||||||||||||
Hedging
Relationships
|
(Effective Portion)
|
(Effective Portion)
|
Portion)
|
Testing)
|
Effectiveness Testing)
|
|||||||||||||||||||||
3/31/2010
|
3/31/2009
|
3/31/2010
|
3/31/2009
|
3/31/2010
|
3/31/2009
|
|||||||||||||||||||||
Interest
rate contracts
|
$ | (12,833 | ) | $ | (871 | ) |
Interest
expense
|
$ | (9,402 | ) | $ | (6,327 | ) |
Interest
expense
|
$ | (136 | ) | $ | 443 | |||||||
Total
derivatives in cash flow hedging
relationships
|
$ | (12,833 | ) | $ | (871 | ) | $ | (9,402 | ) | $ | (6,327 | ) | $ | (136 | ) | $ | 443 |
Assets
|
Liabilities
|
|||||||||||||||
Level 2
|
Level 3
|
Level 2
|
Level 3
|
|||||||||||||
Beginning
fair value as of 12/31/2009
|
- | 3,430 | - | 51,160 | ||||||||||||
Transfers
in
|
3,430 | - | 51,160 | - | ||||||||||||
Purchase,
issuances and settlements
|
3,286 | - | - | - | ||||||||||||
Transfers
out
|
- | (3,430 | ) | - | (51,160 | ) | ||||||||||
Total
gains/(loss)
|
(2,040 | ) | - | (1,531 | ) | - | ||||||||||
Ending
fair value
|
4,676 | - | 52,691 | - |
Quoted Prices in
Active Markets
for Identical
Assets and Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Balance at
March 31, 2010
|
|||||||||||||
Assets
|
||||||||||||||||
Derivative
financial instruments
|
$ | — | $ | 4,676 | $ | — | $ | 4,676 | ||||||||
Liabilities
|
||||||||||||||||
Derivative
financial instruments
|
$ | — | $ | 52,691 | $ | — | $ | 52,691 |
Quoted Prices in
Active Markets
for Identical
Assets and Liabilities
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Balance at
December 31,
2009
|
|||||||||||||
Assets
|
||||||||||||||||
Derivative
financial instruments
|
$ | — | $ | — | $ | 3,430 | $ | 3,430 | ||||||||
Liabilities
|
||||||||||||||||
Derivative
financial instruments
|
$ | — | $ | — | $ | 51,160 | $ | 51,160 |
|
·
|
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 and
caps;
|
|
·
|
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;
|
|
·
|
inability
to meet loan covenants; and
|
|
·
|
significant
decline in market value of real estate serving as collateral for mortgage
obligations.
|
Three months
|
||||||||
ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Net
income attributable to Mid-America Apartment Communities,
Inc.
|
$ | 9,412 | $ | 11,139 | ||||
Depreciation
of real estate assets
|
24,569 | 23,120 | ||||||
Net
casualty (gain) loss and other settlement proceeds
|
(527 | ) | 144 | |||||
Gains
on sales of discontinued operations
|
- | (1,432 | ) | |||||
Depreciation
of real estate assets of real estate joint ventures
|
402 | 264 | ||||||
Preferred
dividend distribution
|
(3,216 | ) | (3,216 | ) | ||||
Net
income attributable to noncontrolling interests
|
437 | 706 | ||||||
Funds
from operations
|
$ | 31,077 | $ | 30,725 |
Line
|
Amount
|
Amount
|
||||||||||
Limit
|
Collateralized
|
Borrowed
|
||||||||||
FNMA
Credit Facilities
|
$ | 1,044,429 | $ | 1,044,429 | $ | 944,833 | ||||||
Freddie
Mac Credit Facilities
|
300,000 | 298,247 | 298,247 | |||||||||
Regions
Credit Facility
|
50,000 | 48,675 | - | |||||||||