x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TENNESSEE
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62-1543819
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(State or other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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6584 POPLAR AVENUE
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MEMPHIS, TENNESSEE
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38138
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(Address of principal executive offices)
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(Zip Code)
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N/A
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer þ
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Accelerated filer ¨
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Non-accelerated filer ¨ (Do not check if a smaller reporting company)
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Smaller reporting company ¨
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Number of Shares Outstanding
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|
Class
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at July 22, 2011
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Common Stock, $0.01 par value
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37,141,780
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MID-AMERICA APARTMENT COMMUNITIES, INC.
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||||
TABLE OF CONTENTS
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||||
Page
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||||
PART I – FINANCIAL INFORMATION
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||||
Item 1.
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Financial Statements.
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|||
Condensed Consolidated Balance Sheets as of June 30, 2011 (Unaudited) and December 31, 2010.
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3 | |||
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2011 (Unaudited) and 2010 (Unaudited).
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4 | |||
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2011 (Unaudited) and 2010 (Unaudited).
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5 | |||
Notes to Condensed Consolidated Financial Statements (Unaudited).
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6 | |||
Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations.
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18 | ||
Item 3.
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Quantitative and Qualitative Disclosures About Market Risk.
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29 | ||
Item 4.
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Controls and Procedures.
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30 | ||
Item 4T.
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Controls and Procedures.
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30 | ||
PART II – OTHER INFORMATION
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||||
Item 1.
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Legal Proceedings.
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30 | ||
Item 1A.
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Risk Factors.
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30 | ||
Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds.
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40 | ||
Item 3.
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Defaults Upon Senior Securities.
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40 | ||
Item 4.
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(Removed and Reserved).
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40 | ||
Item 5.
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Other Information.
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40 | ||
Item 6.
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Exhibits.
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41 | ||
Signatures
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42 |
MAA
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Condensed Consolidated Balance Sheets
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June 30, 2011 (Unaudited) and December 31, 2010
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(Dollars in thousands, except per share data)
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June 30, 2011
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December 31, 2010
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|||||||
Assets:
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||||||||
Real estate assets:
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||||||||
Land
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$ | 312,384 | $ | 288,890 | ||||
Buildings and improvements
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2,733,279 | 2,564,887 | ||||||
Furniture, fixtures and equipment
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86,519 | 83,251 | ||||||
Capital improvements in progress
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31,437 | 11,501 | ||||||
3,163,619 | 2,948,529 | |||||||
Less accumulated depreciation
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(937,334 | ) | (889,841 | ) | ||||
2,226,285 | 2,058,688 | |||||||
Land held for future development
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1,306 | 1,306 | ||||||
Commercial properties, net
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8,231 | 8,141 | ||||||
Investments in real estate joint ventures
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17,613 | 17,505 | ||||||
Real estate assets, net
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2,253,435 | 2,085,640 | ||||||
Cash and cash equivalents
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12,838 | 45,942 | ||||||
Restricted cash
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1,627 | 1,514 | ||||||
Deferred financing costs, net
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13,908 | 13,713 | ||||||
Other assets
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21,752 | 25,133 | ||||||
Goodwill
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4,106 | 4,106 | ||||||
Assets held for sale
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5,855 | - | ||||||
Total assets
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$ | 2,313,521 | $ | 2,176,048 | ||||
Liabilities and Shareholders' Equity:
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||||||||
Liabilities:
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||||||||
Notes payable
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$ | 1,535,934 | $ | 1,500,193 | ||||
Accounts payable
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2,826 | 1,815 | ||||||
Fair market value of interest rate swaps
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41,086 | 48,936 | ||||||
Accrued expenses and other liabilities
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82,451 | 73,999 | ||||||
Security deposits
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6,604 | 6,693 | ||||||
Liabilities associated with assets held for sale
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178 | 20 | ||||||
Total liabilities
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1,669,079 | 1,631,656 | ||||||
Redeemable stock
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4,142 | 3,764 | ||||||
Shareholders' equity:
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||||||||
Common stock, $0.01 par value per share, 50,000,000 shares authorized;
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||||||||
37,142,477 and 34,871,399 shares issued and outstanding at
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||||||||
June 30, 2011 and December 31, 2010, respectively (1)
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371 | 348 | ||||||
Additional paid-in capital
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1,264,853 | 1,142,023 | ||||||
Accumulated distributions in excess of net income
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(605,316 | ) | (575,021 | ) | ||||
Accumulated other comprehensive losses
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(42,268 | ) | (48,847 | ) | ||||
Total MAA shareholders' equity
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617,640 | 518,503 | ||||||
Noncontrolling interest
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22,660 | 22,125 | ||||||
Total equity
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640,300 | 540,628 | ||||||
Total liabilities and equity
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$ | 2,313,521 | $ | 2,176,048 |
(1)
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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 or liability on the consolidated balance sheet for June 30, 2011 and December 31, 2010 are 62,601 and 62,234, respectively.
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MAA
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Condensed Consolidated Statements of Operations
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Three and six months ended June 30, 2011 and 2010
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(Unaudited)
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(Dollars in thousands, except per share data)
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Three months ended
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Six months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
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2011
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2010
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2011
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2010
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||||||||||||
Operating revenues:
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||||||||||||||||
Rental revenues
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$ | 100,924 | $ | 90,592 | $ | 198,369 | $ | 180,468 | ||||||||
Other property revenues
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9,302 | 7,648 | 18,484 | 14,616 | ||||||||||||
Total property revenues
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110,226 | 98,240 | 216,853 | 195,084 | ||||||||||||
Management fee income
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263 | 155 | 486 | 291 | ||||||||||||
Total operating revenues
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110,489 | 98,395 | 217,339 | 195,375 | ||||||||||||
Property operating expenses:
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||||||||||||||||
Personnel
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13,581 | 12,623 | 26,663 | 24,890 | ||||||||||||
Building repairs and maintenance
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3,809 | 3,633 | 7,135 | 6,936 | ||||||||||||
Real estate taxes and insurance
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12,562 | 11,271 | 25,001 | 23,120 | ||||||||||||
Utilities
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6,372 | 5,636 | 12,507 | 11,200 | ||||||||||||
Landscaping
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2,702 | 2,504 | 5,384 | 5,000 | ||||||||||||
Other operating
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8,387 | 6,707 | 16,037 | 12,503 | ||||||||||||
Depreciation
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28,021 | 24,811 | 55,629 | 49,761 | ||||||||||||
Total property operating expenses
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75,434 | 67,185 | 148,356 | 133,410 | ||||||||||||
Acquisition expenses
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1,520 | 486 | 1,739 | 462 | ||||||||||||
Property management expenses
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5,194 | 4,479 | 10,338 | 8,756 | ||||||||||||
General and administrative expenses
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5,439 | 3,110 | 10,049 | 5,921 | ||||||||||||
Income from continuing operations before non-operating items
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22,902 | 23,135 | 46,857 | 46,826 | ||||||||||||
Interest and other non-property income
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114 | 86 | 349 | 401 | ||||||||||||
Interest expense
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(14,149 | ) | (13,982 | ) | (28,128 | ) | (27,863 | ) | ||||||||
Loss on debt extinguishment
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(48 | ) | - | (48 | ) | - | ||||||||||
Amortization of deferred financing costs
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(707 | ) | (648 | ) | (1,422 | ) | (1,243 | ) | ||||||||
Asset impairment
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- | (1,590 | ) | - | (1,590 | ) | ||||||||||
Net casualty (loss) gains and other settlement proceeds
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(265 | ) | 102 | (406 | ) | 258 | ||||||||||
Loss on sale of non-depreciable assets
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- | - | (6 | ) | - | |||||||||||
Gain on properties contributed to joint ventures
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- | - | - | 371 | ||||||||||||
Income from continuing operations before
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||||||||||||||||
loss from real estate joint ventures
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7,847 | 7,103 | 17,196 | 17,160 | ||||||||||||
Loss from real estate joint ventures
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(178 | ) | (298 | ) | (423 | ) | (574 | ) | ||||||||
Income from continuing operations
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7,669 | 6,805 | 16,773 | 16,586 | ||||||||||||
Discontinued operations:
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||||||||||||||||
Income from discontinued operations before loss on sale
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11 | 85 | 69 | 153 | ||||||||||||
Net loss on insurance and other settlement proceeds on
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||||||||||||||||
discontinued operations
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- | - | (7 | ) | - | |||||||||||
Loss on sale of discontinued operations
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- | (2 | ) | - | (2 | ) | ||||||||||
Consolidated net income
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7,680 | 6,888 | 16,835 | 16,737 | ||||||||||||
Net income attributable to noncontrolling interests
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252 | 228 | 563 | 665 | ||||||||||||
Net income attributable to MAA
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7,428 | 6,660 | 16,272 | 16,072 | ||||||||||||
Preferred dividend distributions
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- | 2,704 | - | 5,920 | ||||||||||||
Premiums and original issuance costs associated with the
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||||||||||||||||
redemption of preferred stock
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- | 2,573 | - | 2,573 | ||||||||||||
Net income available for common shareholders
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$ | 7,428 | $ | 1,383 | $ | 16,272 | $ | 7,579 | ||||||||
Earnings per common share - basic:
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||||||||||||||||
Income from continuing operations
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||||||||||||||||
available for common shareholders
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$ | 0.20 | $ | 0.04 | $ | 0.45 | $ | 0.25 | ||||||||
Discontinued property operations
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- | - | - | - | ||||||||||||
Net income available for common shareholders
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$ | 0.20 | $ | 0.04 | $ | 0.45 | $ | 0.25 | ||||||||
Earnings per share - diluted:
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||||||||||||||||
Income from continuing operations
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||||||||||||||||
available for common shareholders
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$ | 0.20 | $ | 0.04 | $ | 0.44 | $ | 0.25 | ||||||||
Discontinued property operations
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- | - | - | - | ||||||||||||
Net income available for common shareholders
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$ | 0.20 | $ | 0.04 | $ | 0.44 | $ | 0.25 | ||||||||
Dividends declared per common share
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$ | 0.6275 | $ | 0.6150 | $ | 1.2550 | $ | 1.2300 |
MAA
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Condensed Consolidated Statements of Cash Flows
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Six Months Ended June 30, 2011 and 2010
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(Unaudited)
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(Dollars in thousands)
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2011
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2010
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|||||||
Cash flows from operating activities:
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||||||||
Consolidated net income
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$ | 16,835 | $ | 16,737 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of deferred financing costs
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57,318 | 51,266 | ||||||
Stock compensation expense
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1,686 | 1,131 | ||||||
Redeemable stock issued
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293 | 213 | ||||||
Amortization of debt premium
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(180 | ) | (180 | ) | ||||
Loss from investments in real estate joint ventures
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423 | 574 | ||||||
Loss on debt extinguishment
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48 | - | ||||||
Derivative interest expense
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222 | 300 | ||||||
Loss on sale of non-depreciable assets
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6 | - | ||||||
Loss (gain) on sale of discontinued operations
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- | 2 | ||||||
Asset impairment
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- | 1,590 | ||||||
Net casualty loss (gains) and other settlement proceeds
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406 | (258 | ) | |||||
Gain on properties contributed to joint ventures
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- | (371 | ) | |||||
Changes in assets and liabilities:
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||||||||
Restricted cash
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(113 | ) | (169 | ) | ||||
Other assets
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1,943 | 1,447 | ||||||
Accounts payable
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1,012 | (234 | ) | |||||
Accrued expenses and other
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3,714 | (4,436 | ) | |||||
Security deposits
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(62 | ) | (696 | ) | ||||
Net cash provided by operating activities
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83,551 | 66,916 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of real estate and other assets
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(185,901 | ) | (69,718 | ) | ||||
Improvements to existing real estate assets
|
(25,781 | ) | (21,901 | ) | ||||
Renovations to existing real estate assets
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(6,005 | ) | (3,552 | ) | ||||
Development
|
(8,658 | ) | - | |||||
Distributions from real estate joint ventures
|
828 | 1,481 | ||||||
Contributions to real estate joint ventures
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(1,373 | ) | (6,006 | ) | ||||
Proceeds from disposition of real estate assets
|
320 | 48,074 | ||||||
Net cash used in investing activities
|
(226,570 | ) | (51,622 | ) | ||||
Cash flows from financing activities:
|
||||||||
Net change in credit lines
|
(12,817 | ) | (55,000 | ) | ||||
Proceeds from notes payable
|
150,350 | 19,500 | ||||||
Principal payments on notes payable
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(101,612 | ) | (721 | ) | ||||
Payment of deferred financing costs
|
(1,700 | ) | (5,731 | ) | ||||
Repurchase of common stock
|
(2,260 | ) | (813 | ) | ||||
Proceeds from issuances of common shares
|
125,737 | 161,999 | ||||||
Distributions to noncontrolling interests
|
(2,719 | ) | (2,927 | ) | ||||
Dividends paid on common shares
|
(45,064 | ) | (36,198 | ) | ||||
Dividends paid on preferred shares
|
- | (6,467 | ) | |||||
Redemption of preferred stock
|
- | (77,510 | ) | |||||
Net cash provided by (used in) financing activities
|
109,915 | (3,868 | ) | |||||
Net (decrease) increase in cash and cash equivalents
|
(33,104 | ) | 11,426 | |||||
Cash and cash equivalents, beginning of period
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45,942 | 13,819 | ||||||
Cash and cash equivalents, end of period
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$ | 12,838 | $ | 25,245 | ||||
Supplemental disclosure of cash flow information:
|
||||||||
Interest paid
|
$ | 28,034 | $ | 28,458 | ||||
Supplemental disclosure of noncash investing and financing activities:
|
||||||||
Conversion of units to shares of common stock
|
$ | 2,878 | $ | 1,190 | ||||
Accrued construction in progress
|
$ | 6,775 | $ | 2,139 | ||||
Interest capitalized
|
$ | 459 | $ | - | ||||
Marked-to-market adjustment on derivative instruments
|
$ | 6,587 | $ | (10,063 | ) | |||
Reclassification of redeemable stock to liabilities
|
$ | 151 | $ | 269 |
1.
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Consolidation and Basis of Presentation and Significant Accounting Policies
|
For the three months ended
|
For the six months ended
|
|||||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||
Shares Outstanding
|
||||||||||||||||||
Weighted average common shares - basic
|
36,836 | 30,628 | 36,274 | 29,883 | ||||||||||||||
Weighted average partnership units outstanding
|
1,982 | - |
(1)
|
2,041 | - |
(1)
|
||||||||||||
Effect of dilutive securities
|
105 | 108 | 105 | 84 | ||||||||||||||
Weighted average common shares - diluted
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38,923 | 30,736 | 38,420 | 29,967 | ||||||||||||||
Calculation of Earnings per Share - basic
|
||||||||||||||||||
Net income available for common shareholders
|
$ | 7,428 | $ | 1,383 | $ | 16,272 | $ | 7,579 | ||||||||||
Net income allocated to unvested restricted shares
|
(2 | ) | (15 | ) |
|
(11 | ) | (44 | ) | |||||||||
Net income available for common shareholders,
|
||||||||||||||||||
adjusted
|
$ | 7,426 | $ | 1,368 | $ | 16,261 | $ | 7,535 | ||||||||||
Weighted average common shares - basic
|
36,836 | 30,628 | 36,274 | 29,883 | ||||||||||||||
Earnings per share - basic
|
$ | 0.20 | $ | 0.04 | $ | 0.45 | $ | 0.25 | ||||||||||
Calculation of Earnings per Share - diluted
|
||||||||||||||||||
Net income available for common shareholders
|
$ | 7,428 | $ | 1,383 | $ | 16,272 | $ | 7,579 | ||||||||||
Net income attributable to noncontrolling interests
|
252 | - |
(1)
|
563 | - |
(1)
|
||||||||||||
Adjusted net income available for
|
||||||||||||||||||
common shareholders
|
$ | 7,680 | $ | 1,383 | $ | 16,835 | $ | 7,579 | ||||||||||
Weighted average common shares - diluted
|
38,923 | 30,736 | 38,420 | 29,967 | ||||||||||||||
Earnings per share - diluted
|
$ | 0.20 | $ | 0.04 | $ | 0.44 | $ | 0.25 |
(1) Operating partnership units are not included in dilutive earnings per share calculations for the three or six month periods ended June 30, 2010, as they were not dilutive.
|
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
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Large Market Same Store
|
$ | 50,492 | $ | 48,551 | $ | 100,397 | $ | 96,736 | ||||||||
Secondary Market Same Store
|
46,863 | 44,809 | 93,099 | 89,045 | ||||||||||||
Non-Same Store and Other
|
12,871 | 4,880 | 23,357 | 9,303 | ||||||||||||
Total property revenues
|
110,226 | 98,240 | 216,853 | 195,084 | ||||||||||||
Management fee income
|
263 | 155 | 486 | 291 | ||||||||||||
Total operating revenues
|
$ | 110,489 | $ | 98,395 | $ | 217,339 | $ | 195,375 | ||||||||
NOI
|
||||||||||||||||
Large Market Same Store
|
$ | 28,684 | $ | 27,672 | $ | 57,346 | $ | 55,080 | ||||||||
Secondary Market Same Store
|
26,897 | 25,531 | 54,064 | 51,361 | ||||||||||||
Non-Same Store and Other
|
7,385 | 2,891 | 13,071 | 5,430 | ||||||||||||
Total NOI
|
62,966 | 56,094 | 124,481 | 111,871 | ||||||||||||
Discontinued operations NOI included above
|
(153 | ) | (228 | ) | (355 | ) | (436 | ) | ||||||||
Management fee income
|
263 | 155 | 486 | 291 | ||||||||||||
Depreciation
|
(28,021 | ) | (24,811 | ) | (55,629 | ) | (49,761 | ) | ||||||||
Acquisition expense
|
(1,520 | ) | (486 | ) | (1,739 | ) | (462 | ) | ||||||||
Property management expense
|
(5,194 | ) | (4,479 | ) | (10,338 | ) | (8,756 | ) | ||||||||
General and administrative expense
|
(5,439 | ) | (3,110 | ) | (10,049 | ) | (5,921 | ) | ||||||||
Interest and other non-property income
|
114 | 86 | 349 | 401 | ||||||||||||
Interest expense
|
(14,149 | ) | (13,982 | ) | (28,128 | ) | (27,863 | ) | ||||||||
Loss on debt extinguishment
|
(48 | ) | - | (48 | ) | - | ||||||||||
Amortization of deferred financing costs
|
(707 | ) | (648 | ) | (1,422 | ) | (1,243 | ) | ||||||||
Asset impairment
|
- | (1,590 | ) | - | (1,590 | ) | ||||||||||
Net casualty gains (loss) and other settlement proceeds
|
(265 | ) | 102 | (406 | ) | 258 | ||||||||||
Loss on sale of non-depreciable assets
|
- | - | (6 | ) | - | |||||||||||
Gain on properties contributed to joint ventures
|
- | - | - | 371 | ||||||||||||
Loss from real estate joint ventures
|
(178 | ) | (298 | ) | (423 | ) | (574 | ) | ||||||||
Discontinued operations
|
11 | 83 | 62 | 151 | ||||||||||||
Net income attributable to noncontrolling interests
|
(252 | ) | (228 | ) | (563 | ) | (665 | ) | ||||||||
Net income attributable to MAA
|
$ | 7,428 | $ | 6,660 | $ | 16,272 | $ | 16,072 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Assets
|
||||||||
Large Market Same Store
|
$ | 1,030,579 | $ | 1,044,321 | ||||
Secondary Market Same Store
|
676,674 | 683,389 | ||||||
Non-Same Store and Other
|
560,438 | 359,606 | ||||||
Corporate assets
|
45,830 | 88,732 | ||||||
Total assets
|
$ | 2,313,521 | $ | 2,176,048 |
3.
|
Comprehensive Income and Equity
|
Mid-America Apartment Communities, Inc. Shareholders
|
||||||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Additional
|
Distributions
|
Other
|
||||||||||||||||||||||||
Stock
|
Stock
|
Paid-In
|
in Excess of
|
Comprehensive
|
Noncontrolling
|
Total
|
||||||||||||||||||||||
Amount
|
Amount
|
Capital
|
Net Income
|
Income (Loss)
|
Interest
|
Equity
|
||||||||||||||||||||||
EQUITY BALANCE DECEMBER 31, 2010
|
$ | - | $ | 348 | $ | 1,142,023 | $ | (575,021 | ) | $ | (48,847 | ) | $ | 22,125 | $ | 540,628 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
- | - | - | 16,272 | - | 563 | 16,835 | |||||||||||||||||||||
Other comprehensive income - derivative instruments (cash flow hedges)
|
- | - | - | - | 6,579 | 230 | 6,809 | |||||||||||||||||||||
Comprehensive income
|
- | - | - | - | - | - | 23,644 | |||||||||||||||||||||
Issuance and registration of common shares
|
- | 21 | 125,679 | - | - | - | 125,700 | |||||||||||||||||||||
Shares repurchased and retired
|
- | - | (2,260 | ) | - | - | - | (2,260 | ) | |||||||||||||||||||
Exercise of stock options
|
- | - | 38 | - | - | - | 38 | |||||||||||||||||||||
Shares issued in exchange for units
|
- | 2 | 2,876 | - | - | (2,878 | ) | - | ||||||||||||||||||||
Redeemable stock fair market value
|
- | - | - | (235 | ) | - | - | (235 | ) | |||||||||||||||||||
Adjustment for Noncontrolling Interest Ownership in operating partnership
|
- | - | (5,189 | ) | - | - | 5,189 | - | ||||||||||||||||||||
Amortization of unearned compensation
|
- | - | 1,686 | - | - | - | 1,686 | |||||||||||||||||||||
Dividends on common stock ($1.2550 per share)
|
- | - | - | (46,332 | ) | - | - | (46,332 | ) | |||||||||||||||||||
Dividends on noncontrolling interest units ($1.2550 per unit)
|
- | - | - | - | - | (2,569 | ) | (2,569 | ) | |||||||||||||||||||
EQUITY BALANCE JUNE 30, 2011
|
$ | - | $ | 371 | $ | 1,264,853 | $ | (605,316 | ) | $ | (42,268 | ) | $ | 22,660 | $ | 640,300 |
Mid-America Apartment Communities, Inc. Shareholders
|
||||||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Additional
|
Distributions
|
Other
|
||||||||||||||||||||||||
Stock
|
Stock
|
Paid-In
|
in Excess of
|
Comprehensive
|
Noncontrolling
|
Total
|
||||||||||||||||||||||
Amount
|
Amount
|
Capital
|
Net Income
|
Income (Loss)
|
Interest
|
Equity
|
||||||||||||||||||||||
EQUITY BALANCE DECEMBER 31, 2009
|
$ | 62 | $ | 290 | $ | 988,642 | $ | (510,993 | ) | $ | (47,435 | ) | $ | 22,660 | $ | 453,226 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
- | - | - | 16,072 | - | 665 | 16,737 | |||||||||||||||||||||
Other comprehensive income - derivative instruments (cash flow hedges)
|
- | - | - | - | (9,401 | ) | (362 | ) | (9,763 | ) | ||||||||||||||||||
Comprehensive income
|
- | - | - | - | - | - | 6,974 | |||||||||||||||||||||
Issuance and registration of common shares
|
- | 32 | 161,931 | - | - | - | 161,963 | |||||||||||||||||||||
Shares repurchased and retired
|
- | - | (813 | ) | - | - | - | (813 | ) | |||||||||||||||||||
Exercise of stock options
|
- | - | 33 | - | - | - | 33 | |||||||||||||||||||||
Shares issued in exchange for units
|
- | - | 1,190 | - | - | (1,190 | ) | - | ||||||||||||||||||||
Redeemable stock fair market value
|
- | - | - | (154 | ) | - | - | (154 | ) | |||||||||||||||||||
Adjustment for Noncontrolling Interest Ownership in operating partnership
|
- | - | (3,053 | ) | - | - | 3,053 | - | ||||||||||||||||||||
Amortization of unearned compensation
|
- | - | 1,123 | - | - | - | 1,123 | |||||||||||||||||||||
Dividends on common stock ($1.2300 per share)
|
- | - | (38,157 | ) | - | - | (38,157 | ) | ||||||||||||||||||||
Dividends on noncontrolling interest units ($1.2300 per unit)
|
- | - | - | - | - | (2,861 | ) | (2,861 | ) | |||||||||||||||||||
Redemption of preferred stock
|
(31 | ) | - | (74,906 | ) | (2,573 | ) | - | - | (77,510 | ) | |||||||||||||||||
Dividends on preferred stock
|
- | - | - | (5,920 | ) | - | - | (5,920 | ) | |||||||||||||||||||
EQUITY BALANCE JUNE 30, 2010
|
$ | 31 | $ | 322 | $ | 1,074,147 | $ | (541,725 | ) | $ | (56,836 | ) | $ | 21,965 | $ | 497,904 |
4.
|
Real Estate Acquisitions
|
Location
|
Number
|
||||||
Community
|
(Metropolitan Statistical Area (MSA))
|
of Units
|
Date Purchased
|
||||
100% Owned Communities
|
|||||||
The Retreat at Magnolia Parke
|
Gainesville, FL
|
204
|
April 20, 2011
|
||||
Atlantic Crossing
|
Jacksonville, FL
|
200
|
April 29, 2011
|
||||
Hamptons at Hunton Park
|
Glen Allen, VA (Richmond)
|
300
|
June 1, 2011
|
||||
Avala at Savannah Quarters
|
Pooler, GA (Savannah)
|
256
|
June 13, 2011
|
||||
Tattersall at Tapestry Park
|
Jacksonville, FL
|
279
|
June 23, 2011
|
5.
|
Discontinued Operations
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
July 30,
|
July 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Rental revenues
|
$ | 441 | $ | 457 | $ | 877 | $ | 889 | ||||||||
Other revenues
|
50 | 49 | 102 | 101 | ||||||||||||
Total revenues
|
491 | 506 | 979 | 990 | ||||||||||||
Expenses
|
||||||||||||||||
Property operating expenses
|
338 | 278 | 624 | 554 | ||||||||||||
Depreciation
|
134 | 132 | 267 | 262 | ||||||||||||
Interest expense
|
8 | 11 | 19 | 21 | ||||||||||||
Total expense
|
480 | 421 | 910 | 837 | ||||||||||||
Income from discontinued operations before
|
||||||||||||||||
gain on sale
|
11 | 85 | 69 | 153 | ||||||||||||
Net loss on insurance and other settlement
|
||||||||||||||||
proceeds on discontinued operations
|
- | - | (7 | ) | - | |||||||||||
Loss on sale of discontinued operations
|
- | (2 | ) | - | (2 | ) | ||||||||||
Income from discontinued operations
|
$ | 11 | $ | 83 | $ | 62 | $ | 151 |
6.
|
Share and Unit Information
|
7.
|
Notes Payable
|
Borrowed
|
Effective
|
Contract
|
|||||||
Balance
|
Rate
|
Maturity
|
|||||||
Fixed Rate Debt
|
|||||||||
Individual property mortgages
|
$ | 354,756 | 5.0 | % |
7/2/2020
|
||||
Tax-exempt
|
10,715 | 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
|
634,000 | 5.2 | % |
5/18/2013
|
|||||
SIFMA-based interest rate swaps
|
17,800 | 4.4 | % |
10/15/2012
|
|||||
Total fixed rate debt
|
1,067,271 | 5.1 | % |
1/28/2016
|
|||||
Variable Rate Debt (1)
|
|||||||||
FNMA conventional credit facilities
|
314,318 | 0.8 | % |
8/16/2014
|
|||||
FNMA tax-free credit facilities
|
72,715 | 0.9 | % |
7/23/2031
|
|||||
Feddie Mac credit facilities
|
64,247 | 0.7 | % |
7/1/2014
|
|||||
Freddie Mac mortgage
|
15,200 | 3.6 | % |
12/10/2015
|
|||||
Bank facility
|
2,183 | 5.0 | % |
3/31/2012
|
|||||
Total variable rate debt
|
468,663 | 0.9 | % |
4/6/2017
|
|||||
Total Outstanding Debt
|
$ | 1,535,934 | 3.8 | % |
6/8/2016
|
8.
|
Derivatives and Hedging Activities
|
Interest Rate Derivative
|
Number of Instruments
|
Notional
|
Interest Rate Caps
|
21
|
$ 270,651,000
|
Interest Rate Swaps
|
25
|
$ 651,800,000
|
Asset Derivatives
|
Liability Derivative
|
||||||||||||||||||
30-Jun-11
|
31-Dec-10
|
30-Jun-11
|
31-Dec-10
|
||||||||||||||||
Balance
|
Balance
|
||||||||||||||||||
Derivatives designated as
|
Sheet
|
Sheet
|
|||||||||||||||||
hedging instruments
|
Location
|
Fair Value
|
Fair Value
|
Location
|
Fair Value
|
Fair Value
|
|||||||||||||
Fair market
|
|||||||||||||||||||
value of
|
|||||||||||||||||||
interest rate
|
|||||||||||||||||||
Interest rate contracts
|
Other assets
|
$ | 2,445 | $ | 3,641 |
swaps
|
$ | 41,086 | $ | 48,936 | |||||||||
Total derivatives designated as
|
|||||||||||||||||||
hedging instruments
|
$ | 2,445 | $ | 3,641 | $ | 41,086 | $ | 48,936 |
Location of Gain or
|
||||||||||||||||||||||||||
(Loss Recognized in
|
||||||||||||||||||||||||||
Location of Gain
|
Income on Derivative
|
Amount of Gain or
|
||||||||||||||||||||||||
or (Loss)
|
Amount of Gain or
|
(Ineffective Portion
|
(Loss) Recognized in
|
|||||||||||||||||||||||
Amount of Gain or (Loss)
|
Reclassified from
|
(Loss) Reclassified
|
and Amount
|
Income on Derivative
|
||||||||||||||||||||||
Recognized in OCI on
|
Accumulated OCI
|
from Accumulated OCI
|
Excluded from
|
(Ineffective Portion and
|
||||||||||||||||||||||
Derivatives in Cash Flow
|
Derivative (Effective
|
into Income
|
into Income (Effective
|
Effectiveness
|
Amount Excluded from
|
|||||||||||||||||||||
Hedging Relationships
|
Portion)
|
(Effective Portion)
|
Portion)
|
Testing)
|
Effectiveness Testing)
|
|||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||
Three months ended June 30,
|
||||||||||||||||||||||||||
Interest rate contracts
|
$ | (8,026 | ) | $ | (14,955 | ) |
Interest expense
|
$ | (7,374 | ) | $ | (8,624 | ) |
Interest expense
|
$ | (104 | ) | $ | (154 | ) | ||||||
Total derivatives in cash flow
|
||||||||||||||||||||||||||
hedging relationships
|
$ | (8,026 | ) | $ | (14,955 | ) | $ | (7,374 | ) | $ | (8,624 | ) | $ | (104 | ) | $ | (154 | ) | ||||||||
Six months ended June 30,
|
||||||||||||||||||||||||||
Interest rate contracts
|
$ | (8,202 | ) | $ | (27,788 | ) |
Interest expense
|
$ | (15,012 | ) | $ | (18,026 | ) |
Interest expense
|
$ | (102 | ) | $ | (290 | ) | ||||||
Total derivatives in cash flow
|
||||||||||||||||||||||||||
hedging relationships
|
$ | (8,202 | ) | $ | (27,788 | ) | $ | (15,012 | ) | $ | (18,026 | ) | $ | (102 | ) | $ | (290 | ) |
9.
|
Fair Value Disclosure of Financial Instruments
|
Quoted Prices in
Active Markets
for Identical
Assets and Liabilities (Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Balance at
June 30, 2011
|
|||||||||||||
Assets
|
||||||||||||||||
Derivative financial instruments
|
$ | — | $ | 2,445 | $ | — | $ | 2,445 | ||||||||
Liabilities
|
||||||||||||||||
Derivative financial instruments
|
$ | — | $ | 41,086 | $ | — | $ | 41,086 |