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MidAmerica Apartment Communities Inc. Reports Operating Results (10-Q)

May 06, 2010 | About:
10qk

10qk

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MidAmerica Apartment Communities Inc. (MAA) filed Quarterly Report for the period ended 2010-03-31.

Midamerica Apartment Communities Inc. has a market cap of $1.63 billion; its shares were traded at around $55.84 with and P/S ratio of 4.3. The dividend yield of Midamerica Apartment Communities Inc. stocks is 4.4%. Midamerica Apartment Communities Inc. had an annual average earning growth of 4.2% over the past 10 years.MAA is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Kenneth Fisher of Fisher Asset Management, LLC, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
This is the annual revenues and earnings per share of MAA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MAA.


Highlight of Business Operations:

Property revenues for the three months ended March 31, 2010 were approximately $97.3 million, an increase of $3.7 million from the three months ended March 31, 2009 due to (i) a $3.1 million increase in property revenues from the four properties acquired during 2009, (ii) a $0.5 million increase in property revenues from our development and lease-up communities, and (iii) a $0.1 million increase in property revenues from all other communities. All other communities consists primarily of our same store portfolio which included a $1.3 million increase due to the introduction of a new bulk cable program. The new program requires revenues and expenses to be booked separately on the condensed consolidated financial statements, rather than netted together in revenues as our previous program allowed.

Property operating expenses include costs for property personnel, property personnel bonuses, building repairs and maintenance, real estate taxes and insurance, utilities, landscaping and other property related costs. Property operating expenses for the three months ended March 31, 2010 were approximately $41.6 million, an increase of approximately $3.3 million from the three months ended March 31, 2009 due primarily to increases in property operating expenses of (i) $1.4 million from the four properties acquired during 2009, (ii) $0.1 million from our development and lease-up communities, and (iii) $1.8 million from all other communities. The increase in property operating expenses from all other communities was generated primarily by our same store portfolio and was driven by a $1.4 million increase due to the introduction of a new bulk cable program. The new program requires revenues and expenses to be booked separately on the condensed consolidated financial statements, rather than netted together in revenues as our previous program allowed.

Depreciation expense for the three months ended March 31, 2010 was approximately $25.1 million, an increase of approximately $1.5 million from the three months ended March 31, 2009 primarily due to the increases in depreciation expense of (i) $0.8 million from the four properties acquired during 2009, and (ii) $0.7 million from all other communities. Increases of depreciation expense from all other communities resulted from asset additions made during the normal course of business.

Net cash used in investing activities was approximately $2.9 million during the three months ended March 31, 2009 compared to net cash provided by investing activities of approximately $31.5 million during the three months ended March 31, 2010, mainly related to disposition activity. In the three months ended March 31, 2009, we had cash inflows of $11.3 million, mainly related to the disposition of the Woodstream apartments. This compares to net cash inflows of approximately $41.1 million in the three months ended March 31, 2010, mainly related to the contribution of Legacy at Western Oaks to Mid-America Multifamily Fund II, LLC, one of our joint ventures. We also spent approximately $4.3 million more on development and renovations during the three months ended March 31, 2009 than in the same period of 2010.

Net cash provided by financing activities was approximately $9.2 million for the three months ended March 31, 2009, compared to net cash used in financing activities of approximately $38.1 million during the three months ended March 31, 2010. During the three months ended March 31, 2010, we received proceeds of approximately $29.9 million from the issuance of shares of common stock through our continuous equity offering program, or CEO, which we use for general corporate business, including paying down loans and partially financing acquisitions. We made no issuances through the CEO during the three months ended March 31, 2009. During the three months ended March 31, 2010, we decreased our borrowings under our credit lines by approximately $60 million. During the comparable period in 2009, we increased our borrowings by $31.8 million through our credit facilities primarily to provide the cash to pay off a $38.3 million mortgage that matured April 1, 2009.

At March 31, 2010, we had secured credit facility relationships with Prudential Mortgage Capital, which are credit enhanced by the Federal National Mortgage Association, or FNMA, Financial Federal, which are credit enhanced by the Federal Home Loan Mortgage Corporation, or Freddie Mac, and the $50 million bank facility with a syndicate of banks. Together, these credit facilities provided a total line capacity of $1.4 billion with all but $3.1 million collateralized and available to borrow at March 31, 2010. We had total borrowings outstanding under these credit facilities of $1.2 billion at March 31, 2010.

Read the The complete Report

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