TENNESSEE
|
62-1543819
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
6584
POPLAR AVENUE
|
|
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 October 21, 2010
|
|||
Common
Stock, $0.01 par value
|
34,184,668
|
Page
|
||||
PART
I – FINANCIAL INFORMATION
|
||||
Item
1.
|
Financial
Statements.
|
3
|
||
Condensed
Consolidated Balance Sheets as of September 30, 2010 (Unaudited) and
December 31, 2009
|
3
|
|||
Condensed
Consolidated Statements of Operations for the three and nine months ended
September 30, 2010 (Unaudited) and 2009 (Unaudited).
|
4
|
|||
Condensed
Consolidated Statements of Cash Flows for the nine months ended September
30, 2010 (Unaudited) and 2009 (Unaudited).
|
5
|
|||
Notes
to Condensed Consolidated Financial Statements
(Unaudited).
|
6
|
|||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations.
|
19
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk.
|
31
|
||
Item
4.
|
Controls
and Procedures.
|
31
|
||
Item 4T.
|
Controls
and Procedures.
|
32
|
||
PART
II – OTHER INFORMATION
|
||||
Item
1.
|
Legal
Proceedings.
|
32
|
||
Item 1A.
|
Risk
Factors.
|
32
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds.
|
40
|
||
Item
3.
|
Defaults
Upon Senior Securities.
|
40
|
||
Item
4.
|
(Removed
and Reserved).
|
40
|
||
Item
5.
|
Other
Information.
|
40
|
||
Item
6.
|
Exhibits.
|
41
|
||
|
Signatures
|
|
42
|
September 30, 2010
|
December 31, 2009
|
|||||||
Assets:
|
||||||||
Real
estate assets:
|
||||||||
Land
|
$ | 270,980 | $ | 255,425 | ||||
Buildings
and improvements
|
2,509,193 | 2,364,918 | ||||||
Furniture,
fixtures and equipment
|
81,301 | 73,975 | ||||||
Capital
improvements in progress
|
3,735 | 10,517 | ||||||
2,865,209 | 2,704,835 | |||||||
Less
accumulated depreciation
|
(862,662 | ) | (788,260 | ) | ||||
2,002,547 | 1,916,575 | |||||||
Land
held for future development
|
1,306 | 1,306 | ||||||
Commercial
properties, net
|
8,163 | 8,721 | ||||||
Investments
in real estate joint ventures
|
15,571 | 8,619 | ||||||
Real
estate assets, net
|
2,027,587 | 1,935,221 | ||||||
Cash
and cash equivalents
|
100,091 | 13,819 | ||||||
Restricted
cash
|
2,426 | 561 | ||||||
Deferred
financing costs, net
|
14,329 | 13,369 | ||||||
Other
assets
|
22,519 | 19,731 | ||||||
Goodwill
|
4,106 | 4,106 | ||||||
Assets
held for sale
|
18,793 | 19 | ||||||
Total
assets
|
$ | 2,189,851 | $ | 1,986,826 | ||||
Liabilities
and Shareholders' Equity:
|
||||||||
Liabilities:
|
||||||||
Notes
payable
|
$ | 1,551,203 | $ | 1,399,596 | ||||
Accounts
payable
|
2,099 | 1,702 | ||||||
Fair
market value of interest rate swaps
|
60,070 | 51,160 | ||||||
Accrued
expenses and other liabilities
|
80,030 | 69,528 | ||||||
Security
deposits
|
7,181 | 8,789 | ||||||
Liabilities
associated with assets held for sale
|
417 | 23 | ||||||
Total
liabilities
|
1,701,000 | 1,530,798 | ||||||
Redeemable
stock
|
3,368 | 2,802 | ||||||
Shareholders'
equity:
|
||||||||
Preferred
stock, $0.01 par value per share, 20,000,000 shares authorized, $25 per
share liquidation preference; 8.30% Series H Cumulative Redeemable
Preferred Stock, 6,200,000 shares authorized, 0 and 6,200,000 shares
issued and outstanding at September 30, 2010 and December 31, 2009,
respectively
|
- | 62 | ||||||
Common
stock, $0.01 par value per share, 50,000,000 shares authorized; 33,898,029
and 29,095,251 shares issued and outstanding at September 30, 2010 and
December 31, 2009, respectively (1)
|
338 | 290 | ||||||
Additional
paid-in capital
|
1,085,697 | 988,642 | ||||||
Accumulated
distributions in excess of net income
|
(559,610 | ) | (510,993 | ) | ||||
Accumulated
other comprehensive losses
|
(60,975 | ) | (47,435 | ) | ||||
Total
Mid-America Apartment Communities, Inc. shareholders'
equity
|
465,450 | 430,566 | ||||||
Noncontrolling
interest
|
20,033 | 22,660 | ||||||
Total
Equity
|
485,483 | 453,226 | ||||||
Total
liabilities and equity
|
$ | 2,189,851 | $ | 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 September 30, 2010 and December 31,
2009 are 57,792 and 58,038,
respectively.
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Operating
revenues:
|
||||||||||||||||
Rental
revenues
|
$ | 92,842 | $ | 89,220 | $ | 274,199 | $ | 268,011 | ||||||||
Other
property revenues
|
8,356 | 5,701 | 23,073 | 15,009 | ||||||||||||
Total
property revenues
|
101,198 | 94,921 | 297,272 | 283,020 | ||||||||||||
Management
fee income
|
186 | 78 | 477 | 205 | ||||||||||||
Total
operating revenues
|
101,384 | 94,999 | 297,749 | 283,225 | ||||||||||||
Property
operating expenses:
|
||||||||||||||||
Personnel
|
13,036 | 12,244 | 38,111 | 35,570 | ||||||||||||
Building
repairs and maintenance
|
4,375 | 4,310 | 11,363 | 10,409 | ||||||||||||
Real
estate taxes and insurance
|
11,068 | 11,368 | 34,287 | 34,411 | ||||||||||||
Utilities
|
6,671 | 6,135 | 17,941 | 16,874 | ||||||||||||
Landscaping
|
2,561 | 2,451 | 7,594 | 7,245 | ||||||||||||
Other
operating
|
7,429 | 5,629 | 20,047 | 14,845 | ||||||||||||
Depreciation
|
26,466 | 23,913 | 76,489 | 71,316 | ||||||||||||
Total
property operating expenses
|
71,606 | 66,050 | 205,832 | 190,670 | ||||||||||||
Acquisition
expenses
|
989 | 30 | 1,451 | 139 | ||||||||||||
Property
management expenses
|
4,547 | 4,007 | 13,303 | 12,751 | ||||||||||||
General
and administrative expenses
|
2,957 | 3,163 | 8,878 | 8,306 | ||||||||||||
Income
from continuing operations before non-operating items
|
21,285 | 21,749 | 68,285 | 71,359 | ||||||||||||
Interest
and other non-property income
|
217 | 161 | 618 | 309 | ||||||||||||
Interest
expense
|
(13,598 | ) | (14,371 | ) | (41,482 | ) | (43,072 | ) | ||||||||
Loss
on debt extinguishment
|
- | (2 | ) | - | (140 | ) | ||||||||||
Amortization
of deferred financing costs
|
(675 | ) | (587 | ) | (1,918 | ) | (1,781 | ) | ||||||||
Asset
impairment
|
(324 | ) | - | (1,914 | ) | - | ||||||||||
Net
casualty gains (loss) and other settlement proceeds
|
350 | (109 | ) | 979 | (253 | ) | ||||||||||
Gain
on sale of non-depreciable assets
|
- | 1 | - | 1 | ||||||||||||
Income
from continuing operations before loss from real estate joint
ventures
|
7,255 | 6,842 | 24,568 | 26,423 | ||||||||||||
Loss
from real estate joint ventures
|
(282 | ) | (288 | ) | (856 | ) | (640 | ) | ||||||||
Income
from continuing operations
|
6,973 | 6,554 | 23,712 | 25,783 | ||||||||||||
Discontinued
operations:
|
||||||||||||||||
Income
from discontinued operations before gain on sale
|
- | 311 | - | 1,058 | ||||||||||||
Gain
(loss) on sale of discontinued operations
|
- | 13 | (2 | ) | 2,600 | |||||||||||
Consolidated
net income
|
6,973 | 6,878 | 23,710 | 29,441 | ||||||||||||
Net
income attributable to noncontrolling interests
|
224 | 260 | 889 | 1,536 | ||||||||||||
Net
income attributable to Mid-America Apartment Communities,
Inc.
|
6,749 | 6,618 | 22,821 | 27,905 | ||||||||||||
Preferred
dividend distributions
|
629 | 3,216 | 6,549 | 9,649 | ||||||||||||
Premiums
and original issuance costs associated with the redemption of preferred
stock
|
2,576 | - | 5,149 | - | ||||||||||||
Net
income available for common shareholders
|
$ | 3,544 | $ | 3,402 | $ | 11,123 | $ | 18,256 | ||||||||
Weighted
average shares outstanding (in thousands):
|
||||||||||||||||
Basic
|
33,312 | 28,364 | 31,039 | 28,186 | ||||||||||||
Effect
of dilutive securities
|
101 | 77 | 101 | 6 | ||||||||||||
Diluted
|
33,413 | 28,441 | 31,140 | 28,192 | ||||||||||||
Net
income available for common shareholders
|
$ | 3,544 | $ | 3,402 | $ | 11,123 | $ | 18,256 | ||||||||
Discontinued
property operations
|
- | (324 | ) | 2 | (3,658 | ) | ||||||||||
Income
from continuing operations available for common
shareholders
|
$ | 3,544 | $ | 3,078 | $ | 11,125 | $ | 14,598 | ||||||||
Earnings
per share - basic:
|
||||||||||||||||
Income
from continuing operations available for common
shareholders
|
$ | 0.11 | $ | 0.11 | $ | 0.36 | $ | 0.51 | ||||||||
Discontinued
property operations
|
- | 0.01 | - | 0.13 | ||||||||||||
Net
income available for common shareholders
|
$ | 0.11 | $ | 0.12 | $ | 0.36 | $ | 0.64 | ||||||||
Earnings
per share - diluted:
|
||||||||||||||||
Income
from continuing operations available for common
shareholders
|
$ | 0.11 | $ | 0.11 | $ | 0.36 | $ | 0.51 | ||||||||
Discontinued
property operations
|
- | 0.01 | - | 0.13 | ||||||||||||
Net
income available for common shareholders
|
$ | 0.11 | $ | 0.12 | $ | 0.36 | $ | 0.64 | ||||||||
Dividends
declared per common share
|
$ | 0.615 | $ | 0.615 | $ | 1.845 | $ | 1.845 |
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Consolidated
net income
|
$ | 23,710 | $ | 29,441 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization of deferred financing costs
|
78,407 | 73,097 | ||||||
Stock
compensation expense
|
1,915 | 939 | ||||||
Redeemable
stock issued
|
296 | 253 | ||||||
Amortization
of debt premium
|
(270 | ) | (270 | ) | ||||
Loss
from investments in real estate joint ventures
|
856 | 640 | ||||||
Loss
on debt extinguishment
|
- | 140 | ||||||
Derivative
interest expense
|
405 | 685 | ||||||
Gain
on sale of non-depreciable assets
|
- | (1 | ) | |||||
Loss
(gain) on sale of discontinued operations
|
2 | (2,600 | ) | |||||
Asset
impairment
|
1,914 | - | ||||||
Net
casualty (gains) loss and other settlement proceeds
|
(979 | ) | 253 | |||||
Changes
in assets and liabilities:
|
||||||||
Restricted
cash
|
(1,865 | ) | (626 | ) | ||||
Other
assets
|
(4,351 | ) | (616 | ) | ||||
Accounts
payable
|
399 | (63 | ) | |||||
Accrued
expenses and other
|
7,775 | 9,846 | ||||||
Security
deposits
|
(1,546 | ) | (32 | ) | ||||
Net
cash provided by operating activities
|
106,668 | 111,086 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of real estate and other assets
|
(215,068 | ) | (17,949 | ) | ||||
Improvements
to existing real estate assets
|
(31,722 | ) | (34,326 | ) | ||||
Renovations
to existing real estate assets
|
(4,763 | ) | (6,004 | ) | ||||
Development
|
- | (5,340 | ) | |||||
Distributions
from real estate joint ventures
|
1,607 | 108 | ||||||
Contributions
to real estate joint ventures
|
(9,739 | ) | (2,729 | ) | ||||
Proceeds
from disposition of real estate assets
|
71,421 | 14,372 | ||||||
Net
cash used in investing activities
|
(188,264 | ) | (51,868 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
change in credit lines
|
15,000 | 35,694 | ||||||
Proceeds
from notes payable
|
137,881 | - | ||||||
Principal
payments on notes payable
|
(1,004 | ) | (44,323 | ) | ||||
Payment
of deferred financing costs
|
(7,122 | ) | (1,933 | ) | ||||
Repurchase
of common stock
|
(891 | ) | (833 | ) | ||||
Proceeds
from issuances of common shares and units
|
247,104 | 25,329 | ||||||
Distributions
to noncontrolling interests
|
(4,284 | ) | (4,604 | ) | ||||
Dividends
paid on common shares
|
(56,172 | ) | (51,836 | ) | ||||
Dividends
paid on preferred shares
|
(7,622 | ) | (9,649 | ) | ||||
Redemption
of preferred stock
|
(155,022 | ) | - | |||||
Net
cash provided by (used in) financing activities
|
167,868 | (52,155 | ) | |||||
Net
increase in cash and cash equivalents
|
86,272 | 7,063 | ||||||
Cash
and cash equivalents, beginning of period
|
13,819 | 9,426 | ||||||
Cash
and cash equivalents, end of period
|
$ | 100,091 | $ | 16,489 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Interest
paid
|
$ | 41,718 | $ | 41,054 | ||||
Supplemental
disclosure of noncash investing and financing activities:
|
||||||||
Conversion
of units to share of common stock
|
$ | 1,219 | $ | 196 | ||||
Accrued
construction in progress
|
$ | 2,165 | $ | 2,476 | ||||
Interest
capitalized
|
$ | - | $ | 173 | ||||
Marked-to-market
adjustment on derivative instruments
|
$ | (14,444 | ) | $ | 18,229 | |||
Reclassification
of redeemable stock to liabilities
|
$ | 271 | $ | - |
1.
|
Consolidation
and Basis of Presentation
|
2.
|
Segment
Information
|
|
·
|
Large
market same store communities are generally communities in markets with a
population of at least 1 million that we have owned and have been
stabilized for at least a full 12 months and have not been classified as
held for sale.
|
|
·
|
Secondary
market same store communities are generally communities in markets with
populations of less than 1 million that we have owned and have been
stabilized for at least a full 12 months and have not been classified as
held for sale.
|
|
·
|
Non
same store communities and other includes recent acquisitions, communities
in development or lease-up, communities that have been classified as held
for sale and non multifamily activities which represent less than 1% of
our portfolio.
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Large
Market Same Store
|
$ | 44,942 | $ | 44,910 | $ | 134,118 | $ | 135,321 | ||||||||
Secondary
Market Same Store
|
43,670 | 42,774 | 130,111 | 127,782 | ||||||||||||
Non-Same
Store and Other
|
12,586 | 7,237 | 33,043 | 19,917 | ||||||||||||
Total
property revenues
|
101,198 | 94,921 | 297,272 | 283,020 | ||||||||||||
Management
fee income
|
186 | 78 | 477 | 205 | ||||||||||||
Total
operating revenues
|
$ | 101,384 | $ | 94,999 | $ | 297,749 | $ | 283,225 | ||||||||
NOI
|
||||||||||||||||
Large
Market Same Store
|
$ | 24,791 | $ | 24,938 | $ | 75,069 | $ | 78,212 | ||||||||
Secondary
Market Same Store
|
24,337 | 24,172 | 74,160 | 74,464 | ||||||||||||
Non-Same
Store and Other
|
6,930 | 4,001 | 18,700 | 12,106 | ||||||||||||
Total
NOI
|
56,058 | 53,111 | 167,929 | 164,782 | ||||||||||||
Discontinued
operations NOI included above
|
- | (327 | ) | - | (1,116 | ) | ||||||||||
Management
fee income
|
186 | 78 | 477 | 205 | ||||||||||||
Depreciation
|
(26,466 | ) | (23,913 | ) | (76,489 | ) | (71,316 | ) | ||||||||
Acquisition
expense
|
(989 | ) | (30 | ) | (1,451 | ) | (139 | ) | ||||||||
Property
management expense
|
(4,547 | ) | (4,007 | ) | (13,303 | ) | (12,751 | ) | ||||||||
General
and administrative expense
|
(2,957 | ) | (3,163 | ) | (8,878 | ) | (8,306 | ) | ||||||||
Interest
and other non-property income
|
217 | 161 | 618 | 309 | ||||||||||||
Interest
expense
|
(13,598 | ) | (14,371 | ) | (41,482 | ) | (43,072 | ) | ||||||||
Gain
(loss) on debt extinguishment
|
- | (2 | ) | - | (140 | ) | ||||||||||
Amortization
of deferred financing costs
|
(675 | ) | (587 | ) | (1,918 | ) | (1,781 | ) | ||||||||
Asset
impairment
|
(324 | ) | - | (1,914 | ) | - | ||||||||||
Net
casualty gains (loss) and other settlement proceeds
|
350 | (109 | ) | 979 | (253 | ) | ||||||||||
Gain
on sale of non-depreciable assets
|
- | 1 | - | 1 | ||||||||||||
Loss
from real estate joint ventures
|
(282 | ) | (288 | ) | (856 | ) | (640 | ) | ||||||||
Discontinued
operations
|
- | 324 | (2 | ) | 3,658 | |||||||||||
Net
income attributable to noncontrolling interests
|
(224 | ) | (260 | ) | (889 | ) | (1,536 | ) | ||||||||
Net
income attributable to Mid-America Apartment Communities,
Inc.
|
$ | 6,749 | $ | 6,618 | $ | 22,821 | $ | 27,905 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Assets
|
||||||||
Large
Market Same Store
|
$ | 915,932 | $ | 934,182 | ||||
Secondary
Market Same Store
|
657,347 | 672,692 | ||||||
Non-Same
Store and Other
|
567,508 | 336,683 | ||||||
Corporate
assets
|
49,064 | 43,269 | ||||||
Total
assets
|
$ | 2,189,851 | $ | 1,986,826 |
3.
|
Comprehensive
Income and Equity
|
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
|
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
|
247,008 | 48 | 246,960 | |||||||||||||||||||||||||||||
Shares
repurchased and retired
|
(891 | ) | (891 | ) | ||||||||||||||||||||||||||||
Exercise
of stock options
|
89 | 89 | ||||||||||||||||||||||||||||||
Shares
issued in exchange for units
|
- | 1,219 | (1,219 | ) | ||||||||||||||||||||||||||||
Redeemable
stock fair market value
|
(539 | ) | (539 | ) | ||||||||||||||||||||||||||||
Adjustment
for Noncontrolling Interest Ownership in operating
partnership
|
- | (2,418 | ) | 2,418 | ||||||||||||||||||||||||||||
Amortization
of unearned compensation
|
1,907 | 1,907 | ||||||||||||||||||||||||||||||
Dividends
on common stock ($1.845 per share)
|
(59,201 | ) | (59,201 | ) | ||||||||||||||||||||||||||||
Dividends
on noncontrolling interest units ($1.845 per unit)
|
(4,215 | ) | (4,215 | ) | ||||||||||||||||||||||||||||
Redemption
of preferred stock
|
(155,022 | ) | (62 | ) | (149,811 | ) | (5,149 | ) | ||||||||||||||||||||||||
Dividends
on preferred stock
|
(6,549 | ) | (6,549 | ) | ||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
23,710 | 23,710 | 22,821 | 889 | ||||||||||||||||||||||||||||
Other comprehensive
loss - derivative instruments (cash flow hedges) (1)
|
(14,040 | ) | (14,040 | ) | (13,540 | ) | (500 | ) | ||||||||||||||||||||||||
Comprehensive
income
|
9,670 | 9,670 | ||||||||||||||||||||||||||||||
EQUITY
BALANCE SEPTEMBER 30, 2010
|
$ | 485,483 | $ | - | $ | 338 | $ | 1,085,697 | $ | (559,610 | ) | $ | (60,975 | ) | $ | 20,033 |
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
|
25,286 | 6 | 25,280 | |||||||||||||||||||||||||||||
Shares
repurchased and retired
|
(833 | ) | (833 | ) | ||||||||||||||||||||||||||||
Exercise
of stock options
|
45 | 45 | ||||||||||||||||||||||||||||||
Shares
issued in exchange for units
|
- | 196 | (196 | ) | ||||||||||||||||||||||||||||
Redeemable
stock fair market value
|
(464 | ) | (464 | ) | ||||||||||||||||||||||||||||
Adjustment
for Noncontrolling Interest Ownership in operating
partnership
|
- | (521 | ) | 521 | ||||||||||||||||||||||||||||
Amortization
of unearned compensation
|
966 | 966 | ||||||||||||||||||||||||||||||
Dividends
on common stock ($1.845 per share)
|
(52,215 | ) | (52,215 | ) | - | |||||||||||||||||||||||||||
Dividends
on noncontrolling interest units ($1.845 per unit)
|
(4,593 | ) | (4,593 | ) | ||||||||||||||||||||||||||||
Dividends
on preferred stock
|
(9,649 | ) | (9,649 | ) | ||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||
Net
income
|
29,441 | 29,441 | 27,905 | 1,536 | ||||||||||||||||||||||||||||
Other comprehensive
income - derivative instruments (cash flow hedges) (2)
|
18,914 | 18,914 | 17,795 | 1,119 | ||||||||||||||||||||||||||||
Comprehensive
income
|
48,355 | 48,355 | ||||||||||||||||||||||||||||||
EQUITY
BALANCE SEPTEMBER 30, 2009
|
$ | 449,515 | $ | 62 | $ | 288 | $ | 979,260 | $ | (499,040 | ) | $ | (55,090 | ) | $ | 24,035 |
4.
|
Real
Estate Acquisitions
|
Location
|
Number
|
|||||
Community
|
(Metropolitan Statistical Area: MSA)
|
of Units
|
Date Purchased
|
|||
100%
Owned Communities
|
||||||
Grand
Cypress (1)
|
Cypress,
TX (Houston)
|
312
|
April
30, 2010
|
|||
535
Brookwood
|
Simpsonville,
SC (Greenville)
|
256
|
June
24, 2010
|
|||
Avondale
at Kennesaw Farms
|
Gallatin,
TN (Nashville)
|
288
|
June
29, 2010
|
|||
Verandas
at Sam Ridley
|
Smyrna,
TN (Nashville)
|
336
|
August
12, 2010
|
|||
Hue
|
Raleigh,
NC (Raleigh)
|
208
|
August
17, 2010
|
|||
Times
Square at Craig Ranch
|
McKinney,
TX (Dallas)
|
313
|
August
26, 2010
|
|||
La
Valencia at Starwood
|
Frisco,
TX (Dallas)
|
270
|
August
27, 2010
|
|||
The
Venue at Stonebridge Ranch
(2)
|
McKinney,
TX (Dallas)
|
250
|
September
1, 2010
|
|||
|
|
2,233
|
|
5.
|
Discontinued
Operations
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Rental
revenues
|
$ | - | $ | 728 | $ | - | $ | 2,480 | ||||||||
Other
revenues
|
- | 48 | - | 101 | ||||||||||||
Total
revenues
|
- | 776 | - | 2,581 | ||||||||||||
Expenses
|
||||||||||||||||
Property
operating expenses
|
- | 449 | - | 1,465 | ||||||||||||
Interest
expense
|
- | 16 | - | 58 | ||||||||||||
Total
expense
|
- | 465 | - | 1,523 | ||||||||||||
Income
from discontinued operations before gain on sale
|
- | 311 | - | 1,058 | ||||||||||||
Gain
(loss) on sale of discontinued operations
|
- | 13 | (2 | ) | 2,600 | |||||||||||
Income
from discontinued operations
|
$ | - | $ | 324 | $ | (2 | ) | $ | 3,658 |
6.
|
Share
and Unit Information
|
7.
|
Notes
Payable
|
Borrowed
|
Effective
|
Contract
|
||||||||
Balance
|
Rate
|
Maturity
|
||||||||
Fixed
Rate Debt
|
||||||||||
Individual
property mortgages
|
$ | 206,853 | 5.0 | % |
2/25/2020
|
|||||
Tax-exempt
|
11,070 | 5.3 | % |
12/1/2028
|
||||||
FNMA
conventional credit facilities
|
50,000 | 4.7 | % |
3/31/2017
|
||||||
Credit
facility balances managed with interest rate swaps
|
||||||||||
LIBOR-based
interest rate swaps
|
767,000 | 5.3 | % |
1/2/2013
|
||||||
SIFMA-based
interest rate swaps
|
17,800 | 4.4 | % |
10/15/2012
|
||||||
Total
fixed rate debt
|
1,052,723 | 5.2 | % |
10/10/2014
|
||||||
Variable
Rate Debt (1)
|
||||||||||
FNMA
conventional credit facilities
|
329,318 | 0.8 | % |
11/19/2014
|
||||||
FNMA
tax-free credit facilities
|
72,715 | 1.1 | % |
3/1/2014
|
||||||
Feddie
Mac credit facilities
|
81,247 | 0.8 | % |
6/28/2013
|
||||||
Freddie
Mac mortgage
|
15,200 | 3.7 | % |
12/10/2015
|
||||||
Total
variable rate debt
|
498,480 | 1.0 | % |
8/1/2014
|
||||||
Total
Outstanding Debt
|
$ | 1,551,203 | 3.8 | % |
9/18/2014
|
8.
|
Derivatives
and Hedging Activities
|
Interest Rate Derivative
|
Number of Instruments
|
Notional
|
|||||
Interest
Rate Caps
|
21
|
$ | 270,651,000 | ||||
Interest
Rate Swaps
|
31
|
$ | 784,800,000 |
Asset Derivatives
|
Liability Derivative
|
||||||||||||||||||
30-Sep-10
|
31-Dec-09
|
30-Sep-10
|
31-Dec-09
|
||||||||||||||||
Balance
|
Balance
|