SEGMENT INFORMATION

As of December 31, 2017, the Company owned or had an ownership interest in 302 multifamily apartment communities in 17 different states and the District of Columbia from which it derived all significant sources of earnings and operating cash flows. Management evaluates performance and determines resource allocations of each of the apartment communities on a Large Market Same Store, Secondary Market Same Store, and Non-Same Store and Other basis, as well as an individual apartment community basis. This is consistent with the aggregation criteria under GAAP as each of the apartment communities generally has similar economic characteristics, facilities, services, and tenants. The following reflects the three reportable operating segments for the Company:


•	Large Market Same Store communities are generally communities in markets with a population of at least 1 million and at least 1% of the total public multifamily REIT units that the Company has owned and has been stabilized for at least a full 12 months.


•	Secondary Market Same Store communities are generally communities in markets with populations of more than 1 million but less than 1% of the total public multifamily REIT units or markets with populations of less than 1 million that the Company has owned and has been stabilized for at least a full 12 months.


•	Non-Same Store and Other includes recent acquisitions, communities in development or lease-up, communities that have been identified for disposition, and communities that have undergone a significant casualty loss. Also included in non-same store communities are non-multifamily activities.

On the first day of each calendar year, the Company determines the composition of its same store operating segments for that year as well as adjust the previous year, which allows the Company to evaluate full period-over-period operating comparisons. Properties in development or lease-up are added to the same store portfolio on the first day of the calendar year after it has been owned and stabilized for at least a full 12 months. Communities are considered stabilized after achieving 90% occupancy for 90 days. Communities that have been identified for disposition are excluded from the same store portfolio.

The Company utilizes NOI in evaluating the performance of the segments. Total NOI represents total property revenues less total property operating expenses, excluding depreciation and amortization, for all properties held during the period regardless of their status as held for sale. Management believes NOI is a helpful tool in evaluating the operating performance of the segments because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

All properties acquired as a result of the Merger have been placed in the Non-Same Store and Other operating segment, as the properties were recent acquisitions and had not been owned and stabilized for at least 12 months as of the first day of the applicable calendar year.

Revenues and NOI for each reportable segment for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	2017			2016			2015 ⁽¹⁾
Revenues:
Large Market Same Store	$	672,131		$	652,560		$	612,934
Secondary Market Same Store	349,007			340,161			327,700
Non-Same Store and Other	507,849			132,627			102,145
Total rental and other property revenues	$	1,528,987		$	1,125,348		$	1,042,779

NOI:
Large Market Same Store	$	422,075		$	407,294		$	377,025
Secondary Market Same Store	218,673			213,273			204,382
Non-Same Store and Other	311,508			81,425			60,727
Total NOI	952,256			701,992			642,134
Depreciation and amortization	(493,708		)	(322,958		)	(294,520		)
Property management expenses	(43,588		)	(34,093		)	(30,990		)
General and administrative expenses	(40,194		)	(29,040		)	(25,716		)
Merger and integration expenses	(19,990		)	(40,823		)	—
Interest expense	(154,751		)	(129,947		)	(122,344		)
Gain on sale of depreciable real estate assets	127,386			80,397			189,958
Income tax expense	(2,619		)	(1,699		)	(1,673		)
Gain on sale of non-depreciable real estate assets	21			2,171			172
Other non-operating income (expense)	14,353			(1,839		)	(6,274		)
Gain (loss) from real estate joint ventures	1,370			241			(2		)
Net income attributable to noncontrolling interests	(12,157		)	(12,180		)	(18,458		)
Dividends to MAA Series I preferred shareholders	(3,688		)	(307		)	—
Net income available for MAA common shareholders	$	324,691		$	211,915		$	332,287

⁽¹⁾ The 2015 column shows the segment break down based on the 2016 same store portfolios. A comparison using the 2017 same store portfolio would not be comparative due to the nature of the segment classifications.

Assets for each reportable segment as of December 31, 2017 and 2016 were as follows (in thousands):



	December 31, 2017		December 31, 2016
Assets
Large Market Same Store	$	4,003,859	$	4,126,885
Secondary Market Same Store	1,718,237		1,768,183
Non-Same Store and Other	5,570,003		5,479,780
Corporate assets	199,820		229,643
Total assets	$	11,491,919	$	11,604,491