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
February 15, 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. (NYSE: MAA)
4th Quarter 2001 Earnings Release Conference Call
February 15th, 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, our Vice President of Financial Planning. In our call this morning we
plan to provide additional insights on our fourth quarter operating results
which were released yesterday afternoon. Before we proceed, Al will provide
required statutory disclosure as well as instructions on how you can access
additional information on our results.
Al Campbell: This morning we will make some 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
February 22nd by dialing 630-652-3000 with the passcode 5198437.
Eric Bolton: Thanks, Al. In our prepared comments this morning we will provide
additional insights on fourth quarter operating results. Al will recap portfolio
performance by market segment and provide insights on what we expect in 2002
from our major markets. Simon will discuss balance sheet items and our 2002
forecast. I'll conclude with a few additional comments and then we'll open the
phone line for any questions that you may have. Our prepared comments will last
approximately 20 minutes.
Revenue performance for the fourth quarter was pressured by two factors - a slow
down in leasing traffic, primarily at our upper end and higher priced
properties, and an increase in leasing concessions as over supply in several
markets, coupled with the normally slow holiday leasing, created a very
competitive leasing environment.
Our new development properties currently in lease up experienced a 25% decline
in leasing traffic in the fourth quarter as compared to the same period of the
prior year. However, traffic levels have resumed a more normal seasonal pattern
after the first of the year and we expect to complete lease up at both our
Lexington and Nashville properties in the second quarter. Our new property in
Lexington is currently 86% leased and our Nashville development is currently 78%
leased. Phase II of our new Reserve at Dexter Lake property in Memphis is
currently 79% leased and we expect construction to be completed on the final 244
unit phase of this development during the second quarter. As noted in our press
release, there is only a minimal amount of funding remaining for this
construction project. We have no plans to start additional construction at this
time and look forward to completing the lease-up of this pipeline over the
remainder of the year.
Concession costs within our same store portfolio increased by 36% in the fourth
quarter. Over one-third of the increase was attributable to the Memphis
properties. New construction delivery in the Memphis market during 2001 was
clearly well ahead of absorption. The good news, however, is that absorption
remains steady and was in fact up slightly in 2001 from historic norms. Al will
have more specifics on the Memphis market in his comments. We are anticipating
that concession costs will remain high until the third quarter. Our forecast
calls for occupancy to gradually improve as leasing traffic picks up over the
spring and summer leasing season and for concession costs to return to more
historic norms over the last half of the year. It's worth noting that the
overall portfolio's increase in vacancy loss and concession costs in 2001, as
compared to the more stabilized operating environment of 2000, reduced FFO by
roughly 15 cents a share. So you can see, there is a material amount of earnings
upside to capture when markets return to a more balanced state.
Our emphasis on resident retention during this slower leasing period continues
to make progress with unit turnover down again this quarter as compared to the
prior year. Acquiring new customers in these markets remains expensive and we
have a significant and continuing focus on resident retention and further
lowering turnover in 2002.
Property operating expense control remains very strong. Property operating
expenses, excluding taxes and insurance, were down 1.6% for the quarter. Total
same store property operating expenses were flat as compared to prior year. Our
utility management programs and resident billing initiative, along with our
efforts to lower unit turnover, have contributed to this solid result. Real
estate taxes also remain under tight control; essentially flat for the fourth
quarter and increasing only 2% for all of 2001. Our current property and
casualty insurance program expires effective the end of the second quarter and
like most, we are concerned about the pricing of insurance at renewal. We are
underway with a number of initiatives to evaluate alternatives and are hopeful
that we can achieve a reasonably priced renewal of the program over the second
half of 2002.
Our properties are in excellent condition. Recurring capital spending in 2001
was $375 per unit, down from $410 per unit in 2000. We anticipate that we can
maintain recurring spending at roughly $380 per unit in 2002.
Al will now spend a few minutes talking about market conditions.
Al Campbell: As Eric mentioned, this quarter proved to be a tough leasing
environment for many of our markets. Steady pressure from single family housing
and over supply issues in certain markets, coupled with the slower leasing
season, created competitive leasing environments causing concessions and vacancy
loss to be higher than the same quarter a year ago.
Let's first take a look at Memphis. Overall, the Memphis economy is fairing
pretty well, with unemployment below the national average, positive household
formation and steady demand for multifamily housing. The annual absorption rate
in Memphis has historically averaged around 2,000 units per year. In 2001 the
absorption level was actually slightly higher at 2,500 units. However, the
market saw over 4,200 new construction units come on line during the year, which
well out-paced absorption. This over supply created a very competitive market
during the quarter, with our properties averaging 90% occupancy, 3% below prior
year. We believe the market has bottomed out as new construction permits have
drastically reduced and steady demand is expected over the next few years. We
expect market occupancy in Memphis to remain in the low 90's through most of
2002, gradually showing strength in the second half of the year with a reduced
concessionary environment.
A slower economy in Atlanta has left a significant volume of new development
units coming to market at a time when absorption is running well below historic
norms. Occupancy for our five properties in Atlanta, which represents only about
5% of our portfolio, averaged 91% for the quarter, down 4% from the prior year,
with the majority of pressure coming from a single property in the Woodstock
area in northwest Atlanta, a sub-market directly impacted by oversupply of new
units. We do expect continued supply issues and a soft economy in Atlanta during
2002, and have projected further downward pressure on occupancy during the first
half resulting in average occupancy of around 90% for the entire year.
There has also been concern over excess supply issues in Austin. However,
occupancy for our four properties averaged 95% for the quarter, a strong
performance compared to the 91% for the market as a whole. We do expect
competition to stiffen as a significant volume of new product is delivered over
the next 12 months. We are projecting occupancy for our properties to average
91% in 2002 with increased concessions during the first half.
We also saw increased competition in Dallas during the quarter, as demand in the
market was more sluggish than expected. Our properties averaged 92% occupancy
during the quarter. However, deliveries of new product have slowed and the job
growth pace has held up better than most metros nationwide. We expect demand to
be more in balance with supply in Dallas during 2002, providing more stable
occupancy and rent growth. Our projections allow for some continued occupancy
slippage during the first quarter of 2002 improving in the second half of the
year.
Our other major markets continue to hold up well. We see solid occupancy levels
in Tampa, Jacksonville, Houston, and Nashville; generally ranging between 94 and
97%. In addition, several of our tertiary markets such as, Chattanooga, Columbus
and Augusta, GA, and Jackson, MS continue to post stable results with occupancy
holding in the 94% range for this group.
To review our expectations for the portfolio as a whole, in the coming year we
expect some continued pressure on occupancy levels during the first quarter,
which should begin improving in the second quarter and through the second half
of the year. Projected average occupancy for the full year is around 93%. We
also expect many of our markets to be very competitive during the first quarter
requiring a continued high level of concessions to maintain and begin improving
occupancy, which should ease as the year progresses. We are projecting
concessions for the same store portfolio to be 3.5% of net potential rent for
the first quarter gradually improving each quarter to normal levels of around 2%
by year-end.
Simon Wadsworth: Given the tougher than expected operating environment, we were
pleased to meet our projected earnings' goal for the quarter, and we were helped
in this by reduced interest expense and some favorable results from real estate
tax appeals.
On December 1st we completed some additional refinancings, and set the rate on a
5-year $20 million term loan that we had pre-locked at 5.77%. On that date the
rate on our variable rate credit facility also dropped to 2.78%. At December
31st our weighted average debt cost was 6.35%, down from 7.16% a year ago. $84
million, or less than 11% of our debt is variable rate, and of this $23 million
are tax-exempt low-floaters.
In 2002, we plan refinancing $50 million of debt, although we only have about
$15 million of maturities that we are required to refund; we don't anticipate
that this will have a significant impact on our interest costs.
You will notice that our Funds Available for Distribution, or FAD, improved from
$2.18 per share in 2000 to $2.23 this year. Looking at our free cash flow,
adding back non-cash expense items of non-real estate depreciation and
amortization of our deferred finance cost, our free cash flow increased to
$2.37/share, giving us a 3 cent margin of free cash over our dividend. This is
an improvement over 2000, but still short of where we would like to be. We can
comfortably fund the dividend, especially given our year over year NOI growth
which improves the value and thus the borrowing base of our properties.
Additionally, we are forecasting an improving business environment by the second
half-year, and by that time we hope to have at least part of our excess balance
sheet capacity productively at work, and this will further increase our dividend
coverage.
As Eric mentioned, we're projecting the stabilization of our development during
this year, but the properties will not reach full earnings potential until 2003,
and in the case of Reserve at Dexter Phase III, 2004. Once we reach this level,
the development properties should throw off an additional 11 cents/share of FFO
compared to 2002. Despite the market-driven delays in reaching stabilization, we
continue to project stabilized yields of approximately 9.5% on our latest group
of development properties.
Our forecast for this coming year assumes a 0.5% increase in NOI in our
same-store portfolio. As Al commented, our concessions are forecast to worsen
this first quarter of the year before improving slightly in Q2 and Q3, and
settling out to more normal levels in Q4. We're forecasting occupancy to be weak
in the first and second quarters, with negative same store NOI growth in both
quarters (compared to prior year), but the trend improves after Q1, with
positive NOI trends beginning in the third quarter. We've built in interest rate
increases of 150 bps on our variable rate debt, especially in the last half of
the year. With these assumptions and without any acquisitions or dispositions,
our base case for FFO is around the same level of this year, or $2.80, with a
range of $2.77 to $2.82.
MAA continues to trade at a discount to Net Asset Value, as we calculate it, and
you will have noticed that management continues to buy the stock at current
prices.
We are projecting our property and casualty insurance costs to increase by 30%
on a same-store basis when the policy renews in July. Our real estate taxes are
projected to increase by 4% on a same store basis, compared to a 2% increase in
2001. These two categories total over $26 million of expense and are
particularly subject to cost pressures and difficult to forecast at this time.
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 patiently waiting and
remain very disciplined with our capital investment.
Eric Bolton: As Simon noted, our acquisition initiative is active and we
continue to look at a number of opportunities. We are optimistic that the
challenging market conditions will increasingly generate opportunities which
meet our thorough underwriting standards and investment hurdles. Our property
and asset management capabilities surrounding acquisition and redevelopment are
strong and we are excited about increasing opportunities to focus and leverage
on this core competency.
As our balance sheet continues to strengthen, we are steadily moving towards a
program of more active capital recycling. Our strategy for the next 2 to 3 years
will center on harvesting value from a number of our existing properties and
shifting capital from several of our tertiary markets into larger metro and
select secondary markets within our regional focus.
While the slow down in the economy has clearly dampened occupancy and FFO
performance over the last few months, we are excited about the growing
opportunities before us. Our dividend is secure and currently paying a 9.3%
yield based on pricing as of the market close yesterday. Our capacity and
flexibility to pursue attractive acquisitions is growing. Our current stock
price continues to offer a discount opportunity to underlying and current value.
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, 4th Quarter Earnings 2001
FROM: Simon R. C. Wadsworth, CFO
SUBJECT: Fourth Quarter and 2001 Earnings Meet Expectations
DATE: February 14, 2002
o Fourth quarter FFO of $0.70 per share; in line with forecast
o Leasing activity slows during fourth quarter; improvement in 2002 expected
o Balance sheet strengthening; positioning for growth through acquisitions
Memphis, TN. Mid-America Apartment Communities, Inc. (NYSE: MAA) announced today
Funds From Operations ("FFO") for the fourth quarter ended December 31, 2001
were $14.4 million, $0.70 per share. For the full year 2001 FFO was reported to
be $57.2 million, $2.80 per share. These results are in line with earnings
estimates.
Net income before extraordinary items for the fourth quarter was 14 cents per
common share, an increase from 12 cents per common share for the comparable
prior year period. For the full year 2001 net income before extraordinary items
was 78 cents per common share versus 79 cents per common share for all of 2000.
After extraordinary items, the Company reported net income of 12 cents per
common share for the quarter and 72 cents per common share for the full year
2001.
Eric Bolton, President and CEO said, "We anticipated a reduced level of leasing
traffic and a resulting decline in occupancy during the fourth quarter. This
traditionally slow leasing quarter was further pressured by a down economy, a
resilient home buying environment and an over-supply of new construction in a
few markets. Leasing concessions and vacancy loss caused revenue for our same
store group of properties to fall by 0.7% during the fourth quarter, compared to
the same period of the prior year. We expect that during the second quarter of
this year, the stronger spring leasing season will generate improved leasing
traffic and occupancy levels. Our efforts to lower resident move-outs during
this slower leasing period continued to show positive results. Unit turnover
declined 0.4% during the fourth quarter. Absent any further deterioration in the
economy, we expect to see a steady improvement in occupancy over the course of
2002."
"Our property management team continues to do an excellent job in limiting the
growth of operating expenses. As a result of new internet-based operating
programs and support systems, as well as a continuation of our utility cost
management and billing initiatives, total operating expenses on a same store
basis were flat (0% increase) as compared to the same period of the prior year.
Our properties are in excellent physical condition and continue to capture
numerous civic and industry awards. Recurring capital spending on our properties
totaled $11.6 million or $375 per unit in 2001, down from $12.7 million or $410
per unit in 2000. We forecast recurring capital spending to remain at this lower
level in 2002."
"Our balance sheet continues to strengthen, steadily gaining additional capacity
as we complete funding and lease-up of our construction pipeline," said Simon
Wadsworth, Executive Vice-President and CFO. "In addition, with over $200
million of our debt refinanced or renegotiated in 2001, we only have $50 million
of financing scheduled for 2002. At year end 2001 our average debt cost was
6.3%, down from 7.2% a year ago. Our Board voted to hold our dividend payout at
its present level given the anticipated softness in property revenues headed
into 2002. We are comfortable with our current payout level, especially given
our growing balance sheet capacity."
"Our current FFO forecast for 2002 calls for $2.80 per share, with a range of
$2.77 to $2.82. The key variables are an anticipated strengthening in the
economy and markets over the second half of the year, movements in interest
rates and the level of anticipated increases in both property insurance and real
estate tax expenses. On a quarterly basis, our overall FFO 2002 forecast is
$0.67 per share for Q1, $0.70 for Q2, $0.71 for Q3 and $0.72 for Q4. We have
assumed growths of 1.6% in same store revenues, 3.5% in operating expenses and
0.5% in same store NOI. We have included no property acquisitions in our 2002
forecast, although we believe that there is an increasing possibility that there
will be some."
Bolton added, "Our team of experienced multifamily real estate operators and
high-quality properties continue to perform in a strong, steady and reasonably
predictable fashion in this weak economy. Our development pipeline is fully
funded and construction will be completed this quarter. Our capital has been
prudently deployed; we have avoided the mistakes made in chasing hi-tech start
up ventures and the accompanying large capital write-offs which accompanied many
of these. Our balance sheet is strengthening and our dividend is secure. While
the current operating environment and market conditions are expected to dampen
earnings over the first part of this year, we believe that opportunities will be
increasing to create more value for our shareholders through attractive
acquisitions and redevelopment of undervalued properties."
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
77 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, costs remaining to complete
development properties, planned acquisitions, planned 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.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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In thousands except per share data
Three months ended December 31, Twelve months ended December 31,
--------------------------------- --------------------------------
2001 2000 2001 2000
------------- ------------- ----------- ------------
Property revenues $ 55,757 $ 55,979 $ 226,270 $ 222,532
Property operating expenses 20,886 20,844 84,584 83,446
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Net operating income 34,871 35,135 141,686 139,086
Interest and other non-property income 323 503 1,310 1,526
Management and development income, net 186 190 755 739
FFO from real estate joint ventures 203 330 972 1,053
Property management expenses 2,681 2,298 10,204 9,509
General & administrative 1,452 1,302 5,879 5,317
Interest expense 12,272 13,192 52,598 50,736
Gain on disposition of non-depreciable assets - - 229 -
Preferred dividend distribution 4,028 4,027 16,113 16,114
Depreciation and amortization non-real estate assets 113 155 594 514
Amortization of deferred financing costs 657 606 2,352 2,758
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Funds from operations 14,380 14,578 57,212 57,456
Depreciation and amortization 12,931 12,834 51,457 51,330
Joint venture depreciation adjustment included in FFO 325 308 1,268 1,210
Gain on disposition of non-depreciable assets included in FFO - - 229 -
Preferred dividend distribution add back (4,028) (4,027) (16,113) (16,114)
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Income before gain on disposition of assets,
minority interest and extraordinary items 5,152 5,463 20,371 21,030
Net gain on disposition of assets 1,869 1,083 11,933 11,587
Minority interest in operating partnership income (469) (346) (2,573) (2,626)
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Income before extraordinary items 6,552 6,200 29,731 29,991
Ex item - Loss on debt extinguishment , net of MI 407 - 1,033 204
Preferred dividend distribution 4,028 4,027 16,113 16,114
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Net income available for common shareholders $ 2,117 $ 2,173 $ 12,585 $ 13,673
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Weighted average common shares - Diluted 17,568 17,512 17,532 17,597
Weighted average common shares and units - Diluted 20,489 20,458 20,464 20,551
Funds from operations per share and units - Diluted $ 0.70 $ 0.71 $ 2.80 $ 2.80
Net income available for common shareholders
before extraordinary items - Diluted $ 0.14 $ 0.12 $ 0.78 $ 0.79
Net income available for common shareholders
after extraordinary items - Diluted $ 0.12 $ 0.12 $ 0.72 $ 0.78
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CONSOLIDATED BALANCE SHEETS
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In thousands
December 31, December 31,
2001 2000
----------------- -----------------
Assets
Real estate assets, net $1,216,933 $1,244,475
Cash and cash equivalents, including restricted cash 23,432 33,567
Other assets 23,123 25,729
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Total assets $1,263,488 $1,303,771
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Liabilities
Bonds and notes payable $ 779,664 $ 781,089
Other liabilities 41,564 37,306
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Total liabilities 821,228 818,395
Shareholders' equity and minority interest 442,260 485,376
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Total liabilities & shareholders' equity $1,263,488 $1,303,771
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OPERATING RESULTS
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Dollars and shares in thousands except per share data
ROA Annualized Trailing
4Q01 4 Quarters
------------------ ----------------
Gross Real Estate Assets, Average $1,449,720 $1,445,061
EBITDA $ 123,172 $ 126,288
EBITDA/Gross Real Estate Assets 8.5% 8.7%
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------------ --------------------------------
2001 2000 2001 2000
----------------- ---------------- ------------- -------------
Common and Preferred Dividends as % of FFO 87% 86%
EBITDA/Debt Service (1) 2.28 2.13
EBITDA/Fixed Charges (2) 1.77 1.68
Total Debt as % of Gross Real Estate Assets 54% 55%
MAA portion of JV debt $27,107 $27,353
Capitalized Interest YTD $ 1,382 $ 3,730
FAD
FFO $14,380 $14,578 $57,212 $57,456
Average Units 30,553 30,875 30,778 30,924
Average Shares - Diluted 20,489 20,458 20,464 20,551
Recurring Capex $ 2,892 $ 3,174 $11,567 $12,697
FAD $11,488 $11,404 $45,645 $44,759
Free Cash Flow (3) $12,258 $12,165 $48,591 $48,031
PER SHARE (DILUTED)
FFO $ 0.70 $ 0.71 $ 2.80 $ 2.80
FAD $ 0.56 $ 0.56 $ 2.23 $ 2.18
Free Cash Flow (3) $ 0.60 $ 0.59 $ 2.37 $ 2.34
Distribution $ 0.585 $ 0.585 $ 2.34 $ 2.32
(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.
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OTHER DATA
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Shares and units in thousands except per share data
Three Months Ended December 31, Twelve Months Ended December 31,
---------------------------------- --------------------------------
2001 2000 2001 2000
---------------- --------------- -------------- --------------
Weighted average common shares and units - Basic 20,348 20,426 20,359 20,498
Weighted average common shares and units - Diluted 20,489 20,458 20,464 20,551
Number of apartment units with ownership interest
(excluding development units not delivered) 33,382 33,612 33,382 33,612
Apartment units added during period, net 91 (115) (230) (289)
PER SHARE DATA
Funds from operations per share and units - Basic $ 0.71 $ 0.71 $ 2.81 $ 2.80
Funds from operations per share and units - Diluted $ 0.70 $ 0.71 $ 2.80 $ 2.80
Net income available for common shareholders
before extraordinary items - Diluted $ 0.14 $ 0.12 $ 0.78 $ 0.79
Net income available for common shareholders
after extraordinary items - Diluted $ 0.12 $ 0.12 $ 0.72 $ 0.78
Dividend declared per common share $ 0.585 $ 0.585 $ 2.340 $ 2.325
DIVIDEND INFORMATION (latest declaration) Payment Payment Record
per Share Date Date
----------------------- --------------- ----------------
Common Dividend - quarterly $0.5850 1/31/2002 1/24/2002
Preferred Series A - monthly $0.1979 2/15/2002 2/1/2002
Preferred Series B - monthly $0.1849 2/15/2002 2/1/2002
Preferred Series C - quarterly $0.5859 1/15/2002 1/2/2002
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COMMUNITY STATISTICS
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Represents current stabilized communities
At December 31, 2001
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MAA
Average
Number of Portfolio MAA Rental Rate
Units Concentration Occupancy Per Unit
---------------- ----------------- ----------- ---------------
Tennessee
Memphis 4,177 13.2% 88.9% $ 612.96
Nashville 1,150 3.6% 94.3% $ 674.08
Chattanooga 943 3.0% 95.5% $ 549.31
Jackson 664 2.1% 90.4% $ 605.26
Florida
Jacksonville 2,846 9.0% 93.7% $ 675.58
Tampa 1,120 3.5% 94.1% $ 747.13
Other 2,518 8.0% 94.0% $ 707.22
Georgia
Atlanta 1,652 5.2% 90.7% $ 786.19
Columbus / LaGrange 1,509 4.8% 93.7% $ 646.48
Augusta / Aiken / Savannah 1,132 3.6% 96.2% $ 611.55
Other 1,742 5.5% 93.2% $ 657.01
Texas
Dallas 2,056 6.5% 91.1% $ 651.09
Austin 1,254 4.0% 94.5% $ 718.44
Houston 682 2.2% 96.9% $ 592.33
South Carolina
Greenville 1,492 4.7% 91.4% $ 587.48
Other 784 2.5% 95.3% $ 694.41
Kentucky
Lexington 370 1.2% 92.4% $ 601.96
Other 624 2.0% 93.6% $ 618.94
Mississippi 1,673 5.3% 94.2% $ 582.05
Arkansas 808 2.6% 90.8% $ 613.58
Alabama 952 3.0% 93.8% $ 653.03
North Carolina 738 2.3% 93.6% $ 619.79
Ohio 414 1.3% 87.4% $ 710.55
Virginia 296 0.9% 98.3% $ 673.99
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Total 31,596 100.0% 92.8% $ 652.69
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SAME STORE STATISTICS
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Dollars in thousands except Average Rental Rate
Three Months Ended December 31, Twelve Months Ended December 31,
--------------------------------------------- ---------------------------------------------
Percent Percent
2001 2000 Change 2001 2000 Change
------------ ------------- -------------- ------------ ------------- --------------
Revenues $51,695 $52,053 -0.7% $208,534 $205,958 1.3%
Property Operating Expenses 13,325 13,536 -1.6% 52,828 53,021 -0.4%
RE Taxes and Insurance 5,925 5,715 3.7% 23,562 22,368 5.3%
--------------------------------------------------------------------------------- ----------------------------------------------
Total Operating Expenses 19,250 19,251 0.0% 76,390 75,389 1.3%
--------------------------------------------------------------------------------- ----------------------------------------------
NOI $32,445 $32,802 -1.1% $132,144 $130,569 1.2%
--------------------------------------------------------------------------------- ----------------------------------------------
Units 28,573 28,567 28,461 28,458
Average Rental Rate $656.82 $642.26 2.3% $649.78 $632.96 2.7%
Average Physical Occupancy 93.2% 94.7% -1.6% 94.1% 95.2% -1.1%
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DEBT AS OF DECEMBER 31, 2001
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Dollars in thousands
Principal Average Years Average
Balance to Maturity Rate
---------------- ---------------- ----------
Fixed Rate - Conventional $ 451,486 6.5 6.9%
Fixed Rate - Tax-free 118,899 19.8 6.1%
Line of Credit - Swapped to Fixed Rate 125,000 6.6 6.9%
Variable Rate - Tax-free 22,560 26.1 2.8%
Variable Rate - Conventional 61,719 7.9 2.8%
------------------------------------------------
Total $ 779,664 9.2 6.3%
FUTURE PAYMENTS Average
Scheduled Rate for
Amortization Maturities Total Maturities
----------------- ------------- ---------- -------------
2002 $ 3,956 $ 16,390 $ 20,346 6.2%
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 4,166 36,010 40,176 6.1%
Thereafter 129,755 349,196 478,951 6.1%
--------------------------------------------------------------
Total $ 149,565 $ 630,099 $ 779,664 6.3%
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DEVELOPMENT PIPELINE
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Dollars in thousands
DEVELOPMENT STATISTICS
Current Actual/Forecast
-----------------------------------
Total Estimated Cost to Construction Initial Stabil-
--------------
Units Cost Date Start Finish Occupancy ization
------ --------- ------- ----- ------ --------- -------
Completed Communities in Lease-up
Grand Reserve Lexington Lexington, KY 370 $31,288 $31,288 3Q98 3Q00 4Q99 2Q02
Reserve at Dexter Lake Phase II Memphis, TN 244 15,973 15,973 2Q99 2Q01 1Q00 2Q02
Grand View Nashville Nashville, TN 433 36,313 36,313 1Q99 2Q01 3Q00 2Q02
--------------------------
Total Completed Communities 1,047 83,574 83,574
Under Construction
Reserve at Dexter Lake Phase III Memphis, TN 244 15,541 15,004 3Q00 1Q02 2Q01 4Q02
--------------------------
Total Units in Lease-up/Development 1,291 $99,115 $98,578
--------------------------
OCCUPANCY STATISTICS
Apartments
---------------------------
Available Leased Occupied
--------- ------ --------
Completed Communities in Lease-up
Grand Reserve Lexington 370 317 307
Reserve at Dexter Lake Phase II 244 192 187
Grand View Nashville 433 338 333
---------------------------
Total Completed Communities 1,047 847 827
Under Construction
Reserve at Dexter Lake Phase III 196 22 16
---------------------------
Total Units in Lease-up/Development 1,243 869 843
---------------------------
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)