UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
Form 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
May 2, 2002
Date of Report (Date of earliest event reported)
MID-AMERICA APARTMENT COMMUNITIES, INC.
(Exact Name of Registrant as Specified in Charter)
TENNESSEE 1-12762 62-1543819
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
6584 POPLAR AVENUE, SUITE 300
MEMPHIS, TENNEESSEE 38138
(Address of principal executive offices)
(901) 682-6600
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
ITEM 9. Regulation FD
(a) Conference Call
Mid America Apartment Communities, Inc. (MAA)
1st Quarter 2002 Earnings Release Conference Call Transcript
May 2, 2002
Eric Bolton: Good morning. This is Eric Bolton, CEO of Mid-America Apartment
Communities. With me are Simon Wadsworth, our Chief Financial Officer, and Al
Campbell, Vice President of Financial Planning. Before we proceed, Al will
provide required statutory disclosure as well as instructions on how you can
obtain additional information on our results.
Al Campbell: This morning we will make forward-looking statements. Please refer
to the safe-harbor language included in our press release and our 34-Act filings
with the SEC, which describe risk factors that may impact future results. This
call is being recorded and the press may be participating.
To obtain a copy of yesterday's earnings release as well as a copy of the
transcript of our prepared comments this morning, we direct you to our web site
at www.maac.net. A replay of this morning's call will be available through May
9th by dialing 888-568-0544 with the passcode "Mid-America".
Eric Bolton: Thanks, Al. In our prepared comments this morning we will provide
additional insights on first quarter results. I will review the operating
results for the quarter. Al will recap portfolio performance by market segment
and provide insights on expectations for our major markets. Simon will discuss
balance sheet items and our 2002 forecast. We'll then open the phone line for
any questions that you may have. Our prepared comments will last approximately
20 minutes.
As reported in yesterday's earnings release, FFO for the quarter was slightly
ahead of what we forecasted. Property level operating expense and interest
expense were both slightly lower than we had projected. Our property management
operation continues to do a good job in controlling expenses. The expansion of
our utility submetering and resident billing program continues to have a
positive impact. Interest expense was lower than forecast due to the continuance
of low interest rates and the success of our programs to reduce cash balances.
Although FFO earnings were slightly ahead of where we projected, earnings were
down by $0.01 of FFO per share from the first quarter of 2001. Absent the 1 cent
non-recurring gain on sale of land included in last year's results, which was
noted in yesterday's release, earnings were flat as compared to last year
despite a more difficult operating environment.
Revenue performance for the first quarter was on plan and continues to be
pressured by concession pricing in these highly competitive markets. Traffic
levels improved significantly during the quarter, increasing by 39% above the
levels of the 4th quarter, and thus approaching more normal levels for the time
of year. On a comparative basis to the same period in 2001, same store leasing
traffic increased by 5%. Our property management group did a good job converting
this traffic as the leases obtained per traffic count grew by close to 7% during
the quarter. As a result, physical occupancy improved from 92.7% at year-end to
94.1% at quarter end. However, the competitive leasing market required
aggressive concession practices in several markets to achieve this occupancy. In
our two most competitive markets of Memphis and Atlanta, concessions are running
as much as two months. Compared to the same quarter of last year, increased
concessions cost us 3 cents per share in FFO. As compared to the immediately
proceeding fourth quarter of 2001, same store concession costs grew by $200
thousand or 12%. However, based on the improved leasing and occupancy trends
that we saw in the first quarter, we continue to forecast a return to more
normal occupancy and concession practices by the end of the second quarter.
Delinquency, which is always a concern when the economy weakens, remained steady
during the quarter. Collection loss for the quarter was only 0.8% of net
potential rent, identical to the result posted for the first quarter of last
year. We did see a 2.6% increase in unit turnover during the quarter as compared
to the same quarter of last year.
We commented last quarter about the oversupply of new construction in the
Memphis market. We have close to 14% of our apartments in Memphis, and as a
result of the oversupply, the Memphis market drove most of the decline in
same-store NOI on a year-to-year basis. Fortunately, construction permitting is
down a significant 62% over the last 12 months, and with job growth and demand
trends holding up, we believe the Memphis market is set for recovery late this
year and into 2003.
Overall, we enter the second quarter in good shape with lease expiration
exposure for the quarter at a very acceptable level and month to month leases
below our 5% threshold.
Property operating expense control remains strong. On a same-store basis
property controlled operating expenses, which excludes taxes and insurance, were
up only 1.0% from last year. Our utility billing initiative continues to
generate very strong year over year results with same store utility expense down
21% in the quarter as compared to the first quarter of last year. Total same
store property operating expenses including taxes and insurance grew by 2.5% for
the quarter. Our property and casualty insurance program expires effective the
end of the second quarter. We are aggressively evaluating alternatives, and like
most, are of course concerned about the pricing of insurance at renewal on July
1st. We believe that we have provided an adequate allowance for the anticipated
pricing increase in our forecasts, but we will of course not know for sure until
later this quarter.
Al will now spend a few minutes talking about market conditions.
Al Campbell: As Eric mentioned we are facing very competitive conditions in many
of our markets.
Memphis has been our toughest markets over the last few quarters, however, we
saw significant improvement during this quarter. The Memphis market continues to
work through an oversupply position, however, our management team did a good job
in this very competitive environment by increasing occupancy rates and
simultaneously lowering concession costs. We saw a 3.3% improvement in occupancy
from the 4th quarter, ending the current quarter at 92.1%, combined with a 1.3%
decrease in concession costs, as a percent of net potential rent. This
improvement generated an 8.6% NOI increase from the 4th quarter. While this
performance is still below prior year levels, we expect continued improvement
over the remainder of this year and moving into 2003, as the Memphis market
regains balance. As Eric mentioned, new construction in Memphis is expected to
be minimal over next year, while the job market is expected to remain stable and
resume growth. We are projecting occupancy levels in our Memphis portfolio to
average around 92% from the remainder of the year with concession costs
continuing to improve over the second half, averaging between 2-3% of net
potential rent for the third and fourth quarters, as compared to 3.8% for the
first quarter.
Jacksonville, our second largest market, performed fairly well during the
quarter with occupancy of 94.9% at quarter end, 1.2% above the 4th quarter level
and essentially flat with the prior year. Revenues for our portfolio of ten
properties increased 2.4% over the prior year, driving a 1.7% increase in NOI
compared to a year ago. We expect this market to remain relatively stable over
the remainder of the year, as multifamily permitting decreased 29% over the last
twelve months and job growth continued at a slower but steady pace during the
quarter.
The Atlanta market continues to suffer as deliveries of new multifamily units
remain well ahead of absorption levels. However, our portfolio of six properties
showed improvement during the quarter with occupancy levels increasing 4.7% and
ending the quarter at 95.5%. Concession levels did increase to 1.3% of net
potential rent, offsetting some of this improvement, but NOI grew 4% over the
4th quarter performance. We do expect continued softness in Atlanta for the
remainder of the year, with occupancies projected to continue dropping 1-1.5%,
and concessions averaging 3-3.5% of net potential rent for the remainder of the
year. Over the long term we continue to believe this market will provide solid
investment returns, as job growth is expected to improve in 2003.
As expected, we saw increased competition in Austin and Dallas during the
quarter. Occupancy levels for our portfolios held up fairly well during the
quarter, at 96.2% (Austin) and 92.1% (Dallas), but supply pressures and job
losses slowed rent growth and increased concession costs causing NOI to fall
6.6% and 1.7%, respectively, as compared to the 4th quarter. We project
occupancy levels for our Austin portfolio for the remainder of the year to
continue slipping as over-supply works through the market, leveling off at
92-93%. We expect occupancy for our Dallas portfolio to remain around 92% for
the remainder of the year. We project concession levels for both markets to
remain at the current high level for the next quarter, improving to more normal
levels over the second half of the year.
Our smaller markets have historically demonstrated lower growth, but have proven
to be more recession resistant over the last few months. Our portfolio in
smaller markets produced 2.5% same store NOI growth in the first quarter, lead
by Columbus, GA, Chattanooga, Valdosta, GA and Jackson, MS.
In summary, we have faced challenging market conditions in several of our
markets over the last few quarters. However, we believe that most of our markets
are bottoming out, and we will see a gradual improvement late this year and into
2003. Early indications are that our portfolio occupancy and concession levels
for April are on track with expectations.
Simon Wadsworth: Given the tough operating environment, we were pleased to
exceed our projected earnings' goal for the quarter, and we were helped in this
by reduced interest expense. Our weighted average debt cost is 6.3%, down from
7.1% a year ago and only $89 million, or 11% of our debt is variable rate. On a
comparative basis with last year, we also are benefiting from an $11 million
reduction in our cash and restricted cash balances. This was the result of debt
refinancing, negotiations with lenders, and a concentrated management effort.
Consequently our debt is down by $8 million and interest expense was reduced by
$1.1 million, or 5 1/2 cents a share, from the same quarter a year ago.
After completing over $200 million of refinancing last year, we had a quiet
first quarter. We still anticipate up to $50 million of refinancing this year,
including about $10 million in the second quarter, but we do not expect this to
have a significant impact on our interest expense. Our forecast for the year
assumes an increase in short-term interest rates of 150 bp in the second half of
the year, projected based upon the current forward yield curve.
The first quarter showed an improvement in our debt and fixed charge coverage
compared to the same period a year ago. Our debt service coverage improved from
2.15 to 2.31, and our total debt as a percent of gross real estate assets
dropped from 55% to 53%. The improved coverage was as a result of the steady
improvement in occupancy at our lease-up properties, lower interest rates and
refinancings, and reduced amount of debt.
As you know, our properties are in excellent condition. We anticipate that
recurring capital expenditures for the year will be up very slightly from last
year to $380/unit, equal to 57 cents/share. Although Funds Available for
Distribution is forecast to be about $2.24, slightly short of our dividend
payout, our free cash flow, which includes non-real estate depreciation and
loan-cost amortization, is forecast to be $2.41 for 2002, about 7 cents ahead of
our dividend. In the second quarter of 2003, assuming that anticipated
acquisitions take place and based on our current forecast, our free cash flow
and our FAD should cover our dividend. Moreover, dividend coverage improved
slightly over the level of a year ago, and the increased balance sheet capacity
should help us improve our coverage further as we find attractive acquisitions.
We re-emphasize that our dividend level is not a question in the Board's mind
even at the low end of our internal FFO estimates.
At quarter-end we had virtually completed construction on our four remaining
development properties, located in Nashville, Lexington KY, and Memphis. Of the
1,291 total planned apartment units, 75% were leased and 70% were occupied, and
we have 250 apartments to lease to reach 95% occupancy at all four properties.
In April, the occupancy of these four properties increased by a total of 64
apartments, and concessions, which were running at 18% of revenues at these four
properties last December are down by 6% to 15% of revenues, and this downward
trend will continue as their occupancy steadily builds during the spring and
summer. We expect the just-completed development properties located in the
highly competitive Memphis market to take the balance of this year to stabilize,
while the Lexington and Nashville properties should stabilize by mid-year.
Our forecast for this coming year assumes a 0.3% increase in NOI in our
same-store portfolio. Our concessions are forecast to improve slightly in Q2 and
Q3, and settling out to more normal levels in Q4. For the second quarter we're
forecasting same-store occupancy and NOI to be below the level of last year, but
the trend continues to improve with favorable results compared with the first
quarter of this year. Same store numbers on a year over year basis are forecast
to turn positive by the third and fourth quarters, helped on a relative basis by
the weaker markets of the latter part of last year. In projecting this year
there is still a lot of uncertainty associated with insurance (the policy renews
in July) and real estate taxes; these two categories total over $26 million of
expense and are particularly subject to cost pressures and difficult to forecast
at this time. With these assumptions and excluding any acquisitions or
dispositions, our base case forecast for FFO continues to be $2.80 per share,
with a range of $2.77 to $2.82. We expect in the second and third quarter to
report 70 cents/share, and 72 cents of FFO in the fourth quarter.
As mentioned above, our forecasts do not include the use of our $25 million to
$50 million of dry powder to make acquisitions. This would be very accretive to
our FFO if we can find the right transactions, and we are actively working on
several deals, both independently and as part of a possible joint venture.
Eric Bolton: We are making solid progress to position the Company to grow FFO
over the long term. The last two quarters have certainly presented some tough
operating conditions, but we think that the signs are there for a slow and a
steady recovery beginning later this year. Our balance sheet continues to
strengthen and our debt financing is in sound shape. Our dividend is secure and
currently paying an 8.8% yield based on pricing as of the market close
yesterday. Our capacity and flexibility to pursue attractive acquisitions and
add additional earning assets is growing. We believe our current stock price
continues to offer a discount opportunity to the stabilized operating value of
our properties when operating at their historic norms. We look forward to 2002
and continuing to grow value for our owners.
We invite your questions
(Q&A followed)
(b) Press Release
Mid-America Apartment Communities, Inc.
A self-managed Equity REIT
Press Release, 1st Quarter Earnings 2002
FROM: Simon R. C. Wadsworth, CFO
SUBJECT: First Quarter 2002 Earnings Exceed Expectations
DATE: May 1, 2002
Memphis, TN, Mid-America Apartment Communities, Inc. (NYSE: MAA) reported Funds
From Operations ("FFO") of $13,877,000 or $0.68 per share for the quarter ended
March 31, 2002. This is $0.01 per share ahead of forecast and compares to
$14,143,000 or $.69 per share for the first quarter 2001, with 2001 figures
including a $0.01 gain on sale of land. Highlights for the first quarter were:
o FFO earnings exceeded forecast and First Call consensus.
o Occupancy improved to 94.2% by quarter end, from 92.8% at year end.
o Market conditions remain demanding, but improvement is expected later
this year.
o FFO earnings forecast of $2.80 per share for 2002 reaffirmed.
Net Income for the first quarter was $4,300,000 or $0.02 per common share. This
compares to $4,861,000 or $0.05 per common share for the same period a year ago.
The majority of this variance is due to increased depreciation expense from
development properties and the prior year's gain on sale of land.
Eric Bolton, President and CEO said, "Although our FFO earnings were ahead of
forecasts, results for the quarter reflect the impact of the continued
competitive leasing environment. While we were able to achieve improvement in
occupancy, sluggish job growth, excess new construction and active single-family
home buying continue to pressure pricing on new leases. We expect the leasing
market to remain challenging over the balance of 2002 with some improvement
starting in the latter half of the year."
"We have planned for this environment and remain comfortable with our forecasts
for the remainder of the year. While the challenging market conditions will
dampen revenue growth from our existing properties in 2002, we believe the
environment will increasingly create acquisition opportunities that meet our
strict underwriting guidelines."
Simon Wadsworth, Executive Vice-President and CFO said, "Our same store results
were impacted by a 1% reduction in occupancy from a year ago, along with a $0.03
per share increase in leasing concession costs. The net effect was a 1% decline
in same store revenues as compared to the same period a year ago. Same store
expenses rose 2.5%, and NOI was down by 3.0%. The majority of the same store
performance pressure was concentrated at our Memphis properties, with some
pressure also evident in Austin and Atlanta. We believe that market conditions
have bottomed out and expect to see some strengthening toward year end."
"During the quarter the four remaining new development properties were
effectively completed, and leasing continues to progress with their occupancy
reaching 70% at quarter end. In April our Lexington property achieved occupancy
of more than 90%, and the pace of leasing has picked up with the spring season.
Our Nashville development should be stabilized within the next six months. Our
forecast assumes it will take the balance of the year to complete the lease-up
of the new phase III of our Reserve at Dexter Lake property in Memphis."
"As these properties continue to stabilize, the capacity on our balance sheet
grows, which will also be helped by improved performance from existing
properties projected for the balance of the year. We've reduced debt outstanding
compared to a year ago. As a result of this reduction, the interest rate
environment, and the refinancings that we completed last year, our interest
expense was down $1.1 million for the quarter compared to a year ago. Our
greater balance sheet strength and our reduced interest costs contributed to
substantial improvement in our financial ratios over a year ago."
Al Campbell, Vice-President and Director of Financial Planning, said "Our
internal FFO forecast for 2002 remains at $2.80, with $0.70 for each of the next
two quarters, and $0.72 for Q4. Important variables will be leasing concessions,
the renewal pricing of our property and casualty insurance program and real
estate taxes. Our forecast is based on a 0.3% increase in same store NOI for all
of 2002 and assumes an improvement in market conditions later this year. While
our base forecast doesn't include any acquisitions or dispositions, the impact
of such transactions would be more significant in 2003."
Bolton said, "Despite the weaker economic environment we are continuing to make
steady progress in increasing our financial strength. We remain very disciplined
in evaluating opportunities to invest capital and will be patient in adding
earning assets to the portfolio. Our dividend is secure and coverage ratios are
improving."
MAA is a self-administered, self-managed apartment-only real estate investment
trust which owns or has ownership interest in 33,459 apartment units including
25 units in the development pipeline throughout the southeast and southcentral
U.S. For further details, please refer to our website at www.maac.net or contact
Simon R. C. Wadsworth at (901) 682-6668, ext. 105. 6584 Poplar Ave., Suite 300,
Memphis, TN 38138.
Certain matters in this press release may constitute forward-looking statements
within the meaning of Section 27-A of the Securities Act of 1933 and Section 21E
of the Securities and Exchange Act of 1934. Such statements include, but are not
limited to, statements made about anticipated growth rate of revenues, expenses,
and net operating income at Mid-America's properties, anticipated lease-up (and
rental concessions) at development properties, planned acquisitions and
dispositions, developments, and property financing. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors,
including a downturn in general economic conditions or the capital markets,
competitive factors including overbuilding or other supply/demand imbalances in
some or all of our markets, construction delays that could cause new and add-on
apartment units to reach the market later than anticipated, changes in interest
rates and other items that are difficult to control such as insurance rates,
increases in real estate taxes in numerous markets, as well as the other general
risks inherent in the apartment and real estate businesses. 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 ended March 31,
-----------------------------------
2002 2001
---------------- ----------------
Property revenues $ 55,659 $ 56,281
Property operating expenses 21,187 20,802
------------------------------------------------------------------------------------------------
Net operating income 34,472 35,479
Interest and other non-property income 134 287
Management and development income, net 186 188
FFO from real estate joint ventures 320 168
Property management expenses 2,472 2,589
General & administrative 1,446 1,441
Interest expense 12,362 13,459
Gain on disposition of non-depreciable assets - 234
Preferred dividend distribution 4,028 4,028
Depreciation and amortization non-real estate assets 270 167
Amortization of deferred financing costs 657 529
------------------------------------------------------------------------------------------------
Funds from operations 13,877 14,143
Depreciation and amortization 13,239 12,830
Joint venture depreciation adjustment included in FFO 343 313
Gain on disposition of non-depreciable assets included in FFO - 234
Preferred dividend distribution add back (4,028) (4,028)
------------------------------------------------------------------------------------------------
Income before gain on disposition of assets and
minority interest 4,323 4,794
Net gain on disposition of assets 64 169
Minority interest in operating partnership income (87) (102)
------------------------------------------------------------------------------------------------
Net income 4,300 4,861
Preferred dividend distribution 4,028 4,028
------------------------------------------------------------------------------------------------
Net income available for common shareholders $ 272 $ 833
================================================================================================
Weighted average common shares - Diluted 17,596 17,510
Weighted average common shares and units - Diluted 20,512 20,446
Funds from operations per share and units - Diluted $ 0.68 $ 0.69
Net income available for common shareholders - Diluted $ 0.02 $ 0.05
------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
------------------------------------------------------------------------------------------------
In thousands
March 31, December 31,
2002 2001
---------------- ----------------
Assets
Real estate assets, net $1,209,767 $1,216,933
Cash and cash equivalents, including restricted cash 21,010 23,432
Other assets 21,819 23,123
------------------------------------------------------------------------------------------------
Total assets $1,252,596 $1,263,488
================================================================================================
Liabilities
Bonds and notes payable $ 783,607 $ 779,664
Other liabilities 33,803 41,564
------------------------------------------------------------------------------------------------
Total liabilities 817,410 821,228
Shareholders' equity and minority interest 435,186 442,260
------------------------------------------------------------------------------------------------
Total liabilities & shareholders' equity $1,252,596 $1,263,488
================================================================================================
--------------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
--------------------------------------------------------------------------------------------------------------------
Dollars and shares in thousands except per share data
ROA Annualized Trailing
1Q02 4 Quarters
-------------- --------------
Gross Real Estate Assets, Average $1,456,146 $1,449,959
EBITDA $ 122,148 $ 125,262
EBITDA/Gross Real Estate Asses 8.4% 8.6%
Three Months Ended March 31,
------------------------------
2002 2001
-------------- ---------------
Common and Preferred Dividends as % of FFO 87% 88%
EBITDA/Debt Service (1) 2.31 2.15
EBITDA/Fixed Charges (2) 1.78 1.69
Total Debt as % of Gross Real Estate Assets 53% 55%
MAA portion of JV debt $27,036 $27,893
Capitalized Interest YTD $ 127 $ 476
FAD
FFO $13,877 $14,143
Average Units 30,614 30,913
Average Shares - Diluted 20,512 20,446
Recurring Capex $ 1,800 $ 2,948
FAD $12,077 $11,195
Free Cash Flow (3) $13,004 $11,891
PER SHARE (DILUTED)
FFO $ 0.68 $ 0.69
FAD $ 0.59 $ 0.55
Free Cash Flow (3) $ 0.63 $ 0.58
Distribution $ 0.585 $ 0.585
(1) Annualized EBITDA for trailing six months to annualized debt service
(aggregate of principal and interest) for same period.
(2) Annualized EBITDA for trailing six months to annualized fixed charges
(aggregate of preferred distributions, principal and interest) for same period.
(3) Includes addback of other non-cash items, primarily non-real estate
depreciation and amortization.
--------------------------------------------------------------------------------------------------------------------
OTHER DATA
--------------------------------------------------------------------------------------------------------------------
Shares and units in thousands except per share data
Three Months Ended March 31,
------------------------------
2002 2001
------------- ---------------
Weighted average common shares and units - Basic 20,371 20,416
Weighted average common shares and units - Diluted 20,512 20,446
Number of apartment units with ownership interest
(excluding development units not delivered) 33,434 33,778
Apartment units added during period, net 23 166
PER SHARE DATA
Funds from operations per share and units - Basic $ 0.68 $ 0.69
Funds from operations per share and units - Diluted $ 0.68 $ 0.69
Net income available for common shareholders -
Diluted $ 0.02 $ 0.05
Dividend declared per common share $ 0.585 $ 0.585
DIVIDEND INFORMATION (latest declaration) Payment Payment Record
per Share Date Date
------------ -------------- --------------
Common Dividend - quarterly $0.5850 4/30/2002 4/23/2002
Preferred Series A - monthly $0.1979 5/15/2002 5/1/2002
Preferred Series B - monthly $0.1849 5/15/2002 5/1/2002
Preferred Series C - quarterly $0.5859 4/15/2002 4/1/2002
----------------------------------------------------------------------------------------------------------------------------
COMMUNITY STATISTICS
----------------------------------------------------------------------------------------------------------------------------
Represents current stabilized communities
At March 31, 2002
------------------------------------------------------------
MAA
Average
Number of Portfolio MAA Rental Rate
Units Concentration Occupancy Per Unit
------------ --------------- ------------- --------------
Tennessee
Memphis 4,429 13.9% 92.1% $ 623.41
Nashville 966 3.0% 93.3% $ 690.20
Chattanooga 943 2.9% 96.2% $ 555.40
Jackson 664 2.1% 92.9% $ 608.85
Florida
Jacksonville 2,846 8.9% 94.9% $ 679.09
Tampa 1,120 3.5% 94.2% $ 750.86
Other 2,518 7.8% 94.6% $ 710.87
Georgia
Atlanta 1,652 5.1% 95.5% $ 781.87
Columbus / LaGrange 1,509 4.7% 95.5% $ 650.67
Augusta / Aiken / Savannah 1,132 3.5% 94.6% $ 616.58
Other 1,742 5.4% 93.6% $ 656.26
Texas
Dallas 2,056 6.4% 92.1% $ 652.41
Austin 1,254 3.9% 96.2% $ 718.80
Houston 1,002 3.1% 97.5% $ 663.68
South Carolina
Greenville 1,492 4.6% 93.8% $ 569.54
Other 784 2.4% 95.8% $ 679.57
Kentucky
Lexington 554 1.7% 92.4% $ 606.42
Other 624 1.9% 93.8% $ 612.74
Mississippi 1,673 5.2% 95.8% $ 580.26
Arkansas 808 2.5% 93.1% $ 613.64
Alabama 952 3.0% 93.8% $ 653.29
North Carolina 738 2.3% 94.3% $ 596.57
Ohio 414 1.3% 90.3% $ 703.05
Virginia 296 0.9% 97.3% $ 673.80
------------------------------------------------------------------------------------------------------------
Total 32,168 100.0% 94.2% $ 654.75
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SAME STORE STATISTICS
----------------------------------------------------------------------------------------------------------------------------
Dollars in thousands except Average Rental Rate
Three Months Ended March 31,
----------------------------------------
Percent
2002 2001 Change
---------- ------------- -------------
Revenues $52,245 $52,797 -1.0%
Property Operating Expenses 13,234 13,102 1.0%
RE Taxes and Insurance 6,205 5,872 5.7%
-----------------------------------------------------------------------------
Total Operating Expenses 19,439 18,974 2.5%
-----------------------------------------------------------------------------
NOI $32,806 $33,823 -3.0%
-----------------------------------------------------------------------------
Units 28,803 28,797
Average Rental Rate $656.79 $646.25 1.6%
Average Physical Occupancy 94.1% 95.1% -1.0%
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DEBT AS OF MARCH 31, 2002
-------------------------------------------------------------------------------------------------------------------------
Dollars in thousands
Principal Average Years Average
Balance to Maturity Rate
----------- --------------- ----------
Conventional - Fixed Rate or Swapped $ 576,016 6.5 6.9%
Tax-free - Fixed Rate or Swapped 118,312 23.3 6.1%
Conventional - Variable Rate 66,719 7.6 2.5%
Tax-free - Variable Rate 22,560 25.9 2.6%
----------------------------------------------------------------------------
Total $ 783,607 9.7 6.3%
FUTURE PAYMENTS
Average
Scheduled Rate for
Amortization Maturities Total Maturities
------------- ------------ ----------- ----------
2002 $ 2,970 $ 21,314 $ 24,284 5.4%
2003 3,740 154,120 157,860 6.5%
2004 3,862 71,168 75,030 7.0%
2005 4,086 3,215 7,301 8.8%
2006 4,167 36,010 40,177 6.4%
Thereafter 129,760 349,195 478,955 6.0%
---------------------------------------------------------------------------------------
Total $ 148,585 $ 635,022 $ 783,607 6.3%
-------------------------------------------------------------------------------------------------------------------------
DEVELOPMENT PIPELINE
-------------------------------------------------------------------------------------------------------------------------
Units Percentage of
------------------------------------------ Available
Available Units to Lease
--------------------
Total to Lease Occupied Leased Occupied Leased
-------- ----------- ----------- -------- ---------- --------
Properties in Lease-up
Grand Reserve Lexington Lexington, KY 370 370 326 356 88% 96%
Grande View Nashville Nashville, TN 433 432 340 366 79% 85%
Reserve at Dexter Lake Phase II Memphis, TN 244 206 176 181 85% 88%
Reserve at Dexter Lake Phase III Memphis, TN 244 219 54 68 25% 31%
-------------------------------------------------------------------------------------------------------------------------
Total 1,291 1,227 896 971 73% 79%
SIGNATURES
Pursuant to the requirements of the Securities Exchnage Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MID-AMERICA APARTMENT COMMUNITIES, INC.
Date: October 10, 2002 /s/Simon R.C. Wadsworth
Simon R.C. Wadsworth
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)