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Segment Information
 9 Months Ended
Sep. 30, 2023
Notes To Financial Statements [Abstract]  
Segment Information

11. Segment Information

As of September 30, 2023, the Company owned and operated 290 multifamily apartment communities (which does not include development communities under construction) in 15 different states from which it derived all significant sources of earnings and operating cash flows. The Company views each consolidated apartment community as an operating segment. The Company’s chief operating decision maker, which is the Company’s Chief Executive Officer, evaluates performance and determines resource allocations of each of the apartment communities on a Same Store and Non-Same Store and Other basis, as well as an individual apartment community basis. The Company has aggregated its operating segments into two reportable segments as management believes the apartment communities in each reportable segment generally have similar economic characteristics, facilities, services and residents.

The following reflects the two reportable segments for the Company:

•
Same Store includes communities that the Company has owned and which have been stabilized for at least a full 12 months as of the first day of the calendar year.
•
Non-Same Store and Other includes recently acquired communities, communities being developed or in lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. Also included in Non-Same Store and Other are non-multifamily activities and storm related expenses related to hurricanes.

On the first day of each calendar year, the Company determines the composition of its Same Store and Non-Same Store and Other reportable segments for that year as well as adjusts the previous year, which allows the Company to evaluate full period-over-period operating comparisons. Communities previously in development or lease-up are added to the Same Store segment on the first day of the calendar year after the community has been owned and stabilized for at least a full 12 months. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.

The chief operating decision maker utilizes net operating income, or NOI, in evaluating the performance of the operating 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 that 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 directly related to property operating performance.

Revenues and NOI for each reportable segment for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

508,046

 

 

$

487,729

 

 

$

1,507,259

 

 

$

1,399,445

 

Other property revenues

 

 

2,833

 

 

 

3,122

 

 

 

9,135

 

 

 

9,534

 

Total Same Store revenues

 

 

510,879

 

 

 

490,851

 

 

 

1,516,394

 

 

 

1,408,979

 

Non-Same Store and Other

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

 

30,985

 

 

 

28,764

 

 

 

89,265

 

 

 

81,295

 

Other property revenues

 

 

178

 

 

 

1,168

 

 

 

562

 

 

 

1,627

 

Total Non-Same Store and Other revenues

 

 

31,163

 

 

 

29,932

 

 

 

89,827

 

 

 

82,922

 

Total rental and other property revenues

 

$

542,042

 

 

$

520,783

 

 

$

1,606,221

 

 

$

1,491,901

 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 

Same Store NOI

 

$

324,745

 

 

 

313,111

 

 

$

977,120

 

 

$

903,435

 

Non-Same Store and Other NOI

 

 

18,074

 

 

 

16,249

 

 

 

52,742

 

 

 

45,946

 

Total NOI

 

 

342,819

 

 

 

329,360

 

 

 

1,029,862

 

 

 

949,381

 

Depreciation and amortization

 

 

(146,702

)

 

 

(136,879

)

 

 

(424,175

)

 

 

(404,761

)

Property management expenses

 

 

(16,298

)

 

 

(16,262

)

 

 

(50,317

)

 

 

(48,429

)

General and administrative expenses

 

 

(13,524

)

 

 

(12,188

)

 

 

(43,329

)

 

 

(44,091

)

Interest expense

 

 

(36,651

)

 

 

(38,637

)

 

 

(110,655

)

 

 

(116,663

)

(Loss) gain on sale of depreciable real estate assets

 

 

(75

)

 

 

(1

)

 

 

(61

)

 

 

131,963

 

Gain on sale of non-depreciable real estate assets

 

 

—

 

 

 

431

 

 

 

54

 

 

 

809

 

Other non-operating (expense) income

 

 

(16,493

)

 

 

(1,718

)

 

 

3,966

 

 

 

(19,248

)

Income tax benefit (expense)

 

 

209

 

 

 

1,256

 

 

 

(3,596

)

 

 

5,750

 

Income from real estate joint venture

 

 

447

 

 

 

341

 

 

 

1,214

 

 

 

1,129

 

Net income attributable to noncontrolling interests

 

 

(3,000

)

 

 

(3,392

)

 

 

(10,633

)

 

 

(12,025

)

Dividends to MAA Series I preferred shareholders

 

 

(922

)

 

 

(922

)

 

 

(2,766

)

 

 

(2,766

)

Net income available for MAA common shareholders

 

$

109,810

 

 

$

121,389

 

 

$

389,564

 

 

$

441,049

 

Assets for each reportable segment as of September 30, 2023 and December 31, 2022 were as follows (in thousands):

 

 

September 30, 2023

 

 

December 31, 2022

 

Assets:

 

 

 

 

 

 

   Same Store

 

$

9,575,381

 

 

$

9,697,889

 

   Non-Same Store and Other

 

 

1,510,087

 

 

 

1,370,721

 

   Corporate

 

 

296,854

 

 

 

172,555

 

Total assets

 

$

11,382,322

 

 

$

11,241,165