Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding

12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)

during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the

definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The aggregate market value of the ~~80,246,503~~78,109,854 shares of common stock of Mid-America Apartment Communities, Inc. held by non-affiliates was approximately ~~$8.1~~$9.2 billion based on the closing price of ~~$100.67~~$117.76 as reported on the New York Stock Exchange on June ~~29, 2018.~~28, 2019. This calculation excludes shares of common stock held by the registrant's officers and directors and each person known by the registrant to beneficially own more than 5% of the registrant's outstanding shares, as such persons may be deemed to be affiliates. This determination of affiliate status should not be deemed conclusive for any other purpose. As of February ~~18, 2019~~17, 2020 there were ~~113,888,340~~114,271,414 shares of Mid-America Apartment Communities, Inc. common stock outstanding.

Portions of the proxy statement for the annual shareholders meeting of Mid-America Apartment Communities, Inc. to be held on May ~~21, 2019~~19, 2020 are incorporated by reference into Part III of this report. We expect to file our proxy statement within 120 days after December 31, ~~2018.~~2019.

MID-AMERICA APARTMENT COMMUNITIES, INC.

MID-AMERICA APARTMENTS, L.P.

TABLE OF CONTENTS


Item		Page
	PART I

1.	Business.	3
1A.	Risk Factors.	8
1B.	Unresolved Staff Comments.	20
2.	Properties.	21
3.	Legal Proceedings.	22
4.	Mine Safety Disclosures.	22

	PART II

5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	22
6.	Selected Financial Data.	25
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	26
7A.	Quantitative and Qualitative Disclosures About Market Risk.	35
8.	Financial Statements and Supplementary Data.	36
9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	36
9A.	Controls and Procedures.	36
9B.	Other Information.	37

	PART III

10.	Directors, Executive Officers and Corporate Governance.	37
11.	Executive Compensation.	37
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	37
13.	Certain Relationships and Related Transactions, and Director Independence.	37
14.	Principal Accounting Fees and Services.	37

	PART IV

15.	Exhibits, Financial Statement Schedules.	38
16.	Form 10-K Summary	42

MID-AMERICA APARTMENT COMMUNITIES, INC.
MID-AMERICA APARTMENTS, L.P.

TABLE OF CONTENTS

Item Page

PART I

1.
Business.
3
1A.
Risk Factors.
8
1B.
Unresolved Staff Comments.
21
2.
Properties.
22
3.
Legal Proceedings.
23
4.
Mine Safety Disclosures.
23

PART II

5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
24
6.
Selected Financial Data.
26
7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
27
7A.
Quantitative and Qualitative Disclosures About Market Risk.
38
8.
Financial Statements and Supplementary Data.
39
9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
39
9A.
Controls and Procedures.
39
9B.
Other Information.
40

PART III

10.
Directors, Executive Officers and Corporate Governance.
41
11.
Executive Compensation.
41
12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
41
13.
Certain Relationships and Related Transactions, and Director Independence.
41
14.
Principal Accounting Fees and Services.
41

PART IV

15.
Exhibits, Financial Statement Schedules.
42
16.
Form 10-K Summary

45

Explanatory Note

This report combines the Annual Reports on Form 10-K for the year ended December 31, ~~2018~~2019 of Mid-America Apartment Communities, Inc., a Tennessee corporation, and Mid-America Apartments, L.P., a Tennessee limited partnership, of which Mid-America Apartment Communities, Inc. is the sole general partner. Mid-America Apartment Communities, Inc. and its ~~96.5%~~96.6% owned subsidiary, Mid-America Apartments, L.P., are both required to file annual reports under the Securities Exchange Act of 1934, as amended.

Unless the context otherwise requires, all references in this Annual Report on Form 10-K to ~~"MAA"~~“MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, all references in this report to ~~"we," "us," "our,"~~“we,” “us,” “our,” or the ~~"Company"~~“Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references in this report to the ~~"Operating Partnership"~~“Operating Partnership” or ~~"MAALP"~~“MAALP” refer to Mid-America Apartments, L.P. together with its consolidated subsidiaries. ~~"Common stock"~~“Common stock” refers to the common stock of MAA, ~~"preferred stock"~~“preferred stock” refers to the preferred stock of MAA, and ~~"shareholders"~~“shareholders” refers to the holders of shares of MAA’s common stock or preferred stock, as applicable. The common units of limited partnership interest in the Operating Partnership are referred to as ~~"OP Units"~~“OP Units” and the holders of the OP Units are referred to as ~~"common unitholders"~~“common unitholders”.

As of December 31, ~~2018~~,2019, MAA owned ~~113,844,267~~114,246,393 OP Units ~~(96.5%~~(96.6% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership's sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

We believe combining the Annual Reports on Form 10-K of MAA and the Operating Partnership, including the notes to the consolidated financial statements, into this report results in the following benefits:

•

enhances investors' understanding of MAA and the Operating Partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;

•

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure in this report applies to both MAA and the Operating Partnership; and

~~enhances investors' understanding~~

•

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

MAA, ~~and the Operating Partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;~~

~~creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.~~

~~MAA~~an S&P 500 company, is a ~~multifamily focused,~~multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. We believe it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an ~~"umbrella~~umbrella partnership REIT," or UPREIT. MAA's interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA's percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA's only material asset is its ownership of limited partnership interests in the Operating Partnership (other than cash held by MAA from ~~time-to-time)~~time to time); therefore, ~~MAA does not conduct business itself, other than~~MAA's primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from ~~time-to-time~~time to time and guaranteeing certain debt of the Operating Partnership. The Operating Partnership holds, directly or indirectly, all of the real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the Company's business through the Operating Partnership's operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentation of MAA's shareholders' equity and the Operating Partnership's capital are the principal areas of difference between the consolidated financial statements of MAA and those of the Operating Partnership. MAA's shareholders' equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interest, treasury shares, accumulated other comprehensive income and redeemable common stock. The Operating Partnership's capital may include common capital and preferred capital of the general partner (MAA), limited partners' common capital and preferred capital, noncontrolling interest, accumulated other comprehensive income and redeemable common units. Holders of OP Units (other than ~~MAA and its subsidiaries)~~MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA's common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA's common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

In order to highlight the material differences between MAA and the Operating Partnership, this Annual Report on Form 10-K includes sections that separately present and discuss areas that are materially different between MAA and the Operating Partnership, including:

•

the selected financial data in Item 6 of this report;

•

the consolidated financial statements in Item 8 of this report;

~~the selected financial data in Item 6 of this report;~~

•

certain accompanying notes to the consolidated financial statements, including Note 2 - Earnings per Common Share of MAA and Note 3 - Earnings per OP Unit of MAALP; Note 8 - Shareholders' Equity of MAA and Note 9 - Partners' Capital of MAALP; and Note 15 - Selected Quarterly Financial Information of MAA (Unaudited) and Note 16 - Selected Quarterly FinancialInformation of MAALP (Unaudited);

~~the consolidated financial statements in Item 8~~

•

the controls and procedures in Item 9A of this report; and

certain accompanying notes to the consolidated financial statements, including Note 3 - Earnings per Common Share of MAA and Note 4 - Earnings per OP Unit of MAALP; Note 9 - Shareholders' Equity of MAA and Note 10 - Partners' Capital of MAALP; and Note 16 - Selected Quarterly Financial Information of MAA (Unaudited) and Note 17 - Selected Quarterly Financial~~Information of MAALP (Unaudited);~~

•

the certifications included as Exhibits 31 and 32 to this report.

~~the controls and procedures in Item 9A of this report; and~~

~~the certifications included as Exhibits 31 and 32 to this report.~~

In the sections that combine disclosures for MAA and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership (directly or indirectly through one of its subsidiaries) is generally the entity that enters into contracts, holds assets and issues debt, management believes this presentation is appropriate for the reasons set forth above and because ~~the business is one enterprise, in that~~ we operate the business through the Operating Partnership.

MAA, the Operating Partnership and its subsidiaries operate as one consolidated business, but MAA, the Operating Partnership and each of its subsidiaries are separate, distinct legal entities.

PART I

Risks Associated with Forward Looking Statements

We consider this and other sections of this Annual Report on Form 10-K to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements concerning forecasted operating performance and results, property acquisitions and dispositions, joint venture activity, development and renovation activity as well as other capital expenditures, capital raising activities, rent and expense growth, occupancy, financing activities, and interest rate and other economic expectations. Words such as ~~"expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates,"~~“expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

•

inability to generate sufficient cash flows due to market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;

•

exposure, as a multifamily focused REIT, to risks inherent in investments in a single industry and sector;

~~inability to generate sufficient cash flows due to market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;~~

•

adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

~~exposure, as a multifamily focused REIT, to risks inherent in investments in a single industry and sector;~~

•

failure of new acquisitions to achieve anticipated results or be efficiently integrated;

•

failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;

~~failure of new acquisitions to achieve anticipated results or be efficiently integrated;~~

•

unexpected capital needs;

~~failure of development communities to be completed, if at all, within budget and on a timely basis or to lease-up as anticipated;~~

•

changes in operating costs, including real estate taxes, utilities and insurance costs;

~~unexpected capital needs;~~

•

inability to obtain appropriate insurance coverage at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverage;

~~changes in operating costs, including real estate taxes, utilities and insurance costs;~~

~~losses from catastrophes in excess of our insurance coverage;~~

•

ability to obtain financing at favorable rates, if at all, and refinance existing debt as it matures;

•

level and volatility of interest or capitalization rates or capital market conditions;

•

loss of hedge accounting treatment for interest rate swaps;

•

the continuation of the good credit of our interest rate swap providers;

~~level and volatility of interest or capitalization rates or capital market conditions;~~

•

price volatility, dislocations and liquidity disruptions in the financial markets and the resulting impact on financing;

~~loss of hedge accounting treatment for interest rate swaps;~~

•

the effect of any rating agency actions on the cost and availability of new debt financing;

~~the continuation of the good credit of our interest rate swap providers;~~

•

the effect of the phase-out of the London Interbank Offered Rate, or LIBOR, as a variable rate debt benchmark by the end of 2021 and the transition to a different benchmark interest rate;

~~price volatility, dislocations and liquidity disruptions in the financial markets and the resulting impact on financing;~~

•

significant decline in market value of real estate serving as collateral for mortgage obligations;

~~the effect of any rating agency actions on the cost and availability of new debt financing;~~

•

significant change in the mortgage financing market that would cause single-family housing, either as an owned or rental product, to become a more significant competitive product;

~~significant decline in market value of real estate serving as collateral for mortgage obligations;~~

•

our ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of the Operating Partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;

~~significant change in the mortgage financing market that would cause single-family housing, either as an owned or rental product, to become a more significant competitive product;~~

•

inability to attract and retain qualified personnel;

•

cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;

~~inability to attract and retain qualified personnel;~~

•

potential liability for environmental contamination;

~~cyber liability or potential liability for breaches of our privacy or information security systems;~~

•

adverse legislative or regulatory tax changes;

~~potential liability for environmental contamination;~~

•

legal proceedings relating to various issues, which, among other things, could result in a class action lawsuit;

~~adverse legislative or regulatory tax changes;~~

•

compliance costs associated with laws requiring access for disabled persons or similar regulatory requirements; and

~~legal proceedings relating to various issues, which, among other things, could result in a class action lawsuit;~~

•

other risks identified in this Annual Report on Form 10-K including under the caption “Item 1A. Risk Factors” and, from time to time, in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.

~~compliance costs associated with laws requiring access for disabled persons; and~~

other risks identified in this Annual Report on Form 10-K including under the caption "Item 1A. Risk Factors" and, from time to time, in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.

New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this Annual Report on Form 10-K to reflect events, circumstances or changes in expectations after the date on which this Annual Report on Form 10-K is filed.

Item 1. Business.

Overview

Multifamily	Communities		Units
Consolidated		299		99,762
Unconsolidated		1		269
Total		300		100,031

Commercial	Properties		Sq. Ft. ⁽¹⁾
Consolidated		4		260,000

Multifamily Communities Units
Consolidated 303
100,595
Unconsolidated 1
269
Total 304
100,864

Commercial Properties
Sq. Ft. ⁽¹⁾
Consolidated 4
260,000

⁽¹⁾Excludes commercial space located at our multifamily apartment communities, which totals approximately ~~615,000~~630,000 square feet of gross leasable space.

Our business is conducted principally through the Operating Partnership. MAA is the sole general partner of the Operating Partnership, holding ~~113,844,267~~114,246,393 OP Units, comprising a ~~96.5%~~96.6% partnership interest in the Operating Partnership as of December 31, ~~2018.~~2019. MAA and MAALP were formed in Tennessee in 1993. As of December 31, ~~2018,~~2019, we had ~~2,508~~2,476 full-time employees and 4437 part-time employees.

Business Objectives

Our primary business objectives are to protect and grow existing property values, to maintain a stable and increasing cash flow that will fund our dividends and distributions through all parts of the real estate investment cycle, and to create shareholder value by growing in a disciplined manner. To achieve these objectives, we intend to continue to pursue the following goals and strategies:

•

effectively and efficiently operate our existing properties with an intense property and asset management focus and a decentralized structure;

•

manage real estate investment cycles by taking an opportunistic approach to buying, selling, developing and renovating apartment communities;

~~effectively and efficiently operate our existing properties with an intense property and asset management focus and a decentralized structure;~~

•

diversify investment capital across markets in which we operate to achieve a balanced portfolio and minimize volatile operating performance; and

~~manage real estate investment cycles by taking an opportunistic approach to buying, selling, developing and renovating apartment communities;~~

•

actively manage our capital structure to enhance predictability of earnings to fund our dividends and distributions.

~~diversify investment capital across markets in which we operate to achieve a balanced portfolio and minimize volatile operating performance; and~~

~~actively manage our capital structure to enhance predictability of earnings to fund our dividends and distributions.~~

Operations

Our goal is to generate return on investment collectively and in each apartment community by increasing revenues, controlling operating expenses, maintaining high occupancy levels and reinvesting in the income producing capacity of each apartment community as appropriate. The steps taken to meet these objectives include:

•

providing management information and improved customer services through technology innovations;

•

implementing programs to control expenses through investment in cost-saving initiatives;

~~providing management information and improved customer services through technology innovations;~~

•

analyzing individual asset productivity performances to identify best practices and improvement areas;

~~utilizing systems to enhance property managers’ ability to optimize revenue by adjusting rental rates in response to local market conditions and individual unit amenities;~~

•

maintaining the physical condition of each property through ongoing capital investments;

~~implementing programs to control expenses through investment in cost-saving initiatives;~~

•

improving the “curb appeal” of the apartment communities through extensive landscaping and exterior improvements, and repositioning apartment communities from time to time to enhance or maintain market positions;

~~analyzing individual asset productivity performances to identify best practices and improvement areas;~~

•

managing lease expirations to align with peak leasing traffic patterns and to maximize productivity of property staffing;

~~maintaining the physical condition of each property through ongoing capital investments;~~

•

allocating additional capital, including capital for selective interior and exterior improvements; and

improving the "curb appeal" of the apartment communities through extensive landscaping and exterior improvements, and repositioning apartment communities from time-to-time to enhance or maintain market positions;

•

maintaining a hands-on management style and “flat” organizational structure that emphasizes property level decision making coupled with asset management and senior management's monitoring.

~~managing lease expirations to align with peak leasing traffic patterns and to maximize productivity of property staffing;~~

~~allocating additional capital, including capital for selective interior and exterior improvements;~~

~~compensating employees through performance-based compensation and stock ownership programs; and~~

~~maintaining a hands-on management style and "flat" organizational structure that emphasizes property level decision making coupled with asset management and senior management's monitoring.~~

We believe that our decentralized operating structure capitalizes on specific market knowledge, provides greater personal accountability than a centralized structure and is beneficial in the acquisition and redevelopment processes. To support this decentralized operational structure, senior management, along with various asset management functions, are proactively involved in supporting and reviewing property management through extensive reporting processes and frequent on-site visits. To maximize the amount of information shared between senior management and the properties on a real-time basis, we utilize a web-based property management system. The system contains property and accounting modules that allow for operating efficiencies and continued expense control, provide for various expanded revenue management practices, and improve the support provided to on-site property operations. We use a ~~"yield management"~~“yield management” pricing program that helps our property managers optimize rental revenues, and we also utilize purchase order and accounts payable software to provide improved controls and management information.

Investment in technology continues to drive operating efficiencies in our business and help us to better meet the changing needs of our residents. Our residents have the ability to conduct business with us 24 hours a day, 7 days a week and complete online leasing applications, contracts and renewals via the use of our web-based resident Internet portal. Interacting with our residents through such technology has allowed us to improve resident satisfaction ratings and increase the efficiency of our operating teams.

Acquisitions

One of our growth strategies is to acquire apartment communities that are located in various markets throughout the Southeast, Southwest and Mid-Atlantic regions of the United States. Acquisitions, along with dispositions, help us achieve and maintain our desired product mix, geographic diversification and asset allocation. Portfolio growth allows for maximizing the efficiency of the existing management and overhead structure. We have extensive experience in the acquisition of apartment

communities. We will continue to evaluate opportunities that arise, and we will utilize this strategy to increase our number of apartment communities in strong and growing markets.

We acquired the following properties during the year ended December 31, ~~2018~~:

2019:

Multifamily Acquisitions	Market	Units		Date Acquired
The Greene	Greenville, SC	271		November 2019
Jefferson Sand Lake ⁽¹⁾	Orlando, FL	264		October 2019
Novel Midtown ⁽²⁾	Phoenix, AZ	345		February 2019

Commercial Acquisition	Market	Sq Ft		Date Acquired
220 Riverside Retail ⁽³⁾	Jacksonville, FL		14,941	August 2019

Land Acquisitions	Market	Acres		Date Acquired
North Orange Avenue – Outparcel	Orlando, FL	2		April 2019



~~Multifamily Acquisition~~	~~Market~~	~~Units~~	~~Closing Date~~
~~Sync 36~~	~~Denver, CO~~	~~374~~	~~April 26, 2018~~

~~Commercial Acquisition~~	~~Market~~	~~Sq Ft~~	~~Closing Date~~
~~Hue Retail~~ ⁽¹⁾	~~Raleigh, NC~~	~~7,500~~	~~August 1, 2018~~

~~Land Acquisition~~	~~Market~~	~~Acres~~	~~Closing Date~~
~~Westminster~~	~~Denver, CO~~	10	~~October 1, 2018~~
~~Long Point Road~~	~~Houston, TX~~	9	~~November 1, 2018~~ This pre-purchase multifamily community development is being developed through a joint venture with a local developer. We own 95% of the joint venture that owns this property.

⁽²⁾	This pre-purchase multifamily community development is being developed through a joint venture with a local developer. We own 80% of the joint venture that owns this property.

⁽³⁾⁽¹⁾We acquired the ground floor retail portion of one of our existing multifamily apartment communities.

Dispositions

We sell apartment communities and other assets that no longer meet our long-term strategy or when market conditions are favorable, and we redeploy the proceeds from those sales to acquire, develop and redevelop additional apartment communities and rebalance our portfolio across or within geographic regions. Dispositions also allow us to realize a portion of the value created through our investments and provide additional liquidity. We are then able to redeploy the net proceeds from our dispositions in lieu of raising additional capital. In deciding to sell an apartment community, we consider current market conditions and generally solicit competing bids from unrelated parties for these individual properties, considering the sales price and other key terms of each proposal. We also consider portfolio dispositions when such a structure is useful to maximize proceeds and efficiency of execution. During the year ended December 31, ~~2018,~~2019, we disposed of five multifamily communities totaling 1,368 units, our former corporate office and four land parcels totaling approximately 7683 acres.

Development

As another part of our growth strategy, we invest in a limited number of development projects. Development activities may be conducted through wholly-owned affiliated companies or through joint ventures with unaffiliated parties. Typically, fixed price construction contracts are signed with unrelated parties to minimize construction risk. We typically manage the leasing portion of the project as units become available for lease. We may also engage in limited expansion development opportunities on existing communities in which we typically serve as the developer. While we seek opportunistic new development investments offering attractive long-term investment returns, we intend to maintain a total development commitment that we consider modest in relation to our total balance sheet and investment portfolio. During the year ended December 31, ~~2018,~~2019, we incurred ~~$57.1~~$112.9 million in development costs and completed 32 development projects.

The following multifamily projects were under development as of December 31, ~~2018~~2019 (dollars in thousands):

Project	Market	Total Units		Units Completed		Cost to Date		Budgeted Cost		Estimated Cost Per Unit		Expected Completion
Copper Ridge II	Fort Worth, TX		168		35	$	18,533	$	30,000	$	179	2nd Quarter 2020
MAA Frisco Bridges II	Dallas, TX		348		—		40,930		69,000		198	3rd Quarter 2020
Novel Midtown ⁽¹⁾	Phoenix, AZ		345		—		30,116		82,000		238	2nd Quarter 2021
Westglenn	Denver, CO		306		—		16,926		84,500		276	4th Quarter 2021
336 N Orange	Orlando, FL		369		—		11,574		99,000		268	4th Quarter 2021
Long Point	Houston, TX		308		—		10,468		57,000		185	1st Quarter 2022
Jefferson Sand Lake ⁽²⁾	Orlando, FL		264		—		15,400		68,000		258	4th Quarter 2021
			2,108		35	$	143,947	$	489,500

⁽¹⁾	This pre-purchase multifamily community development is being developed through a joint venture with a local developer. We own 80% of the joint venture that owns this property.

Project: Market Total Units Units Completed Cost to Date Budgeted Cost Estimated Cost Per Unit Expected Completion
Post Parkside at Wade III Raleigh, NC 150 — $ 7,235
$ 25,000
$ 167
4th Quarter 2019
Post Sierra at Frisco Bridges II Dallas, TX 348 — 12,013
69,000
198
3rd Quarter 2020
Sync 36 II Denver, CO 79 — 11,685
24,500
310
4th Quarter 2019
577 — $ 30,933
$ 118,500

⁽²⁾	This pre-purchase multifamily community development is being developed through a joint venture with a local developer. We own 95% of the joint venture that owns this property.

Redevelopment

We focus on both interior unit upgrades and exterior amenities above and beyond routine capital upkeep on existing apartment communities across our portfolio that we believe have the ability to support additional rent growth. During the year ended

December 31, ~~2018~~,2019, we renovated ~~8,155~~8,329 units at an average cost of ~~$6,138~~$5,876 per unit, achieving average rental rate increases of ~~10.5%~~9.8% above the normal market rate for similar but non-renovated units.

Capital Structure

We use a combination of debt and equity sources to fund our business objectives. We maintain a capital structure, focused on maintaining access, flexibility and low costs, that we believe allows us to proactively support normal business operations and source potential investment

opportunities in the marketplace. We structure our debt maturities to avoid disproportionate exposure in any given year. Our primary debt financing strategy is to access the unsecured debt markets to provide our debt capital needs, but we also maintain a limited amount of secured debt and maintain our access to both the secured and unsecured debt markets for maximum flexibility. We also believe that we have significant access to the equity capital markets.

As of December 31, ~~2018, 28.6%~~2019, 22.2% of our total market capitalization consisted of debt borrowings, including ~~25.6%~~19.1% under unsecured ~~credit facilities~~borrowings and ~~unsecured senior notes and 3.0%~~3.1% under secured borrowings. We currently intend to target our total debt, net of cash held, to a range of approximately ~~32%~~30% to ~~38%~~36% of the undepreciated book value of our assets. Our charter and bylaws do not limit our debt levels and our Board of Directors can modify this policy at any time. We may issue new equity to maintain our debt within the target range. Covenants for our unsecured senior notes limit our total debt to 60% or less of our adjusted total assets (as defined in the covenants for the bonds issued by MAALP). As of December 31, ~~2018,~~2019, our total debt was approximately ~~32.6%~~31.4% of our adjusted total assets. We continuously review opportunities for lowering our cost of capital. We plan to continue using unsecured debt in order to take advantage of the lower cost of capital and flexibility provided by these markets. We will evaluate opportunities to repurchase shares when we believe that our share price is significantly below our net present value. We also look for opportunities where we can acquire or develop apartment communities, selectively funded or partially funded by sales of equity securities, when appropriate opportunities arise. We focus on improving the net present value of our investments by generating cash ~~flows~~flow from our portfolio of assets above the estimated total cost of debt and equity capital. We routinely make new investments when we believe it will be accretive to shareholder value over the life of the investments.

Competition

All of our apartment communities are located in areas that include other apartment communities. Occupancy and rental rates are affected by the number of competitive apartment communities in a particular area. The owners of competing apartment communities may have greater resources than us, and the managers of these apartment communities may have more experience than our management. Moreover, single-family rental housing, manufactured housing, condominiums and the new and existing home markets provide housing alternatives to potential residents of apartment communities. Competition for new residents is generally intense across all of our markets. Some competing apartment communities offer features that our apartment communities do not have. Competing apartment communities can use concessions or lower rents to obtain temporary competitive advantages. Also, some competing apartment communities are larger or newer than our apartment communities. The competitive position of each apartment community is different depending upon many factors including sub-market supply and demand. In addition, other real estate investors compete with us to acquire existing properties and to develop new properties. These competitors include insurance companies, pension and investment funds, public and private real estate companies, investment companies and other public and private apartment REITs, some of which may have greater resources or lower capital costs than we do.

We believe, however, that we are generally well-positioned to compete effectively for residents and investments. We believe our competitive advantages include:

•

a fully integrated organization with property management, development, redevelopment, acquisition, marketing, sales and financing expertise;

•

scalable operating and support systems, which include automated systems to meet the changing technological needs of our residents;

~~a fully integrated organization with property management, development, redevelopment, acquisition, marketing, sales and financing expertise;~~

•

access to a wide variety of debt and equity capital sources;

~~scalable operating and support systems, which include automated systems to meet the changing technological needs of our residents;~~

•

geographic diversification with a presence in 36 defined markets across the Southeast, Southwest and Mid-Atlantic regions of the United States; and

~~access to a wide variety of debt and equity capital sources;~~

•

significant presence in many of our major markets that allows us to be a local operating expert.

~~geographic diversification with a presence in 38 defined Metropolitan Statistical Areas across the Southeast, Southwest and Mid-Atlantic regions of the United States; and~~

~~significant presence in many of our major markets that allows us to be a local operating expert.~~

Moving forward, we plan to continue to optimize lease expiration management, improve expense control, increase resident retention efforts and align employee incentive plans with our performance. We also plan to continue to make capital improvements to both our apartment communities and individual units on a regular basis in order to maintain a competitive position in each individual market. We believe this plan of operation, coupled with the portfolio’s strengths in targeting residents across a geographically diverse platform, should position us for continued operational ~~upside.~~

growth.

Environmental Matters

As a part of our standard apartment community acquisition and development processes, we generally obtain environmental studies of the sites from outside environmental engineering firms. The purpose of these studies is to identify potential sources of

contamination at the site and to assess the status of environmental regulatory compliance. These studies

generally include historical reviews of the site, reviews of certain public records, preliminary investigations of the site and surrounding properties, inspection for the presence of asbestos, poly-chlorinated biphenyls and underground storage tanks and the preparation and issuance of written reports. Depending on the results of these studies, more invasive procedures, such as soil sampling or ground water analysis, may be performed to investigate potential sources of contamination. These studies must be satisfactorily completed before we take ownership of an acquisition or development property; however, no assurance can be given that the studies or additional documents reviewed identify all significant environmental risks. See ~~"Risk~~“Risk Factors - Risks Relating to Our Real Estate Investments and Our Operations - Environmental problems are possible and can be costly."

”

The environmental studies we received on properties that we have acquired have not revealed any material environmental liabilities. Should any potential environmental risks or conditions be discovered during our due diligence process, the potential costs of remediation will be assessed carefully and factored into the cost of acquisition, assuming the identified risks and factors are deemed to be manageable and within reason. We are not aware of any existing conditions that we believe would be considered a material environmental liability. Nevertheless, it is possible that the studies do not reveal all environmental risks or that there are material environmental liabilities of which we are not aware. Moreover, no assurance can be given concerning future laws, ordinances or regulations, or the potential introduction of hazardous or toxic substances by neighboring properties or residents.

~~Merger with Post Properties~~

We completed our merger with Post Properties, Inc., or Post Properties, on December 1, 2016. Accordingly, the consolidated net assets and results of operations of Post Properties are included in our consolidated financial statements from and after the merger closing date.

Qualification as a Real Estate Investment Trust

MAA has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code. To continue to qualify as a REIT, MAA must continue to meet certain tests which, among other things, generally require that our assets consist primarily of real estate assets, our income be derived primarily from real estate assets, and that we distribute at least 90% of our REIT taxable income (other than our net capital gains) to our shareholders annually. If MAA maintains its qualification as a REIT, MAA generally will not be subject to U.S. federal income taxes at the corporate level on its net income to the extent it distributes such net income to its shareholders annually. Even if MAA continues to qualify as a REIT, it will continue to be subject to certain federal, state and local taxes on its income and its property. In ~~2018,~~2019, MAA paid total distributions of ~~$3.69~~$3.84 per share of common stock to its shareholders, which was above the 90% REIT distribution requirement and was in excess of REIT taxable income.

~~Recent Developments~~

In February 2019, we closed on the disposition of a 0.4 acre land parcel located in the Atlanta, Georgia market, resulting in a net gain of $9.0 million on the sale of non-depreciable real estate assets recognized in the first quarter of 2019. The gain on sale of non-depreciable real estate assets was not reflected in our initial earnings guidance for the first quarter of 2019 or the full year of 2019. We will review our 2019 earnings guidance in our earnings release and conference call discussing results for the quarter ending March 31, 2019.

~~In February 2019, we entered into a $191.3 million fixed rate secured property mortgage with a fixed rate of 4.43%, maturing in February 2049.~~

Website Access to Our Reports

MAA and the Operating Partnership file combined periodic reports with the SEC. Our Annual Reports on Form 10-K, along with our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports, are available on our website at https://www.maac.com as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. Reference to our website does not constitute incorporation by reference of the information contained on the site and should not be considered part of this Annual Report on Form 10-K. All of the aforementioned materials may also be obtained free of charge by contacting our Investor Relations Department, 6815 Poplar Avenue, Suite 500, Germantown, TNTennessee 38138.

Item 1A. Risk Factors.

In addition to the other information contained in this Annual Report on Form 10-K, we have identified the following additional risks and uncertainties that may have a material adverse effect on our business prospects, financial condition or results of operations. Investors should carefully consider the risks described below before making an investment decision. Our business faces significant risks and the risks described below may not be the only risks we face. Additional risks not presently known to us or that we currently believe are immaterial may also significantly impact our business operations. If any of these risks occur, our business prospects, financial condition or results of operations could suffer, the market price of our capital stock and the trading price of our debt securities could decline and you could lose all or part of your investment in our capital stock or debt securities.

Risks Related to Our Real Estate Investments and Our Operations

Unfavorable market and economic conditions could adversely affect occupancy levels, rental revenues and the value of our properties.

Unfavorable market conditions in the areas in which we operate and unfavorable economic conditions may significantly affect our occupancy levels, our rental rates and collections, the value of the properties and our ability to acquire or dispose of apartment communities on economically favorable terms. Our ability to lease our apartment communities at favorable rates is adversely affected by the increase in supply in the multifamily and other rental markets and is dependent upon the overall level in the economy, which is adversely affected by, among other things, job losses and unemployment levels, personal debt levels, a downturn in the housing market, stock market volatility and uncertainty about the future. Some of our major expenses generally do not decline when related rents decline. We would expect that declines in our occupancy levels, rental revenues and/or the values of our apartment communities would cause us to have less cash available to make payments on our debt and to make distributions, which could adversely affect our financial condition or the market value of our securities. Factors that may affect our occupancy levels, our rental revenues, and/or the value of our apartment communities include the following, among others:

•

downturns in global, national, regional and local economic conditions, particularly increases in unemployment;

•

declines in mortgage interest rates and home pricing, making alternative housing more affordable;

~~downturns in global, national, regional and local economic conditions, particularly increases in unemployment;~~

•

government or builder incentives with respect to home ownership, making alternative housing options more attractive;

~~declines in mortgage interest rates and home pricing, making alternative housing more affordable;~~

•

local real estate market conditions, including oversupply of apartments or other housing available for rent, or a reduction in demand for apartments in the area;

~~government or builder incentives with respect to home ownership, making alternative housing options more attractive;~~

•

declines in the financial condition of our residents, which may make it more difficult for us to collect rents from some residents;

~~local real estate market conditions, including oversupply of apartments or other housing available for rent, or a reduction in demand for apartments in the area;~~

•

declines in market rental rates;

~~declines in the financial condition of our residents, which may make it more difficult for us to collect rents from some residents;~~

•

declines in household formation; and

~~declines in market rental rates;~~

•

increases in operating costs, if these costs cannot be passed through to our residents.

~~declines in household formation; and~~

~~increases in operating costs, if these costs cannot be passed through to our residents.~~

Failure to generate sufficient cash ~~flows~~flow could limit our ability to make payments on our debt and to make distributions.

Our ability to make payments on our debt and to make distributions depends on our ability to generate cash flow in excess of operating costs and capital expenditure requirements and/or to have access to the markets for debt and equity financing. Our funds from operations may be insufficient because of factors that are beyond our control. Such events or conditions could include:

•

competition from other apartment communities;

•

overbuilding of new apartments or oversupply of available apartments in our markets, which might adversely affect occupancy or rental rates and/or require rent concessions in order to lease apartments;

•

conversion of condominiums and single family houses to rental use or the increase in the number of condominiums and single family homes available for sale;

•

weakness in the overall economy, which lowers job growth and the associated demand for apartment housing;

•

increases in operating costs (including real estate taxes, utilities and insurance premiums) due to inflation and other factors, which may not be offset by increased rental rates;

•

inability to initially, or subsequently after lease terminations, rent apartments on favorable economic terms;

•

failure of development communities to be completed within budget and on a timely basis, if at all, or to lease-up as anticipated;

•

changes in governmental regulations and the related costs of compliance;

•

changes in laws including, but not limited to, tax laws and housing laws including the enactment of rent control laws or other laws regulating multifamily housing;

•

an uninsured loss, including those resulting from a catastrophic storm, earthquake, or act of terrorism;

•

~~competition from other apartment communities;~~

available) or increase our acquisition and operating costs (if interest rates increase and financing is less readily available); and

•

the relative illiquidity of real estate investments.

~~conversion of condominiums and single family houses to rental use or the increase in the number of condominiums and single family homes available for sale;~~

~~weakness in the overall economy, which lowers job growth and the associated demand for apartment housing;~~

~~increases in operating costs (including real estate taxes, utilities and insurance premiums) due to inflation and other factors, which may not be offset by increased rental rates;~~

~~inability to initially, or subsequently after lease terminations, rent apartments on favorable economic terms;~~

~~failure of development communities to be completed, if at all, within budget and on a timely basis or to lease-up as anticipated;~~

~~changes in governmental regulations and the related costs of compliance;~~

~~changes in laws including, but not limited to, tax laws and housing laws including the enactment of rent control laws or other laws regulating multifamily housing;~~

withdrawal of government support of apartment financing through its financial backing of the Federal National Mortgage Association, or Fannie Mae, or the Federal Home Loan Mortgage Corporation, or Freddie Mac;

~~an uninsured loss, including those resulting from a catastrophic storm, earthquake, or act of terrorism;~~

changes in interest rate levels and the availability of financing, borrower credit standards, and down-payment requirements which could lead renters to purchase homes (if interest rates decrease and home loans are more readily available) or increase our acquisition and operating costs (if interest rates increase and financing is less readily available); and

~~the relative illiquidity of real estate investments.~~

At times, we have relied on external funding sources to fully fund the payment of distributions to shareholders and our capital investment program, including our existing property developments. While we have sufficient liquidity to permit distributions at current rates through additional borrowings, if necessary, any significant and sustained deterioration in operations could result in our financial resources being insufficient to make payments on our debt and to make distributions at the current rate, in which event we would be required to reduce the distribution rate. Any decline in our funds from operations could adversely affect our ability to make distributions or to meet our loan covenants and could have a material adverse effect on our stock price or the trading price of our debt securities.

We are dependent on a concentration of our investments in a single asset class, making our results of operations more vulnerable to a downturn or slowdown in the sector or other economic factors.

As of December 31, ~~2018,~~2019, substantially all of our investments are concentrated in the multifamily sector. As a result, we will be subject to risks inherent in investments in a single type of property. A downturn or slowdown in the demand for multifamily housing may have more pronounced effects on our results of operations or on the value of our assets than if we had diversified our investments into more than one asset class.

Our operations are concentrated in the Southeast, Southwest and Mid-Atlantic regions of the United States; we are subject to general economic conditions in the regions in which we operate.

As of December 31, ~~2018,~~2019, approximately ~~39.4%~~39.9% of our portfolio is located in our top five markets: Atlanta, Georgia; Dallas, Texas; Austin, Texas; Charlotte, North Carolina; and Orlando, Florida. In addition, our overall operations are concentrated in the Southeast, Southwest and Mid-Atlantic regions of the United States. Our performance could be adversely affected by economic conditions in, and other factors relating to, these geographic areas, including supply and demand for apartments in these areas, zoning and other regulatory conditions and competition from other communities and alternative forms of housing. In particular, our performance is disproportionately influenced by job growth and unemployment. To the extent the economic conditions, job growth and unemployment in any of these markets deteriorate or any of these areas experiences natural disasters, the value of our portfolio, our results of operations and our ability to make payments on our debt and to make distributions could be adversely affected.

Failure to succeed in new markets may have adverse consequences on our performance.

We may make acquisitions outside of our existing market areas if appropriate opportunities arise. Our historical experience in our existing markets does not ensure that we will be able to operate successfully in new markets, should we choose to enter them. We may be exposed to a variety of risks if we choose to enter new markets, including an inability to accurately evaluate local market conditions, to identify appropriate acquisition opportunities, to hire and retain key personnel and a lack of familiarity with local governmental and permitting procedures. In addition, we may abandon opportunities to enter new markets that we have begun to explore for any reason and may, as a result, fail to recover expenses already incurred.

Substantial competition among apartment communities and real estate companies may adversely affect our revenues and development and acquisition opportunities.

There are numerous other apartment communities and real estate companies, some of which may have greater financial and other resources than we have, within the market area of each of our communities that compete with us for residents and development and acquisition opportunities. The number of competitive apartment communities and real estate companies in these areas could have a material effect on (1) our ability to rent our apartments and generate revenues, and (2) development and acquisition opportunities. The activities of these competitors could cause us to pay a higher price for a new property than we otherwise would have paid or may prevent us from purchasing a desired property at all, which could have a material adverse effect on us and our ability to make payments on our debt and to make distributions.

Acts of violence could decrease the value of our assets and could have an adverse effect on our business and results of operations.

Our apartment communities could directly or indirectly be the location or target of actual or threatened terrorist attacks, crimes, shootings or other acts of violence, the occurrence of which could impact the value of our communities through damage, destruction, loss or increased security costs, as well as result in operational losses due to reduced rental demand, and the availability of insurance may be limited or may be subject to substantial costs. If such an incident were to occur at one of our apartment communities, we may also become subject to significant liability claims. In addition, the adverse effects that actual or threatened terrorist attacks could have on national economic conditions, as well as economic conditions in the markets in which we operate, could similarly have a material adverse effect on our business and results of operations.

We rely on information technology systems in our operations, and any breach or security failure of those systems could materially adversely affect our business, financial condition, results of operations and reputation.

We rely on proprietary and third-party information technology systems to process, transmit and store information and to manage or support our business processes. We store and maintain confidential financial and business information regarding us and persons with which we do business on our information technology systems. We also collect and hold personally identifiable information of our residents and prospective residents in connection with our leasing and property management activities, and we collect and hold personally identifiable information of our employees in connection with their employment. In addition, we engage third party service providers that may collect and hold personally identifiable information of our residents, prospective residents and employees in connection with providing business services to us, including web hosting, property management, leasing, accounting and payroll services. The protection of the information technology systems on which we rely is critically important to us. We take steps, and generally require third party service providers to take steps, to protect the security of the information maintained in our and our service providers' information technology systems, including the use of systems, software, tools and monitoring to provide security for processing, transmitting and storing of the information. However, we face risks associated with breaches or security failures of the information technology systems on which we rely, which could result from, among other incidents, cyber-attacks or cyber-intrusions over the ~~Internet,~~internet, malware, computer viruses or employee error or misconduct. This risk of a data breach or security failure, particularly through cyber-attacks or cyber-intrusion, has generally increased due to the rise in new technologies and the increased sophistication and activities of the perpetrators of attempted attacks and intrusions.

The security measures put in place by us and our service providers cannot provide absolute security and there can be no assurance that we or our service providers will not suffer a data security incident in the future, that unauthorized parties will not gain access to sensitive information stored on our or our service providers' systems, that such access will not, whether temporarily or permanently, impact, interfere with or interrupt our operations, or that any such incident will be discovered in a timely manner. Even the most ~~well protected~~well-protected information, networks, systems and facilities remain potentially vulnerable as the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. In addition, third-party information technology providers may not provide us with fixes or updates to hardware or software in a manner as to avoid an unauthorized loss or disclosure or to address a known vulnerability, which may subject us to known threats or downtime as a result of those delays. Accordingly, we and our service providers may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures. Further, ~~in the future,~~ we may be required to expend significant additional resources to continue to enhance information security measures and internal processes and procedures or to investigate and remediate any information security vulnerabilities.

A data security incident could compromise our or our service providers' information technology systems, and the information stored by us or our service providers, including personally identifiable information of residents, prospective residents and employees, could be accessed, misused, publicly disclosed, corrupted, lost or stolen. Any failure to prevent a data breach or a security failure of our or our service providers' information technology systems could interrupt our operations, result in downtime, divert our planned efforts and resources from other projects, damage our reputation and brand, damage our competitive position, make it difficult for us to attract and retain residents, subject us to liability claims or regulatory penalties and could materially and adversely affect our business, financial condition or results of operations.

Similarly, if our service providers fail to use adequate security or data protection processes, or use personal data in an unpermitted or improper manner, we may be liable for certain losses and it may damage our reputation.

Acquisitions of apartment communities involve various risks and may fail to meet expectations.

We have acquired in the past, and if presented with attractive opportunities we intend to acquire in the future, apartment communities that meet our investment criteria. Our acquisition activities and their success are subject to the following risks:

•

we may be unable to obtain financing for acquisitions on favorable terms or at all;

•

even if we are able to finance the acquisition, cash flow from the acquisition may be insufficient to meet our required principal and interest payments on the acquisition;

•

even if we enter into an acquisition agreement for an apartment community, we may be unable to complete the acquisition after incurring certain acquisition-related costs;

•

we may incur significant costs and divert management's attention in connection with the evaluation and negotiation of potential acquisitions, including potential acquisitions that we are subsequently unable to complete;

•

when we acquire an apartment community, we may invest additional amounts in it with the intention of increasing revenues and profitability, and these additional investments may not produce the anticipated improvements in revenues or profitability;

•

we may be unable to quickly and efficiently integrate acquired apartment communities and new personnel into our existing operations, and the failure to successfully integrate such apartment communities or personnel will result in inefficiencies that could adversely affect our expected return on our investments and our overall profitability; and

•

~~we may be unable to obtain financing for acquisitions on favorable terms or at all;~~

our acquisition may be without any, or with only limited, recourse with respect to unknown liabilities or conditions and we may be obligated to pay substantial sums to settle or cure it, which could adversely affect our cash flow and operating results.

~~even if we are able to finance the acquisition, cash flow from the acquisition may be insufficient to meet our required principal and interest payments on the acquisition;~~

~~even if we enter into an acquisition agreement for an apartment community, we may be unable to complete the acquisition after incurring certain acquisition-related costs;~~

we may acquire properties that are subject to liabilities or that have problems relating to environmental condition, state of title, physical condition or compliance with zoning laws, building codes or other legal requirements and in each case, our acquisition may be without any, or with only limited, recourse with respect to unknown liabilities or conditions and we may be obligated to pay substantial sums to settle or cure it, which could adversely affect our cash flow and operating results.

We are subject to certain risks associated with selling apartment communities, which could limit our operational and financial flexibility.

We periodically dispose of apartment communities that no longer meet our strategic objectives, but adverse market conditions may make it difficult to sell apartment communities like the ones we own. We cannot predict whether we will be able to sell any property for the price or on the terms we set, or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We also cannot predict the length of time needed to find a willing purchaser and to close the sale of a property. Furthermore, we may be required to expend funds to correct defects or to make improvements before a property can be sold. These conditions may limit our ability to dispose of properties and to change our portfolio promptly in order to meet our strategic objectives, which may in turn have a material adverse effect on our financial condition and the market value of our securities. We are also subject to the following risks in connection with sales of our apartment communities:

•

a significant portion of the proceeds from our overall property sales may be held by intermediaries in order for some sales to qualify as like-kind exchanges under Section 1031 of the Code, so that any related capital gain can be deferred for federal income tax purposes. As a result, we may not have immediate access to all of the cash proceeds generated from our property sales. In addition, if a transaction intended to qualify as a Section 1031 exchange is later determined to be taxable, we may face adverse consequences, and if the laws applicable to such transactions are amended or repealed, we may not be able to dispose of properties on a tax deferred basis. Intermediary agents of Section 1031 exchange transactions typically handle large sums of money in trusts. Misappropriation of funds by one of these agents could have a material negative impact on our results of operations. Additionally, misappropriation of funds could result in the disposal of the property not qualifying for a tax deferred basis and adversely affect our financial condition. It is also possible the qualification of a transaction as a Section 1031 exchange could be successfully challenged and determined to be currently taxable. In such case, our taxable income and earnings and profits would increase, which could increase the dividend income to our shareholders by reducing any return of capital they received. In some circumstances, we may be required to pay additional dividends or, in lieu of additional dividends, corporate income tax, possibly including interest and penalties. As a result, we may be required to borrow funds in order to pay additional dividends or taxes and the payment of such taxes could cause us to have less cash available to distribute to our shareholders. In addition, if a Section 1031 exchange were later to be determined to be taxable, we may be required to amend our tax returns for the applicable year in question, including any information reports sent to our shareholders; and

•

federal tax laws applicable to REITs limit our ability to profit on the sale of communities, and this limitation may prevent us from selling communities when market conditions are favorable.

~~federal tax laws applicable to REITs limit our ability to profit on the sale of communities, and this limitation may prevent us from selling communities when market conditions are favorable.~~

Property ownership through joint ventures could limit our ability to act exclusively in our interest.

From time to time, we may acquire and/or develop properties in joint ventures with other persons or entities when we believe circumstances warrant the use of such structures. In that case, we could become engaged in a dispute with one or more of our partners which might affect our ability to operate a jointly-owned property. Moreover, our partners could have business, economic or other objectives that are inconsistent with our objectives, including objectives that relate to the appropriate timing and terms of any sale or refinancing of a property. In some instances, our partners could have competing interests in our markets that could create conflicts of interest. Also, our partners might refuse to make capital contributions when due and we

may be responsible to our partners for indemnifiable losses. In general, we and our partners could each have the right to trigger a buy-sell arrangement, which could cause us to sell our interest, or acquire our partners' interest, at a time when we otherwise would not have initiated such a transaction and may result in the valuation of our interest in the joint venture (if we are the seller) or of our partners' interest in the joint venture (if we are the buyer) at levels which may not be representative of the valuation that would result from an arm's length marketing process. Other potential risks of a jointly-owned property include (i) a deadlock if we and our partners are unable to agree upon certain major and other decisions, (ii) a limitation of our ability to liquidate our position in the partnership or joint venture without the consent of the other partners and (iii) a requirement to provide guarantees in favor of lenders with respect to the indebtedness of the joint venture.

Environmental problems are possible and can be costly.

Under various federal, state and local laws, ordinances and regulations, a current or previous owner or operator of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances in, on, around or under such property. Such laws often impose such liability without regard to whether the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of, or failure to properly remediate, hazardous, toxic substances or petroleum product releases may adversely affect the owner's or operator’s ability to sell or rent the affected property or to borrow using the property as collateral. Persons who arrange for the disposal or treatment of hazardous or toxic substances may also be liable for the costs of removal or remediation of hazardous or toxic substances at a disposal or treatment facility, whether or not the facility is owned or operated by the person. Certain environmental laws impose liability for the release of asbestos-containing materials into the air, and third parties may also seek recovery from owners or operators of real property for personal injury associated with ~~asbestos-containing~~asbestos-

containing materials and other hazardous or toxic substances. Federal and state laws also regulate the operation and subsequent removal of certain underground storage tanks. In connection with the current or former ownership (direct or indirect), operation, management, development or control of real property, we may be considered an owner or operator of such apartment communities or as having arranged for the disposal or treatment of hazardous or toxic substances and, therefore, may be potentially liable for removal or remediation costs, as well as certain other costs, including governmental fines, and claims for injuries to persons and property.

Our current policy is to obtain a Phase I environmental study on each apartment community that we seek to acquire or develop, which generally does not involve invasive techniques such as soil or ground water sampling, and to proceed accordingly. We cannot assure you, however, that the Phase I environmental studies or other environmental studies undertaken with respect to any of our current or future apartment communities will reveal:

•

all or the full extent of potential environmental liabilities;

•

that any prior owner or operator of a property did not create any material environmental condition unknown to us;

~~all or the full extent of potential environmental liabilities;~~

•

that a material environmental condition does not otherwise exist as to any one or more of such apartment communities; or

~~that any prior owner or operator of a property did not create any material environmental condition unknown to us;~~

•

that environmental matters will not have a material adverse effect on us and our ability to make payments on our debt and to make distributions.

~~that a material environmental condition does not otherwise exist as to any one or more of such apartment communities; or~~

~~that environmental matters will not have a material adverse effect on us and our ability to make payments on our debt and to make distributions.~~

Certain environmental laws impose liability on a previous owner of property to the extent that hazardous or toxic substances were present during the prior ownership period. A transfer of the property does not relieve an owner of such liability. Thus, we may have liability with respect to apartment communities previously sold by our predecessors or by us. There have been a number of lawsuits against owners and operators of multifamily apartment communities alleging personal injury and property damage caused by the presence of mold in residential real estate. Some of these lawsuits have resulted in substantial monetary judgments or settlements. Insurance carriers have reacted to these liability awards by excluding mold-related claims from standard policies and pricing mold endorsements separately. We have obtained a separate pollution insurance policy that covers mold-related claims and have adopted programs designed to minimize the existence of mold in any of our apartment communities as well as guidelines for promptly addressing and resolving reports of mold. To the extent not covered by our pollution policy, the presence of mold could expose us to liability from residents and others if property damage or health concerns, or allegations thereof, arise.

Extreme weather or natural disasters may cause property damage or disrupt business, which could harm our business and results of operations.

We have apartment communities located in areas that may be subject to extreme weather and natural disasters, including, but not limited to, earthquakes, winds, floods, hurricanes and ~~fires.~~fires, the likelihood or frequency of which events could increase in part based on the potential impact of climate change. Such conditions may damage our properties, disrupt our operations and adversely impact our tenants. There can be no assurances that such conditions will not have a material adverse effect on our properties, operations or business.

Losses from catastrophes may exceed our insurance coverage, which may negatively impact our results of operations and reduce the value of our properties.

We carry comprehensive liability and property insurance on our apartment communities and intend to obtain similar coverage for apartment communities we acquire in the future. Some losses, generally of a catastrophic nature, such as losses from floods, hurricanes or earthquakes, are subject to limitations, and thus may be uninsured. We exercise our discretion in determining amounts, coverage limits and deductibility provisions of insurance, with a view to maintaining appropriate insurance on our investments at a reasonable cost and on suitable terms. If we suffer a substantial loss, our insurance coverage may not be sufficient to pay the full current market value or current replacement value of our lost investment. Inflation, changes in building codes and ordinances, environmental considerations and other factors also might make it infeasible to use insurance proceeds to replace a property after it has been damaged or destroyed. Any losses we experience that are not fully covered by our insurance may negatively impact our results of operations and may reduce the value of our properties.

Increasing real estate taxes, utilities and insurance premiums may negatively impact operating results.

As a result of our substantial real estate holdings, the cost of real estate taxes, utilities and insuring our apartment communities is a significant component of expense. Real estate taxes, utilities and insurance premiums are subject to significant increases and fluctuations, which can be widely outside of our control. For example, the potential impact of climate change and the increased risk of extreme weather events and natural disasters could cause a significant increase in our insurance premiums and adversely affect the availability of coverage. If the costs associated with real estate taxes, utilities and insurance premiums should rise, without being offset by a corresponding increase in revenues, our results of operations could be negatively impacted, and our ability to make payments on our debt and to make distributions could be adversely affected.

Compliance or failure to comply with laws and regulations, including those requiring access to our properties by disabled persons, could ~~result~~have an adverse effect on our operations.

We must own, operate, manage, acquire, develop and redevelop our properties in ~~substantial cost.~~

~~The~~compliance with numerous federal, state and local laws and regulations. For example, the Americans with Disabilities Act of 1990, ~~or the ADA,~~ the Fair Housing Act of 1988 ~~or the FHA,~~ and other federal, state and local laws generally require that public accommodations be made accessible to disabled persons. Noncompliance could result in the imposition of fines by the government or the award of damages to private litigants. These laws may require us to modify our existing apartment communities. These laws may also restrict renovations by requiring improved access to such buildings by disabled persons or may require us to add other structural features that increase our construction costs. ~~Legislation or regulations adopted in the future may impose further burdens or restrictions on us with respect to improved access by disabled persons.~~ We cannot ascertain the costs of compliance with these laws, which may be substantial.

We do not know whether the legal requirements we are subject to will change or whether new requirements will be imposed. Changes in laws and regulations could require us to make significant unanticipated expenditures, impose limitations on our ability to raise rents or charge certain fees or otherwise adversely impact our operations. For example, we generally have seen growing activism from tenant advocacy groups, which often urge state and local governments to consider enacting rent control or rent stabilization laws and regulations as well as tenants’ rights laws and regulations. Any such future enactments in the markets in which we operate could have a significant adverse impact on our results of operations and the value of our properties.

Development and construction risks could impact our profitability.

As of December 31, ~~2018,~~2019, we had ~~three~~seven development communities under construction totaling ~~577~~2,108 units. We may make further investments in these and other development communities as opportunities arise and may do so through joint ventures with unaffiliated parties. Our development and construction activities are subject to the following risks:

•

we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations;

•

we may be unable to obtain financing for development activities under favorable terms, which could cause a delay in construction resulting in increased costs, decreases in revenue and potentially cause us to abandon the opportunity;

we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community, and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations;

•

yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget, higher than expected concessions for lease-up and lower rents than initially estimated;

we may be unable to obtain financing for development activities under favorable terms, which could cause a delay in construction resulting in increased costs, decreases in revenue, and potentially cause us to abandon the opportunity;

•

bankruptcy of developers in our development projects could impose delays and costs on us with respect to the development of our communities and may adversely affect our financial condition and results of operations;

~~yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget, higher than expected concessions for lease-up and lower rents than initially estimated;~~

•

we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities;

•

we may be unable to complete construction and lease-up of an apartment community on schedule, or incur development or construction costs that exceed our original estimates and we may be unable to charge rents that would compensate for any increase in such costs;

~~we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities;~~

•

occupancy rates and rents at a newly developed apartment community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community;

we may be unable to complete construction and lease-up of an apartment community on schedule, or incur development or construction costs that exceed our original estimates, and we may be unable to charge rents that would compensate for any increase in such costs;

•

when we sell to third parties apartment communities or properties that we developed or renovated, we may be subject to warranty or construction defects that are uninsured or exceed the limit of our insurance;

•

our failure to successfully enter into a joint venture agreement may prohibit an otherwise advantageous investment if we cannot raise the money through other means; and

•

adoption of laws and regulations designed to address climate change and its effects, including, for example, “green” building codes, could increase our costs of development and cause delays in the construction of our development communities.

~~our failure to successfully enter into a joint venture agreement may prohibit an otherwise advantageous investment if we cannot raise the money through other means.~~

Short-term leases expose us to the effects of declining market rents and we may be unable to renew leases or relet units as leases expire.

Our apartment leases are generally for a term of one year or less. As these leases typically permit the residents to leave at the end of the lease term without penalty, our revenues are impacted by declines in market rents more quickly than if our leases were for longer terms. If we are unable to promptly renew the leases or relet the units, or if the rental rates upon renewal or reletting are significantly lower than expected rates, then our financial condition and results of operations may be adversely affected.

Legal proceedings that we become involved in from time to time could adversely affect our business.

As an owner, operator and developer of multifamily apartment communities, we may become involved in various legal proceedings, including, but not limited to, proceedings related to commercial, development, employment, environmental, securities, shareholder, tenant or tort legal issues, some of which could result in a class action lawsuit. For example, as described in more detail

in ~~"Legal Proceedings"~~“Legal Proceedings” and Note 1211 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K, we are currently a defendant in two class action lawsuits relating to tenant late fee policies at our Texas apartment communities.

Legal proceedings, if decided adversely to or settled by us, and not covered by insurance, could result in liability material to our financial condition, results of operations or cash flows. Likewise, regardless of outcome, legal proceedings could result in substantial costs and expenses, affect the availability or cost of some of our insurance coverage and significantly divert the attention of our management. There can be no assurance that we will be able to prevail in, or achieve a favorable settlement of, any pending or future legal proceedings to which we become subject.

Risks Related to Our Indebtedness and Financing Activities

Our substantial indebtedness could adversely affect our financial condition and results of operations.

As of December 31, ~~2018,~~2019, the amount of our total debt was approximately $4.5 billion. We may incur additional indebtedness in the future in connection with, among other things, our acquisition, development and operating activities.

The degree of our leverage creates significant risks, including the following:

•

we may be required to dedicate a substantial portion of our funds from operations to servicing our debt and our cash flow may be insufficient to make required payments of principal and interest;

•

debt service obligations will reduce funds available for distribution and funds available for acquisitions, development and redevelopment;

~~we may be required to dedicate a substantial portion of our funds from operations to servicing our debt and our cash flow may be insufficient to make required payments of principal and interest;~~

•

we may be more vulnerable to economic and industry downturns than our competitors that have less debt;

~~debt service obligations will reduce funds available for distribution and funds available for acquisitions, development and redevelopment;~~

•

we may be limited in our ability to respond to changing business and economic conditions;

~~we may be more vulnerable to economic and industry downturns than our competitors that have less debt;~~

•

we may default on our indebtedness, which could result in acceleration of those obligations, assignment of rents and leases and loss of properties to foreclosure; and

~~we may be limited in our ability to respond to changing business and economic conditions;~~

•

if one of our subsidiaries defaults, it could trigger a cross default or cross acceleration provision under other indebtedness, which could cause an immediate default or could allow the lenders to declare all funds borrowed thereunder to be due and payable.

~~we may default on our indebtedness, which could result in acceleration of those obligations, assignment of rents and leases and loss of properties to foreclosure; and~~

If any one of these events was to occur, our financial condition and results of operations could be materially and adversely affected.

We may be unable to renew, repay or refinance our outstanding debt, which could negatively impact our financial condition and results of operations.

We are subject to the normal risks associated with debt financing, including the risk that our cash flow will be insufficient to meet required payments of principal and interest, the risk that either secured or unsecured indebtedness will not

be able to be renewed, repaid or refinanced when due or that the terms of any renewal or refinancing will not be as favorable as the existing terms of such indebtedness. If we are unable to refinance our indebtedness on acceptable terms, if at all, we might be forced to dispose of one or more of our apartment communities on disadvantageous terms, which might result in losses to us. Such losses could have a material adverse effect on us and our ability to make payments on our debt and to make distributions. Furthermore, if a property is mortgaged to secure payment of indebtedness and we are unable to meet mortgage payments, the mortgagee could foreclose upon the property, appoint a receiver and receive an assignment of rents and leases or pursue other remedies, all with a consequent loss of our revenues and asset value. Foreclosures could also create taxable income without accompanying cash proceeds, thereby hindering our ability to meet the REIT distribution requirements of the Code.

Rising interest rates could adversely affect our results of operations and cash flows.

We have incurred and expect in the future to incur indebtedness that bears interest at variable rates. Interest rates could increase, which could result in higher interest expense on our variable-rate debt or increase interest rates when refinancing maturing fixed-rate debt, which could have a material adverse effect on us and our ability to make payments on our debt and to make distributions or cause us to be in default under certain debt instruments. In addition, an increase in market interest rates may lead holders of shares of our common stock to demand a higher yield on their shares from distributions by us, which could adversely affect the market price for our common stock. During 2018, the Federal Reserve raised the federal funds rate by 0.25 points each quarter, resulting in a range of 2.25 percent to 2.5 percent after the Federal Reserve's December 2018 meeting. These increasesAny increase in the federal funds rate ~~and any future increases~~ due to ~~other~~ key economic indicators, such as the unemployment rate or inflation, may cause interest rates and borrowing costs to rise, which may negatively impact our ability to access the debt markets on favorable terms. Any continued adverse economic conditions could have a material adverse effect on our business, financial condition and results of operations.

The uncertainty regarding the potential phase-out of LIBOR could adversely impact our results of operations and cash flows.

LIBOR is the basic rate of interest used in lending between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. LIBOR is the interest rate benchmark used as a reference rate on our variable

rate debt, including our unsecured revolving credit facility. LIBOR is expected to be phased out after 2021, when private-sector banks are no longer required to report the information used to set the rate. Without this data, LIBOR may no longer be published, or the lack of quality and quantity of data may cause the rate to no longer be representative of the market. At this time, no consensus exists as to what rate or rates will become accepted alternatives to LIBOR, although the U.S. Federal Reserve, in connection with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S. dollar LIBOR with the Secured Overnight Financing Rate, or SOFR. SOFR is a more generic measure than LIBOR and considers the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. Given the inherent differences between LIBOR and SOFR or any other alternative benchmark rate that may be established, there are many uncertainties regarding a transition from LIBOR, including, but not limited to, how this will impact our cost of variable rate debt. The consequences of these developments with respect to LIBOR cannot be entirely predicted and will span multiple future periods but could result in an increase in the cost of our variable rate debt, which could adversely impact our results of operations and cash flows.

We may incur additional debt in the future, which may adversely impact our financial condition.

We currently fund the acquisition and development of apartment communities partially through borrowings (including our commercial paper program and revolving credit facility) as well as from other sources such as sales of apartment communities which no longer meet our investment criteria. In addition, we may fund other of our capital requirements through additional debt. Our organizational documents do not contain any limitation on the amount of indebtedness that we may incur, and we may incur more debt in the future. Accordingly, subject to limitations on indebtedness set forth in various loan agreements and the indentures governing our senior notes, we could become more highly leveraged, resulting in an increase in debt service and an increased risk of default on our obligations, which could have a material adverse effect on our financial condition, our ability to access debt and equity capital markets in the future and our ability to make payments on our debt and to make distributions.

The restrictive terms of certain of our indebtedness may cause acceleration of debt payments.

As of December 31, ~~2018,~~2019, we had outstanding borrowings of approximately $4.5 billion. Our indebtedness contains financial covenants as to interest coverage ratios, maximum secured debt, maintenance of unencumbered asset value, and total debt to gross assets, among others, and cross default provisions with other material debt. Our ability to comply with these financial covenants may be affected by changes in our operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting us. In the event that an event of default occurs, our lenders may declare borrowings under the respective loan agreements to be due and payable immediately, which could have a material adverse effect on our financial condition and our ability to make payments on our debt and to make distributions.

Failure to hedge effectively against interest rates may adversely affect our results of operations.

From time to time, we may seek to manage our exposure to interest rate volatility by using interest rate hedging arrangements, such as interest rate swap agreements. These agreements involve risks, such as the risk that the counterparties may fail to honor their obligations under these arrangements, that these arrangements may not be effective in reducing our exposure to interest rate changes and that a court could rule that such an agreement is not legally enforceable. Hedging may reduce overall returns on our investments. Failure to hedge effectively against interest rate changes could have a material adverse effect on us and our ability to make payments on our debt and to make distributions.

A downgrade in our credit ratings could have a material adverse effect on our business, financial condition and results of operations.

We have a significant amount of debt outstanding. We are currently assigned corporate credit ratings from each of the

three ratings agencies based on their evaluation of our creditworthiness. These ratings are based on a number of factors, which include their assessment of our financial strength, liquidity, capital structure, asset quality and sustainability of cash flows and earnings. If our credit ratings are downgraded or other negative action is taken, we could be required to pay additional interest and fees on our outstanding borrowings. In addition, a downgrade may adversely impact our ability to borrow secured and unsecured debt and otherwise limit our access to capital, which could adversely affect our business, financial condition and results of operations.

Financing may not be available and could be dilutive.

Our capital requirements depend on numerous factors, including the occupancy and turnover rates of our apartment communities, development and capital expenditures, costs of operations and potential acquisitions. We cannot accurately predict the timing and amount of our capital requirements. If our capital requirements vary materially from our plans, we may require additional financing sooner than anticipated.

We and other companies in the real estate industry have experienced limited availability of financing from time to time. ~~Restricted lending practices~~Dislocations and liquidity disruptions in capital and credit markets could impact liquidity in the debt markets, which could result in financing terms that are less attractive to us and/or the unavailability of certain types of debt financing. Likewise, disruptions could impede the ability of our counterparties to perform on their contractual obligations. Should the capital and credit markets experience volatility and the availability of funds again becomes limited, or be available only on unattractive terms, we will incur increased costs

associated with issuing debt instruments. In addition, it is possible that our ability to access the capital and credit markets may be limited or precluded by these or other factors at a time when we would like, or need, to do so, which would adversely impact our ability to ~~obtain~~refinance maturing debt and/or react to changing economic and business conditions. Uncertainty in the credit markets could negatively impact our ability to make acquisitions and make it more difficult or not possible for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of debt financing or difficulties in obtaining debt financing. Potential continued disruptions in the financial markets could also have other unknown adverse effects on us or the economy generally and may cause the price of our securities to fluctuate significantly and/or to decline. If we issue additional equity securities to obtain additional financing, the interest of our existing shareholders could be diluted.

Risks Related to MAA's Organization and Ownership of Its Stock

MAA's ownership limit restricts the transferability of its capital stock.

MAA's charter limits ownership of its capital stock by any single shareholder to 9.9% of the value of all outstanding shares of its capital stock, both common and preferred, unless approved by its Board of Directors. The charter also prohibits anyone from buying shares if the purchase would result in it losing REIT status. This could happen if a share transaction results in fewer than 100 persons owning all of its shares or in five or fewer persons, applying certain broad attribution rules of the Code, owning 50% or more of its shares. If an investor acquires shares in excess of the ownership limit or in violation of the ownership requirements of the Code for REITs, MAA:

~~will consider the transfer to be null and void;~~

~~will not reflect the transaction on its books;~~

~~may institute legal action to enjoin the transaction;~~

~~will not pay dividends or other distributions with respect to those shares;~~

~~will not recognize any voting rights for those shares;~~

~~will consider the shares held in trust for its benefit; and~~

~~will either direct the holder to sell the shares and turn over any profit to MAA, or MAA will redeem the shares. If MAA redeems the shares, the holder will be paid a price equal to the lesser of:~~

•

will consider the transfer to be null and void;

◦

•

will not reflect the transaction on its books;

•

may institute legal action to enjoin the transaction;

•

will not pay dividends or other distributions with respect to those shares;

•

will not recognize any voting rights for those shares;

•

will consider the shares held in trust for its benefit; and

•

will either direct the holder to sell the shares and turn over any profit to MAA, or MAA will redeem the shares. If MAA redeems the shares, the holder will be paid a price equal to the lesser of:

the principal price paid for the shares by the holder,


◦ o	a price per share equal to the market price (as determined in the manner set forth in its charter) of the applicable capital stock,


◦ o	the market price (as so determined) on the date such holder would, but for the restrictions on transfers set forth in its charter, be deemed to have acquired ownership of the shares, and

◦

the maximum price allowed under the Tennessee Greenmail Act (such price being the average of the highest and lowest closing market price for the shares during the 30 trading days preceding the purchase of such shares or, if the holder of such shares has commenced a tender offer or has announced an intention to seek control of MAA, during the 30 trading days preceding the commencement of such tender offer or the making of such announcement).

The redemption price may be paid, at MAA's option, by delivering one common unit (subject to adjustment from time to time in the event of, among other things, stock splits, stock dividends or recapitalizations affecting its common stock or certain mergers, consolidations or asset transfers by MAA) issued by the Operating Partnership for each excess share being redeemed.

If an investor acquires shares in violation of the limits on ownership described above:

•

the holder may lose its power to dispose of the shares;

•

the holder may not recognize profit from the sale of such shares if the market price of the shares increases; and

~~the holder may lose its power to dispose of the shares;~~

•

the holder may be required to recognize a loss from the sale of such shares if the market price decreases.

~~the holder may not recognize profit from the sale of such shares if the market price of the shares increases; and~~

~~the holder may be required to recognize a loss from the sale of such shares if the market price decreases.~~

Future offerings of debt or equity securities, which may rank senior to our common stock, may adversely affect the market price of our common stock.

If we decide to issue additional debt securities in the future, which would rank senior to our common stock, it is likely that they will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, any equity securities or convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. We and, indirectly, our shareholders, will bear the cost of issuing and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any future offerings. Thus, holders of our common stock will bear the risk of our future offerings reducing the market price of our common stock and diluting the value of their stock holdings.

The form, timing and amount of dividend distributions in future periods may vary and be impacted by economic and other considerations.

Though our Board of Directors has a history of declaring dividends in advance of the quarter they are paid, the form, timing and amount of dividend distributions will be declared, and standing practice changed, at the discretion of the Board of Directors. The form, timing and amount of dividend distributions will depend on actual cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as our Board of Directors may consider relevant. Our Board of Directors may modify our dividend policy from time to time.

Provisions of MAA's charter and Tennessee law may limit the ability of a third party to acquire control of MAA.

Ownership Limit

The 9.9% ownership limit discussed above may have the effect of precluding acquisition of control of MAA by a third party without the consent of our Board of Directors.

Preferred Stock

MAA's charter authorizes our Board of Directors to issue up to 20,000,000 shares of preferred stock, 868,000 of which have been designated as 8.50% Series I Cumulative Redeemable Preferred Stock, which we refer to as MAA Series I preferred stock. In addition to the MAA Series I preferred stock, the Board of Directors may establish the preferences and rights of any other series of preferred shares issued. The issuance of preferred stock could have the effect of delaying or preventing someone from taking control of MAA, even if a change in control were in MAA shareholders’ best interests. As of December 31, ~~2018,~~2019, 867,846 shares of preferred stock were issued and outstanding, all of which shares were MAA Series I preferred stock.

Tennessee Anti-Takeover Statutes

As a Tennessee corporation, MAA is subject to various legislative acts, which impose restrictions on and require compliance with procedures designed to protect shareholders against unfair or coercive mergers and acquisitions. These statutes may delay or prevent offers to acquire MAA and increase the difficulty of consummating any such offers, even if MAA's acquisition would be in MAA shareholders’ best interests.

Market interest rates and low trading volume may have an adverse effect on the market value of MAA's common stock.

The market price of shares of common stock of a REIT may be affected by the distribution rate on those shares, as a

percentage of the price of the shares, relative to market interest rates. If market interest rates increase, prospective purchasers of MAA's common stock may expect a higher annual distribution rate. Higher interest rates would not, however, result in more funds for MAA to distribute and, in fact, would likely increase MAA's borrowing costs and potentially decrease funds available for distribution. This could cause the market price of MAA's common stock to go down. In addition, although MAA's common stock is listed on the NYSE, the daily trading volume of MAA's common stock may be lower than the trading volume for companies in other industries. As a result, MAA's investors who desire to liquidate substantial holdings may find that they are unable to dispose of their shares in the market without causing a substantial decline in the market value of MAA's common stock.

Changes in market conditions or a failure to meet the market’s expectations with regard to our results of operations and cash distributions could adversely affect the market price of MAA's common stock.

We believe that the market value of a REIT’s equity securities is based primarily upon the market’s perception of the REIT’s growth potential and its current and potential future cash distributions, and is secondarily based upon the real estate market value of the underlying assets. For that reason, MAA's common stock may trade at prices that are higher or lower than the net asset value per share. To the extent we retain operating cash flow for investment purposes, working capital reserves or other purposes, these retained funds, while increasing the value of our underlying assets, may not correspondingly increase the market price of MAA's common stock. In addition, we are subject to the risk that our cash flow will be insufficient to pay distributions to MAA's shareholders. Our failure to meet the market’s expectations with regard to future earnings and cash distributions would likely adversely affect the market price of MAA's common stock.

The stock markets, including the NYSE, on which MAA lists its common stock, have, at times, experienced significant price and volume fluctuations. As a result, the market price of MAA's common stock could be similarly volatile, and investors in MAA's common stock may experience a decrease in the value of their shares, including decreases unrelated to our operating performance or prospects. Among the market conditions that may affect the market price of MAA's publicly traded securities are the following:

•

our financial condition and operating performance and the performance of other similar companies;

•

actual or anticipated differences in our quarterly and annual operating results;

•

changes in our revenues or earnings estimates or recommendations by securities analysts;

•

publication of research reports about us or our industry by securities analysts;

~~our financial condition and operating performance and the performance of other similar companies;~~

•

additions and departures of key personnel;

~~actual or anticipated differences in our quarterly and annual operating results;~~

•

inability to access the capital markets;

~~changes in our revenues or earnings estimates or recommendations by securities analysts;~~

•

strategic decisions by us or our competitors, such as acquisitions, dispositions, spin-offs, joint ventures, strategic investments or changes in business strategy;

~~publication of research reports about us or our industry by securities analysts;~~

•

the issuance of additional shares of MAA's common stock, or the perception that such sales may occur, including under MAA's at-the-market share offering program, or ATM program;

~~additions and departures of key personnel;~~

•

the reputation of REITs generally and the reputation of REITs with portfolios similar to ours;

~~inability to access the capital markets;~~

•

the attractiveness of the securities of REITs in comparison to securities issued by other entities (including securities issued by other real estate companies);

~~strategic decisions by us or our competitors, such as acquisitions, dispositions, spin-offs, joint ventures, strategic investments or changes in business strategy;~~

•

an increase in market interest rates, which may lead prospective investors to demand a higher distribution rate in relation to the price paid for MAA's common stock;

~~the issuance of additional shares of MAA's common stock, or the perception that such sales may occur, including under MAA's at-the-market offering programs;~~

•

the passage of legislation or other regulatory developments that adversely affect us or our industry;

~~the reputation of REITs generally and the reputation of REITs with portfolios similar to ours;~~

•

speculation in the press or investment community;

~~the attractiveness of the securities of REITs in comparison to securities issued by other entities (including securities issued by other real estate companies);~~

•

actions by institutional shareholders or hedge funds;

~~an increase in market interest rates, which may lead prospective investors to demand a higher distribution rate in relation to the price paid for MAA's common stock;~~

•

changes in accounting principles;

~~the passage of legislation or other regulatory developments that adversely affect us or our industry;~~

•

terrorist acts; and

~~speculation in the press or investment community;~~

•

general market conditions, including factors unrelated to our performance.

~~actions by institutional shareholders or hedge funds;~~

~~changes in accounting principles;~~

~~terrorist acts; and~~

~~general market conditions, including factors unrelated to our performance.~~

In the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management’s attention and resources.

Risks Related to the Operating Partnership's Organization and Ownership of OP Units

The Operating Partnership's existing unitholders have limited approval rights, which may prevent the Operating Partnership's sole general partner, MAA, from completing a change of control transaction that may be in the best interests of all unitholders of the Operating Partnership and all shareholders of MAA.

MAA may not engage in a sale or other disposition of all or substantially all of the assets of the Operating Partnership, dissolve the Operating Partnership or, upon the occurrence of certain triggering events, take any action that would result in any unitholder realizing taxable gain, without the approval of the holders of a majority of the outstanding OP Units held by holders other than MAA or its affiliates, or Class A OP Units. The right of the holders of our Class A OP Units to vote on these transactions could limit MAA's ability to complete a change of control transaction that might otherwise be in the best interest of all unitholders of the Operating Partnership and all shareholders of MAA.

In certain circumstances, certain of the Operating Partnership's unitholders must approve the Operating Partnership's sale of certain properties contributed by the unitholders.

In certain circumstances, as detailed in the partnership agreement of the Operating Partnership, the Operating Partnership may not sell or otherwise transfer certain properties unless a specified percentage of the limited partners who were partners in the limited partnership holding such properties at the time of its acquisition by us approves such sale or transfer. The exercise of these approval rights by the Operating Partnership's unitholders could delay or prevent the Operating Partnership from completing a transaction that may be in the best interest of all unitholders of the Operating Partnership and all shareholders of MAA.

MAA, its officers and directors have substantial influence over the Operating Partnership's affairs.

MAA, as the Operating Partnership's sole general partner and acting through its officers and directors, has a substantial influence on the Operating Partnership's affairs. MAA, its officers and directors could exercise their influence in a manner that is not in the best interest of the unitholders of the Operating Partnership. Also, MAA owns approximately ~~96.5%~~96.6% of the OP Units and as such, will have substantial influence on the outcome of substantially all matters submitted to the Operating Partnership's unitholders for approval.

Market interest rates and low trading volume may have an adverse effect on the market value of MAA's common stock, which would affect the redemption price of the OP Units.

The market price of shares of common stock of a REIT may be affected by the distribution rate on those shares, as a percentage of the price of the shares, relative to market interest rates. If market interest rates increase, prospective purchasers of MAA's common stock may expect a higher annual distribution rate. Higher interest rates would not, however, result in more funds for MAA to distribute and, in fact, would likely increase MAA's borrowing costs and potentially decrease funds available for distribution. This could cause the market price of MAA's common stock to go down, which would reduce the price received upon redemption of any OP Units, or if MAA so elects, the value of MAA's common stock received in lieu of cash upon redemption of such OP Units. In addition, although MAA's common stock is listed on the NYSE, the daily trading volume of MAA's common stock may be lower than the trading volume for companies in other industries. As a result, MAA's investors who desire to liquidate substantial holdings may

find that they are unable to dispose of their shares in the market without causing a substantial decline in the market value of MAA's common stock.

Insufficient cash flow from operations or a decline in the market price of MAA's common stock may reduce the amount of cash available to the Operating Partnership to meet its obligations.

The

The Operating Partnership is subject to the risk that its cash flow will be insufficient to make payments on its debt and to make distributions to its unitholders, which may cause MAA to not have the funds to make distributions to its shareholders. MAA’s failure to meet the market’s expectations with regard to future results of operations and cash distributions would likely adversely affect the market price of its shares and thus potentially reduce MAA’s ability to contribute funds from issuances down to the Operating Partnership, resulting in a lower level of cash available for investment, to make payments on its debt or to make distributions to its unitholders.

Risks Related to Tax Laws

Failure to qualify as a REIT would cause us to be taxed as a corporation, which would significantly reduce funds available for distribution to shareholders.

If MAA fails to qualify as a REIT for federal income tax purposes, MAA will be subject to federal income tax on its taxable income at regular corporate rates without the benefit of the dividends paid deduction applicable to REITs. In addition, unless MAA is entitled to relief under applicable statutory provisions, MAA would be ineligible to make an election for treatment as a REIT for the four taxable years following the year in which it loses its qualification. The additional tax liability resulting from the failure to qualify as a REIT would significantly reduce or eliminate the amount of funds available for distribution to MAA’s shareholders. MAA’s failure to qualify as a REIT also could impair its ability to expand its business and raise capital, and would adversely affect the value of MAA’s common stock.

MAA believes that it is organized and qualified as a REIT, and MAA intends to operate in a manner that will allow it to continue to qualify as a REIT. MAA cannot assure, however, that it is qualified or will remain qualified as a REIT. This is because qualification as a REIT involves the application of highly technical and complex provisions of the Code for which there are only limited judicial and administrative interpretations and involves the determination of a variety of factual matters

and circumstances not entirely within MAA’s control. In addition, future legislation, new regulations, administrative interpretations or court decisions may significantly change the tax laws or the application of the tax laws with respect to qualification as a REIT for federal income tax purposes or the federal income tax consequences of qualification as a REIT.

Even if MAA qualifies as a REIT, MAA will be subject to various federal, state and local taxes, including property taxes and income taxes on taxable income that MAA does not timely distribute to its shareholders. In addition, MAA may hold certain assets and engage in certain activities that a REIT could not engage in directly through its taxable REIT subsidiaries, or ~~TRSs,~~TRS, and those ~~TRSs~~TRS will be subject to federal income tax at regular corporate rates on their taxable income without the benefit of the dividends paid deduction applicable to REITs.

Furthermore, we have a subsidiary that has elected to be treated as a REIT, and if our subsidiary REIT were to fail to qualify as a REIT, it is possible that we also would fail to qualify as a REIT unless we (or the subsidiary REIT) could qualify for certain relief provisions. The qualification of our subsidiary REIT as a REIT will depend on satisfaction, on an annual or quarterly basis, of numerous requirements set forth in highly technical and complex provisions of the Code for which there are only limited judicial or administrative interpretations. A determination as to whether such requirements are satisfied involves various factual matters and circumstances not entirely within our control. The fact that we hold substantially all of our assets through the Operating Partnership and its subsidiaries further complicates the application of the REIT requirements for us. No assurance can be given that our subsidiary REIT will qualify as a REIT for any particular year.

If any REIT previously acquired by us failed to qualify as a REIT for U.S. federal income tax purposes, we would incur adverse tax consequences and our financial condition and results of operations would be materially adversely affected.

~~Prior to~~

In the ~~merger with Post Properties, Post Properties~~past, we have acquired companies that operated in a manner intended to allow itthem to qualify as ~~a REIT~~REITs for U.S. federal income tax purposes. If ~~Post Properties, or~~ any ~~other~~such REIT previously acquired by MAA, ~~(each,~~referred to as a ~~"Merged REIT"),~~Merged REIT, is determined to have lost its REIT status at any time prior to its merger with MAA, MAA would be subject to serious adverse tax consequences, including:

•

MAA would be required to pay U.S. federal income tax at regular corporate rates on the taxable income of such Merged REIT without the benefit of the dividends paid deduction for the taxable years that the Merged REIT did not qualify as a REIT and for which the statute of limitations period remains open; and

•

MAA would be required to pay any federal alternative minimum tax liability of the Merged REIT and any applicable state and local tax liability, in each case, for all taxable years that remain open under the applicable statute of limitations periods.

MAA is liable for any tax liability of a Merged REIT with respect to any periods prior to the merger of such Merged REIT with MAA. If a Merged REIT failed to qualify as a REIT, then in the event of a taxable disposition by MAA of an asset previously

held by the Merged REIT during a specified period of up to 5 years following the merger of the Merged REIT with MAA, MAA will be subject to corporate income tax with respect to any built-in gain inherent in such asset as of the date of such merger. In addition, unless an applicable statutory relief provision applies, if a Merged REIT failed to qualify as a REIT for a taxable year, then the Merged REIT would not have been entitled to re-elect to be taxed as a REIT until the fifth taxable year following the year during which it was disqualified. Furthermore, if both MAA and a Merged REIT were ~~"investment companies"~~“investment companies” under the ~~"investment company"~~“investment company” rules set forth in Section 368 of the Code at the time of the merger of MAA and such Merged REIT, the failure of MAA or such Merged REIT to have qualified as a REIT at the time of their merger could result in such merger being treated as taxable for federal income tax purposes. As a result of all these factors, the failure by a Merged REIT to have qualified as a REIT could jeopardize MAA’s qualification as a REIT and require the Operating Partnership to provide material amounts of cash to MAA to satisfy MAA’s additional tax liabilities and, therefore, could have a material adverse effect on MAA’s business prospects, financial condition or results of operations and on MAA’s ability to make payments on our debt and to make distributions.

The Operating Partnership may fail to be treated as a partnership for federal income tax purposes.

We believe that the Operating Partnership qualifies, and has so qualified since its formation, as a partnership for federal income tax purposes and not as a publicly traded partnership taxable as a corporation. No assurance can be provided, however, that the Internal Revenue Service, or IRS, will not challenge the treatment of the Operating Partnership as a partnership for federal income tax purposes or that a court would not sustain such a challenge. If the IRS were successful in treating the Operating Partnership as a corporation for federal income tax purposes, then the taxable income of the Operating Partnership would be taxable at regular corporate income tax rates. In addition, the treatment of the Operating Partnership as a corporation would cause MAA to fail to qualify as a REIT. See ~~"Failure~~“Failure to qualify as a REIT would cause us to be taxed as a

corporation, which would significantly reduce funds available for distribution to ~~shareholders"~~shareholders” above.

Certain dispositions of property by us may generate prohibited transaction income, resulting in a 100% penalty tax on any gain attributable to the disposition.

Any gain resulting from a transfer of property that we hold as inventory or primarily for sale to customers in the ordinary course of business would be treated for federal income tax purposes as income from a prohibited transaction that is subject to a 100% penalty tax. Since we acquire properties for investment purposes, we do not believe that our occasional transfers or disposals of property would be considered prohibited transactions. Whether property is held for investment purposes is a question of fact that depends on all the facts and circumstances surrounding the particular transaction. As such, the IRS may contend that certain transfers or disposals of properties by us are prohibited transactions. If the IRS were to argue successfully that a transfer or disposition of property constituted a prohibited transaction, then we would be required to pay a 100% penalty tax on any gain allocable to us from the prohibited transaction. In addition, income from a prohibited transaction might adversely affect our ability to satisfy the income tests for qualification as a REIT for federal income tax purposes. A safe harbor to the characterization of the disposition of property as a prohibited transaction and the resulting imposition of the 100% tax is available; however, we cannot assure that we will be able to comply with such safe harbor in connection with any property dispositions.

~~The recently enacted legislation informally titled the Tax Cuts and Jobs Act and other legislative, regulatory and administrative developments may adversely affect MAA or its shareholders.~~

On December 22, 2017, President Trump signed into law P.L. 115-97, informally titled the Tax Cuts and Jobs Act, or the Tax Act. The Tax Act makes major changes to the Code, including a number of provisions of the Code that affect the taxation of REITs and their shareholders. Certain provisions of the Tax Act that may impact us and our shareholders include:

temporarily reducing individual U.S. federal income tax rates on ordinary income; the highest individual U.S. federal income tax rate will be reduced from 39.6% to 37% (through taxable years ending in 2025);

~~reducing the maximum corporate income tax rate from 35% to 21%;~~

permitting a deduction for certain pass-through business income, including dividends received from REITs that are not designated as capital gain dividends or qualified dividend income, which generally will allow individuals, trusts and estates to deduct up to 20% of such amounts, resulting in an effective maximum U.S. federal income tax rate of 29.6% on such dividends (through taxable years ending in 2025);

~~reducing the highest rate of withholding with respect to distributions to non-U.S. shareholders attributable to gains from the sale or exchange of U.S. real property interests from 35% to 21%;~~

~~limiting the deduction for net operating losses to 80% of taxable income (prior to the application of dividends paid deduction);~~

amending the limitation on the deduction of net interest expense for all businesses, other than certain electing businesses, including real estate businesses (which could adversely affect the taxation of any taxable REIT subsidiaries); and

~~eliminating the corporate alternative minimum tax.~~

The individual and collective impact of these provisions and other provisions of the Tax Act on MAA and its shareholders is uncertain, and may not become evident for some period of time. In addition, other legislative, regulatory or administrative changes may be enacted or promulgated, either prospectively or with retroactive effect, and may adversely affect MAA or its shareholders. MAA's shareholders and prospective shareholders should consult their individual tax advisors regarding the implications of the Tax Act and other potential legislative, regulatory or administrative changes on their investment in MAA's capital stock.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

We seek to acquire newer apartment communities and those with opportunities for repositioning through capital additions and management improvement located in the Southeast, Southwest and Mid-Atlantic regions of the United States with the potential for above average growth and return on investment. Approximately ~~68%~~ 69%of our apartment units are located in the Florida, Georgia, North Carolina, and Texas markets. Our strategic focus is to provide our residents high quality apartment units in attractive community settings, characterized by upscale amenities, extensive landscaping and attention to aesthetic detail.

The following table summarizes our apartment community portfolio and occupancy levels by location, as of December 31, ~~2018:~~ 2019:

	Number of Communities		Number of Units ⁽¹⁾		Average Unit Size (Sq. Ft.)		Average Occupancy ⁽²⁾
Atlanta, GA		28		10,664		1,041		95.6	%
Dallas, TX		29		9,404		884		95.8	%
Austin, TX		21		6,475		936		95.9	%
Charlotte, NC		21		6,149		965		96.2	%
Orlando, FL		13		5,274		1,024		96.7	%
Tampa, FL		14		5,220		1,016		96.5	%
Houston, TX		15		4,867		881		96.1	%
Raleigh / Durham, NC		14		4,397		1,017		98.7	%
Fort Worth, TX		11		4,249		903		95.8	%
Washington, DC		10		4,080		926		96.5	%
Nashville, TN		11		4,055		1,008		95.7	%
Jacksonville, FL		10		3,496		964		96.2	%
Charleston, SC		10		2,726		957		95.9	%
Phoenix, AZ		8		2,623		971		98.7	%
Savannah, GA		9		2,219		1,021		95.4	%
Greenville, SC		9		2,084		923		95.7	%
Richmond, VA		7		2,004		884		96.6	%
Memphis, TN		4		1,811		974		95.7	%
San Antonio, TX		4		1,504		910		96.3	%
Birmingham, AL		5		1,462		1,055		95.9	%
Jackson, MS		4		1,241		970		97.6	%
Huntsville, AL		3		1,228		1,090		97.6	%
Chattanooga, TN		4		943		906		96.2	%
Lexington, KY		4		924		914		96.1	%
Norfolk / Hampton / Virginia Beach, VA		3		788		925		96.7	%
Las Vegas, NV		2		721		954		96.8	%
Tallahassee, FL		2		604		1,111		96.5	%
Kansas City, MO / KS		2		603		966		95.7	%
Columbia, SC		2		576		1,029		95.8	%
South Florida, FL		1		480		1,189		95.4	%
Gainesville, FL		2		468		1,138		96.6	%
Louisville, KY		1		384		846		94.9	%
Gulf Shores, AL		1		324		993		96.1	%
Panama City, FL		1		254		1,118		98.7	%
Charlottesville, VA		1		251		944		96.2	%
Same Store		286		94,552		968		95.9	%
Raleigh, NC		1		953		875		96.7	%
Denver, CO		2		812		869		90.4	%
Atlanta, GA		2		770		859		90.2	%
Austin, TX		1		642		810		94.6	%
Kansas City, MO		2		507		1,008		95.9	%
Charleston, SC		1		442		939		91.9	%
Dallas, TX		1		397		957		95.3	%
Nashville, TN		1		320		780		96.9	%
Greenville, SC		1		271		938		82.3	%
Gulf Shores, AL		1		96		2,146		96.2	%
Non-Same Store and Other⁽³⁾		13		5,210		909		93.1	%
Total		299		99,762

Number of Communities
Number of Units ⁽¹⁾
Average Unit Size (Square Footage)
Average Occupancy⁽²⁾
Atlanta, GA 28
10,664
1,040.4
95.9 %
Dallas, TX 29
9,404
884.2
95.3 %
Austin, TX 21
6,475
935.6
95.8 %
Charlotte, NC 21
6,149
965.0
96.2 %
Tampa, FL 14
5,220
1,015.6
96.3 %
Orlando, FL 12
4,498
1,027.4
96.2 %
Houston, TX 14
4,479
882.4
96.2 %
Raleigh/ Durham, NC 14
4,397
1,016.5
96.3 %
Fort Worth, TX 11
4,249
902.9
95.8 %
Washington, DC 10
4,080
926.4
96.7 %
Nashville, TN 10
3,776
1,019.6
95.6 %
Jacksonville, FL 10
3,496
964.4
96.6 %
Charleston, SC 10
2,726
956.9
95.8 %
Phoenix, AZ 7
2,301
980.2
96.7 %
Savannah, GA 9
2,219
1,021.3
96.6 %
Memphis, TN 4
1,811
974.2
95.7 %
Greenville, SC 8
1,748
902.0
96.4 %
Richmond, VA 6
1,668
862.3
96.7 %
San Antonio, TX 4
1,504
910.3
96.0 %
Birmingham, AL 5
1,462
1,054.8
96.2 %
Little Rock, AR 5
1,368
981.5
95.4 %
Jackson, MS 4
1,241
970.1
96.2 %
Huntsville, AL 3
1,228
1,089.9
97.3 %
Chattanooga, TN 4
943
905.7
96.2 %
Lexington, KY 4
924
914.4
96.2 %
Norfolk / Hampton / Virginia Beach, VA 3
788
924.5
96.9 %
Las Vegas, NV 2
721
953.5
96.3 %
Tallahassee, FL 2
604
1,111.2
96.1 %
Kansas City, MO / KS 2
603
965.9
95.9 %
Columbia, SC 2
576
1,028.6
96.8 %
South Florida, FL 1
480
1,189.4
96.2 %
Gainesville, FL 2
468
1,137.7
97.3 %
Louisville, KY 1
384
845.7
96.2 %
Gulf Shores, AL 1
324
993.0
96.9 %
Panama City, FL 1
254
1,117.5
97.6 %
Charlottesville, VA 1
251
943.5
97.3 %
Same Store 285
93,483
968.3
96.1 %
Atlanta, GA 2
770
859.1
61.5 %
Austin, TX 1
642
788.9
94.4 %
Charleston, SC 1
442
939.5
81.6 %
Dallas, TX 2
362
957.4
93.9 %
Denver, CO 2
733
832.1
61.6 %
Greenville, SC 1
336
1,029.5
94.6 %
Gulf Shores, AL 1
96
2,145.8
96.7 %
Houston, TX 1
388
866.4
96.2 %
Kansas City, MO 1
507
1,008.1
86.3 %
Nashville, TN 2
599
811.2
88.1 %
Orlando, FL 1
776
986.9
94.9 %
Phoenix, AZ 1
322
901.3
95.7 %
Raleigh/Durham, NC 1
803
892.6
95.7 %
Richmond, VA 1
336
994.2
96.7 %
Non-Same Store ⁽³⁾
18
7,112
918.4
86.5 %
Total 303
100,595


⁽¹⁾	Number of Units excludes development units not yet delivered.


⁽²⁾	Average Occupancy is calculated by dividing the average daily number of units occupied in ~~2018~~2019 by the average daily total number of units available in ~~2018~~2019 at each apartment community.


⁽³⁾	Non-Same Store and Other total excludes 269 units in a joint venture property in Washington, D.C.

~~Thirty~~

Thirty-two of our multifamily ~~properties~~apartment communities reflected in the above table also include commercial components totaling approximately ~~615,000~~630,000 square feet of gross leasable space. We also owned four commercial properties totaling approximately 260,000 square feet of combined gross leasable space as of December 31, ~~2018.~~2019. See ~~"Management's~~“Management's Discussion and Analysis of Financial Condition and Results of ~~Operations"~~Operations” for a discussion of our Same Store and Non-Same Store and Other portfolios.

Mortgage Financing

As of December 31, ~~2018~~,2019, we had ~~$476.2~~$629.8 million of indebtedness collateralized, secured and outstanding as set forth in Schedule III, Real Estate and Accumulated Depreciation included elsewhere in this Annual Report on Form 10-K.

Item 3. Legal Proceedings.

In September 2010, the United States Department of Justice, or the DOJ, filed suit against Post Properties (and by virtue of the merger with Post Properties, MAA) in United States District Court for the District of Columbia alleging that certain of Post Properties' apartments violated accessibility requirements of the FHA and the ADA. The DOJ sought, among other things, an injunction against us, requiring us to retrofit the properties and comply with FHA and ADA standards in future design and construction, as well as monetary damages and civil penalties. In October 2018, we reached an agreement in principle with the DOJ to settle the lawsuit. In November 2018, the settlement agreement was fully executed. In December 2018, a stipulation of dismissal of the case with prejudice was filed with the District Court, concluding the case.

In December 2017, the Equal Rights Center, a non-profit civil rights organization, filed suit against MAA and the Operating Partnership in the United States District Court for the District of Columbia. This suit alleged that we maintained and enforced a criminal records screening policy at certain of our apartment communities, all of which we acquired in the Post Properties merger, which violated the FHA. The suit sought injunctive relief, actual and punitive damages and attorneys' fees and costs. In October 2018, the parties agreed to a settlement, and the District Court entered a Consent Order concluding the case.

In June 2016, plaintiffs Cathi Cleven and Tara Cleven, on behalf of a purported class of plaintiffs, filed a complaint against MAA and the Operating Partnership in the United States District Court for the Western District of Texas, Austin Division. In January 2017, Areli Arellano and Joe L. Martinez joined the lawsuit as additional plaintiffs. The lawsuit alleges that we (but not Post ~~Properties)~~Properties (see the description of the Brown class action lawsuit below)) charged late fees at our Texas properties that violate Section 92.019 of the Texas Property Code, or Section 92.019, which provides that a landlord may not charge a tenant a late fee for failing to pay rent unless, among other things, the fee is a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation and result from the late payment of rent. The plaintiffs are seeking monetary damages and attorneys' fees and costs. In September 2018, the District Court certified a class proposed by the plaintiffs. Additionally, in September 2018, the District Court denied our motion for summary judgment and granted the plaintiffs’ motion for partial summary judgment. Because the District Court certified a class prior to granting the plaintiffs’ motion for partial summary judgment, the District Court’s ruling applies to the entire class. In October 2018, the Fifth Circuit Court of Appeals accepted our petition to review the District Court’s order granting class certification. In September 2019, the Fifth Circuit Court of Appeals heard our oral arguments. We intend to appeal the District Court’s order granting plaintiff’s motion for summary judgment to the Fifth Circuit Court of Appeals if permission to appeal is granted. We will continue to vigorously defend the action and pursue such appeals.

In April 2017, plaintiff Nathaniel Brown, on behalf of a purported class of plaintiffs, filed a complaint against the Operating Partnership, as the successor by merger to Post Properties' primary operating partnership, and MAA in the United States District Court for the Western District of Texas, Austin Division. The lawsuit alleges that Post Properties (and, following the Post Properties merger in December 2016, the Operating Partnership) charged late fees at its Texas properties that violate Section 92.019. The plaintiffs are seeking monetary damages and attorneys' fees and costs. In September 2018, the District Court certified a class proposed by the plaintiff. Additionally, in September 2018, the District Court denied our motion for summary judgment and granted the plaintiff’s motion for partial summary judgment. Because the District Court certified a class prior to granting the plaintiff’s motion for partial summary judgment, the District Court’s ruling applies to the entire class. In October 2018, the Fifth Circuit Court of Appeals accepted our petition to review the District Court's order granting class certification. In September 2019, the Fifth Circuit Court of Appeals heard our oral arguments. We intend to appeal the District Court’s order granting plaintiff’s motion for summary judgment to the Fifth Circuit Court of Appeals if permission to appeal is granted. We will continue to vigorously defend the action and pursue such appeals.

In addition, we are subject to various other legal proceedings arising in the course of our business operations. While no assurances can be given, we do not currently believe that any of these other outstanding matters will have a material adverse effect on our financial condition, results of operations or cash flows in the event of a negative outcome.

Item 4. Mine Safety Disclosures.

Not applicable.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Mid-America Apartment Communities, Inc.

Market Information

MAA's common stock has been listed and traded on the NYSE under the symbol ~~"MAA"~~“MAA” since its initial public offering in February 1994. On February ~~18, 2019,~~17, 2020, there were approximately ~~2,700~~2,500 holders of record of the common stock. MAA believes it has a significantly larger number of beneficial owners of its common stock.

Direct Stock Purchase and Distribution Reinvestment Plan

We have established the dividend and distribution reinvestment stock purchase plan, or DRSPP, under which holders of common stock, preferred stock and OP Units can elect to automatically reinvest their distributions in shares of MAA common stock. The DRSPP also allows for the optional purchase of MAA common stock of at least $250, but not more ~~than$5,000~~than $5,000 in any given

month, free of brokerage commissions and charges. In our absolute discretion, we may grant waivers to allow for optional cash payments in excess of $5,000. To fulfill our obligations under the DRSPP, we may either issue additional shares of common stock or repurchase common stock in the open market. We may elect to sell shares under the DRSPP at up to a 5% discount. In During the years ended December 31, 2019, 2018, ~~2017~~, and ~~2016~~,2017, we had issuances with no discounts through our DRSPP of 16,219shares, 9,721 shares and 9,568 shares, ~~and 7,906 shares,~~ respectively.

Mid-America Apartments, L.P.

Operating Partnership Units

There is no established public trading market for the Operating Partnership's OP Units. From ~~time-to-time,~~time to time, we issue shares of MAA's common stock in exchange for OP Units tendered to the Operating Partnership for redemption in accordance with the provisions of the Operating Partnership’s limited partnership agreement. As of December 31, ~~2018,~~2019, there were ~~117,955,568~~118,313,567 OP Units outstanding in the Operating Partnership, of which ~~113,844,267~~114,246,393 OP Units, or ~~96.5%~~96.6%, were owned by MAA and ~~4,111,301~~4,067,174 OP Units, or ~~3.5%~~3.4%, were owned by limited partners. Under the terms of the Operating Partnership’s limited partnership agreement, the limited partner holders of OP Units have the right to require the Operating Partnership to redeem all or a portion of the OP Units held by the holder in exchange for one share of MAA common stock per one OP Unit or a cash payment based on the market value of MAA's common stock at the time of redemption, at the option of MAA. During the year ended December 31, ~~2018,~~2019, MAA issued a total of ~~80,283~~44,127 shares of common stock upon redemption of OP Units.

At-the-Market Share Offering

Program

We have entered into separate distribution agreements with each of J.P. Morgan Securities LLC, BMO Capital Markets Corp. and KeyBanc Capital Markets Inc. to establish an ATM program allowing MAA to sell shares of its common stock from time to time into the existing market at current market prices or through negotiated transactions. Under the ATM program, MAA has the authority to issue up to an aggregate of 4.0 million shares of its common stock, ~~from time-to-time in at-the-market offerings or negotiated transactions~~at such times to be determined by MAA. The ATM program currently has a maturity of September 28, 2021. MAA has no obligation to issue shares through ~~controlled equity offering programs, or ATMs.~~the ATM program. During the year ended December 31, 2019, MAA sold 146,301 shares of common stock for net and gross proceeds of $19.6 million and $19.9 million, respectively, through its ATM program, all of which shares were sold during the three months ended December 31, 2019. During the years ended December 31, 2018 and 2017, MAA did not sell any shares of common stock under its ATM program. As of December 31, ~~2018,~~2019, there were ~~4.0~~3.9 million shares ~~available to be sold~~remaining under the ~~ATMs.~~

ATM program.

Stock Repurchase Plan

In December 8, 2015, MAA's Board of Directors authorized the repurchase of up to 4.0 million shares of MAA common stock, which represented approximately 5.3% of MAA's common stock outstanding at the time of such authorization. ~~The December 2015 authorization replaced and superseded any previous authorization.~~ From time to time, we may repurchase shares under ~~the current~~this authorization when we believe that shareholder value would be enhanced. Factors affecting this determination include, among others, the share price and expected rates of return. As of December 31, ~~2018,~~2019, no shares have been repurchased under the ~~current~~ authorization.

Purchases of Equity Securities

The following table reflects repurchases of shares of MAA's common stock during the three months ended December 31, ~~2018:~~

2019:

Total Number of Shares Purchased⁽¹⁾

Average Price Paid per Share⁽²⁾
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs⁽³⁾
October 1, 2018 - October 31, 2018 —
$ —
—
4,000,000
November 1, 2018 - November 30, 2018 —
$ —
—
4,000,000
December 1, 2018 - December 31, 2018 93
$ 97.20
—
4,000,000
Total 93

—
4,000,000

Period

Total Number of Shares Purchased

Average Price Paid per Share

Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs⁽¹⁾

~~(1)~~

October 1, 2019 - October 31, 2019

This column reflects the shares of common stock surrendered by employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted shares under the Second Amended and Restated 2013 Stock Incentive Plan.

		—			$	—				—				4,000,000
~~(2)~~ November 1, 2019 - November 30, 2019	~~The price per share is based on the closing price of MAA's common stock as of the date of determination of the statutory minimum for federal and state tax obligations.~~

	—		$	—		—		4,000,000
~~(3)~~ December 1, 2019 - December 31, 2019		—		$	—		—		4,000,000
Total		—					—		4,000,000

⁽¹⁾	This column reflects the number of shares of MAA's common stock that are available for purchase under the 4.0 million share repurchase program authorized by MAA's Board of Directors in December 2015.

Comparison of Five-year Cumulative Total Returns

The following graph compares the cumulative total returns of the shareholders of MAA since December 31, ~~2013~~2014 with the S&P 500 Index and the FTSE NAREIT Equity REIT Index. The graph assumes that the base share price for our common stock and each index is $100 and that all dividends are reinvested. The performance graph is not necessarily indicative of future investment performance.

	Year Ended December 31,
	2014		2015		2016		2017		2018		2019
Mid-America Apartment Communities, Inc.	$	100.00	$	126.46	$	141.12	$	149.97	$	148.40	$	211.48
S&P 500 Index		100.00		101.38		113.51		138.29		132.23		173.86
FTSE NAREIT Equity REIT Index		100.00		103.20		111.99		117.84		112.39		141.61

Year Ending December 31,
2013 2014 2015 2016 2017 2018
MAA $ 100.00
$ 128.42
$ 162.40
$ 181.23
$ 192.59
$ 190.58
S&P 500 100.00
113.69
115.26
129.05
157.22
150.33
FTSE NAREIT Equity REIT Index

100.00
130.14
134.30
145.74
153.36
146.27

Item 6. Selected Financial Data.

The following tables set forth selected financial data on a historical basis for MAA and the Operating Partnership. This data should be read in conjunction with the consolidated financial statements and notes thereto and ~~"Management's~~“Management's Discussion and Analysis of Financial Condition and Results of ~~Operations"~~Operations” included elsewhere in this Annual Report on Form 10-K.

Mid-America Apartment Communities, Inc.

Selected Financial Data

(In thousands, except per share data)

	Year Ended December 31,
	2019			2018			2017			2016			2015
Operating Data:
Rental and other property revenues	$	1,641,017		$	1,571,346		$	1,528,987		$	1,125,348		$	1,042,779

Net income		366,618			231,022			340,536			224,402			350,745
Net income attributable to noncontrolling interests		12,807			8,123			12,157			12,180			18,458
Dividends to MAA Series I preferred shareholders		3,688			3,688			3,688			307			—
Net income available for MAA common shareholders	$	350,123		$	219,211		$	324,691		$	211,915		$	332,287
Per Common Share Data:
Weighted average shares outstanding:
Basic		113,854			113,638			113,407			78,502			75,176
Effect of dilutive securities ⁽¹⁾		259			198			280			298		��	—
Diluted		114,113			113,836			113,687			78,800			75,176
Per share:
Earnings per common share - basic	$	3.07		$	1.93		$	2.86		$	2.69		$	4.41
Earnings per common share - diluted		3.07			1.93			2.86			2.69			4.41

Dividends declared per common share ⁽²⁾	$	3.8800		$	3.7275		$	3.5325		$	3.3300		$	3.1300
Balance Sheet Data:
Real estate owned, at cost	$	13,942,381		$	13,700,988		$	13,336,995		$	13,016,663		$	8,217,579
Real estate assets, net		10,987,128			11,151,701			11,261,924			11,341,862			6,718,366
Total assets		11,230,450			11,323,781			11,491,919			11,604,491			6,847,781
Total debt		4,454,598			4,528,328			4,502,057			4,499,712			3,427,568
Noncontrolling interest		220,894			222,349			233,982			238,282			165,726
Total MAA shareholders' equity and redeemable stock		6,082,696			6,159,254			6,350,320			6,413,892			3,000,347
Other Data (at end of period):
Funds from operations ⁽³⁾
Net income available for MAA common shareholders	$	350,123		$	219,211		$	324,691		$	211,915		$	332,287
Depreciation and amortization of real estate assets		490,632			484,722			489,503			319,528			291,572
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39			(127,386	)		(80,397	)		(189,958	)
Loss on disposition within unconsolidated entities		—			—			—			98			(12	)
Depreciation and amortization of real estate assets of real estate joint venture		618			595			596			61			25
Net income attributable to noncontrolling interests		12,807			8,123			12,157			12,180			18,458
Funds from operations attributable to the Company	$	773,192		$	712,690		$	699,561		$	463,385		$	452,372

Market capitalization (shares and units) ⁽⁴⁾	$	15,600,827		$	11,288,348		$	11,849,463		$	11,528,965		$	7,225,894
Ratio of total debt to total capitalization ⁽⁵⁾		22.2	%		28.6	%		27.5	%		28.1	%		32.2	%
Number of multifamily apartment communities, including joint venture ownership interest		300			304			302			303			254
Number of multifamily units, including joint venture ownership interest		100,031			100,864			99,792			99,393			79,496

⁽¹⁾	See Note 2 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Year Ended December 31,
2018 2017 2016 2015 2014
Operating Data:

Rental and other property revenues $ 1,571,346
$ 1,528,987
$ 1,125,348
$ 1,042,779
$ 992,332
Income from continuing operations 231,022
340,536
224,402
350,745
150,946
Discontinued operations:

Loss from discontinued operations before gain on sale —
—
—
—
(63 )
Gain on sale of discontinued operations —
—
—
—
5,394
Net income 231,022
340,536
224,402
350,745
156,277
Net income attributable to noncontrolling interests 8,123
12,157
12,180
18,458
8,297
Dividends to MAA Series I preferred shareholders 3,688
3,688
307
—
—
Net income available for MAA common shareholders $ 219,211
$ 324,691
$ 211,915
$ 332,287
$ 147,980

Per Common Share Data:

Weighted average shares outstanding:

Basic 113,638
113,407
78,502
75,176
74,982
Effect of dilutive securities ⁽¹⁾
198
280
298
—
—
Diluted 113,836
113,687
78,800
75,176
74,982

Earnings per common share - basic:

Income from continuing operations available for common shareholders $ 1.93
$ 2.86
$ 2.69
$ 4.41
$ 1.90
Discontinued property operations —
—
—
—
0.07
Net income available for common shareholders $ 1.93
$ 2.86
$ 2.69
$ 4.41
$ 1.97

Earnings per common share - diluted:

Income from continuing operations available for common shareholders $ 1.93
$ 2.86
$ 2.69
$ 4.41
$ 1.90
Discontinued property operations —
—
—
—
0.07
Net income available for common shareholders $ 1.93
$ 2.86
$ 2.69
$ 4.41
$ 1.97

Dividends declared per common share⁽²⁾
$ 3.7275
$ 3.5325
$ 3.3300
$ 3.1300
$ 2.9600

Balance Sheet Data:

Real estate owned, at cost $ 13,700,988
$ 13,336,995
$ 13,016,663
$ 8,217,579
$ 8,071,187
Real estate assets, net 11,151,701
11,261,924
11,341,862
6,718,366
6,697,508
Total assets 11,323,781
11,491,919
11,604,491
6,847,781
6,821,778
Total debt 4,528,328
4,502,057
4,499,712
3,427,568
3,512,699
Noncontrolling interest 222,349
233,982
238,282
165,726
161,287
Total MAA shareholders' equity and redeemable stock 6,159,254
6,350,320
6,413,892
3,000,347
2,896,435

Other Data (at end of period):

Funds from operations $ 712,690
$ 699,561
$ 463,385
$ 452,372
$ 404,087
Market capitalization (shares and units) ⁽³⁾
$ 11,288,348
$ 11,849,463
$ 11,528,965
$ 7,225,894
$ 5,933,985
Ratio of total debt to total capitalization⁽⁴⁾
28.6 % 27.5 % 28.1 % 32.2 % 37.3 %
Number of multifamily apartment communities, including joint venture ownership interest ⁽⁵⁾
304
302
303
254
268
Number of multifamily units, including joint venture ownership interest ⁽⁵⁾
100,864
99,792
99,393
79,496
82,316

⁽²⁾	Beginning in 2006, at their regularly scheduled meetings, our Board of Directors began routinely declaring dividends for payment in the following quarter. This can result in dividends declared during a calendar year being different from dividends paid during a calendar year.

⁽³⁾	See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a definition of this non-GAAP financial measure.

⁽⁴⁾	Market capitalization includes all shares of common stock, regardless of classification on the balance sheet, as well as OP Units (value based on common stock equivalency).

⁽⁵⁾	Total capitalization is market capitalization plus total debt.

⁽¹⁾ ~~See Note 3 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.~~

⁽²⁾ Beginning in 2006, at their regularly scheduled meetings, our Board of Directors began routinely declaring dividends for payment in the following quarter. This can result in dividends declared during a calendar year being different from dividends paid during a calendar year.

⁽³⁾ ~~Market capitalization includes all shares of common stock, regardless of classification on the balance sheet, as well as OP Units (value based on common stock equivalency).~~

⁽⁴⁾ ~~Total capitalization is market capitalization plus total debt.~~

⁽⁵⁾ ~~Multifamily apartment communities and unit totals have not been adjusted to exclude properties held for sale.~~

Mid-America Apartments, L.P.

Selected Financial Data

(In thousands, except per unit data)

	Year Ended December 31,
	2019		2018		2017		2016		2015
Operating Data:
Rental and other property revenues	$	1,641,017	$	1,571,346	$	1,528,987	$	1,125,348	$	1,042,779

Net income		366,618		231,022		340,536		224,402		350,745
Net income attributable to noncontrolling interests		136		—		—		—		—
Distributions to preferred unitholders		3,688		3,688		3,688		307		—
Net income available for MAALP common unitholders	$	362,794	$	227,334	$	336,848	$	224,095	$	350,745
Per Common Unit Data:
Weighted average units outstanding:
Basic		117,944		117,777		117,617		82,661		79,361
Effect of dilutive securities ⁽¹⁾		259		198		280		298		—
Diluted		118,203		117,975		117,897		82,959		79,361
Per unit:
Earnings per common unit - basic	$	3.07	$	1.93	$	2.86	$	2.70	$	4.41
Earnings per common unit - diluted		3.07		1.93		2.86		2.70		4.41

Distributions declared per common unit ⁽²⁾	$	3.8800	$	3.7275	$	3.5325	$	3.3300	$	3.1300
Balance Sheet Data:
Real estate owned, at cost	$	13,942,381	$	13,700,988	$	13,336,995	$	13,016,663	$	8,217,579
Real estate assets, net		10,987,128		11,151,701		11,261,924		11,341,862		6,718,366
Total assets		11,230,450		11,323,781		11,491,919		11,604,491		6,847,781
Total debt		4,454,598		4,528,328		4,502,057		4,499,712		3,427,568
Total Operating Partnership capital and redeemable units		6,297,324		6,379,278		6,581,977		6,649,849		3,166,054
Other Data (at end of period):
Number of multifamily apartment communities, including joint venture ownership interest		300		304		302		303		254
Number of multifamily units, including joint venture ownership interest		100,031		100,864		99,792		99,393		79,496

⁽¹⁾	See Note 3 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Year Ended December 31,
2018 2017 2016 2015 2014
Operating Data:

Rental and other property revenues $ 1,571,346
$ 1,528,987
$ 1,125,348
$ 1,042,779
$ 992,332
Income from continuing operations 231,022
340,536
224,402
350,745
150,946
Discontinued operations:

Loss from discontinued operations before gain on sale —
—
—
—
(63 )
Gain on sale of discontinued operations —
—
—
—
5,394
Net income 231,022
340,536
224,402
350,745
156,277
Dividends to preferred unitholders 3,688
3,688
307
—
—
Net income available for MAALP common unitholders $ 227,334
$ 336,848
$ 224,095
$ 350,745
$ 156,277

Per Common Unit Data:

Weighted average units outstanding:

Basic 117,777
117,617
82,661
79,361
79,188
Effect of dilutive securities⁽¹⁾
198
280
298
—
—
Diluted 117,975
117,897
82,959
79,361
79,188

Earnings per common unit - basic:

Income from continuing operations available for common unitholders $ 1.93
$ 2.86
$ 2.70
$ 4.41
$ 1.90
Discontinued property operations —
—
—
—
0.07
Net income available for common unitholders $ 1.93
$ 2.86
$ 2.70
$ 4.41
$ 1.97

Earnings per common unit - diluted:

Income from continuing operations available for common unitholders $ 1.93
$ 2.86
$ 2.70
$ 4.41
$ 1.90
Discontinued property operations —
—
—
—
0.07
Net income available for common unitholders $ 1.93
$ 2.86
$ 2.70
$ 4.41
$ 1.97

Distributions declared per common unit ⁽²⁾
$ 3.7275
$ 3.5325
$ 3.3300
$ 3.1300
$ 2.9600

Balance Sheet Data:

Real estate owned, at cost $ 13,700,988
$ 13,336,995
$ 13,016,663
$ 8,217,579
$ 8,071,187
Real estate assets, net 11,151,701
11,261,924
11,341,862
6,718,366
6,697,508
Total assets 11,323,781
11,491,919
11,604,491
6,847,781
6,821,778
Total debt 4,528,328
4,502,057
4,499,712
3,427,568
3,512,699
Total Operating Partnership capital and redeemable units 6,379,278
6,581,977
6,649,849
3,166,054
3,057,703

Other Data (at end of period):

Number of multifamily apartment communities, including joint venture ownership interest ⁽³⁾
304
302
303
254
268
Number of multifamily units, including joint venture ownership interest ⁽³⁾
100,864
99,792
99,393
79,496
82,316

⁽²⁾	Beginning in 2006, at their regularly scheduled meetings, the Board of Directors began routinely declaring distributions for payment in the following quarter. This can result in distributions declared during a calendar year being different from distributions paid during a calendar year.

⁽¹⁾~~See Note 4 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.~~

⁽²⁾ Beginning in 2006, at their regularly scheduled meetings, the Board of Directors began routinely declaring distributions for payment in the following quarter. This can result in distributions declared during a calendar year being different from distributions paid during a calendar year.

⁽³⁾~~Multifamily apartment communities and unit totals have not been adjusted to exclude properties held for sale.~~

As previously discussed, the consolidated assets, liabilities, and results of operations of Post Properties are included in MAA's selected financial data from the closing date of the merger, December 1, 2016, through the end of MAA's fiscal year, December 31, 2018. Likewise, the consolidated assets, liabilities, and results of operations of Post Properties’ primary operating partnership are included in the Operating Partnership's selected financial data from the closing date of the merger, December 1, 2016, through the end of the Operating Partnership's fiscal year, December 31, 2018.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a ~~96.5% limited partner~~96.6% interest as of December 31, ~~2018.~~2019. MAA conducts all of its business through the Operating Partnership and its various subsidiaries. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K.

MAA, an S&P 500 company, is a ~~multifamily focused,~~multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. We own, operate, acquire and selectively develop apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of December 31, ~~2018,~~2019, we owned and operated ~~303~~299 apartment communities through the Operating Partnership and its subsidiaries, and we had an ownership interest in one apartment community through an unconsolidated real estate joint ~~venture.~~venture and had seven development communities under construction. In addition, as of December 31, ~~2018,~~2019, we owned four commercial properties, and 3032 of our apartment communities included retail components. Our ~~multifamily~~apartment communities and commercial properties are located across 1716 states and the District of Columbia.

We report in two segments, Same Store ~~communities~~ and Non-Same Store and Other. Our Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. Our Non-Same Store and Other segment includes recently acquired communities, communities being developed or in lease-up, communities undergoing extensive renovations, communities identified for disposition and communities that have incurred a significant casualty loss. Also included in our Non-Same Store and Other segment are non-multifamily activities.

Effective January 1, 2018, we revised our reportable segment presentation. The revision eliminated the prior distinction between large and secondary same store markets and combined the two previously reportable segments into the Same Store reportable segment referred to above. Additional information regarding the composition of our segments is included in Note 1413 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Overview

For the year ended December 31, ~~2018,~~2019, net income available for MAA common shareholders was ~~$219.2~~$350.1 million as compared to ~~$324.7~~$219.2 million for the year ended December 31, ~~2017.~~2018. Results for the year ended December 31, ~~2018~~2019 included ~~$2.6~~$17.9 million of ~~expense~~income related to the ~~mark-to-market~~fair value adjustment of the ~~bifurcated~~ embedded derivative ~~related to~~in the MAA Series I preferred ~~stock issued in the merger with Post Properties~~shares and ~~$4.5~~$93.0 million of gains related to the sale of real estate assets. Results for the year ended December 31, ~~2017~~2018 included ~~$8.8~~$2.6 million of ~~income~~

expense related to the adjustment of the ~~bifurcated~~ embedded derivative and ~~$127.4~~$4.5 million of gains related to the sale of real estate assets. Revenues for the year ended December 31, ~~2018~~2019 increased ~~2.8%~~4.4% as compared to the year ended December 31, ~~2017,~~2018, driven by a ~~1.9%~~3.4% increase in our Same Store segment and ~~a 13.5%~~an 18.5% increase in our Non-Same Store and Other segment. Property operating expenses, excluding depreciation and amortization, for the year ended December 31, ~~2018~~2019 increased by 3.1% as compared to the year ended December 31, ~~2017, due to~~2018, driven by a ~~2.0%~~2.9% increase in our Same Store segment and to a ~~14.6%~~5.5% increase in our Non-Same Store and Other segment. The drivers of these increases are discussed below in the ~~"Results~~“Results of ~~Operations"~~Operations” section.

Over the past three years, our growth has partially been driven by our acquisition and development strategy to invest in growing markets in the Southeast, Southwest and Mid-Atlantic regions of the United States. ~~As a result of the merger with Post Properties, we acquired 61 apartment communities in 2016.~~ We acquired one apartment community in 2019, one in 2018, and two in ~~2017,~~2017. Five apartment communities were disposed in 2019 and five apartment communities were disposed in ~~2016~~ ~~apart from the merger with Post Properties.~~2017. No apartment communities were disposed in 2018. ~~We disposed of five apartment communities~~Two multifamily development projects were completed in ~~2017~~2019, three in 2018 and 12seven in ~~2016.~~

2017.

Trends

During the year ended December 31, ~~2018, demand~~2019, we were favorably impacted by rent pricing growth throughout the year. Average effective rent per unit for ~~apartments~~the Same Store portfolio continued to ~~be relatively strong, as it was during~~increase, up 3.6% for the year ended December 31, ~~2017.~~2019 as compared to the year ended December 31, 2018. Average daily physical occupancy for our Same Store portfolio was ~~96.1%~~95.9% for the year ended December 31, ~~2018, in line~~2019 as compared with the ~~96.1%~~ average daily physical occupancy of 96.1% achieved during the year ended December 31, ~~2017. Average effective rent per unit from our Same Store portfolio continued to increase, up 1.9% for the year ended December 31, 2018 as compared to the year ended December 31, 2017.~~

2018.

An important part of our portfolio strategy is to maintain diversity of markets, submarkets, product types and price points in the Southeast, Southwest and Mid-Atlantic regions of the United States. This diversity tends to mitigate exposure to economic issues in any one geographic market or area. We believe that a well-balanced portfolio, including inner loop, suburban and downtown/central business district locations, ~~and~~with various monthly rent price points, will perform well in “up” cycles as well as weather “down” cycles better. Through our investment in 3836 defined ~~Metropolitan Statistical Areas,~~markets, we are diversified across markets, urban and suburban submarkets and a variety of product types and monthly rent pricing points.

Though overall demand continues to be strong, the current elevated supply levels are impacting rent growth for our portfolio, particularly for apartment communities located in urban submarkets. Properties in suburban submarkets have been impacted somewhat less by supply, primarily because less new development has occurred in those submarkets. Multifamily permitting is typically a leading indicator of future supply levels. ~~While multifamily~~Multifamily permitting across our markets was ~~down~~up in ~~2017~~2018 as compared to ~~2016, to date,~~2017, and the U.S. Census Bureau's data for ~~2018~~2019 suggested multifamily permitting across our markets was up as compared to ~~2017.~~2018. It is difficult to project supply levels based on this data because not all permitted projects are ultimately built. However, given the current supply level and the ~~2018~~2019 permitting data, ~~it is possible~~we believe that supply in some of our markets could remain elevated over the next couple of years.

Demand for our apartments is primarily driven by general economic conditions in our markets. In particular, job growth relative to new supply is a critical factor in our ability to maintain occupancy and increase rents. To the extent that economic conditions continue to support increased job growth, we believe that we may be able to maintain solid occupancy and more effectively ~~and~~ increase rents. ~~Also, we~~We also believe that ~~more~~the existing disciplined credit terms for residential mortgages should continue to

favor rental demand at ~~existing~~ multifamily apartment communities. Furthermore, rental competition from single family homes has not historically been a major competitive factor impacting our portfolio. For the year ended December 31, 2018, total move outs attributable to single family home rentals for our portfolio represented less than 7% of total move outs, as it did in the year ended December 31, 2017. We have seen significant rental competition from single family homes in only a few of our submarkets. For the year ended December 31, 2019, total move outs attributable to single family home rentals for our combined portfolio represented less than 6% of total move outs, down from approximately 7% for the year ended December 31, 2018. Long term, we expect demographic trends (including the growth of prime age groups for rentals and immigration and population movement to the Southeast, Southwest and Mid-Atlantic regions) will continue to support apartment rental demand in our markets.

~~Rising~~

Changing interest rates may have a significant impact on our business and results of operations. As of December 31, ~~2018,~~2019, we had approximately $4.5 billion of debt, of which ~~25%~~2% had variable rate interest and ~~75%~~98% had fixed or hedged interest rates. To the extent interest rates rise, our net interest expense on variable rate debt will increase as will potentially our net interest expense on any debt refinancing. The opposite is true should interest rates decrease. Given the short-term nature of our leases, to the extent interest rates rise due to general economic growth, we would expect increases in interest expense to be somewhat offset by positive leasing trends.

Our focus is on maintaining strong physical occupancy while increasing pricing where possible through our revenue management system. As noted above, average daily physical occupancy for our Same Store portfolio for the year ended December 31, ~~2018~~2019 was ~~sustained at 96.1%~~95.9%. As we continue through the typically slower winter leasing season, we believe that the current level of physical occupancy and continued strong job growth in our markets position us well for this period and sets us up to achieve ~~modestly improved~~continued pricing growth in ~~2019.~~2020.

Results of Operations

~~Comparison of the Year Ended December 31, 2018 to the Year Ended December 31, 2017~~

For the year ended December 31, ~~2018,~~2019, we achieved net income available for MAA common shareholders of ~~$219.2~~$350.1 million, a ~~32.5% decrease~~59.7% increase as compared to the year ended December 31, ~~2017,~~2018, and total revenue growth of ~~$42.4~~$69.7 million, representing a ~~2.8%~~4.4% increase in property revenues as compared to the year ended December 31, 2017. The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the year ended December 31, 2018 as compared to the year ended December 31, 2017.

~~Property Revenues~~

~~The following table reflects our property revenues by segment for the years ended~~ ~~December 31, 2018~~ ~~and~~ ~~December 31, 2017~~ ~~(dollars in thousands):~~

December 31, 2018 December 31, 2017 Increase % Increase
Same Store $ 1,441,811
$ 1,414,839
$ 26,972
1.9 %
Non-Same Store and Other 129,535
114,148
15,387
13.5 %
Total $ 1,571,346
$ 1,528,987
$ 42,359
2.8 %

The increase in property revenues for our Same Store segment as compared to the year ended December 31, 2017 was the primary driver of total property revenue growth. The Same Store segment generated a 1.9% increase in revenues for the year ended December 31, 2018, primarily a result of average effective rent per unit growth of 1.9% and stable occupancy as compared to the year ended December 31, 2017. The increase in property revenues from the Non-Same Store and Other segment for the year ended December 31, 2018 as compared to year ended December 31, 2017 was primarily the result of recent property acquisitions and continued lease-up of recent development communities.

~~Property Operating Expenses~~

Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes and insurance, utilities, landscaping, and other operating expenses. The following table reflects our property operating expenses by segment for the years ended ~~December 31, 2018~~ ~~and~~ ~~December 31, 2017~~ ~~(dollars in thousands):~~

December 31, 2018 December 31, 2017 Increase % Increase
Same Store $ 536,055
$ 525,663
$ 10,392
2.0 %
Non-Same Store and Other 58,533
51,068
7,465
14.6 %
Total $ 594,588
$ 576,731
$ 17,857
3.1 %

The increase in property operating expenses for our Same Store segment as compared to the year ended December 31, 2017 was primarily driven by increases in real estate tax expense of $7.7 million and personnel expenses of $4.4 million, partially offset by a decrease in building repairs and maintenance expense of $2.5 million. The increase in property operating expenses from our Non-Same Store and Other segment was primarily the result of increases in real estate tax expense of $4.2 million driven by recently completed communities previously in our development pipeline and other operating expense of $3.0 million.

~~Depreciation and Amortization~~

Depreciation and amortization expense for the year ended December 31, 2018 was $489.8 million, a decrease of $3.9 million as compared to the year ended December 31, 2017. The decrease was primarily due to a $25.8 million decrease in amortization expense, which was driven by certain intangible assets acquired as a result of the merger with Post Properties becoming fully amortized in the second quarter of 2017. As a result, we recognized no amortization expense for those assets in the year ended December 31, 2018. The decrease in amortization expense was partially offset by a $21.9 million increase to depreciation expense for the year ended December 31, 2018 as compared to the year ended December 31, 2017. The increase in depreciation expense was primarily driven by the recognition of depreciation expense associated with our capital asset spend during the year ended December 31, 2018, which was related to our development and redevelopment activities made in the normal course of business as well as property acquisitions during the year ended December 31, 2018.

~~Other Income and Expenses~~

Property management expenses for the year ended December 31, 2018 were $47.6 million, an increase of $4.0 million as compared to the year ended December 31, 2017. The increase was primarily due to increases in personnel costs. General and administrative expenses for the year ended December 31, 2018 were $34.8 million, a decrease of $5.4 million as compared to the year ended December 31, 2017, primarily due to decreases in legal expense. Merger and integration expenses for the year ended December 31, 2018 were $9.1 million, a decrease of $10.9 million as compared to the year ended December 31, 2017, primarily due to declining year-over-year integration activities related to the merger with Post Properties.

~~Interest expense for the year ended~~ ~~December 31, 2018~~ ~~was $173.6 million, an increase of $18.8 million as compared to the year ended~~ ~~December 31, 2017~~. The increase was primarily due to an increase of approximately 18 basis points in our effective interest rate during the year ended December 31, 2018 compared to the year ended December 31, 2017 combined with a decrease in interest capitalized from our development pipeline during the year ended December 31, 2018 compared to the year ended December 31, 2017.

We did not dispose of any apartment communities during the year ended December 31, 2018. For the year ended December 31, 2017, we disposed of five apartment communities, resulting in gains on sale of depreciable real estate assets of $127.4 million. Gain on sale of non-depreciable assets for the year ended December 31, 2018 was $4.5 million, an increase of $4.5 million as compared to the year ended December 31, 2017. Although we disposed of only one land parcel more in the year ended December 31, 2018 as compared to the year ended December 31, 2017, the gain on sale of non-depreciable assets increased primarily due to the nature of the real estate assets sold.

Other non-operating income for the year ended December 31, 2018 was $5.4 million, a decrease of $8.9 million as compared to the year ended December 31, 2017. The decrease was primarily due to the recognition of $2.6 million of expense from the net mark-to-market adjustment of the bifurcated embedded derivative related to the MAA Series I preferred stock during the year ended December 31, 2018 as compared to the recognition of $8.8 million of income from the net mark-to-market adjustment of the bifurcated embedded derivative during the year ended December 31, 2017.

~~Comparison of the Year Ended December 31, 2017 to the Year Ended December 31, 2016~~

For the year ended December 31, 2017, we achieved net income available for MAA common shareholders of $324.7 million, as compared to $211.9 million for the year ended December 31, 2016. Total revenue grew $403.6 million for the year ended December 31, 2017 as compared to the year ended December 31, 2016, representing a 35.9% increase in property revenues. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the year ended December 31, ~~2017~~2019, as compared to the year ended December 31, ~~2016. The comparison~~2018. A discussion of the results of operations for the year ended December 31, 2017 ~~to the year ended December 31, 2016 shows the segment break down based~~is found in Item 7 of Part II of our Annual Report on ~~our Same Store portfolio~~Form 10-K for the year ended December 31, ~~2017. A comparison using~~2018, filed with the SEC on February 21, 2019, which is available free of charge on the SEC’s website at www.sec.gov and on our ~~2018 Same Store portfolio would not be comparative due to~~website at https://www.maac.com, on the ~~nature of the classifications.~~

“For Investors” page under “Filings and Financials—Annual Reports”.

Property Revenues

The following table reflects our property revenues by segment for the years ended December 31, ~~2017~~2019 and December 31, ~~2016~~2018 (dollars in thousands):

	December 31, 2019		December 31, 2018		Increase		% Increase
Same Store	$	1,517,875	$	1,467,460	$	50,415		3.4	%
Non-Same Store and Other		123,142		103,886		19,256		18.5	%
Total	$	1,641,017	$	1,571,346	$	69,671		4.4	%

December 31, 2017 December 31, 2016 Increase % Increase
Same Store $ 1,021,138
$ 992,721
$ 28,417
2.9 %
Non-Same Store and Other 507,849
132,627
375,222
282.9 %
Total $ 1,528,987
$ 1,125,348
$ 403,639
35.9 %

The increase in property revenues for our Same Store segment for the year ended December 31, 2019 as compared to the year ended December 31, 2018 was the primary driver of total property revenue growth. The Same Store segment generated a ~~2.9%~~3.4% increase in revenues for the year ended December 31, ~~2017,~~2019, primarily a result of average effective rent per unit growth of ~~3.0%~~3.6% as compared to the year ended December 31, ~~2016.~~2018. The increase in property revenues from the Non-Same Store and Other segment for the year ended December 31, ~~2017~~2019 as compared to ~~the~~ year ended December 31, ~~2016 from our Non-Same Store and Other segment~~2018 was primarily the result of ~~the merger with Post Properties, as we classified the properties we acquired in the merger in~~continued lease-up of our ~~Non-Same Store and Other segment.~~

development communities.

Property Operating Expenses

Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes and insurance, utilities, landscaping and other operating expenses. The following table reflects our property operating expenses by segment for the years ended December 31, ~~2017~~2019 and December 31, ~~2016~~2018 (dollars in thousands):

	December 31, 2019		December 31, 2018		Increase		% Increase
Same Store	$	561,800	$	546,220	$	15,580		2.9	%
Non-Same Store and Other		51,045		48,368		2,677		5.5	%
Total	$	612,845	$	594,588	$	18,257		3.1	%

December 31, 2017 December 31, 2016 Increase % Increase
Same Store $ 380,390
$ 372,154
$ 8,236
2.2 %
Non-Same Store and Other 196,341
51,202
145,139
283.5 %
Total $ 576,731
$ 423,356
$ 153,375
36.2 %

The increase in property operating expenses for our Same Store segment for the year ended December 31, 2019 as compared to the year ended December 31, ~~2016~~2018 was primarily driven by ~~increases~~an increase in real estate tax expense of ~~$6.2 million and personnel expenses of $2.3~~$10.0 million. The increase in property operating expenses ~~for~~from our Non-Same Store and Other segment was driven by an increase in real estate tax expense, primarily due to the ~~merger with Post Properties.~~

recent completion of apartment communities previously in our development pipeline.

Depreciation and Amortization

Depreciation and amortization expense for the year ended December 31, ~~2017~~2019 was ~~$493.7~~$496.8 million, an increase of ~~$170.8~~$7.1 million as compared to the year ended December 31, ~~2016.~~2018. The increase was primarily driven by the ~~full year~~recognition of depreciation expense associated with our development and ~~amortization expense resulting from~~redevelopment activities made in the ~~merger with Post Properties compared to only one month~~normal course of comparable depreciation and amortization in 2016. As a result of the merger with Post Properties, depreciation expense and amortization expense increased $138.2 million and $23.2 million, respectively, forbusiness during the year ended December 31, ~~2017 as compared to the year ended December 31, 2016. The remaining increase was primarily driven by our capital asset spend and other asset acquisition activity.~~

2019.

Other Income and Expenses

Property management expenses for the year ended December 31, ~~2017~~2019 were ~~$43.6~~$55.0 million, an increase of ~~$9.5~~$7.4 million as compared to the year ended December 31, ~~2016.~~2018. The increase was primarily due to ~~the growth~~increases in ~~our portfolio as a result of the merger with Post Properties.~~personnel and technology costs. General and administrative expenses for the year ended December 31, ~~2017~~2019 were ~~$40.2~~$46.1 million, an increase of ~~$11.2~~$11.3 million as compared to the year ended December 31, ~~2016,~~2018, primarily due to increases in personnel and legal ~~expense. Merger~~costs. No merger and integration expenses ~~for~~were incurred during the year ended December 31, ~~2017 were $20.0 million,~~2019, which represented a decrease of ~~$20.8~~$9.1 million as compared to the year ended December 31, ~~2016, as we incurred significant merger related expenses in 2016 to complete the merger with Post Properties on December 1, 2016.~~

2018.

Interest expense for the year ended December 31, ~~2017~~2019 was ~~$154.8~~$179.8 million, an increase of ~~$24.8~~$6.3 million as compared to the year ended December 31, ~~2016.~~2018. The increase was primarily due to ~~increased borrowing as we assumed several loans as a result~~an increase of the merger with Post Properties, including a secured loan with a face value of $186.0 million and two unsecured loans with face values of $150.0 million and $250.0 million, respectively. We also entered into a new $300.0 million term loan on the closing date of the merger with Post Properties. Interest expense forapproximately 14 basis points in our effective

interest rate during the year ended December 31, ~~2017 increased $16.0 million due to these borrowings resulting from the merger with Post Properties.~~

~~Gains on sale of depreciable assets totaled $127.4 million for the year ended December 31, 2017, an increase of $47.0 million~~2019 as compared to the year ended December 31, ~~2016.~~2018. The increase in the effective interest rate was primarily due to the recent maturity of debt we assumed in previous corporate acquisitions.

For the year ended December 31, 2019, we disposed of five apartment communities, resulting in gains on sale of depreciable real estate assets of $81.0 million. We did not dispose of any apartment communities during the year ended December 31, 2018. The gain on sale of non-depreciable assets for the year ended December 31, 2019 was $12.0 million, an increase of $7.5 million as compared to the year ended December 31, 2018. Although annual land disposition ~~activity decreased~~volume remained consistent year-over-year, the gain on sale of ~~depreciable~~non-depreciable assets increased primarily due to the nature of the real estate assets sold.

Other non-operating income for the year ended December 31, ~~2017~~2019 was ~~$14.4~~$25.3 million, an increase of ~~$16.2~~$19.8 million as compared to the year ended December 31, ~~2016.~~2018. The increase was primarily due to ~~an $8.8~~the recognition of $17.9 million ~~increase in~~of income ~~from~~related to the ~~net mark-to-market~~fair value adjustment of the ~~bifurcated~~ embedded derivative ~~related to~~in the MAA Series I preferred ~~stock issued in the merger with Post Properties. The increase in other non-operating income was also driven by a $3.3 million net gain on debt extinguishment.~~

~~During~~shares during the year ended December 31, ~~2017, we recorded quarterly dividend distributions~~2019 as compared to ~~holders~~the recognition of ~~MAA's Series I preferred stock totaling $3.7 million. As there were no shares~~$2.6 million of ~~MAA Series I preferred stock issued and outstanding until completion~~expense related to the adjustment of the ~~merger with Post Properties on December 1, 2016, preferred dividends only impacted our results of operations for one month totaling $0.3 million for~~embedded derivative during the year ended December 31, ~~2016.~~

2018.

Funds from Operations

Funds from operations, or FFO, a non-GAAP financial measure, ~~represent~~represents net income available for MAA common shareholders (computed in accordance with the United States generally accepted accounting principles, or GAAP) excluding ~~extraordinary items, asset impairment and~~ gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests ~~depreciation and amortization of real estate,~~ and adjustments for joint ventures. Because noncontrolling interest is added back, FFO, when used in this Annual Report on Form 10-K, represents FFO attributable to the Company.

FFO should not be considered as an alternative to net income available for MAA common stockholders or any other GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of liquidity. Management believes that FFO is helpful to investors in understanding our operating performance, primarily because its calculation excludes depreciation and amortization expense on real estate assets. We believe that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. While our calculation of FFO is in accordance with the National Association of Real Estate ~~Trust's,~~Investment Trusts’, or NAREIT's, definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to such other REITs.

The following table presents a reconciliation of net income available for MAA common shareholders to FFO for the years ended December 31, ~~2018, 2017~~2019 and ~~2016,~~2018, as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands):

	Year ended December 31,
	2019			2018
Net income available for MAA common shareholders	$	350,123		$	219,211
Depreciation and amortization of real estate assets		490,632			484,722
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39
Depreciation and amortization of real estate assets of real estate joint venture		618			595
Net income attributable to noncontrolling interests		12,807			8,123
Funds from operations attributable to the Company	$	773,192		$	712,690

Year ended December 31,
2018 2017 2016
Net income available for MAA common shareholders $ 219,211
$ 324,691
$ 211,915
Depreciation and amortization of real estate assets 484,722
489,503
319,528
Loss (gain) on sale of depreciable real estate assets 39
(127,386 ) (80,397 )
Loss on disposition within unconsolidated entities —
—
98
Depreciation and amortization of real estate assets of real estate joint venture 595
596
61
Net income attributable to noncontrolling interests 8,123
12,157
12,180
Funds from operations attributable to the Company $ 712,690
$ 699,561
$ 463,385

FFO for the year ended December 31, ~~2018 were $712.7~~2019 was $773.2 million, an increase of ~~$13.1~~$60.5 million as compared to the year ended December 31, ~~2017,~~2018, primarily as a result of increases in property revenues of ~~$42.4~~$69.7 million, other non-operating income of $19.8 million and gain on sale of non-depreciable assets of ~~$4.5~~$7.5 million, in addition to a decrease in merger and integration expenses of $10.9 million. The increases to FFO were offset by increases in interest expense of $18.8 million and property operating expenses, excluding depreciation and amortization, of $17.9 million, in addition to a decrease in other non-operating income of $8.9 million.

FFO for the year ended December 31, 2017 were $699.6 million, an increase of $236.2 million as compared to the year ended December 31, 2016, primarily as a result of increases in property revenues of $403.6 million and other non-operating income of $16.2 million, in addition to a decrease in merger and integration expenses of $20.8$9.1 million. The increases to FFO were offset by increases in property operating expenses, excluding depreciation and amortization, of ~~$153.4 million, interest expense of $24.8~~$18.3 million, general and administrative expenses of ~~$11.2~~$11.3 million, property management expenses of ~~$9.5~~$7.4 million and ~~preferred dividends~~interest expense of ~~$3.4~~$6.3 million.

Liquidity and Capital Resources

Our cash flows from operating, investing and financing activities, as well as general economic and market conditions, are the principal factors affecting our liquidity and capital resources.

Operating Activities

Net cash provided by operating activities was $781.4 million for the year ended December 31, 2019 as compared to $734.3 million for the year ended December 31, ~~2018, as compared to $660.8 million for the year ended December 31, 2017.~~2018. The increase in operating cash flows was primarily driven by our operating performance, ~~as well as~~partially offset by the timing of cash payments.

Investing Activities

Net cash used in investing activities was $238.3million for the year ended December 31, 2019 as compared to $366.4 million for the year ended December 31, ~~2018, as compared to net cash used in investing activities of $294.2 million for the year ended December 31, 2017.~~2018. The primary drivers of the change were as follows (dollars in thousands):

	Primary drivers of cash (outflow) inflow during the year ended December 31,						Increase (Decrease)
	2019			2018			in Net Cash
Purchases of real estate and other assets	$	(105,106	)	$	(129,487	)	$	24,381
Capital improvements, development and other		(303,097	)		(254,715	)		(48,382	)
Proceeds from disposition of real estate assets		174,814			19,982			154,832

Primary drivers of cash (outflow) inflow Increase (Decrease) in Net Cash
during the year ended December 31,
2018 2017
Purchases of real estate and other assets $ (129,487 ) $ (136,065 ) $ 6,578
Capital improvements, development and other (254,715 ) (343,890 ) 89,175
Proceeds from disposition of real estate assets 19,982
187,245
(167,263 )

The decrease in cash outflows for purchases of real estate and other assets was driven by the acquisition activity during the year ended December 31, ~~2018~~2019 as compared to the year ended December 31, ~~2017.~~2018. The ~~decrease~~increase in cash outflows for capital improvements, development and other as compared to the prior year was primarily ~~due to the decrease in activity in our~~driven by increased development ~~pipeline~~capital spend during the year ended December 31, ~~2018~~2019 as compared to the ~~prior year.~~year ended December 31, 2018. The ~~decrease~~increase in cash inflows related to proceeds from disposition of real estate assets was primarily due to the sale of five apartment communities and four land parcels during the year ended December 31, ~~2018,~~2019, as compared to the sale of ~~five apartment communities and~~ four land parcels during the ~~prior year.~~

year ended December 31, 2018. No apartment communities were sold during the year ended December 31, 2018.

Financing Activities

Net cash used in financing activities was $524.3 million for the year ended December 31, 2019 as compared to $405.1 million for the year ended December 31, ~~2018, as compared to net cash used in financing activities of $399.5 million for the year ended December 31, 2017.~~2018. The primary drivers of the change were as follows (dollars in thousands):

	Primary drivers of cash (outflow) inflow during the year ended December 31,						(Decrease) Increase
	2019			2018			in Net Cash
Net change in credit lines	$	(540,000	)	$	50,000		$	(590,000	)
Net change in commercial paper		70,000			—			70,000
Proceeds from notes payable		1,059,289			869,630			189,659
Principal payments on notes payable		(657,619	)		(878,610	)		220,991
Dividends paid on common shares		(437,743	)		(419,849	)		(17,894	)

Primary drivers of cash inflow (outflow) Increase (Decrease) in Net Cash
during the year ended December 31,
2018 2017
Net change in credit lines $ 50,000
$ (160,000 ) $ 210,000
Proceeds from notes payable 869,630
597,480
272,150
Principal payments on notes payable (878,610 ) (413,557 ) (465,053 )
Dividends paid on common shares (419,849 ) (395,294 ) (24,555 )

The increase in cash ~~inflow~~outflows related to the net change in credit lines resulted from the ~~increase~~decrease in net borrowings of ~~$50.0~~$540.0 million on our unsecured revolving credit facility during the year ended December 31, ~~2018,~~2019 as compared to the ~~decrease~~increase in net borrowings of ~~$160.0~~$50.0 million on the unsecured revolving credit facility during the year ended December 31, ~~2017.~~2018. The increase in cash inflows related to the net change in commercial paper resulted from the initiation of an unsecured commercial paper program during the year ended December 31, 2019; there was no commercial paper program in place during the year ended December 31, 2018. The increase in cash inflows related to proceeds from notes payable primarily resulted from the ~~issuances~~issuance of $850.0 million of senior unsecured notes and $191.3 million of secured property mortgages during the year ended December 31, 2019, as compared to the issuance of $400.0 million of senior unsecured notes, $172.0 million of secured property mortgages and a $300.0 million unsecured term loan during the year ended December 31, ~~2018, compared to the issuance of $600.0 million of senior unsecured notes during the~~ ~~year ended December 31, 2017~~.2018. The ~~increase~~decrease in cash outflows from principal payments on notes payable primarily resulted from the retirement of $600.0 million in unsecured term loans, the retirement of a $20.0 million tranche of senior unsecured notes and the retirement of $30.4 million of secured property mortgages during the year ended December 31, 2019 as compared to the retirement of $568.0 million of secured property mortgages, ~~and an $80.0 million secured credit facility during the year ended December 31, 2018, as compared to~~ the retirement of ~~$233.6~~a $250.0 million unsecured term loan and the retirement of ~~secured property mortgages and $168.0~~a $50.0 million tranche of senior unsecured notes during the year ended December 31, ~~2017.~~2018. The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the annual dividend rate to $3.84 per share during the year ended December 31, 2019 as compared to the annual dividend rate of $3.69 per share during the year ended December 31, ~~2018, as compared to the annual dividend rate of $3.48 per share during the year ended December 31, 2017.~~

2018.

Equity

As of December 31, ~~2018,~~2019, MAA owned ~~113,844,267~~114,246,393 OP Units, comprising a ~~96.5%~~96.6% limited partnership interest in MAALP,while the remaining ~~4,111,301~~4,067,174 outstanding OP Units were held by limited partners of MAALP other than ~~MAA and its subsidiaries.~~MAA. Holders of OP Units (other than ~~MAA and its subsidiaries)~~MAA) may require us to redeem their OP Units from time to time, in which case MAA may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA's common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA's common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed. In addition, MAA has registered under the Securities Act ~~4,111,301~~4,067,174 shares of its common stock that, as of December 31, ~~2018,~~2019, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.

During the year ended December 31, 2019, MAA sold 146,301 shares of common stock for net and gross proceeds of $19.6 million and $19.9 million, respectively, through its ATM program, all of which shares were sold during the three months ended December 31, 2019. During the year ended December 31, 2018, MAA did not sell any shares of common stock under its ATM program. As of December 31, 2019, there were 3.9 million shares remaining under the ATM program.

For more information regarding our equity capital resources, see Note 98 and Note 109 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Debt

The following schedule reflects our fixed and variable rate debt, including the impact of our interest rate swaps, outstanding as of December 31, ~~2018~~2019 (dollars in thousands):

	Principal Balance			Average Years to Rate Maturity		Effective Rate
Unsecured debt
Fixed rate or swapped	$	3,772,000			6.1		3.7	%
Variable rate		70,000			0.1		2.1	%
Debt issuance costs, discounts, premiums and fair market value adjustments		(13,799	)
Total unsecured rate maturity	$	3,828,201			6.1		3.7	%
Secured debt
Conventional - fixed rate	$	629,817			17.3		4.5	%
Debt issuance costs and fair market value adjustments		(3,420	)
Total secured rate maturity	$	626,397			17.3		4.5	%
Total debt	$	4,454,598			7.5		3.8	%
Total fixed or hedged debt	$	4,384,598			7.6		3.9	%

Principal Balance Average Years to Rate Maturity Effective Rate
Unsecured debt
Fixed rate or swapped $ 2,942,000
6.0
3.8 %
Variable rate 1,140,000
0.1
3.4 %
Fair market value adjustments, debt issuance costs and discounts (28,698 )
Total unsecured rate maturity $ 4,053,302
4.3
3.7 %
Secured debt

Conventional - fixed rate $ 476,161
12.2
4.6 %
Fair market value adjustments and debt issuance costs (1,135 )

Total secured rate maturity $ 475,026
12.2
4.6 %
Total debt $ 4,528,328
5.1
3.8 %
Total fixed or hedged debt $ 3,389,249
6.8
3.9 %

As of December 31, ~~2018,~~2019, we had entered into interest rate swaps totaling a notional amount of ~~$600.0 million, of which~~ $300.0 million related to issued ~~debt, while the remaining $300.0 million hedges the first 10 years of interest payments on debt we anticipate will be issued in 2019.~~debt. To date, we believe the interest rate swaps have proven to be highly effective hedges.

The following schedule presents the contractual maturity dates of our outstanding debt, net of debt issuance costs, discounts and fair market value adjustments, ~~debt issuance costs and discounts,~~ as of December 31, ~~2018~~2019 (dollars in thousands):

	Revolving Credit Facility & Comm. Paper ⁽¹⁾ ⁽²⁾		Public Bonds		Other Unsecured		Secured		Total
2020	$	70,000	$	—	$	—	$	137,805	$	207,805
2021		—		—		72,673		120,862		193,535
2022		—		248,899		416,352		—		665,251
2023		—		347,490		12,225		—		359,715
2024		—		396,438		19,950		—		416,388
Thereafter		—		2,244,174		—		367,730		2,611,904
Total	$	70,000	$	3,237,001	$	521,200	$	626,397	$	4,454,598

⁽¹⁾	The $70.0 million maturing in 2020 reflects the principal outstanding on MAALP’s unsecured commercial paper program as of December 31, 2019.

Unsecured Revolving Credit Facility Public Bonds Other Unsecured Secured Total
2019 $ —
$ —
$ 319,508
$ 13,524
$ 333,032
2020 540,000
—
149,883
159,097
848,980
2021 —
—
222,294
122,837
345,131
2022 —
248,522
416,075
—
664,597
2023 —
346,826
12,217
—
359,043
Thereafter —
1,778,037
19,940
179,568
1,977,545
Total $ 540,000
$ 2,373,385
$ 1,139,917
$ 475,026
$ 4,528,328

⁽²⁾	There are no borrowings outstanding on MAALP’s $1.0 billion unsecured revolving credit facility as of December 31, 2019. The unsecured revolving credit facility has a maturity date of May 2023 plus two six-month extensions.

The following schedule reflects the interest rate maturities of our outstanding fixed or hedged debt, net of fair market value adjustments, debt issuance costs and discounts, as of December 31, ~~2018~~2019 (dollars in thousands):

	Fixed Rate Debt		Hedged Debt		Total Fixed Rate Balances		Effective Rate
2020	$	137,805	$	299,557	$	437,362		2.9	%
2021		193,535		—		193,535		5.2	%
2022		365,694		—		365,694		3.6	%
2023		359,715		—		359,715		4.2	%
2024		416,388		—		416,388		4.0	%
Thereafter		2,611,904		—		2,611,904		3.9	%
Total	$	4,085,041	$	299,557	$	4,384,598		3.9	%

Fixed Rate Debt Interest Rate Swaps Total Fixed Rate Balances Contract Rate
2019 $ 33,508
$ —
$ 33,508
4.4 %
2020 159,097
299,353
458,450
3.2 %
2021 195,459
—
195,459
5.2 %
2022 365,244
—
365,244
3.6 %
2023 359,043
—
359,043
4.3 %
Thereafter 1,977,545
—
1,977,545
3.9 %
Total $ 3,089,896
$ 299,353
$ 3,389,249
3.9 %

Unsecured Revolving Credit Facility

& Commercial Paper

In ~~October 2015,~~May 2019, the Operating Partnership entered into ana $1.0 billion unsecured revolving credit facility ~~agreement~~ with a syndicate of banks led by ~~KeyBank~~Wells Fargo Bank, National Association, or ~~KeyBank,~~Wells Fargo, and fifteen other banks, which we refer to as the ~~KeyBank~~Credit Facility. The ~~KeyBank~~Credit Facility replaced ~~the Operating Partnership's~~our previous unsecured revolving credit facility ~~with KeyBank.~~and includes an expansion option up to $1.5 billion. The Credit Facility bears an interest rate ~~is determined using an investment grade pricing grid using~~of LIBOR, plus a spread of ~~0.85%~~0.75% to 1.55%. In December 2016, the Operating Partnership amended the KeyBank Facility by increasing the borrowing capacity from $750.0 million to $1.0 billion. As of December 31, 2018, we had $540.0 million borrowed under the KeyBank Facility, bearing interest at a rate of one month LIBOR plus 0.90%.1.45% based on an investment grade pricing grid. The ~~KeyBank Facility serves as our primary source of short-term liquidity and has an accordion feature that we may use to expand its capacity to $1.5 billion. The KeyBank~~Credit Facility matures in ~~April 2020,~~May 2023 with an option to extend for antwo additional ~~six months.~~

~~Senior Unsecured Notes~~

~~We have issued both public and private unsecured notes.~~six-month periods. As of December 31, ~~2018,~~2019, there was no outstanding balance under the Credit Facility, while $2.7 million of capacity was being used to support outstanding letters of credit.

In May 2019, the Operating Partnership established an unsecured commercial paper program, whereby the Operating Partnership may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate amount outstanding of $500.0 million. As of December 31, 2019, the Operating Partnership had $70.0 million outstanding under the commercial paper program. During the year ended December 31, 2019, our average daily borrowings outstanding under the commercial paper program were $211.7 million. The commercial paper program along with the Credit Facility serve as our primary sources of short-term liquidity.

Senior Unsecured Notes

As of December 31, 2019, we had ~~approximately $2.4~~$3.3 billion, ~~(face value)~~in principal amount of publicly issued senior unsecured notes ~~and $242.0 million of unsecured notes issued in two private placements.~~outstanding. In ~~October 2013, we~~March 2019, the Operating Partnership publicly issued ~~$350.0~~$300.0 million of senior unsecured notes due ~~October 2023~~March 2029 with a coupon of ~~4.30%~~3.950%, paid semi-annually on ~~April~~March 15 and ~~October 15.~~September 15, and an effective interest rate of 4.240%, net of swap agreements. In ~~June 2014, we~~August 2019, the Operating Partnership publicly issued $400.0 million of senior unsecured notes due June 2024 with a coupon of 3.75%, paid semi-annually on June 15 and December 15. In November 2015, we publicly issued $400.0 million senior unsecured notes due November 2025 with a coupon of 4.00%, paid semi-annually on May 15 and November 15. As a result of the merger with Post Properties in December 2016, we assumedan additional $250.0 million of senior unsecured notes due ~~December 2022~~March 2029 with a coupon of ~~3.38%~~3.950%, paid semi-annually on ~~June 1~~March 15 and ~~December 1.~~September 15, and an effective interest rate of 2.985%. In ~~May 2017, we~~November 2019, the Operating Partnership publicly issued ~~$600.0~~$300.0 million of senior unsecured notes due ~~June 2027~~March 2030 with a coupon of ~~3.60%~~2.750%, paid semi-annually on ~~June 1 and December 1. In May 2018, we publicly issued $400.0 million of senior unsecured notes due June 2028 with a coupon of 4.20%, paid semi-annually on June~~March 15 and ~~December 15.~~September 15, and an effective interest rate of 3.065%, net of swap agreements. The proceeds from the senior unsecured notes issued in ~~May 2018~~March 2019 were used to pay down outstanding amounts under our previous unsecured revolving credit facility, and the ~~Key Bank Facility.~~ proceeds from the senior unsecured notes issued in August 2019 and November 2019 were used to pay down amounts outstanding under our commercial paper program.

As of December 31, ~~2018, all of these amounts remained outstanding.~~

~~In July 2011,~~2019, we ~~issued $135.0~~also had $222.0 million outstanding of senior unsecured ~~notes. The~~ notes ~~were offered and sold~~issued in atwo private placement ~~with three maturity tranches: $50.0 million at 4.7% maturing in July 2018, $72.8 million at 5.4% maturing in July 2021; and $12.3 million at 5.6% maturing in July 2023. The $50.0~~offerings. A $20.0 million tranche with an interest rate of 3.61% was ~~paid off~~retired in November 2019 on its maturity date. In August 2012, we issued $175.0 million of senior unsecured notes. The notes were offered and sold in a private placement with four tranches: $18.0 million at 3.15% maturing in November 2017; $20.0 million at 3.61% maturing in November 2019; $117.0 million at 4.17% maturing in November 2022; and $20.0 million at 4.33% maturing in November 2024. The $18.0 million tranche was paid off on its maturity date. The remaining tranches were outstanding as of December 31, 2018.

Unsecured Term Loans

In addition to the KeyBank Facility and senior unsecured notes, we maintain four unsecured term loans. We had total borrowings of $900.0 million outstanding under these term loan agreements as of December 31, 2018, comprised of:

A $300.0 million term loan with Wells Fargo, N.A., or Wells Fargo, that bears interest at a rate of LIBOR plus a spread of 0.75% to 1.65% based on the credit ratings of our unsecured debt. We entered into the six month term loan in December 2018, and the loan matures in June 2019, with an option to extend for an additional six months.

As of December 31, ~~2018, this loan was bearing interest at a rate of~~2019, we maintained one ~~month LIBOR plus 0.90%.~~

~~A $150.0 million~~ term loan with ~~U.S. Bank National Association, or U.S. Bank, that bears interest at~~ a ~~rate~~syndicate of ~~LIBOR plus~~banks, led by Wells Fargo. The term loan has a ~~spread~~balance of ~~0.90% to 1.90% based on the credit ratings of our unsecured debt. The loan~~$300.0 million, matures in ~~March 2020. As of December 31, 2018, this loan was bearing~~2022, and has a variable interest ~~at a rate of one month LIBOR plus 0.98%.~~

~~A $150.0 million term loan with KeyBank that bears interest at a~~ rate of LIBOR plus a spread of 0.90% to 1.75% based on the Company's credit ~~ratings of our unsecured debt.~~ratings. The ~~loan matures in February 2021. As of December 31, 2018, this loan was bearing~~ interest ~~at a~~ rate of ~~one month LIBOR plus 0.95%.~~

Athe term loan is fixed at 2.32% with interest rate swaps that mature in January 2020.

In May 2019, we retired a $300.0 million term loan with Wells Fargo, ~~that bears interest at a rate of LIBOR plus a spread of 0.90% to 1.75% based on the credit ratings of our unsecured debt. The loan matures~~which was due in ~~March 2022. As of December 31, 2018, this loan was bearing interest at a rate of one month LIBOR plus 0.95%.~~

WeJune 2019.

In August 2019, we retired a ~~$250.0~~$150.0 million ~~unsecured~~ term loan with ~~Wells Fargo on its maturity date~~U.S. Bank National Association, which was due in ~~August 2018.~~

March 2020.

In November 2019, we retired a $150.0 million term loan with KeyBank National Association, which was due in February 2021.

Secured Property Mortgages

We maintain secured property mortgages with ~~Fannie Mae, Freddie Mac~~the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and various life insurance companies. These mortgages are usually fixed rate and can range from five to 30 years in maturity. As of December 31, ~~2018,~~2019, we had ~~$476.2~~$629.8 million of secured property mortgages. In ~~December 2018,~~February 2019, we ~~issued $172.0~~entered into a

$191.3 million ~~in secured property mortgages~~mortgage with a fixed rate of ~~4.44%.~~4.43% associated with seven apartment communities that is scheduled to mature in February 2049. During the year ended December 31, ~~2018,~~2019, we retired ~~$568.0~~$30.4 millionof secured property mortgages.

For more information regarding our debt capital resources, see Note 65 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Contractual Obligations

The following table reflects our total contractual cash obligations as of December 31, ~~2018,~~2019, which consist of principal and interest on our long-term debt as well as operating leases (dollars in thousands):

Contractual Obligations	2020		2021		2022		2023		2024		Thereafter		Total
Long-term debt obligations ⁽¹⁾	$	211,108	$	192,903	$	668,401	$	363,731	$	421,566	$	2,614,108	$	4,471,817
Fixed rate or swapped interest ⁽²⁾		160,460		150,522		144,541		130,716		108,240		646,076		1,340,555
Variable rate interest ⁽³⁾		7,295		7,923		1,321		—		—		—		16,539
Operating lease obligations ⁽⁴⁾		2,825		2,854		2,885		2,875		2,853		65,863		80,155
Total	$	381,688	$	354,202	$	817,148	$	497,322	$	532,659	$	3,326,047	$	5,909,066

⁽¹⁾	Represents principal payments gross of discounts, premiums, debt issuance costs and fair market value adjustments of debt assumed.

Contractual Obligations 2019 2020 2021 2022 2023 Thereafter Total
Long-term debt obligations ⁽¹⁾
$ 340,446
$ 848,281
$ 342,903
$ 668,401
$ 363,731
$ 1,994,399
$ 4,558,161
Fixed rate or swapped interest ⁽²⁾
130,639
122,459
113,892
107,209
93,756
394,048
962,003
Variable rate interest⁽³⁾
32,992
20,755
10,681
1,650
—
—
66,078
Operating lease obligations ⁽⁴⁾
2,729
2,744
2,771
2,767
2,761
68,516
82,288
Total $ 506,806
$ 994,239
$ 470,247
$ 780,027
$ 460,248
$ 2,456,963
$ 5,668,530

⁽²⁾	Swapped interest is subject to the ineffective portion of cash flow hedges as described in Note 6 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

⁽¹⁾~~Represents principal payments gross of discounts, debt issuance costs and fair market value adjustments of debt assumed.~~

⁽³⁾	Interest payments on variable rate debt instruments not subject to interest rate swaps are based on each debt instrument's respective interest rate as of December 31, 2019, which is assumed to be in effect through the maturity date of the respective debt instrument.

⁽²⁾~~Swapped interest is subject to the ineffective portion of cash flow hedges as described in Note 7 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.~~

⁽⁴⁾	Primarily comprised of a ground lease underlying one apartment community we own and the lease of our corporate headquarters.

⁽³⁾Interest payments on variable rate debt instruments not subject to interest rate swaps are based on each debt instrument's respective interest rate as of December 31, 2018, which is assumed to be in effect through the maturity date of the respective debt instrument.

⁽⁴⁾~~Primarily comprised of a ground lease underlying one apartment community we own and the lease for our corporate headquarters.~~

We have a commitment, which is not reflected in the table above, to make additional capital contributions to a limited partnership in which we hold an equity interest. The capital contributions may be called by the general partner at any time until September 2022 after giving appropriate notice. As of December 31, ~~2018,~~2019, we had committed to make additional capital contributions totaling up to ~~$13.6~~$8.2 million if and when called by the general partner of the limited partnership and until September 2022.

Off-Balance Sheet Arrangements

As of December 31, ~~2018~~2019 and ~~2017,~~2018, we had ~~a 35.0%~~an ownership interest in a limited liability company, which owns one apartment community comprised of 269 units, located in Washington, D.C. We also had ~~a 20.7%~~an ownership interest in a limited partnership as of December 31, ~~2018.~~2019. Our interests in these investments are unconsolidated and are recorded using the equity method as we do not have a controlling interest.

As of December 31, ~~2018~~2019 and ~~2017~~,2018, we did not have any relationships, including those with unconsolidated entities or financial partnerships, for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not engage in trading activities involving non-exchange traded contracts. As such, we are not

materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships. We do not have any relationships or transactions with persons or entities that derive benefits from their non-independent relationships with us or our related parties other than those disclosed in Note 1312 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Insurance

We carry comprehensive general liability coverage on our apartment communities, with limits of liability we believe are customary within the multifamily apartment industry, to insure against liability claims and related defense costs. We also maintain insurance against the risk of direct physical damage to reimburse us on a replacement cost basis for costs incurred to repair or rebuild any property, including loss of rental income during the reconstruction period.

We renegotiated our insurance programs effective July 1, ~~2018~~.2019. We believe that the current property and casualty insurance program in place provides appropriate insurance coverage for financial protection against insurable risks such that any insurable loss experienced that can be reasonably anticipated would not have a significant impact on our liquidity, financial position or results of operations.

Inflation

Our resident leases at our apartment communities allow, at the time of renewal, for adjustments in the rent payable thereunder, and thus may enable us to seek rent increases. The majority of our leases are for ~~approximately~~ one year or less. The short-term nature of these leases generally serves to reduce our risk to adverse effects of inflation.

Critical Accounting Policies and Estimates

A critical accounting policy is one that is both important to our financial condition and results of operations and that involves some degree of uncertainty. The preceding discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the notes thereto, which have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances. We believe that our estimates and assumptions are reasonable under the circumstances; however, actual results may differ from these estimates and assumptions.

We believe that the estimates and assumptions listed below are most important to the portrayal of our financial condition and results of operations because they require the greatest subjective determinations and form the basis of accounting policies deemed to be most critical.

Acquisition of real estate assets

We account for our acquisitions of investments in real estate as asset acquisitions in accordance with ~~ASU~~Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires the cost of the real estate acquired to be allocated to the individual acquired tangible assets, consisting of land, buildings and improvements and other, and identified intangible assets, consisting of the value of in-place leases and other contracts, on a relative fair value basis. In calculating the total asset value of acquired tangible assets, management uses stabilized net operating income, or NOI, and market specific capitalization and discount rates. Management analyzes historical stabilized NOI to determine its estimate for forecasted NOI. Management estimates the market capitalization rate by analyzing the market capitalization rates for properties with comparable ages in similarly sized markets. Management then allocates the purchase price of the asset acquisition based on the relative fair value of the individual components as a proportion of the total assets acquired.

Impairment of long-lived assets

We account for long-lived assets in accordance with the provisions of accounting standards for the impairment or disposal of long-lived assets. Management periodically evaluates long-lived assets, including investments in real estate, for indicators that would suggest that the carrying amount of the assets may not be recoverable. The judgments regarding the existence of such indicators are based on factors such as operating performance, market conditions and legal factors. Long-lived assets, such as real estate assets, equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated

undiscounted future cash flows expected to be generated by the asset, which is estimated by analyzing historical cash flows of the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Management calculates the fair value of an asset by dividing projected cash flows based on historical operating cash flows by a market capitalization rate. Management estimates the market capitalization rate by analyzing the market capitalization rates for properties with comparable ages in similarly sized markets. No material impairment losses ~~have been~~were recognized during the years ended December 31, ~~2018, 2017,~~2019 and ~~2016.~~

2018.

Cost capitalization

In conformity with GAAP, we capitalize those expenditures that materially enhance the value of an existing asset or substantially extend the useful life of an existing asset. Expenditures necessary to maintain an existing property in ordinary operating condition are expensed as incurred. Therefore, repairs and maintenance costs are expensed as incurred while significant improvements, renovations and replacements are capitalized. The cost to complete any deferred repairs and maintenance at properties acquired by us in order to elevate the condition of the property to our standards are capitalized as incurred. The carrying costs related to development projects, including interest, property taxes, insurance and allocated direct development salary ~~cost~~costs during the construction period, are capitalized. Management uses judgment in determining whether costs should be expensed or capitalized. ~~See Note 1 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K for additional detail.~~

Loss contingencies

The outcomes of claims, disputes and legal proceedings are subject to significant uncertainty. Management records an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. We also accrue an estimate of defense costs expected to be incurred in connection with legal matters. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, then we do not accrue the loss. However, for material loss contingencies, if the unrecorded loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed.

The assessment of whether a loss is probable or a reasonable possibility, and whether the loss or range of loss is reasonably estimable, often involves a series of complex judgments about future events. Among the factors that we consider in this assessment, including with respect to the matters disclosed in this Annual Report on Form 10-K, are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if reasonably estimable), the progress of the matter, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar matters, the facts available to us at the time of assessment, and how we intend to respond, or have responded, to the proceeding or claim. Management's assessment of these factors may change over time as individual proceedings or claims progress. For matters where we are not currently able to reasonably estimate a range of reasonably possible loss, the factors that have contributed to this determination include the following: (i) the damages sought are indeterminate; (ii) the proceedings are in the early stages; (iii) the matters involve novel or unsettled legal theories or a large or uncertain number of actual or potential cases or parties; and/or (iv) discussions with the parties in matters that are expected ultimately to be resolved through negotiation and settlement have not reached the point where we believe a reasonable estimate of loss, or range of loss, can be made. In such instances, management believes that there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss or business impact, if any.

Valuation of embedded derivative

The redemption feature embedded in the MAA Series I preferred stock is reported as a derivative asset and is adjusted to its fair value at each reporting date, with a corresponding non-cash adjustment to the income statement. The derivative asset related to the redemption feature is valued using widely accepted valuation techniques, including a discounted cash flow analysis in which the perpetual value of the preferred shares is compared to the value of the preferred shares assuming the call option is exercised, with the value of the bifurcated call option as the difference between the two values. The analysis reflects the contractual terms of the redeemable preferred shares, which are redeemable at our option beginning on October 1, 2026 and at the redemption price of $50 per share. We use various inputs in the analysis, including trading data available on the preferred shares, coupon yields on preferred stock issuances from REITs with similar credit ratings as MAA and treasury rates to determine the fair value of the bifurcated call option.

For more information regarding our significant accounting policies, including a brief description of recent accounting pronouncements that could have a material impact on our financial statements, see Note 1 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. Our primary market risk exposure is to changes in interest rates on our borrowings. As of December 31, ~~2018, 28.6%~~2019, 22.2% of our total market capitalization consisted of debt borrowings. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve this objective, we manage our exposure to fluctuations in market interest rates for borrowings through the use of fixed rate debt instruments and interest rate swaps, which mitigate our interest rate risk on a related financial instrument and effectively fix the interest rate on a portion of our variable debt or on future refinancings. We use our best efforts to have our debt instruments mature across multiple years, which we believe limits our exposure to interest rate changes in any one year. We do not

enter into derivative instruments for trading or other speculative purposes. As of December 31, ~~2018, 74.8%~~2019, 98.4% of our outstanding debt was subject to fixed rates after considering related derivative instruments. We regularly review interest rate exposure on outstanding borrowings in an effort to minimize the risk of interest rate fluctuations.

The table below provides information about our financial instruments that are sensitive to changes in interest rates. For debt obligations, the table presents principal cash flows and related weighted average interest rates by expected maturity dates. ~~For our interest rate swaps, the table presents the notional amount of the swaps and the years in which they expire.~~ Weighted average variable rates are based on rates in effect as of December 31, ~~2018~~2019 (dollars in thousands).

	2020			2021			2022			2023			2024			Total Thereafter			Total			Fair Value Liability
Long-term debt
Fixed rate	$	141,108		$	192,903		$	368,401		$	363,731		$	421,566		$	2,614,108		$	4,101,817		$	4,457,784
Average interest rate		3.97	%		5.20	%		3.60	%		4.20	%		4.00	%		3.90	%		4.00	%
Variable rate ⁽¹⁾	$	70,000		$	—		$	300,000		$	—		$	—		$	—		$	370,000		$	370,814
Average interest rate		2.05	%		—	%		2.64	%		—	%		—	%		—	%		2.53	%

⁽¹⁾

As of December 31, 2019, we maintained one unsecured term loan totaling $300.0 million that matures in March 2022. The term loan bears interest at a rate of LIBOR plus a spread of 0.90% to 1.75% based on the credit ratings of our unsecured debt. As of December 31, 2019, the loan was bearing interest at a rate of one month LIBOR plus 0.95%. The interest rate of the unsecured term loan was fixed at 2.32% with interest rate swaps that mature in January 2020. The fair value asset of the interest rate derivative contracts designated as hedging instruments was $0.1 million as of December 31, 2019.

2019 2020 2021 2022 2023 Total Thereafter Total Fair Value Liability
Long-term debt

Fixed rate $ 40,446
$ 158,281
$ 192,903
$ 368,401
$ 363,731
$ 1,994,399
$ 3,118,161
$ 3,066,546
Average interest rate 4.40 % 4.80 % 5.20 % 3.64 % 4.35 % 3.91 % 4.06 %
Variable rate ⁽¹⁾
$ 300,000
$ 690,000
$ 150,000
$ —
$ —
$ —
$ 1,140,000
$ 1,143,795
Average interest rate 3.36 % 3.38 % 3.30 % — % — % — % 3.36 %
Interest rate swaps

Variable to fixed $ —
$ 300,000
$ —
$ —
$ —
$ 300,000
⁽²⁾
$ 600,000
$ 1,623
Average pay rate — % 2.32 % — % — % — % 2.91 % 2.62 %

⁽¹⁾ ~~Excluding the effect of interest rate swap agreements.~~

⁽²⁾ ~~Includes six forward rate swaps totaling $300.0 million, which hedge the first 10 years of interest payments on debt we anticipate issuing in 2019.~~

Item 8. Financial Statements and Supplementary Data.

The consolidated financial statements and related financial information required to be filed are set forth on pages F-1 to ~~F-44~~F-42 of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Mid-America Apartment Communities, Inc.

(a) Evaluation of Disclosure Controls and Procedures

MAA is required to maintain disclosure controls and procedures, within the meaning of Exchange Act Rules 13a-15 and 15d-15. MAA's management, with the participation of MAA’s Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of MAA's disclosure controls and procedures as of December 31, ~~2018.~~2019. Based on that evaluation, MAA’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of December 31, ~~2018~~2019 to ensure that information required to be disclosed by MAA in its Exchange Act filings is accurately recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to MAA's management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Management’s Report on Internal Control over Financial Reporting

MAA's management is responsible for establishing and maintaining adequate internal control over financial reporting within the meaning of Exchange Act Rules 13a-15 and 15d-15. MAA's management, with the participation of MAA's Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of MAA's internal control over financial reporting as of December 31, ~~2018~~2019 based on the framework specified in Internal Control - Integrated Framework (2013) published by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation, MAA's management concluded that MAA's internal control over financial reporting was effective as of December 31, ~~2018.~~

2019.

Ernst & Young LLP, the independent registered public accounting firm that has audited the consolidated financial statements included elsewhere in this Annual Report on Form 10-K, has issued an attestation report on MAA’s internal control

over financial reporting, which is included herein.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can only provide reasonable assurance with respect to financial statement preparation and presentation.

There was no change to MAA’s internal control over financial reporting, within the meaning of Exchange Act Rules 13a-15 and 15d-15, that occurred during the quarter ended December 31, ~~2018~~2019 that has materially affected, or is reasonably likely to materially affect, MAA’s internal control over financial reporting.

Mid-America Apartments, L.P.

(a) Evaluation of Disclosure Controls and Procedures

The Operating Partnership is required to maintain disclosure controls and procedures, within the meaning of Exchange Act Rules 13a-15 and 15d-15. Management of the Operating Partnership, with the participation of the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, carried out an evaluation of the effectiveness of the Operating Partnership's disclosure controls and procedures as of December 31, ~~2018.~~2019. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, concluded that the disclosure controls and procedures were effective as of December 31, ~~2018~~2019 to ensure that information required to be disclosed by the Operating Partnership in its in Exchange Act filings is accurately recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Operating Partnership's management, including the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, as appropriate to allow timely decisions regarding required disclosure.

(b) Management’s Report on Internal Control over Financial Reporting

Management of the Operating Partnership is responsible for establishing and maintaining adequate internal control over financial reporting within the meaning of Exchange Act Rule 13a-15 and 15d-15. Management of the Operating Partnership, with the

participation of the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, conducted an evaluation of the effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, ~~2018~~2019 based on the framework specified in Internal Control - Integrated Framework (2013) published by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation, management of the Operating Partnership has concluded that the Operating Partnership's internal control over financial reporting was effective as of December 31, ~~2018.~~2019. An attestation report of the independent registered public accounting firm of the Operating Partnership will not be required as long as the Operating Partnership is a non-accelerated filer.

There was no change to the Operating Partnership’s internal control over financial reporting, within the meaning of Exchange Act Rules 13a-15 and 15d-15, that occurred during the quarter ended December 31, ~~2018~~2019 that has materially affected, or is reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

Item 9B. Other Information.

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

The information contained in MAA's ~~2019~~2020 Proxy Statement in the sections entitled ~~"Board Structure"~~“Current Board Composition”, ~~"Nominees~~“Director Nominees for ~~Election", "Executive~~Election” and “Executive Officers of the ~~Registrant" and "Section 16(a) Beneficial Ownership Reporting Compliance,"~~Registrant” is incorporated herein by reference in response to this Item 10.

Our Board of Directors has adopted a Code of Conduct applicable to all officers, directors and employees, including the CEO, CFO, and principal accounting officer, which can be found on our website at https://www.maac.com, on the ~~For Investors~~“For Investors” page in the ~~"Governance Documents"~~“Corporate Documents” section under ~~"Corporate Overview"~~“Overview—Corporate Governance”. We will provide a copy of this document to any person, without charge, upon request, by writing to the Legal Department at MAA, 6815 Poplar Avenue, Suite 500, Germantown, TNTennessee 38138. We intend to satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of the Code of Conduct by posting such information on our website at the address and the locations specified above. Reference to our website does not constitute incorporation by reference of the information contained on the site and should not be considered part of this Annual Report on Form 10-K.

Item 11. Executive Compensation.

The information contained in MAA's ~~2019~~2020 Proxy Statement in the sections entitled ~~"Executive~~“Executive Compensation ~~Tables"~~Tables”, ~~"Director Compensation"~~“Director Compensation Table”, ~~"Compensation~~“Compensation Committee Interlocks and Insider ~~Participation"~~Participation”, ~~"Compensation~~“Compensation Committee ~~Report"~~Report” and ~~"Compensation~~“Compensation Discussion and ~~Analysis"~~Analysis” is incorporated herein by reference in response to this Item 11.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information contained in MAA's ~~2019~~2020 Proxy Statement in the sections entitled ~~"Security~~“Security Ownership of ~~Management"~~Management”, ~~"Security~~“Security Ownership of Certain Beneficial ~~Owners"~~Owners” and ~~"Securities~~“Securities Authorized for Issuance Under Equity Compensation ~~Plans"~~Plans” is incorporated herein by reference in response to this Item 12.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information contained in MAA's ~~2019~~2020 Proxy Statement in the sections entitled ~~"Certain~~“Certain Relationships and Related ~~Transactions"~~Transactions” and ~~"Indebtedness~~“Indebtedness of ~~Management"~~Management” is incorporated herein by reference in response to this Item 13.

Item 14. Principal Accounting Fees and Services.

The information contained in MAA's ~~2019~~2020 Proxy Statement in the section entitled ~~"Audit~~“Audit and Non-Audit ~~Fees,"~~Fees” is incorporated herein by reference in response to this Item 14.

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a)
~~(a)~~	The following documents are filed as part of this Annual Report on Form 10-K:



1.	Reports of Independent Registered Public Accounting Firm	F-1

	Financial Statements of Mid-America Apartment Communities, Inc.:
	Consolidated Balance Sheets as of December 31, ~~2018~~2019 and ~~2017~~2018	~~F-4~~ F-5
	Consolidated Statements of Operations for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-5~~ F-6
	Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-6~~ F-7
	Consolidated Statements of Equity for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-7~~ F-8
	Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-8~~ F-9

	Financial Statements of Mid-America Apartments, L.P.:
	Consolidated Balance Sheets as of December 31, ~~2018~~2019 and ~~2017~~2018	~~F-9~~ F-10
	Consolidated Statements of Operations for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-10~~ F-11
	Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-11~~ F-12
	Consolidated Statements of Changes in Capital for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-12~~ F-13
	Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-13~~ F-14

	Notes to Consolidated Financial Statements for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017	~~F-14~~ F-15

2.	Financial Statement Schedule required to be filed by Item 8 and Paragraph (b) of this Item 15:
	Schedule III - Real Estate and Accumulated Depreciation as of December 31, ~~2018~~2019	~~F-38~~ F-37

3.	The exhibits required by Item 601 of Regulation S-K, except as otherwise noted, have been filed with previous reports by the registrant and are herein incorporated by reference.

Exhibit Number			Exhibit Description

~~Exhibit Number~~ 3.1		~~Exhibit Description~~
~~2.1~~	Agreement and Plan of Merger by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P., Post Properties, Inc., Post GP Holdings, Inc., and Post Apartment Homes, L.P., dated as of August 15, 2016 (Filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on August 15, 2016 and incorporated herein by reference).
~~3.1~~	Composite Charter of Mid-America Apartment Communities, Inc. (Filed as Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K filed on February 24, 2017 and incorporated herein by reference).
~~3.2~~
3.2			Fourth Amended and Restated Bylaws of Mid-America Apartment Communities, Inc., dated as of March 13, 2018 (Filed as Exhibit 3.2(i) to the Registrant’s Current Report on Form 8-K filed on March 14, 2018 and incorporated herein by reference).
~~3.3~~
3.3			Composite Certificate of Limited Partnership of Mid-America Apartments, L.P. (Filed as Exhibit ~~3.14~~3.1 to the Registrant’s ~~Annual~~Quarterly Report on Form ~~10-K~~10-Q filed on ~~February 26, 2016~~August 1, 2019 and incorporated herein by reference).
~~3.4~~
3.4			Third Amended and Restated Agreement of Limited Partnership of Mid-America Apartments, L.P. dated as of October 1, 2013 (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 2, 2013 and incorporated herein by reference).
~~3.5~~
3.5			First Amendment to the Third Amended and Restated Agreement of Limited Partnership of Mid-America Apartments, L.P. (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on November 10, 2016 and incorporated herein by reference).
~~4.1~~
4.1			Form of Common Share Certificate ~~(Filed as Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K filed on February 23, 2018 and incorporated herein by reference)~~.
~~4.2~~
4.2			Form of 8.50% Series I Cumulative Redeemable Preferred Stock Certificate (Filed as Exhibit 4.2 to Pre-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S-4 filed on September 28, 2016 and incorporated herein by reference).



4.3			Indenture, dated as of October 16, 2013, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and U.S. Bank National Association (Filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on October 16, 2013 and incorporated herein by reference).
~~4.4~~
4.4			First Supplemental Indenture, dated as of October 16, 2013, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and U.S. Bank National Association, including the form of 4.300% Senior Notes due 2023 (Filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on October 16, 2013 and incorporated herein by reference).
~~4.5~~
4.5			Second Supplemental Indenture, dated as of June 13, 2014, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and U.S. Bank National Association, including the form of 3.7500% Senior Notes due 2024 (Filed as Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on June 13, 2014 and incorporated herein by reference).
~~4.6~~
4.6			Third Supplemental Indenture, dated as of November 9, 2015, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and U.S. Bank National Association, including the form of 4.000% Senior Notes due 2025 (Filed as Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on November 9, 2015 and incorporated herein by reference).
~~4.7~~
4.7			Indenture between Post Properties, Inc. and SunTrust Bank, as Trustee (Filed as Exhibit 4.1 to Post Properties’ Registration Statement on Form S-3 (File No. 333-42884), and incorporated herein by reference).
~~4.8~~
4.8			First Supplemental Indenture to the Indenture between the Post Apartment Homes, L.P., and SunTrust Bank, as Trustee (Filed as Exhibit 4.2 to Post Properties’ Registration Statement on Form S-3ASR (File No. 333-139581) and incorporated herein by reference).
~~4.9~~
4.9			Form of Post Apartment Homes, L.P. 3.375% Note due 2022 (Filed as Exhibit 4.1 to Post Properties’ Current Report on Form 8-K filed November 7, 2012 and incorporated herein by reference).
~~4.10~~
4.10			Indenture, dated as of May 9, 2017, by and between Mid-America Apartments, L.P. and U.S. Bank National Association (Filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on May 9, 2017 and incorporated herein by reference).
~~4.11~~
4.11			First Supplemental Indenture, dated as of May 9, 2017, by and between Mid-America Apartments, L.P. and U.S. Bank National Association (Filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on May 9, 2017 and incorporated herein by reference).
~~4.12~~
4.12			Second Supplemental Indenture, dated as of May 14, 2018, by and between Mid-America Apartments, L.P. and U.S. Bank National Association (Filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on May 14, 2018 and incorporated herein by reference).
~~10.1~~

4.13			Third Supplemental Indenture, dated as of March 7, 2019, by and between Mid-America Apartments, L.P. and U.S. Bank National Association (Filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on March 7, 2019 and incorporated herein by reference).

4.14			Fourth Supplemental Indenture, dated as of November 26, 2019, by and between Mid-America Apartments, L.P. and U.S. Bank National Association (Filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on November 26, 2019 and incorporated herein by reference).

4.15			Description of Securities.

10.1			Note Purchase Agreement, dated as of July 29, 2011, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and the purchasers of the notes party thereto (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 1, 2011 and incorporated herein by reference).
~~10.2~~
10.2			Note Purchase Agreement, dated as of August 31, 2012, by and among Mid-America Apartments, L.P., Mid-America Apartment Communities, Inc. and the purchasers of the notes party thereto (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on September 4, 2012 and incorporated herein by reference).
~~10.3~~
10.3			Distribution Agreement, dated as of December 9, 2015, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and J.P. Morgan Securities LLC (Filed as Exhibit 1.1 to the Registrant’s Current Report on Form 8-K filed on December 9, 2015 and incorporated herein by reference).
~~10.4~~
10.4			Amendment No. 1 to Distribution Agreement, dated September 28, 2018, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and J.P. Morgan Securities LLC (filed as Exhibit 1.4 to the Registrant's Current Report on Form 8-K filed on September 28, 2018, and incorporated herein by reference).
~~10.5~~
10.5			Distribution Agreement, dated as of December 9, 2015, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and BMO Capital Markets Corp. (Filed as Exhibit 1.2 to the Registrant’s Current Report on Form 8-K filed on December 9, 2015 and incorporated herein by reference).
~~10.6~~
10.6			Amendment No. 1 to Distribution Agreement, dated September 28, 2018, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and BMO Capital Markets Corp. (filed as Exhibit 1.5 to the Registrant's Current Report on Form 8-K filed on September 28, 2018, and incorporated herein by reference).
~~10.7~~
10.7			Distribution Agreement, dated as of December 9, 2015, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and KeyBanc Capital Markets Inc. (Filed as Exhibit 1.3 to the Registrant’s Current Report on Form 8-K filed on December 9, 2015 and incorporated herein by reference).
~~10.8~~
10.8			Amendment No. 1 to Distribution Agreement, dated September 28, 2018, by and among Mid-America Apartment Communities, Inc., Mid-America Apartments, L.P. and KeyBanc Capital Markets Inc. (filed as Exhibit 1.6 to the Registrant's Current Report on Form 8-K filed on September 28, 2018, and incorporated herein by reference).
~~10.9†~~
10.9†			Employment Agreement, dated as of March 24, 2015, by and between the Registrant and H. Eric Bolton, Jr. (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on March 24, 2015 and incorporated herein by reference).



10.10†			Non-Qualified Deferred Compensation Plan for Outside Company Directors as Amended Effective November 30, 2010 (Filed as Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K filed on February 26, 2016 and incorporated herein by reference).
~~10.11†~~
10.11†			Amended and Restated Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Appendix B to the Registrant’s Definitive Proxy Statement filed on April 16, 2014 and incorporated herein by reference).
~~10.12†~~
10.12†			Form of Non-Qualified Stock Option Agreement for Company Employees under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.20 to the Registrant’s Quarterly Report on Form 10-Q filed on November 7, 2013 and incorporated herein by reference).
~~10.13†~~
10.13†			Form of Restricted Stock Award Agreement under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on May 1, 2015 and incorporated herein by reference).
~~10.14†~~
10.14†			Form of Incentive Stock Option Agreement for Company Employees under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.22 to the Registrant’s Quarterly Report on Form 10-Q filed on November 7, 2017 and incorporated herein by reference).
~~10.15†~~
10.15†			MAA Non-Qualified Executive Deferred Compensation Retirement Plan Amended and Restated Effective January 1, 2016 (Filed as Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K filed on February 26, 2016 and incorporated herein by reference).
~~10.16†~~

10.16†		Form of Change in Control and Termination Agreement (Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on May 2, 2014 and incorporated herein by reference).
~~10.17~~	Second Amended and Restated Credit Agreement, dated as of October 15, 2015, by and among Mid-America Apartments, L.P., KeyBank National Association and the other lenders party thereto (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 16, 2015 and incorporated herein by reference).
~~10.18~~ 10.17†	First Amendment to Second Amended and Restated Credit Agreement, dated as of December 1, 2016, by and among Mid-America Apartments, L.P., KeyBank National Association and the other lenders party thereto (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on December 1, 2016 and incorporated herein by reference).
~~10.19†~~	Mid-America Apartment Communities, Inc. Indemnification Agreement (Filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on December 1, 2016 and incorporated herein by reference).
~~10.20†~~
10.18†		Amended and Restated Post Properties Inc. 2003 Incentive Stock Plan (Filed as Exhibit 99.1 to the Registrant’s Registration Statement on Form S-8 filed on December 9, 2016 and incorporated herein by reference).
~~10.21†~~
10.19†		Second Amended and Restated Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Appendix A to the Registrant’s Definitive Proxy Statement filed on April 9, 2018 and incorporated herein by reference).
~~10.22†~~
10.20†		Form of Restricted Stock Award Agreement Under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2018 and incorporated herein by reference).
~~10.23†~~
10.21†		Form of Non-Qualified Stock Option Agreement for Company Employees Under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2018 and incorporated herein by reference).
~~10.24†~~
10.22†		Form of Incentive Stock Option Agreement for Company Employees Under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2018 and incorporated herein by reference).
~~10.25†~~
10.23†		Form of Restricted Stock Unit Award Agreement Under the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (Filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2018 and incorporated herein by reference).
~~21.1~~
10.24		Third Amended and Restated Credit Agreement, dated as of May 21, 2019, by and among Mid-America Apartments, L.P., as the borrower, Wells Fargo Bank, National Association, as the administrative agent, Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc. and JPMorgan Chase Bank, N.A., as the arrangers, KeyBank National Association and JPMorgan Chase Bank, N.A., as syndication agents, and the other lenders named therein (Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on May 22, 2019 and incorporated herein by reference).

21.1		List of Subsidiaries.
~~23.1~~
23.1		Consent of Independent Registered Public Accounting Firm, Ernst & Young LLP for MAA.
~~23.2~~
23.2		Consent of Independent Registered Public Accounting Firm, Ernst & Young LLP for MAALP.
~~31.1~~
31.1		MAA Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
~~31.2~~
31.2		MAA Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
~~31.3~~
31.3		MAALP Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
~~31.4~~
31.4		MAALP Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
32.1*		MAA Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
32.2*		MAA Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



32.3*			MAALP Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.4*
32.4*			MAALP Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
~~101~~

101			The following financial information from Mid-America Apartment Communities, Inc.’s and Mid-America Apartments, L.P.'s Annual Report on Form 10-K for the period ended December 31, ~~2018,~~2019, filed with the SEC on February ~~21, 2019,~~20, 2020, formatted in ~~XBRL (eXtensible~~iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of December 31, ~~2018~~2019 and December 31, ~~2017;~~2018; (ii) the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016;~~2017; (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016;~~2017; (iv) the Consolidated Statements of Equity/Changes in Capital for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016;~~2017; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016;~~2017; (vi) Notes to Consolidated Financial Statements; and (vii) Schedule III - Real Estate and Accumulated Depreciation as of December 31, ~~2018.~~2019.

104			Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101).

†	Management contract or compensatory plan or arrangement.

~~† Management contract or compensatory plan or arrangement.~~

* This certification is being furnished solely to accompany this Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of MAA or MAALP, whether made before or after the date hereof, regardless of any general incorporation language in such filings.

This certification is being furnished solely to accompany this Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of MAA or MAALP, whether made before or after the date hereof, regardless of any general incorporation language in such filings.

(b)	Exhibits: See Item 15(a)(3) above.

(c)
~~(c)~~	Financial Statement Schedule: See Item 15(a)(2) above.

Item 16. Form 10-K Summary.

None.

~~None.~~

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



		MID-AMERICA APARTMENT COMMUNITIES, INC.

Date:	February ~~21, 2019~~20, 2020	/s/ H. Eric Bolton, Jr.
		H. Eric Bolton, Jr. Chairman of the Board of Directors Chief Executive Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



Date:	February ~~21, 2019~~20, 2020	/s/ H. Eric Bolton, Jr.
		H. Eric Bolton, Jr. Chairman of the Board of Directors Chief Executive Officer (Principal Executive Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ Albert M. Campbell, III
		Albert M. Campbell, III Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ A. Clay Holder
		A. Clay Holder Senior Vice President and Chief Accounting Officer ~~(Principal~~ (Principal Accounting Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ Russell R. French
		Russell R. French Director

Date:	February ~~21, 2019~~20, 2020	/s/ Alan B. Graf, Jr.
		Alan B. Graf, Jr. Director

Date:	February ~~21, 2019~~20, 2020	/s/ Toni Jennings
		Toni Jennings Director

Date:	February ~~21, 2019~~20, 2020	/s/ James K. Lowder
		James K. Lowder Director

Date:	February ~~21, 2019~~20, 2020	/s/ Thomas H. Lowder
		Thomas H. Lowder Director

Date:	February ~~21, 2019~~20, 2020	/s/ Monica McGurk
		Monica McGurk Director

Date:	February ~~21, 2019~~20, 2020	/s/ Claude B. Nielsen
		Claude B. Nielsen Director

Date:	February ~~21, 2019~~20, 2020	/s/ Philip W. Norwood
		Philip W. Norwood Director

Date:	February ~~21, 2019~~20, 2020	/s/ W. Reid Sanders
		W. Reid Sanders Director

Date:	February ~~21, 2019~~20, 2020	/s/ Gary Shorb
		Gary Shorb Director

Date:	February ~~21, 2019~~20, 2020	/s/ David P. Stockert
		David P. Stockert Director

SIGNATURES



		MID-AMERICA APARTMENTS, L.P.
		a Tennessee Limited Partnership
		By: Mid-America Apartment Communities, Inc., its general partner

Date:	February ~~21, 2019~~20, 2020	/s/ H. Eric Bolton, Jr.
		H. Eric Bolton, Jr. Chairman of the Board of Directors Chief Executive Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant as an officer or director of Mid-America Apartment Communities, Inc., in its capacity as the general partner of the registrant and on the dates indicated.



Date:	February ~~21, 2019~~20, 2020	/s/ H. Eric Bolton, Jr.
		H. Eric Bolton, Jr. Chairman of the Board of Directors Chief Executive Officer (Principal Executive Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ Albert M. Campbell, III
		Albert M. Campbell, III Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ A. Clay Holder
		A. Clay Holder Senior Vice President and Chief Accounting Officer ~~(Principal~~ (Principal Accounting Officer)

Date:	February ~~21, 2019~~20, 2020	/s/ Russell R. French
		Russell R. French Director

Date:	February ~~21, 2019~~20, 2020	/s/ Alan B. Graf, Jr.
		Alan B. Graf, Jr. Director

Date:	February ~~21, 2019~~20, 2020	/s/ Toni Jennings
		Toni Jennings Director

Date:	February ~~21, 2019~~20, 2020	/s/ James K. Lowder
		James K. Lowder Director

Date:	February ~~21, 2019~~20, 2020	/s/ Thomas H. Lowder
		Thomas H. Lowder Director

Date:	February ~~21, 2019~~20, 2020	/s/ Monica McGurk
		Monica McGurk Director

Date:	February ~~21, 2019~~20, 2020	/s/ Claude B. Nielsen
		Claude B. Nielsen Director

Date:	February ~~21, 2019~~20, 2020	/s/ Philip W. Norwood
		Philip W. Norwood Director

Date:	February ~~21, 2019~~20, 2020	/s/ W. Reid Sanders
		W. Reid Sanders Director

Date:	February ~~21, 2019~~20, 2020	/s/ Gary Shorb
		Gary Shorb Director

Date:	February ~~21, 2019~~20, 2020	/s/ David P. Stockert
		David P. Stockert Director

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Mid-America Apartment Communities, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Mid-America Apartment Communities, Inc. (the Company) as of December 31, ~~2018~~2019 and ~~2017,~~2018, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, ~~2018,~~2019, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the ~~"consolidated~~“consolidated financial ~~statements"~~statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2018~~2019 and ~~2017,~~2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2018,~~2019, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, ~~2018,~~2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February ~~21, 2019~~20, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.


		Loss Contingencies
Description of the Matter		As discussed in Note 11 to the consolidated financial statements, two separate class action lawsuits were filed against the Company in 2016 and 2017. The lawsuits both relate to purported late-fee violations in the state of Texas. In 2018, the plaintiffs’ motion for partial summary judgment was granted. Given the class certification and summary judgment ruling, management estimates that the Company’s maximum exposure in the lawsuits is $63.0 million. Auditing management’s evaluation of an accrual for, and disclosure of, loss contingencies related to the class action lawsuits was especially challenging because management’s evaluation of the likelihood and amount of loss and range of potential loss is highly subjective and requires significant judgment. In particular, management’s evaluation considers, among other factors, the nature of the claim, the asserted or possible damages, the progress of the matter, existing law and precedent, the opinions or views of legal counsel and other advisors, the Company’s experience in similar matters, the facts available at the time of the assessment, and how the Company intends to respond, or has responded, to the claim, which involves a series of complex judgments about future events.


How We Addressed the Matter in Our Audit		We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the evaluation of the class action lawsuits, including controls related to the Company’s assessment and measurement of its best estimate of maximum exposure. For example, we tested controls over management’s review and approval of the legal reserves and related disclosures. To test the Company’s assessment of the probability of incurrence of a loss and whether the loss was reasonably estimable, our audit procedures included, among others, reading summaries of the proceedings and related lawsuit correspondence, requesting and receiving written responses to our inquiries of internal and external legal counsel and meeting with internal and external legal counsel to discuss developments related to the legal matters and case progression. To test the measurement of management’s estimate of maximum exposure, among other procedures, we evaluated the method of measuring the maximum exposure and related assumptions, tested the accuracy and completeness of the data, and reviewed correspondence received from internal and external counsel used to determine the estimate of maximum exposure that was disclosed.
		Valuation of Embedded Derivative
Description of the Matter		As disclosed in Notes 6 and 8 to the consolidated financial statements, the Series I Preferred Stock shares (“preferred shares”) include a redemption feature which represents an embedded call option exercisable at the Company’s option beginning on October 1, 2026 at the redemption price of $50 per share. The embedded call option has been bifurcated as a separate asset and is valued at fair value each reporting period with changes in its fair value reported in earnings. At each reporting date, management performs an analysis which compares the perpetual value of the preferred shares to the value of the preferred shares assuming the call option is exercised, with the value of the bifurcated call option as the difference between the two values. At December 31, 2019, the fair value of the Company’s embedded derivative asset was $36.5 million. Auditing the Company’s valuation of this bifurcated embedded derivative was challenging as the Company uses a complex valuation methodology that incorporates various inputs, including trading data available on the preferred shares, treasury rates and coupon yields on preferred stock issuances from REITs with similar credit ratings, and includes significant assumptions about economic and market conditions with uncertain future outcomes.
How We Addressed the Matter in Our Audit		We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the risks of material misstatement relating to the valuation of the bifurcated embedded derivative asset. For example, we tested controls over management’s review of the valuation model and the underlying inputs and assumptions noted above. To test the valuation of the embedded derivative asset, our audit procedures included, among others, assessing the methodology used in the valuation model and testing the significant assumptions discussed above. For example, we evaluated management’s assumptions by comparing the coupon rate that was used to discount future dividend payments from the preferred stock to observable market data. We also assessed the completeness and accuracy of the underlying data used by the Company in its valuation. In addition, we involved our valuation specialists to assist in our evaluation of the methodology used by the Company and the underlying inputs and assumptions noted above.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2005.

Memphis, Tennessee

February 20, 2020

~~Memphis, Tennessee~~

~~February 21, 2019~~

~~F-1~~

Report of Independent Registered Public Accounting Firm

To the Partners of Mid-America Apartments, L.P.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Mid-America Apartments, L.P. (the Partnership) as of December 31, ~~2018~~2019 and ~~2017,~~2018, the related consolidated statements of operations, comprehensive income, changes in capital, and cash flows for each of the three years in the period ended December 31, ~~2018,~~2019, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the ~~"consolidated~~“consolidated financial ~~statements"~~statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, ~~2018~~2019 and ~~2017,~~2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2018,~~2019, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Partnership's auditor since 2012.

Memphis, Tennessee

February 20, 2020

~~Memphis, Tennessee~~

~~February 21, 2019~~

~~F-2~~

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Mid-America Apartment Communities, Inc.

Opinion on Internal Control over Financial Reporting

We have audited Mid-America Apartment Communities, Inc.’s internal control over financial reporting as of December 31, ~~2018,~~2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Mid-America Apartment Communities, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2018,~~2019, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, ~~2018~~2019 and ~~2017,~~2018, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, ~~2018,~~2019, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated February ~~21, 2019~~20, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Memphis, Tennessee

February 20, 2020

~~Memphis, Tennessee~~

~~February 21, 2019~~

~~F-3~~

Mid-America Apartment Communities, Inc.

Consolidated Balance Sheets

December 31, ~~2018~~2019 and ~~2017~~

2018

(Dollars in thousands, except share and per share data)

	December 31, 2019			December 31, 2018
Assets
Real estate assets:
Land	$	1,905,757		$	1,868,828
Buildings and improvements and other		11,841,978			11,670,216
Development and capital improvements in progress		116,424			59,506
		13,864,159			13,598,550
Less: Accumulated depreciation		(2,955,253	)		(2,549,287	)
		10,908,906			11,049,263
Undeveloped land		34,548			58,257
Investment in real estate joint venture		43,674			44,181
Real estate assets, net		10,987,128			11,151,701

Cash and cash equivalents		20,476			34,259
Restricted cash		50,065			17,414
Other assets		172,781			120,407
Total assets	$	11,230,450		$	11,323,781

Liabilities and equity
Liabilities:
Unsecured notes payable	$	3,828,201		$	4,053,302
Secured notes payable		626,397			475,026
Accrued expenses and other liabilities		472,262			413,850
Total liabilities		4,926,860			4,942,178

Redeemable common stock		14,131			9,414

Shareholders' equity:
Preferred stock, $0.01 par value per share, 20,000,000 shares authorized; 8.50% Series I Cumulative Redeemable Shares, liquidation preference $50.00 per share, 867,846 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively.		9			9
Common stock, $0.01 par value per share, 145,000,000 shares authorized; 114,246,393 and 113,844,267 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively ⁽¹⁾		1,140			1,136
Additional paid-in capital		7,166,073			7,138,170
Accumulated distributions in excess of net income		(1,085,479	)		(989,263	)
Accumulated other comprehensive loss		(13,178	)		(212	)
Total MAA shareholders' equity		6,068,565			6,149,840
Noncontrolling interests - Operating Partnership units		214,647			220,043
Total Company's shareholders' equity		6,283,212			6,369,883
Noncontrolling interests - consolidated real estate entities		6,247			2,306
Total equity		6,289,459			6,372,189
Total liabilities and equity	$	11,230,450		$	11,323,781

December 31, 2018 December 31, 2017
Assets

Real estate assets:

Land $ 1,868,828
$ 1,836,417
Buildings and improvements and other 11,670,216
11,281,504
Development and capital improvements in progress 59,506
116,833
13,598,550
13,234,754
Less: Accumulated depreciation (2,549,287 ) (2,075,071 )
11,049,263
11,159,683
Undeveloped land 58,257
57,285
Investment in real estate joint venture 44,181
44,956
Real estate assets, net 11,151,701
11,261,924

Cash and cash equivalents 34,259
10,750
Restricted cash 17,414
78,117
Other assets 120,407
135,807
Assets held for sale —
5,321
Total assets $ 11,323,781
$ 11,491,919

Liabilities and equity

Liabilities:

Unsecured notes payable $ 4,053,302
$ 3,525,765
Secured notes payable 475,026
976,292
Accrued expenses and other liabilities 413,850
405,560
Total liabilities 4,942,178
4,907,617

Redeemable common stock 9,414
10,408

Shareholders' equity:

Preferred stock, $0.01 par value per share, 20,000,000 shares authorized; 8.50% Series I Cumulative Redeemable Shares, liquidation preference $50 per share, 867,846 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively.
9
9
Common stock, $0.01 par value per share, 145,000,000 shares authorized; 113,844,267 and 113,643,166 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively ⁽¹⁾
1,136
1,134
Additional paid-in capital 7,138,170
7,121,112
Accumulated distributions in excess of net income (989,263 ) (784,500 )
Accumulated other comprehensive (loss) income (212 ) 2,157
Total MAA shareholders' equity 6,149,840
6,339,912
Noncontrolling interests - Operating Partnership units 220,043
231,676
Total Company's shareholders' equity 6,369,883
6,571,588
Noncontrolling interest - consolidated real estate entity 2,306
2,306
Total equity 6,372,189
6,573,894
Total liabilities and equity $ 11,323,781
$ 11,491,919

⁽¹⁾
~~(1)~~	Number of shares issued and outstanding ~~represents~~represent total shares of common stock regardless of classification on the Consolidated Balance Sheets. The number of shares classified as redeemable common stock on the Consolidated Balance Sheets as of December 31, ~~2018~~2019 and December 31, ~~2017~~2018 are 107,162and 98,371 ~~and 103,504,~~shares, respectively.

See accompanying notes to consolidated financial statements.

Mid-America Apartment Communities, Inc.

Consolidated Statements of Operations

Years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~

2017

(Dollars in thousands, except per share data)

	2019			2018			2017
Revenues:
Rental and other property revenues	$	1,641,017		$	1,571,346		$	1,528,987
Expenses:
Operating expense, excluding real estate taxes and insurance		377,453			371,095			364,190
Real estate taxes and insurance		235,392			223,493			212,541
Depreciation and amortization		496,843			489,759			493,708
Total property operating expenses		1,109,688			1,084,347			1,070,439
Property management expenses		55,011			47,633			43,588
General and administrative expenses		46,121			34,786			40,194
Merger and integration related expenses		—			9,112			19,990
Interest expense		179,847			173,594			154,751
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39			(127,386	)
Gain on sale of non-depreciable real estate assets		(12,047	)		(4,532	)		(21	)
Other non-operating income		(25,275	)		(5,434	)		(14,353	)
Income before income tax expense		368,660			231,801			341,785
Income tax expense		(3,696	)		(2,611	)		(2,619	)
Income from continuing operations before real estate joint venture activity		364,964			229,190			339,166
Income from real estate joint venture		1,654			1,832			1,370
Net income		366,618			231,022			340,536
Net income attributable to noncontrolling interests		12,807			8,123			12,157
Net income available for shareholders		353,811			222,899			328,379
Dividends to MAA Series I preferred shareholders		3,688			3,688			3,688
Net income available for MAA common shareholders	$	350,123		$	219,211		$	324,691
Earnings per common share - basic:
Net income available for MAA common shareholders	$	3.07		$	1.93		$	2.86
Earnings per common share - diluted:
Net income available for MAA common shareholders	$	3.07		$	1.93		$	2.86

2018 2017 2016
Revenues:

Rental and other property revenues $ 1,571,346
$ 1,528,987
$ 1,125,348
Expenses:

Operating expense, excluding real estate taxes and insurance 371,095
364,190
280,572
Real estate taxes and insurance 223,493
212,541
142,784
Depreciation and amortization 489,759
493,708
322,958
Total property operating expenses 1,084,347
1,070,439
746,314
Property management expenses 47,633
43,588
34,093
General and administrative expenses 34,786
40,194
29,040
Merger and integration related expenses 9,112
19,990
40,823
Interest expense 173,594
154,751
129,947
Loss (gain) on sale of depreciable real estate assets 39
(127,386 ) (80,397 )
Gain on sale of non-depreciable real estate assets (4,532 ) (21 ) (2,171 )
Other non-operating (income) expense (5,434 ) (14,353 ) 1,839
Income before income tax expense 231,801
341,785
225,860
Income tax expense (2,611 ) (2,619 ) (1,699 )
Income from continuing operations before real estate joint venture activity 229,190
339,166
224,161
Income from real estate joint venture 1,832
1,370
241
Net income 231,022
340,536
224,402
Net income attributable to noncontrolling interests 8,123
12,157
12,180
Net income available for shareholders 222,899
328,379
212,222
Dividends to MAA Series I preferred shareholders 3,688
3,688
307
Net income available for MAA common shareholders $ 219,211
$ 324,691
$ 211,915

Earnings per common share - basic:

Net income available for MAA common shareholders $ 1.93
$ 2.86
$ 2.69

Earnings per common share - diluted:

Net income available for MAA common shareholders $ 1.93
$ 2.86
$ 2.69

See accompanying notes to consolidated financial statements.

Mid-America Apartment Communities, Inc.

Consolidated Statements of Comprehensive Income

Years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~

2017

(Dollars in thousands)

	2019			2018			2017
Net income	$	366,618		$	231,022		$	340,536
Other comprehensive (loss) income:
Unrealized (loss) gain from derivative instruments		(11,676	)		(751	)		319
Adjustment for net (gains) losses reclassified to net income from derivative instruments		(1,747	)		(1,938	)		730
Total comprehensive income		353,195			228,333			341,585
Less: Comprehensive income attributable to noncontrolling interests		(12,350	)		(8,036	)		(12,193	)
Comprehensive income attributable to MAA	$	340,845		$	220,297		$	329,392

2018 2017 2016
Net income $ 231,022
$ 340,536
$ 224,402
Other comprehensive (loss) income:

Unrealized (loss) gain from the effective portion of derivative instruments (751 ) 319
(1,500 )
Reclassification adjustment for net (gains) losses included in net income for the
effective portion of derivative instruments
(1,938 ) 730
4,364
Total comprehensive income 228,333
341,585
227,266
Less: Comprehensive income attributable to noncontrolling interests (8,036 ) (12,193 ) (12,311 )
Comprehensive income attributable to MAA $ 220,297
$ 329,392
$ 214,955

See accompanying notes to consolidated financial statements.

Mid-America Apartment Communities, Inc.

Consolidated Statements of Equity

Years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~

2017

(Dollars and shares in thousands)

	Mid-America Apartment Communities, Inc. Shareholders																					Noncontrolling
	Preferred Stock				Common Stock					Additional			Accumulated Distributions			Accumulated Other			Noncontrolling Interests -			Interests - Consolidated						Redeemable
	Shares		Amount		Shares			Amount		Paid-In Capital			in Excess of Net Income			Comprehensive (Loss) Income			Operating Partnership			Real Estate Entities			Total Equity			Common Stock
EQUITY BALANCE DECEMBER 31, 2016		868	$	9		113,415		$	1,133	$	7,109,012		$	(707,479	)	$	1,144		$	235,976		$	2,306		$	6,642,101		$	10,073
Net income		—		—		—			—		—			328,379			—			12,157			—			340,536			—
Other comprehensive income - derivative instruments		—		—		—			—		—			—			1,013			36			—			1,049			—
Issuance and registration of common shares		—		—		137			1		615			—			—			—			—			616			1,588
Issuance and registration of preferred shares		—		—		—			—		2,007			—			—			—			—			2,007			—
Shares repurchased and retired		—		—		(51	)		—		(4,782	)		—			—			—			—			(4,782	)		—
Exercise of stock options		—		—		10			—		218			—			—			—			—			218			—
Shares issued in exchange for common units		—		—		29			—		1,602			—			—			(1,602	)		—			—			—
Shares issued in exchange for redeemable stock		—		—		—			—		1,482			—			—			—			—			1,482			(1,482	)
Redeemable stock fair market value adjustment		—		—		—			—		—			(229	)		—			—			—			(229	)		229
Adjustment for noncontrolling interests in Operating Partnership		—		—		—			—		42			—			—			(42	)		—			—			—
Amortization of unearned compensation		—		—		—			—		10,916			(114	)		—			—			—			10,802			—
Dividends on preferred stock		—		—		—			—		—			(3,688	)		—			—			—			(3,688	)		—
Dividends on common stock ($3.5325 per share)		—		—		—			—		—			(401,369	)		—			—			—			(401,369	)		—
Dividends on noncontrolling interests units ($3.5325 per unit)		—		—		—			—		—			—			—			(14,849	)		—			(14,849	)		—
EQUITY BALANCE DECEMBER 31, 2017		868	$	9		113,540		$	1,134	$	7,121,112		$	(784,500	)	$	2,157		$	231,676		$	2,306		$	6,573,894		$	10,408
Net income		—		—		—			—		—			222,899			—			8,123			—			231,022			—
Other comprehensive loss - derivative instruments		—		—		—			—		—			—			(2,602	)		(87	)		—			(2,689	)		—
Issuance and registration of common shares		—		—		142			1		(264	)		—			—			—			—			(263	)		1,482
Shares repurchased and retired		—		—		(34	)		—		(2,921	)		—			—			—			—			(2,921	)		—
Exercise of stock options		—		—		18			—		916			—			—			—			—			916			—
Shares issued in exchange for common units		—		—		80			1		4,443			—			—			(4,444	)		—			—			—
Shares issued in exchange for redeemable stock		—		—		—			—		1,915			—			—			—			—			1,915			(1,915	)
Redeemable stock fair market value adjustment		—		—		—			—		—			561			—			—			—			561			(561	)
Adjustment for noncontrolling interests in Operating Partnership		—		—		—			—		66			—			—			(66	)		—			—			—
Cumulative adjustment due to adoption of ASU 2017-12		—		—		—			—		—			(233	)		233			—			—			—			—
Amortization of unearned compensation		—		—		—			—		12,903			—			—			—			—			12,903			—
Dividends on preferred stock		—		—		—			—		—			(3,688	)		—			—			—			(3,688	)		—
Dividends on common stock ($3.7275 per share)		—		—		—			—		—			(424,302	)		—			—			—			(424,302	)		—
Dividends on noncontrolling interests units ($3.7275 per unit)		—		—		—			—		—			—			—			(15,159	)		—			(15,159	)		—
EQUITY BALANCE DECEMBER 31, 2018		868	$	9		113,746		$	1,136	$	7,138,170		$	(989,263	)	$	(212	)	$	220,043		$	2,306		$	6,372,189		$	9,414
Net income		—		—		—			—		—			353,811			—			12,671			136			366,618			—
Other comprehensive loss - derivative instruments		—		—		—			—		—			—			(12,966	)		(457	)		—			(13,423	)		—
Issuance and registration of common shares		—		—		338			4		20,496			—			—			—			—			20,500			1,651
Shares repurchased and retired		—		—		(37	)		—		(3,724	)		—			—			—			—			(3,724	)		—
Exercise of stock options		—		—		48			—		2,881			—			—			—			—			2,881			—
Shares issued in exchange for common units		—		—		44			—		2,366			—			—			(2,366	)		—			—			—
Shares issued in exchange for redeemable stock		—		—		—			—		575			—			—			—			—			575			(575	)
Redeemable stock fair market value adjustment		—		—		—			—		—			(3,641	)		—			—			—			(3,641	)		3,641
Adjustment for noncontrolling interests in Operating Partnership		—		—		—			—		(816	)		—			—			816			—			—			—
Amortization of unearned compensation		—		—		—			—		14,684			—			—			—			—			14,684			—
Dividends on preferred stock		—		—		—			—		—			(3,688	)		—			—			—			(3,688	)		—
Dividends on common stock ($3.8800 per share)		—		—		—			—		—			(442,698	)		—			—			—			(442,698	)		—
Dividends on noncontrolling interests units ($3.8800 per unit)		—		—		—			—		—			—			—			(16,060	)		—			(16,060	)		—
Acquisition of noncontrolling interest		—		—		—			—		(8,559	)		—			—			—			(2,321	)		(10,880	)		—
Contributions from noncontrolling interest		—		—		—			—		—			—			—			—			6,126			6,126			—
EQUITY BALANCE DECEMBER 31, 2019		868	$	9		114,139		$	1,140	$	7,166,073		$	(1,085,479	)	$	(13,178	)	$	214,647		$	6,247		$	6,289,459		$	14,131

Mid-America Apartment Communities, Inc. Shareholders Noncontrolling Interests - Operating Partnership Noncontrolling Interest - Consolidated Real Estate Entity
Preferred Stock Common Stock Additional Paid-In Capital Accumulated Distributions in Excess of Net Income Accumulated Other Comprehensive (Loss) Income Total Equity Redeemable Stock
Shares Amount Shares Amount
EQUITY BALANCE DECEMBER 31, 2015 —
$ —
75,318
$ 753
$ 3,627,074
$ (634,141 ) $ (1,589 ) $ 165,726
$ —
$ 3,157,823
$ 8,250
Net income —
—
—
—
—
212,222
—
12,180
—
224,402
—
Other comprehensive income - derivative instruments —
—
—
—
—
—
2,733
131
—
2,864
—
Issuance and registration of common shares —
—
38,097
380
3,406,150
—
—
72,759
—
3,479,289
1,240
Issuance and registration of preferred shares 868
9
—
—
64,824
—
—
—
—
64,833
—
Shares repurchased and retired —
—
(23 ) —
(2,019 ) —
—
—
—
(2,019 ) —
Shares issued in exchange for common units —
—
23
—
902
—
—
(902 ) —
—
—
Shares issued in exchange for redeemable stock —
—
—
—
122
—
—
—
—
122
(122 )
Redeemable stock fair market value adjustment —
—
—
—
—
(705 ) —
—
—
(705 ) 705
Adjustment for noncontrolling interests in Operating Partnership —
—
—
—
(192 ) —
—
192
—
—
—
Amortization of unearned compensation —
—
—
—
12,151
—
—
—
—
12,151
—
Noncontrolling interests distribution —
—
—
—
—
—
—
(226 ) —
(226 ) —
Dividends on preferred stock —
—
—
—
—
(307 ) —
—
—
(307 ) —
Dividends on common stock ($3.3300 per share) —
—
—
—
—
(284,548 ) —
—
—
(284,548 ) —
Dividends on noncontrolling interests units ($3.3300 per unit) —
—
—
—
—
—
—
(13,884 ) —
(13,884 ) —
Acquired capital from noncontrolling interest - consolidated real estate entity —
—
—
—
—
—
—
—
2,306
2,306
—
EQUITY BALANCE DECEMBER 31, 2016 868
$ 9
113,415
$ 1,133
$ 7,109,012
$ (707,479 ) $ 1,144
$ 235,976
$ 2,306
$ 6,642,101
$ 10,073
Net income —
—
—
—
—
328,379
—
12,157
—
340,536
—
Other comprehensive income - derivative instruments —
—
—
—
—
—
1,013
36
—
1,049
—
Issuance and registration of common shares —
—
137
1
615
—
—
—
—
616
1,588
Issuance and registration of preferred shares —
—
—
—
2,007
—
—
—
—
2,007
—
Shares repurchased and retired —
—
(51 ) —
(4,782 ) —
—
—
—
(4,782 ) —
Exercise of stock options —
—
10
—
218
—
—
—
—
218
—
Shares issued in exchange for common units —
—
29
—
1,602
—
—
(1,602 ) —
—
—
Shares issued in exchange for redeemable stock —
—
—
—
1,482
—
—
—
—
1,482
(1,482 )
Redeemable stock fair market value adjustment —
—
—
—
—
(229 ) —
—
—
(229 ) 229
Adjustment for noncontrolling interests in Operating Partnership —
—
—
—
42
—
—
(42 ) —
—
—
Amortization of unearned compensation —
—
—
—
10,916
(114 ) —
—
—
10,802
—
Dividends on preferred stock —
—
—
—
—
(3,688 ) —
—
—
(3,688 ) —
Dividends on common stock ($3.5325 per share) —
—
—
—
—
(401,369 ) —
—
—
(401,369 ) —
Dividends on noncontrolling interests units ($3.5325 per unit) —
—
—
—
—
—
—
(14,849 ) —
(14,849 ) —
EQUITY BALANCE DECEMBER 31, 2017 868
$ 9
113,540
$ 1,134
$ 7,121,112
$ (784,500 ) $ 2,157
$ 231,676
$ 2,306
$ 6,573,894
$ 10,408
Net income —
—
—
—
—
222,899
—
8,123
—
231,022
—
Other comprehensive loss - derivative instruments —
—
—
—
—
—
(2,602 ) (87 ) —
(2,689 ) —
Issuance and registration of common shares —
—
142
1
(264 ) —
—
—
—
(263 ) 1,482
Shares repurchased and retired —
—
(34 ) —
(2,921 ) —
—
—
—
(2,921 ) —
Exercise of stock options —
—
18
—
916
—
—
—
—
916
—
Shares issued in exchange for common units —
—
80
1
4,443
—
—
(4,444 ) —
—
—
Shares issued in exchange for redeemable stock —
—
—
—
1,915
—
—
—
—
1,915
(1,915 )
Redeemable stock fair market value adjustment —
—
—
—
—
561
—
—
—
561
(561 )
Adjustment for noncontrolling interests in Operating Partnership —
—
—
—
66
—
—
(66 ) —
—
—
Cumulative adjustment due to adoption of ASU 2017-12 —
—
—
(233 ) 233
—
—
—
Amortization of unearned compensation —
—
—
—
12,903
—
—
—
—
12,903
—
Dividends on preferred stock —
—
—
—
—
(3,688 ) —
—
—
(3,688 ) —
Dividends on common stock ($3.7275 per share) —
—
—
—
—
(424,302 ) —
—
—
(424,302 ) —
Dividends on noncontrolling interests units ($3.7275 per unit) —
—
—
—
—
—
—
(15,159 ) —
(15,159 ) —
EQUITY BALANCE DECEMBER 31, 2018 868
$ 9
113,746
$ 1,136
$ 7,138,170
$ (989,263 ) $ (212 ) $ 220,043
$ 2,306
$ 6,372,189
$ 9,414

See accompanying notes to consolidated financial statements.

Mid-America Apartment Communities, Inc.

Consolidated Statements of Cash Flows

Years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~

2017

(Dollars in thousands)

	2019			2018			2017
Cash flows from operating activities:
Net income	$	366,618		$	231,022		$	340,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		497,790			490,995			494,540
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39			(127,386	)
Gain on sale of non-depreciable real estate assets		(12,047	)		(4,532	)		(21	)
Stock compensation expense		13,654			12,444			10,570
Amortization of debt issuance costs, discounts and premiums		5,778			(4,990	)		(9,810	)
Net change in operating accounts and other operating activities		(9,385	)		9,314			(47,629	)
Net cash provided by operating activities		781,420			734,292			660,800
Cash flows from investing activities:
Purchases of real estate and other assets		(105,106	)		(129,487	)		(136,065	)
Capital improvements, development and other		(303,097	)		(254,715	)		(343,890	)
Distributions from real estate joint ventures		507			775			—
Contributions to affiliates		(5,391	)		(2,905	)		(1,500	)
Proceeds from disposition of real estate assets		174,814			19,982			187,245
Net cash used in investing activities		(238,273	)		(366,350	)		(294,210	)
Cash flows from financing activities:
Proceeds from lines of credit		565,000			1,540,000			805,000
Repayments of lines of credit		(1,105,000	)		(1,490,000	)		(965,000	)
Net proceeds from commercial paper		70,000			—			—
Proceeds from notes payable		1,059,289			869,630			597,480
Principal payments on notes payable		(657,619	)		(878,610	)		(413,557	)
Payment of deferred financing costs		(14,274	)		(6,060	)		(5,358	)
Distributions to noncontrolling interests		(15,939	)		(15,079	)		(14,654	)
Dividends paid on common shares		(437,743	)		(419,849	)		(395,294	)
Dividends paid on preferred shares		(3,688	)		(3,688	)		(3,688	)
Net change in other financing activities		15,695			(1,480	)		(4,452	)
Net cash used in financing activities		(524,279	)		(405,136	)		(399,523	)
Net increase (decrease) in cash, cash equivalents and restricted cash		18,868			(37,194	)		(32,933	)
Cash, cash equivalents and restricted cash, beginning of period		51,673			88,867			121,800
Cash, cash equivalents and restricted cash, end of period	$	70,541		$	51,673		$	88,867

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	20,476	$	34,259		$	10,750
Restricted cash		50,065		17,414			78,117
Total cash, cash equivalents and restricted cash	$	70,541	$	51,673		$	88,867
Supplemental disclosure of cash flow information:
Interest paid	$	169,743	$	184,834		$	166,757
Income taxes paid		2,546		2,550			2,366
Supplemental disclosure of noncash investing and financing activities:
Conversion of OP Units to shares of common stock	$	2,366	$	4,443		$	1,602
Accrued construction in progress		9,298		8,581			7,852
Interest capitalized		2,889		2,047			7,238
Mark-to-market adjustment on derivative instruments		19,578		(6,436	)		17,806

2018 2017 2016
Cash flows from operating activities:

Net income $ 231,022
$ 340,536
$ 224,402
   Adjustments to reconcile net income to net cash provided by operating activities:

     Depreciation and amortization 490,995
494,540
323,283
     Loss (gain) on sale of depreciable real estate assets 39
(127,386 ) (80,397 )
     Gain on sale of non-depreciable real estate assets (4,532 ) (21 ) (2,171 )
     Stock compensation expense 12,444
10,570
11,486
     Amortization of debt premium and debt issuance costs (4,990 ) (9,810 ) (9,820 )
     Net change in operating accounts and other 9,314
(47,629 ) 18,221
Net cash provided by operating activities 734,292
660,800
485,004

Cash flows from investing activities:

     Purchases of real estate and other assets (129,487 ) (136,065 ) (339,186 )
     Capital improvements, development and other (254,715 ) (343,890 ) (183,977 )
     Distributions from real estate joint ventures 775
—
1,778
     Contributions to affiliates (2,905 ) (1,500 ) —
     Proceeds from disposition of real estate assets 19,982
187,245
296,410
Acquisition of Post Properties, net of cash acquired —
—
(424,156 )
Net cash used in investing activities (366,350 ) (294,210 ) (649,131 )

Cash flows from financing activities:

     Proceeds from lines of credit 1,540,000
805,000
635,000
Repayments of lines of credit (1,490,000 ) (965,000 ) (300,000 )
     Proceeds from notes payable 869,630
597,480
300,000
     Principal payments on notes payable (878,610 ) (413,557 ) (146,026 )
     Payment of deferred financing costs (6,060 ) (5,358 ) (2,395 )
     Repurchase of common stock (2,921 ) (4,782 ) (2,019 )
Debt prepayment and extinguishment costs (60 ) (1,659 ) (139 )
     Proceeds from issuances of common shares 585
1,557
291
     Exercise of stock options 916
432
—
     Distributions to noncontrolling interests (15,079 ) (14,654 ) (13,850 )
     Dividends paid on common shares (419,849 ) (395,294 ) (247,652 )
     Dividends paid on preferred shares (3,688 ) (3,688 ) (924 )
Net cash (used in) provided by financing activities (405,136 ) (399,523 ) 222,286

Net (decrease) increase in cash, cash equivalents and restricted cash (37,194 ) (32,933 ) 58,159
Cash, cash equivalents and restricted cash, beginning of period 88,867
121,800
63,641
Cash, cash equivalents and restricted cash, end of period $ 51,673
$ 88,867
$ 121,800

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents $ 34,259
$ 10,750
$ 33,536
Restricted cash 17,414
78,117
88,264
Total cash, cash equivalents and restricted cash $ 51,673
$ 88,867
$ 121,800

Supplemental disclosure of cash flow information:

Interest paid $ 184,834
$ 166,757
$ 144,843
Income taxes paid 2,550
2,366
1,582

Supplemental disclosure of noncash investing and financing activities:
Conversion of OP Units to shares of common stock $ 4,443
$ 1,602
$ 902
Accrued construction in progress 8,581
7,852
31,491
Interest capitalized 2,047
7,238
2,073
Mark-to-market adjustment on derivative instruments (6,436 ) 17,806
5,670
Fair value adjustment on debt assumed from the Post Properties merger —
—
8,864
Loan assumption from the Post Properties merger —
—
586,744
Purchase price for the Post Properties merger —
—
4,006,586

See accompanying notes to consolidated financial statements.

Mid-America Apartments, L.P.

Consolidated Balance Sheets

December 31, ~~2018~~2019 and ~~2017~~

2018

(Dollars in thousands, except unit data)

	December 31, 2019			December 31, 2018
Assets
Real estate assets:
Land	$	1,905,757		$	1,868,828
Buildings and improvements and other		11,841,978			11,670,216
Development and capital improvements in progress		116,424			59,506
		13,864,159			13,598,550
Less: Accumulated depreciation		(2,955,253	)		(2,549,287	)
		10,908,906			11,049,263
Undeveloped land		34,548			58,257
Investment in real estate joint venture		43,674			44,181
Real estate assets, net		10,987,128			11,151,701

Cash and cash equivalents		20,476			34,259
Restricted cash		50,065			17,414
Other assets		172,781			120,407
Total assets	$	11,230,450		$	11,323,781

Liabilities and capital
Liabilities:
Unsecured notes payable	$	3,828,201		$	4,053,302
Secured notes payable		626,397			475,026
Accrued expenses and other liabilities		472,262			413,850
Due to general partner		19			19
Total liabilities		4,926,879			4,942,197

Redeemable common units		14,131			9,414

Operating Partnership capital:
Preferred units, 867,846 preferred units outstanding as of December 31, 2019 and December 31, 2018, respectively		66,840			66,840
General partner, 114,246,393 and 113,844,267 OP Units outstanding as of December 31, 2019 and December 31, 2018, respectively ⁽¹⁾		6,015,290			6,083,142
Limited partners, 4,067,174 and 4,111,301 OP Units outstanding as of December 31, 2019 and December 31, 2018, respectively ⁽¹⁾		214,647			220,043
Accumulated other comprehensive loss		(13,584	)		(161	)
Total operating partners’ capital		6,283,193			6,369,864
Noncontrolling interests - consolidated real estate entities		6,247			2,306
Total equity		6,289,440			6,372,170
Total liabilities and equity	$	11,230,450		$	11,323,781

December 31, 2018 December 31, 2017
Assets
Real estate assets:
Land $ 1,868,828
$ 1,836,417
Buildings and improvements and other 11,670,216
11,281,504
Development and capital improvements in progress 59,506
116,833
13,598,550
13,234,754
Less: Accumulated depreciation (2,549,287 ) (2,075,071 )
11,049,263
11,159,683
Undeveloped land 58,257
57,285
Investment in real estate joint venture 44,181
44,956
Real estate assets, net 11,151,701
11,261,924

Cash and cash equivalents 34,259
10,750
Restricted cash 17,414
78,117
Other assets 120,407
135,807
Assets held for sale —
5,321
Total assets $ 11,323,781
$ 11,491,919

Liabilities and capital

Liabilities:

Unsecured notes payable $ 4,053,302
$ 3,525,765
Secured notes payable 475,026
976,292
Accrued expenses and other liabilities 413,850
405,560
Due to general partner 19
19
Total liabilities 4,942,197
4,907,636

Redeemable common units 9,414
10,408

Operating Partnership capital:

Preferred units, 867,846 preferred units outstanding as of December 31, 2018 and December 31, 2017, respectively 66,840
66,840
Common Units:
General partner, 113,844,267 and 113,643,166 OP Units outstanding as of December 31, 2018 and December 31, 2017, respectively ⁽¹⁾
6,083,142
6,270,758
Limited partners, 4,111,301 and 4,191,586 OP Units outstanding as of December 31, 2018 and December 31, 2017, respectively ⁽¹⁾
220,043
231,676
Accumulated other comprehensive (loss) income (161 ) 2,295
Total operating partners' capital 6,369,864
6,571,569
Noncontrolling interest - consolidated real estate entity 2,306
2,306
Total capital 6,372,170
6,573,875
Total liabilities and capital $ 11,323,781
$ 11,491,919

⁽¹⁾
~~(1)~~	Number of units outstanding represents total OP Units regardless of classification on the Consolidated Balance Sheets. The number of units classified as redeemable common units on the Consolidated Balance Sheets as of December 31, ~~2018~~2019 and December 31, ~~2017~~2018 are 107,162 and 98,371 ~~and 103,504,~~shares, respectively.

See accompanying notes to consolidated financial statements.

Mid-America Apartments, L.P.

Consolidated Statements of Operations

Years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~

2017

(Dollars in thousands, except per unit data)

	2019			2018			2017
Revenues:
Rental and other property revenues	$	1,641,017		$	1,571,346		$	1,528,987
Expenses:
Operating expense, excluding real estate taxes and insurance		377,453			371,095			364,190
Real estate taxes and insurance		235,392			223,493			212,541
Depreciation and amortization		496,843			489,759			493,708
Total property operating expenses		1,109,688			1,084,347			1,070,439
Property management expenses		55,011			47,633			43,588
General and administrative expenses		46,121			34,786			40,194
Merger and integration related expenses		—			9,112			19,990
Interest expense		179,847			173,594			154,751
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39			(127,386	)
Gain on sale of non-depreciable real estate assets		(12,047	)		(4,532	)		(21	)
Other non-operating income		(25,275	)		(5,434	)		(14,353	)
Income before income tax expense		368,660			231,801			341,785
Income tax expense		(3,696	)		(2,611	)		(2,619	)
Income from continuing operations before real estate joint venture activity		364,964			229,190			339,166
Income from real estate joint venture		1,654			1,832			1,370
Net income		366,618			231,022			340,536
Net income attributable to noncontrolling interests		136			—			—
Net income available for MAALP unitholders		366,482			231,022			340,536
Distributions to MAALP preferred unitholders		3,688			3,688			3,688
Net income available for MAALP common unitholders	$	362,794		$	227,334		$	336,848
Earnings per common unit - basic:
Net income available for MAALP common unitholders	$	3.07		$	1.93		$	2.86
Earnings per common unit - diluted:
Net income available for MAALP common unitholders	$	3.07		$	1.93		$	2.86

2018 2017 2016
Revenues:
Rental and other property revenues $ 1,571,346
$ 1,528,987
$ 1,125,348
Expenses:

Operating expense, excluding real estate taxes and insurance 371,095
364,190
280,572
Real estate taxes and insurance 223,493
212,541
142,784
Depreciation and amortization 489,759
493,708
322,958
Total property operating expenses 1,084,347
1,070,439
746,314
Property management expenses 47,633
43,588
34,093
General and administrative expenses 34,786
40,194
29,040
Merger and integration related expenses 9,112
19,990
40,823
Interest expense 173,594
154,751
129,947
Loss (gain) on sale of depreciable real estate assets 39
(127,386 ) (80,397 )
Gain on sale of non-depreciable real estate assets (4,532 ) (21 ) (2,171 )
Other non-operating (income) expense (5,434 ) (14,353 ) 1,839
Income before income tax expense 231,801
341,785
225,860
Income tax expense (2,611 ) (2,619 ) (1,699 )
Income from continuing operations before real estate joint venture activity 229,190
339,166
224,161
Income from real estate joint venture 1,832
1,370
241
Net income 231,022
340,536
224,402
Dividends to preferred unitholders 3,688
3,688
307
Net income available for MAALP common unitholders $ 227,334
$ 336,848
$ 224,095

Earnings per common unit - basic:

Net income available for MAALP common unitholders $ 1.93
$ 2.86
$ 2.70

Earnings per common unit - diluted:

Net income available for MAALP common unitholders $ 1.93
$ 2.86
$ 2.70

See accompanying notes to consolidated financial statements.

Mid-America Apartments, L.P.

Consolidated Statements of Comprehensive Income

Years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~

2017

(Dollars in thousands)

	2019			2018			2017
Net income	$	366,618		$	231,022		$	340,536
Other comprehensive (loss) income:
Unrealized (loss) gain from derivative instruments		(11,676	)		(751	)		319
Adjustment for net (gains) losses reclassified to net income from derivative instruments		(1,747	)		(1,938	)		730
Total comprehensive income		353,195			228,333			341,585
Less: Comprehensive income attributable to noncontrolling interests		(136	)		—			—
Comprehensive income attributable to MAALP	$	353,059		$	228,333		$	341,585

2018 2017 2016
Net income $ 231,022
$ 340,536
$ 224,402
Other comprehensive (loss) income:
Unrealized (loss) gain from the effective portion of derivative instruments (751 ) 319
(1,500 )
Reclassification adjustment for net (gains) losses included in net income for the effective portion of derivative instruments (1,938 ) 730
4,364
Comprehensive income attributable to MAALP $ 228,333
$ 341,585
$ 227,266

See accompanying notes to consolidated financial statements.

~~Mid-America Apartments, L.P.~~

~~Consolidated Statements of Changes in Capital~~

~~Years ended~~ ~~December 31, 2018~~, ~~2017~~ ~~and~~ ~~2016~~

(~~Dollars in thousands)~~

Mid-America Apartments, L.P. Unitholders Noncontrolling Interest - Consolidated Real Estate Entity Total Partnership Capital Redeemable Units
Limited Partner General Partner Preferred Units
Accumulated
Other
Comprehensive(Loss) Income

CAPITAL BALANCE DECEMBER 31, 2015 $ 165,726
$ 2,993,696
$ —
$ (1,618 ) $ —
$ 3,157,804
$ 8,250
Net income 12,180
211,915
307
—
—
224,402
—
Other comprehensive income - derivative instruments —
—
—
2,864
—
2,864
—
Issuance of units 72,759
3,406,530
64,833
—
—
3,544,122
1,240
Units repurchased and retired —
(2,019 ) —
—
—
(2,019 ) —
General partner units issued in exchange for limited partner units (902 ) 902
—
—
—
—
—
Units issued in exchange for redeemable units —
122
—
—
—
122
(122 )
Redeemable units fair market value adjustment —
(705 ) —
—
—
(705 ) 705
Adjustment for limited partners' capital at redemption value 323
(323 ) —
—
—
—
—
Amortization of unearned compensation —
12,151
—
—
—
12,151
—
Noncontrolling interest distribution (226 ) —
—
—
—
(226 ) —
Distributions to preferred unitholders —
—
(307 ) —
—
(307 ) —
Distributions to common unitholders ($3.3300 per unit) (13,884 ) (284,548 ) —
—
—
(298,432 ) —
Acquired capital from noncontrolling interest - consolidated real estate entity
—
—
—
—
2,306
2,306
—
CAPITAL BALANCE DECEMBER 31, 2016 $ 235,976
$ 6,337,721
$ 64,833
$ 1,246
$ 2,306
$ 6,642,082
$ 10,073
Net income 12,157
324,691
3,688
—
—
340,536
—
Other comprehensive income - derivative instruments —
—
—
1,049
—
1,049
—
Issuance of units —
616
2,007
—
—
2,623
1,588
Units repurchased and retired —
(4,782 ) —
—
—
(4,782 ) —
Exercise of unit options —
218
—
—
—
218
—
General partner units issued in exchange for limited partner units (1,602 ) 1,602
—
—
—
—
—
Units issued in exchange for redeemable units —
1,482
—
—
—
1,482
(1,482 )
Redeemable units fair market value adjustment —
(229 ) —
—
—
(229 ) 229
Adjustment for limited partners' capital at redemption value (6 ) 6
—
—
—
—
—
Amortization of unearned compensation —
10,802
—
—
—
10,802
—
Distributions to preferred unitholders —
—
(3,688 ) —
—
(3,688 ) —
Distributions to common unitholders ($3.5325 per unit) (14,849 ) (401,369 ) —
—
—
(416,218 ) —
CAPITAL BALANCE DECEMBER 31, 2017 $ 231,676
$ 6,270,758
$ 66,840
$ 2,295
$ 2,306
$ 6,573,875
$ 10,408
Net income 8,123
219,211
3,688
—
—
231,022
—
Other comprehensive loss - derivative instruments —
—
—
(2,689 ) —
(2,689 ) —
Issuance of units —
(264 ) —
—
—
(264 ) 1,482
Units repurchased and retired —
(2,921 ) —
—
—
(2,921 ) —
Exercise of unit options —
916
—
—
—
916
—
General partner units issued in exchange for limited partner units (4,444 ) 4,444
—
—
—
—
—
Units issued in exchange for redeemable units —
1,915
—
—
—
1,915
(1,915 )
Redeemable units fair market value adjustment —
561
—
—
—
561
(561 )
Adjustment for limited partners' capital at redemption value (153 ) 153
—
—
—
—
—
Cumulative adjustment due to adoption of ASU 2017-12 —
(233 ) —
233
—
—
—
Amortization of unearned compensation —
12,904
—
—
—
12,904
—
Distributions to preferred unitholders —
—
(3,688 ) —
—
(3,688 ) —
Distributions to common unitholders ($3.7275 per unit) (15,159 ) (424,302 ) —
—
—
(439,461 ) —
CAPITAL BALANCE DECEMBER 31, 2018 $ 220,043
$ 6,083,142
$ 66,840
$ (161 ) $ 2,306
$ 6,372,170
$ 9,414

See accompanying notes to consolidated financial statements.

Mid-America Apartments, L.P.

Consolidated Statements of ~~Cash Flows~~

Changes in Capital

Years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~

2017

(Dollars in thousands)

	Mid-America Apartments, L.P. Unitholders												Noncontrolling
	Limited Partner			General Partner			Preferred Units			Accumulated Other Comprehensive (Loss) Income			Interests - Consolidated Real Estate Entities			Total Partnership Capital			Redeemable Common Units
CAPITAL BALANCE DECEMBER 31, 2016	$	235,976		$	6,337,721		$	64,833		$	1,246		$	2,306		$	6,642,082		$	10,073
Net income		12,157			324,691			3,688			—			—			340,536			—
Other comprehensive income - derivative instruments		—			—			—			1,049			—			1,049			—
Issuance of units		—			616			2,007			—			—			2,623			1,588
Units repurchased and retired		—			(4,782	)		—			—			—			(4,782	)		—
Exercise of unit options		—			218			—			—			—			218			—
General partner units issued in exchange for limited partner units		(1,602	)		1,602			—			—			—			—			—
Units issued in exchange for redeemable units		—			1,482			—			—			—			1,482			(1,482	)
Redeemable units fair market value adjustment		—			(229	)		—			—			—			(229	)		229
Adjustment for limited partners' capital at redemption value		(6	)		6			—			—			—			—			—
Amortization of unearned compensation		—			10,802			—			—			—			10,802			—
Distributions to preferred unitholders		—			—			(3,688	)		—			—			(3,688	)		—
Distributions to common unitholders ($3.5325 per unit)		(14,849	)		(401,369	)		—			—			—			(416,218	)		—
CAPITAL BALANCE DECEMBER 31, 2017	$	231,676		$	6,270,758		$	66,840		$	2,295		$	2,306		$	6,573,875		$	10,408
Net income		8,123			219,211			3,688			—			—			231,022			—
Other comprehensive loss - derivative instruments		—			—			—			(2,689	)		—			(2,689	)		—
Issuance of units		—			(264	)		—			—			—			(264	)		1,482
Units repurchased and retired		—			(2,921	)		—			—			—			(2,921	)		—
Exercise of unit options		—			916			—			—			—			916			—
General partner units issued in exchange for limited partner units		(4,444	)		4,444			—			—			—			—			—
Units issued in exchange for redeemable units		—			1,915			—			—			—			1,915			(1,915	)
Redeemable units fair market value adjustment		—			561			—			—			—			561			(561	)
Adjustment for limited partners' capital at redemption value		(153	)		153			—			—			—			—			—
Cumulative adjustment due to adoption of ASU 2017-12		—			(233	)		—			233			—			—			—
Amortization of unearned compensation		—			12,904			—			—			—			12,904			—
Distributions to preferred unitholders		—			—			(3,688	)		—			—			(3,688	)		—
Distributions to common unitholders ($3.7275 per unit)		(15,159	)		(424,302	)		—			—			—			(439,461	)		—
CAPITAL BALANCE DECEMBER 31, 2018	$	220,043		$	6,083,142		$	66,840		$	(161	)	$	2,306		$	6,372,170		$	9,414
Net income		12,671			350,123			3,688			—			136			366,618			—
Other comprehensive loss - derivative instruments		—			—			—			(13,423	)		—			(13,423	)		—
Issuance of units		—			20,500			—			—			—			20,500			1,651
Units repurchased and retired		—			(3,724	)		—			—			—			(3,724	)		—
Exercise of unit options		—			2,881			—			—			—			2,881			—
General partner units issued in exchange for limited partner units		(2,366	)		2,366			—			—			—			—			—
Units issued in exchange for redeemable units		—			575			—			—			—			575			(575	)
Redeemable units fair market value adjustment		—			(3,641	)		—			—			—			(3,641	)		3,641
Adjustment for limited partners' capital at redemption value		359			(359	)		—			—			—			—			—
Amortization of unearned compensation		—			14,684			—			—			—			14,684			—
Distributions to preferred unitholders		—			—			(3,688	)		—			—			(3,688	)		—
Distributions to common unitholders ($3.8800 per unit)		(16,060	)		(442,698	)		—			—			—			(458,758	)		—
Acquisition of noncontrolling interest		—			(8,559	)		—			—			(2,321	)		(10,880	)		—
Contribution from noncontrolling interest		—			—			—			—			6,126			6,126			—
CAPITAL BALANCE DECEMBER 31, 2019	$	214,647		$	6,015,290		$	66,840		$	(13,584	)	$	6,247		$	6,289,440		$	14,131

2018 2017 2016
Cash flows from operating activities:
Net income $ 231,022
$ 340,536
$ 224,402
   Adjustments to reconcile net income to net cash provided by operating activities:

     Depreciation and amortization 490,995
494,540
323,283
     Loss (gain) on sale of depreciable real estate assets 39
(127,386 ) (80,397 )
     Gain on sale of non-depreciable real estate assets (4,532 ) (21 ) (2,171 )
     Stock compensation expense 12,444
10,570
11,486
     Amortization of debt premium and debt issuance costs (4,990 ) (9,810 ) (9,820 )
     Net change in operating accounts and other 9,314
(47,629 ) 18,221
Net cash provided by operating activities 734,292
660,800
485,004

Cash flows from investing activities:

     Purchases of real estate and other assets (129,487 ) (136,065 ) (339,186 )
     Capital improvements, development and other (254,715 ) (343,890 ) (183,977 )
     Distributions from real estate joint ventures 775
—
1,778
     Contributions to affiliates (2,905 ) (1,500 ) —
     Proceeds from disposition of real estate assets 19,982
187,245
296,410
Acquisition of Post Properties, net of cash acquired —
—
(424,156 )
Net cash used in investing activities (366,350 ) (294,210 ) (649,131 )

Cash flows from financing activities:

     Proceeds from lines of credit 1,540,000
805,000
635,000
Repayments of lines of credit (1,490,000 ) (965,000 ) (300,000 )
     Proceeds from notes payable 869,630
597,480
300,000
     Principal payments on notes payable (878,610 ) (413,557 ) (146,026 )
     Payment of deferred financing costs (6,060 ) (5,358 ) (2,395 )
     Repurchase of common units (2,921 ) (4,782 ) (2,019 )
Debt prepayment and extinguishment costs (60 ) (1,659 ) (139 )
     Proceeds from issuances of common units 585
1,557
291
     Exercise of unit options 916
432
—
     Distributions paid on common units (434,928 ) (409,948 ) (261,502 )
     Distributions paid on preferred units (3,688 ) (3,688 ) (924 )
Net cash (used in) provided by financing activities (405,136 ) (399,523 ) 222,286

Net (decrease) increase in cash, cash equivalents and restricted cash (37,194 ) (32,933 ) 58,159
Cash, cash equivalents and restricted cash, beginning of period 88,867
121,800
63,641
Cash, cash equivalents and restricted cash, end of period $ 51,673
$ 88,867
$ 121,800

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents $ 34,259
$ 10,750
$ 33,536
Restricted cash 17,414
78,117
88,264
Total cash, cash equivalents and restricted cash $ 51,673
$ 88,867
$ 121,800

Supplemental disclosure of cash flow information:

Interest paid $ 184,834
$ 166,757
$ 144,843
Income taxes paid 2,550
2,366
1,582

Supplemental disclosure of noncash investing and financing activities:
Accrued construction in progress $ 8,581
$ 7,852
$ 31,491
Interest capitalized 2,047
7,238
2,073
Mark-to-market adjustment on derivative instruments (6,436 ) 17,806
5,670
Fair value adjustment on debt assumed from the Post Properties merger —
—
8,864
Loan assumption from the Post Properties merger —
—
586,744
Purchase price for the Post Properties merger —
—
4,006,586

See accompanying notes to consolidated financial statements.

Mid-America Apartments, L.P.

Consolidated Statements of Cash Flows

Years ended December 31, 2019, 2018 and 2017

(Dollars in thousands)

	2019			2018			2017
Cash flows from operating activities:
Net income	$	366,618		$	231,022		$	340,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		497,790			490,995			494,540
(Gain) loss on sale of depreciable real estate assets		(80,988	)		39			(127,386	)
Gain on sale of non-depreciable real estate assets		(12,047	)		(4,532	)		(21	)
Stock compensation expense		13,654			12,444			10,570
Amortization of debt issuance costs, discounts and premiums		5,778			(4,990	)		(9,810	)
Net change in operating accounts and other operating activities		(9,385	)		9,314			(47,629	)
Net cash provided by operating activities		781,420			734,292			660,800
Cash flows from investing activities:
Purchases of real estate and other assets		(105,106	)		(129,487	)		(136,065	)
Capital improvements, development and other		(303,097	)		(254,715	)		(343,890	)
Distributions from real estate joint ventures		507			775			—
Contributions to affiliates		(5,391	)		(2,905	)		(1,500	)
Proceeds from disposition of real estate assets		174,814			19,982			187,245
Net cash used in investing activities		(238,273	)		(366,350	)		(294,210	)
Cash flows from financing activities:
Proceeds from lines of credit		565,000			1,540,000			805,000
Repayments of lines of credit		(1,105,000	)		(1,490,000	)		(965,000	)
Net proceeds from commercial paper		70,000			—			—
Proceeds from notes payable		1,059,289			869,630			597,480
Principal payments on notes payable		(657,619	)		(878,610	)		(413,557	)
Payment of deferred financing costs		(14,274	)		(6,060	)		(5,358	)
Distributions paid on common units		(453,682	)		(434,928	)		(409,948	)
Distributions paid on preferred units		(3,688	)		(3,688	)		(3,688	)
Net change in other financing activities		15,695			(1,480	)		(4,452	)
Net cash used in financing activities		(524,279	)		(405,136	)		(399,523	)
Net increase (decrease) in cash, cash equivalents and restricted cash		18,868			(37,194	)		(32,933	)
Cash, cash equivalents and restricted cash, beginning of period		51,673			88,867			121,800
Cash, cash equivalents and restricted cash, end of period	$	70,541		$	51,673		$	88,867

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	20,476	$	34,259		$	10,750
Restricted cash		50,065		17,414			78,117
Total cash, cash equivalents and restricted cash	$	70,541	$	51,673		$	88,867
Supplemental disclosure of cash flow information:
Interest paid	$	169,743	$	184,834		$	166,757
Income taxes paid		2,546		2,550			2,366
Supplemental disclosure of noncash investing and financing activities:
Accrued construction in progress	$	9,298	$	8,581		$	7,852
Interest capitalized		2,889		2,047			7,238
Mark-to-market adjustment on derivative instruments		19,578		(6,436	)		17,806

See accompanying notes to consolidated financial statements.

Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

Notes to Consolidated Financial Statements

Years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~

2017

1.
1.	Organization and Summary of Significant Accounting Policies

Unless the context otherwise requires, all references to the ~~"Company"~~“Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references to ~~"MAA"~~“MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, the references to the ~~"Operating Partnership"~~“Operating Partnership” or ~~"MAALP"~~“MAALP” refer to Mid-America Apartments, L.P. together with its consolidated subsidiaries. ~~"Common stock"~~“Common stock” refers to the common stock of MAA and, unless the context otherwise requires, ~~"shareholders"~~“shareholders” refers to the holders of shares of MAA’s common stock. The common units of limited partnership interests in the Operating Partnership are referred to as ~~"OP~~“OP Units,"” and the holders of the OP Units are referred to as ~~"common unitholders"~~“common unitholders”.

As of December 31, ~~2018,~~2019, MAA owned ~~113,844,267~~114,246,393 OP Units (or ~~96.5%~~96.6% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership's sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

Management believes combining the notes to the consolidated financial statements of MAA and the Operating Partnership results in the following benefits:

•

enhances a readers' understanding of MAA and the Operating Partnership by enabling the reader to view the business as a whole in the same manner that management views and operates the business;

•

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MAA and the Operating Partnership; and

~~enhances a readers' understanding~~

•

creates time and cost efficiencies through the preparation of one combined set of notes instead of two separate sets.

MAA, ~~and the Operating Partnership by enabling the reader to view the business as a whole in the same manner that management views and operates the business;~~

~~eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MAA and the Operating Partnership; and~~

~~creates time and cost efficiencies through the preparation of one combined set of notes instead of two separate sets.~~

~~MAA~~an S&P 500 company, is a ~~multifamily focused,~~multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. The management of the Company is comprised of individuals who are officers of MAA and employees of the Operating Partnership. Management believes it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an ~~"umbrella~~umbrella partnership REIT," or UPREIT. MAA's interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA's percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA's only material asset is its ownership of limited partnership interests in the Operating ~~Partnership;~~Partnership (other than cash held by MAA from time to time); therefore, ~~MAA does not conduct business itself, other than~~MAA’s primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership. The Operating Partnership holds, directly or indirectly, all of the Company's real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the business through the Operating Partnership's operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentations of MAA's shareholders' equity and the Operating Partnership's capital are the principal areas of difference between the consolidated financial statements of MAA and those of the Operating Partnership. MAA's shareholders' equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interest, treasury shares, accumulated other comprehensive income and redeemable common stock. The Operating Partnership's capital may include common capital and preferred capital of the general partner (MAA), limited partners' common capital and preferred capital, noncontrolling interest, accumulated other comprehensive income and redeemable common units. Holders of OP Units (other than ~~MAA and its subsidiaries)~~MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA's common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA's common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

Organization of Mid-America Apartment Communities, Inc.

The Company owns, operates, acquires and selectively develops apartment communities primarily located in the Southeast, Southwest

and Mid-Atlantic regions of the United States. As of December 31, ~~2018,~~2019, the Company owned and operated ~~303~~299 apartment communities through the Operating Partnership and its subsidiaries and had an ownership interest in one apartment community through an unconsolidated real estate joint venture. As of December 31, ~~2018,~~2019, the Company had ~~three~~7 development communities under construction totaling ~~577~~2,108 apartment units. Total expected costs for the ~~three~~seven development projects are ~~$118.5~~$489.5 million, of

which ~~$30.9~~$143.9 million had been incurred through December 31, ~~2018.~~2019. The Company expects to complete ~~two of the developments~~one development in the ~~second~~first half of ~~2019 and~~2020, one development in the second half of ~~2020. Thirty~~2020, one development in the first half of 2021, three developments in the second half of 2021, and one development in the first half of 2022. NaN of the Company's apartment communities include retail components with approximately ~~615,000~~630,000 square feet of gross leasable space. The Company also has ~~four~~4 commercial properties with approximately 260,000 square feet of combined gross leasable area. The Company’s ~~multifamily~~apartment communities and commercial properties are located across 1716 states and the District of Columbia.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared by the Company's management in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC. The consolidated financial statements of MAA presented herein include the accounts of MAA, the Operating Partnership and all other subsidiaries in which MAA has a controlling financial interest. MAA owns, directly or indirectly, approximately ~~92.5%~~80% to 100% of all consolidated subsidiaries, including the Operating Partnership. The consolidated financial statements of MAALP presented herein include the accounts of MAALP and all other subsidiaries in which MAALP has a controlling financial interest. MAALP owns, directly or indirectly, ~~92.5%~~80% to 100% of all consolidated subsidiaries. In management's opinion, all adjustments necessary for a fair presentation of the consolidated financial statements have been included, and all such adjustments were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company invests in entities which may qualify as variable interest entities, or VIEs, and MAALP is considered a VIE. A VIE is a legal entity in which the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack the power to direct the activities of a legal entity as well as the obligation to absorb its expected losses or the right to receive its expected residual returns. MAALP is classified as a VIE ~~since~~because the limited partners lack substantive kick-out rights and substantive participating rights. The Company consolidates all VIEs for which it is the primary beneficiary and uses the equity method to account for investments that qualify as VIEs but for which it is not the primary beneficiary. In determining whether the Company is the primary beneficiary of a VIE, management considers both qualitative and quantitative factors, including, but not limited to, those activities that most significantly impact the VIE's economic performance and which party controls such activities. The Company uses the equity method of accounting for its investments in entities for which the Company exercises significant influence, but does not have the ability to exercise control. The factors considered in determining whether the Company has the ability to exercise control include ownership of voting interests and participatory rights of investors (see ~~"Investment~~“Investments in Unconsolidated ~~Affiliates"~~Affiliates” below).

Changes in Presentation

In order to simplify the Company's presentation of cash flows from financing activities within the Consolidated Statements of Cash Flows, the Company combined “Repurchase of common stock / units”; “Debt prepayment and extinguishment costs”; “Proceeds from issuances of common shares / units”; and “Exercise of stock / unit options” into one line, “Net change in other financing activities” within the cash flows from financing activities section. No presentation changes were made to the cash flows from operating or investing activities sections of the Consolidated Statements of Cash Flows. Prior year amounts have been changed to conform to the Company's current year presentation. These changes in presentation had no effect on the Company's ending cash, cash equivalents and restricted cash balances and did not impact the classification of cash flows between operating, investing and financing activities.

Noncontrolling Interests

As of December 31, ~~2018,~~2019, the Company had two types of noncontrolling interests with respect to its consolidated subsidiaries, (1) noncontrolling interests related to the common unitholders of its Operating Partnership ~~(see below)~~ and (2) noncontrolling ~~interest~~interests related to its consolidated real estate ~~entity (see "Investment in Consolidated Real Estate Entity" below).~~entities. The noncontrolling interests ~~in the accompanying consolidated financial statements~~ relating to the limited partnership interests in the Operating Partnership are owned by the holders of the Class A OP Units. MAA is the sole general partner of the Operating Partnership and holds all of the outstanding Class B OP Units. Net income (after allocations to preferred ownership interests) is allocated to MAA and the noncontrolling interests based on their respective ownership percentages of the Operating Partnership. Issuance of additional Class A OP Units or Class B OP Units changes the ownership percentage of both the noncontrolling interests and MAA. The issuance of Class B OP Units generally occurs when MAA issues common stock and the issuance proceeds are contributed to the Operating Partnership in exchange for Class B OP Units equal to the number of shares of MAA's common stock issued. At each reporting period, the allocation between total MAA shareholders’ equity and noncontrolling interests is adjusted to account for the change in the respective percentage ownership of the underlying equity of the Operating Partnership. MAA’s Board of Directors established economic rights in respect to each Class A OP Unit that were equivalent to the economic rights in respect to each share of MAA common stock. See Note 109 for additional details.

The noncontrolling interests relating to the Company’s consolidated real estate entities are owned by private real estate companies that are generally responsible for the development and construction of the apartment communities that are owned through the consolidated real estate entities with a noncontrolling interest. The entities were determined to be VIE’s with the Company designated as the primary beneficiary. As a result, the accounts of the entities are consolidated by the Company. During the year ended December 31,

2019, the Company acquired a partial ownership interest in two consolidated real estate entities and acquired the noncontrolling interest of one consolidated real estate entity for cash proceeds of $10.9 million. As of December 31, 2019, the consolidated assets and liabilities of the Company’s consolidated real estate entities with a noncontrolling interest were $46.0 million and $3.2 million, respectively. As of December 31, 2018, the consolidated assets and liabilities of the Company’s consolidated real estate entity with a noncontrolling interest were $85.7 million and $1.3 million, respectively.

Use of Estimates

Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses to prepare these financial statements and notes in conformity with GAAP. Actual results could differ from those estimates.

~~Revenue Recognition and Real Estate Sales Gain Recognition~~

The Company primarily leases multifamily residential apartment units under operating leases generally due on a monthly basis with terms of approximately one year or less, which are recorded as operating leases. Rental lease revenues are recognized in accordance with Accounting Standards Codification, or ASC, Topic 840, ~~Leases~~, using a method that represents a straight-line basis over the term of the lease. In addition, in circumstances where a lease incentive is provided to tenants, the incentive is recognized as a reduction of lease revenue on a straight-line basis over the reasonably assured lease term. Rental income represents approximately 93% of the Company's total revenues and includes gross market rent less adjustments for concessions, vacancy loss and bad debt.

Other non-lease revenues represent the remaining 7% of the Company's total revenues and are primarily driven by utility reimbursement revenues, which are generally recognized and due on a monthly basis as tenants obtain control of the service. The Company's primary sources of reimbursement revenues are from water and cable utility services, which produced revenues of $39.1 million and $29.8 million, respectively, for the year ended December 31, 2018, revenues of $38.3 million and $30.4 million, respectively, for the year ended December 31, 2017 and revenues of $31.1 million and $31.6 million, respectively, for the year ended December 31, 2016.

~~Other non-lease revenues are recognized in accordance with ASC Topic 606,~~ ~~Revenue Recognition, as a result of the Company's January 1, 2018 adoption of Accounting Standards Update, or ASU, 2014-09,~~ ~~Revenue from Contracts with Customers~~, using the modified retrospective approach. The guidance requires that revenue (outside of the scope of lease revenue accounting rules) is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. While ASU 2014-09 requires additional disclosure regarding the nature and timing of the Company's non-lease revenue transactions, which is provided here in Note 1 as well as Note 14, the adoption of the ASU did not have a material impact on the Company's consolidated financial statements or the Company's accounting policies and did not result in an opening adjustment to retained earnings. The Company elected the available practical expedients to the ASU’s requirement for disclosure on remaining performance obligations, which allow an entity to avoid disclosing the amount of the remaining performance obligations for contracts with an original expected duration of less than one year or those that meet the practical expedient in ASC Topic 606 that permits the entity to recognize revenue as invoiced. See Note 14 for the disaggregation of the Company's revenues.

Rental Costs

Costs associated with rental activities are expensed as incurred and include advertising expenses, which were $20.8 million, $20.2 million, ~~$18.8 million,~~ and ~~$13.0~~$18.8 million for the years ended December 31, 2019, 2018 and 2017, ~~and 2016,~~ respectively.

Real Estate Assets and Depreciation and Amortization

Real estate assets are carried at depreciated cost and consist of land, buildings and improvements and other and development and capital improvements in progress (see ~~"Development Costs"~~“Development Costs” below). Repairs and maintenance costs are expensed as incurred, while significant improvements, renovations and recurring capital replacements are capitalized and depreciated over their estimated useful lives. Recurring capital replacements typically include scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. In addition to these costs, the Company also capitalizes salary costs directly identifiable with renovation work. These expenditures extend the useful life of the property and increase the property’s fair market value. The cost of interior painting and blinds are typically expensed as incurred.

Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, which range from five to 40 years. The Consolidated Balance Sheets line ~~"Buildings~~“Buildings and improvements and ~~other"~~other” includes land improvements and buildings, which have a useful life ranging from eight to 40 years, as well as furniture, fixtures and equipment, which have a useful life of five years.

Development Costs

Development projects and the related carrying costs, including interest, property taxes, insurance and allocated direct development salary ~~cost~~costs during the construction period, are capitalized and reported in the accompanying Consolidated Balance Sheets as ~~"Development~~“Development and capital improvements in ~~progress"~~progress” during the construction period. Interest is capitalized in accordance with accounting standards governing the capitalization of interest. Upon completion and certification for occupancy of individual buildings or floors within a development, amounts representing the completed portion of total estimated development costs for the project are transferred to ~~"Buildings~~“Buildings and improvements and ~~other"~~other” as real estate held for investment.

Capitalization of interest, property taxes, insurance and allocated direct development salary costs cease upon the transfer. The assets are depreciated over their estimated useful lives. Total capitalized costs (including capitalized interest, salaries and real estate taxes) during the years ended December 31, 2019, 2018 and 2017 ~~and 2016 was~~were $6.5 million, $4.2 million ~~$11.0 million~~ and ~~$2.7~~$11.0 million, respectively. Certain costs associated with the lease-up of development projects, including cost of model units, furnishings and signs, are capitalized and amortized over their respective estimated useful lives. All other costs relating to renting development projects are expensed as incurred.

Acquisition of Real Estate Assets

In accordance with Accounting Standards Codification, or ASC, Topic 805, Business Combinations, most acquisitions of operating properties qualify as an asset acquisition. Accordingly, the cost of the real estate acquired, including acquisition costs, is allocated to the acquired tangible assets, consisting of land, buildings and improvements and other, and identified intangible assets, consisting of the value of in-place leases and other contracts, on a relative fair value basis. Acquisition costs include appraisal fees, title fees, broker fees and other legal costs to acquire the property.

The purchase price of an acquired property is allocated based on the relative fair value of the individual components as a proportion of the total assets acquired. The Company allocates the cost of the tangible assets of an acquired property by valuing the building as if it were vacant, based on management’s determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a building using methods similar to those used by independent appraisers. These methods include using stabilized net operating income, or NOI, and market specific capitalization and discount rates. In allocating the cost of identified intangible assets of an acquired property, the in-place leases are valued based on current rent rates and time and cost to lease a unit. Management concluded that the residential leases acquired in connection with each of its property acquisitions approximate at-market rates since the residential lease terms generally do not extend beyond one year.

For residential leases, the fair value of the in-place leases and resident relationships is amortized over six months, which represents the estimated remaining term of the tenant leases. For retail and commercial leases, the fair value of in-place leases and ~~resident~~tenant relationships is amortized over the remaining term of the ~~commercial~~ leases. The net amount of these lease intangibles included in ~~"Other assets"~~“Other assets” totaled ~~$3.9~~$2.6 million and ~~$7.1~~$3.9 million as of December 31, 2019 and 2018, ~~and 2017,~~ respectively. ~~For the accounting policy on larger, portfolio style acquisitions which qualify as business combinations (rather than asset acquisitions), see Note 2.~~

Impairment of Long-lived Assets

The Company accounts for long-lived assets in accordance with the provisions of accounting standards for the impairment or disposal of long-lived assets. Management periodically evaluates long-lived assets, including investments in real estate, for indicators that would suggest that the carrying amount of the assets may not be recoverable. The judgments regarding the existence of such indicators are based on factors such as operating performance, market conditions and legal factors. Long-lived assets, such as real estate assets, equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group or a property classified as held for sale are presented separately in the appropriate asset and liability sections of the Consolidated Balance Sheets.

Undeveloped Land

Undeveloped land includes sites intended for future multifamily developments, sites for future commercial development and sites intended for residential use, which are carried at the lower of cost or fair value in accordance with ~~GAAP and any~~GAAP. Any costs incurred prior to commencement of pre-development activities are expensed as incurred.

~~Investment~~

Investments in Unconsolidated Affiliates

Through its investment in a limited liability company, or the Apartment LLC, the Company together with an institutional investor indirectly owns one apartment community, Post Massachusetts Avenue, located in Washington, D.C.

The Company ~~owned~~uses the equity method to account for its investments in a ~~35.0% equity interest in the unconsolidated~~ real estate joint venture and a limited partnership that both qualify as ~~of December 31, 2018 and provides property~~

~~and asset management services to the Apartment LLC for which it earns fees. The joint venture was~~a VIE. Management determined ~~to be a VIE, but~~ the Company is not ~~designated as a~~the primary ~~beneficiary. As a result,~~beneficiary in either investment but does have the ~~Company accounts for its investment in the Apartment LLC using the equity method of accounting as the Company is able~~ability to exert significant influence over the operations and financial policies of the real estate joint venture ~~but does not have a controlling interest.~~ and considers its investment in the limited partnership to be more than minor. As of December 31, 2019 and 2018, the Company's investment in the ~~Apartment LLC totaled~~real estate joint venture was $43.7 million and $44.2 ~~million.~~

~~In September 2017, a subsidiary of the Operating Partnership invested in a limited partnership, Real Estate Technology Ventures, L.P.~~million, respectively. As of December 31, 2018, Operating Partnership indirectly owned 20.7% of the limited partnership. The limited partnership was determined to be a VIE, but the Company is not designated as a primary beneficiary. As a result, the Company accounts for its investment in the limited partnership using the equity method of accounting as the investment is considered more than minor. As of December 31,2019 and 2018, the Company's investment in the limited partnership ~~totaled~~was $13.1 million and $3.8 million, respectively, and is included in ~~"Other assets"~~“Other assets” in the accompanying Consolidated Balance ~~Sheet.~~Sheets. As of December 31, ~~2018,~~2019, the Company was committed until September 2022 to make additional capital contributions totaling ~~$13.6~~$8.2 million if and when called by the general partner of the limited ~~partnership and until September 2022.~~

~~Investment in Consolidated Real Estate Entity~~

The Company owns a 92.5% equity interest in a consolidated real estate entity that developed, constructed and operates a 359-unit apartment community in Denver, Colorado. The owner of the remaining 7.5% equity interest, a private real estate company, was generally responsible for the development and construction of the community, which was completed during the year ended December 31, 2018. The Company will continue to operate and manage the community. The entity was determined to be a VIE with the Company designated as the primary beneficiary. As a result, the accounts of the entity are consolidated by the Company. As of December 31, 2018, the consolidated assets and liabilities included buildings and improvements and other, net of accumulated depreciation, of $70.5 million; land of $14.9 million and accrued expenses and other liabilities of $1.2 million.

partnership.

Cash and Cash Equivalents

Investments in money market accounts and certificates of deposit with original maturities of three months or less are considered to be cash equivalents.

Restricted Cash

Restricted cash consists of security deposits required to be held separately, escrow deposits held by lenders for property taxes, insurance, debt service and replacement reserves, and exchanges under Section 1031(b) of the Internal Revenue Code of 1986, as amended, or the Code. Section 1031(b) exchanges are presented within cash, cash equivalents and restricted cash reported in the Consolidated Statements of Cash Flows.

Other Assets

Other assets consist primarily of receivables and deposits from residents, the value of derivative contracts, right-of-use lease assets, investment in a limited partnership, deferred rental concessions, deferred financing costs relating to ~~lines of~~a revolving credit facility and other prepaid expenses. Also included in other assets are the fair market value of in-place leases and resident relationships, net of accumulated amortization.

Accrued Expenses and Other Liabilities

Accrued expenses consist of accrued dividends payable, accrued real estate taxes, accrued interest payable, accrued loss contingencies (see Note ~~12)~~11), accounts payable, ~~fair market value of interest rate swaps (see Note 7),~~right-of-use lease liabilities, security deposits not related to restricted cash, other accrued expenses, and unearned income. Significant accruals include accrued dividends payable of ~~$113.2~~$118.3 million and ~~$108.7~~$113.2 million as of December 31, ~~2018~~2019 and ~~2017,~~2018, respectively; accrued real estate taxes of ~~$123.5~~$131.9 millionand ~~$99.6~~$123.5 million as of December 31, ~~2018~~2019 and ~~2017,~~2018, respectively; unearned income of ~~$41.1~~$42.0 million and ~~$40.8~~$41.1 million as of December 31, ~~2018~~2019 and ~~2017,~~2018, respectively; accrued

loss contingencies of ~~$8.7~~$8.6 million and ~~$32.1~~$8.7 million as of December 31, ~~2018~~2019 and ~~2017,~~2018, respectively; security deposits of ~~$18.7~~$19.4 million and ~~$19.1~~$18.7 million as of December 31, ~~2018~~2019 and ~~2017,~~2018, respectively; and accrued interest payable of ~~$15.1~~$21.4 million and ~~$18.1~~$15.1 million as of December 31, 2019 and 2018, ~~and 2017,~~ respectively.

Income Taxes

MAA has elected to be taxed as a REIT under the Code and intends to continue to operate in such a manner. The current and

continuing qualification as a REIT depends on MAA's ability to meet the various requirements imposed by the Code, which are related to organizational structure, distribution levels, diversity of stock ownership and certain requirements with respect to the nature and diversity of MAA’s assets and sources of MAA’s gross income. As long as MAA qualifies for taxation as a REIT, it will generally not be subject to United States federal corporate income tax on its taxable income that is currently distributed to shareholders. This treatment substantially eliminates the ~~"double taxation"~~“double taxation” (i.e., income taxation at both the corporate and shareholder levels) that generally results from an investment in a corporation. Even if MAA qualifies as a REIT, MAA may be subject to United States federal income and excise taxes in certain situations, such as if MAA fails to distribute timely all of its taxable income with respect to a taxable year. MAA also will be required to pay a 100% tax on any net income on non-arm’s length transactions between MAA and one of its taxable REIT subsidiaries, or TRS. Furthermore, MAA and its shareholders may be subject to state or local taxation in various state or local jurisdictions, including those in which MAA transacts business or its shareholders reside, and the applicable state and local tax laws may not conform to the United States federal income tax treatment. Any taxes imposed on MAA would reduce its operating cash flows and net income.

The Company has elected TRS status for certain of its corporate subsidiaries. As a result, the TRS incur both federal and state income taxes on any taxable income after consideration of any net operating losses. The TRS use the liability method of accounting for income taxes. Deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized.

The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. See Note 87 for additional disclosures regarding income taxes.

Fair Value Measurements

The Company applies the guidance in ASC Topic 820, Fair Value Measurements and Disclosures, to the valuation of real estate assets recorded at fair value, ~~if any;~~ to its impairment valuation analysis of real estate ~~assets;~~assets, to its disclosure of the fair value of financial instruments, principally ~~indebtedness;~~indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 as well as the Company's derivative accounting policies are summarized in Note 76 utilizing the following hierarchy:

Level 1 - Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the assets or liability.

~~Assets Held for Sale~~

The Randal Park land parcel that met the criteria for held for sale classification and comprised the asset held for sale balance as of December 31, 2017, was sold during the first quarter of 2018 as detailed in Note 15.

~~Impact of Recently Adopted Accounting Standards on Consolidated Statements of Cash Flows~~

~~Effective January 1, 2018, the Company adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments~~, which clarifies how certain types of cash receipts and cash payments are to be presented and classified in the statement of cash flows. Management determined that three of the eight transactions in the ASU are relevant to the Company and its cash flows and include debt prepayment and extinguishment costs, proceeds from the settlement of insurance claims and distributions received from equity method investees. Upon adoption of ASU 2016-15, net cash provided by operating activities increased by $1.9 million and $0.6 million, respectively, net cash used in investing activities decreased by $0.2 million and $0.5 million, respectively, and net cash used in financing activities decreased by $1.7 million and $0.1 million, respectively, in the Consolidated Statements of Cash Flows for the years ended December 31, 2017 and December 31, 2016.

~~The Company adopted ASU 2016-18,~~ ~~Statement of Cash Flows (Topic 230): Restricted Cash~~, effective January 1, 2018. The ASU required restricted cash to be presented within cash and cash equivalents when reconciling the beginning and ending amounts in the statement of cash flow with retrospective adjustments to all periods presented. The Company previously

reported the change in restricted cash within the operating and investing activities in the consolidated statement of cash flows. Upon adoption, cash, cash equivalents and restricted cash reported in the Consolidated Statements of Cash Flows for the years ended December 31, 2017 and December 31, 2016 increased by $78.1 million and $88.3 million, respectively, to reflect the restricted cash balances. Additionally, net cash provided by operating activities increased by $0.4 million and $0.3 million, respectively, for the years ended December 31, 2017 and December 31, 2016. Net cash used in investing activities decreased by $10.6 million for the year ended December 31, 2017 and increased by $61.9 million for the year ended December 31, 2016.

~~Recently Issued Accounting Pronouncements~~

Leases

In 2016, the Financial Accounting Standards Board, or FASB, issued ~~a new lease accounting standard,~~Accounting Standard Update, or ASU, 2016-02, Leases (Topic 842), which ~~amends existing accounting standards and establishes~~established new principles, presentation and disclosure requirements for lease accounting for both the lessee and lessor. On January 1, 2019, management adopted ASU 2016-02 using the modified retrospective transition approach with an effective date as of the adoption date and elected certain practical expedients allowed by the new standard. Under the new standard, lessors ~~will use an approach that is substantially equivalent~~are generally required to ~~existing guidance but~~account for leases in a similar manner as previous lease accounting guidance; however, certain aspects of the new standard are aligned with the recently adopted revenue recognition ~~standard, while lessees will be~~standard. Lessees are required to record most leases on the balance sheet and recognize lease expense in the income statement in a manner similar to ~~current~~previous practice. The new standard requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for all leases with terms of more than twelve months. Expenses related to leases determined to be operating leases ~~will be~~are recognized on a straight-line basis, while ~~those~~expenses related to leases determined to be financing leases ~~will be~~are recognized ~~following a front-loaded expense profile~~based on an effective interest method in which interest and amortization are presented separately in the income statement.

~~The~~

Comparative periods presented in this Annual Report on Form 10-K continue to apply guidance in ASC Topic 840, Leases, and have not been recast as the Company ~~has completed its analysis of lease revenues and~~adopted the ~~impact this~~new standard ~~will have on the Company. Management elected to apply~~using the modified retrospective transition approach ~~upon adoption~~effective as of ~~ASU 2016-02 on~~ January 1, 2019. The adoption of the new lease standard has not resulted in a significant ~~changes~~change in the accounting for the ~~Company's lease~~ Company’s rental

revenues as the ~~Company’s~~Company's residential, retail and ~~retail/~~commercial leases, where it is the lessor, will continue to be accounted for as operating leases. Management has elected available practical expedients that provide lessors an option not to ~~not~~ separate lease and non-lease components when certain criteria are met, and instead, ~~allows~~allow for those components to be accounted for as a single lease component.

Beginning with the effective date of the adoption of the new standard, rental revenues and non-lease reimbursable property revenues meet the criteria to be aggregated into a single lease component and are reported in the line item, “Rental revenues”, as presented in the disaggregation of the Company's revenues in Note 13.

The Company is the lessee under certain ground, office, equipment and other operating ~~leases and is required to recognize a right-of-use asset and a corresponding lease obligation on its Consolidated Balance Sheets for those leases effective January 1, 2019.~~leases. Based on its election of ~~available~~the package of practical expedients provided in ASU 2016-02, the Company isdid not ~~required to~~ reassess the classification of existing ~~leases; therefore, these~~ leases ~~will continue~~with its adoption of ASC Topic 842. The Company’s existing leases as of January 1, 2019 have continued to be accounted for as operating ~~leases. Upon~~leases; however, if contracts are modified subsequent to the adoption of the new standard, ~~on January 1, 2019,~~ the Company ~~expects~~is required to ~~recognize~~reassess the contracts using guidance provided under ASC Topic 842.

The Company recognized total right-of-use assets of ~~approximately $43~~$54.3 million within “Other assets” and related lease obligations of ~~approximately $33 million. The guidance does require additional disclosures regarding~~$33.6 million within “Accrued expenses and other liabilities” in its Consolidated Balance Sheets for leases in effect as of January 1, 2019. As of December 31, 2019, right-of-use assets and the ~~nature~~related lease obligations totaled $53.8 million and ~~timing of~~$33.1 million, respectively. As most leases do not provide a readily determinable implicit rate to discount future minimum lease payments to present value, management estimated the Company's ~~lease transactions upon adoption, which will be included in the Company's first quarter Quarterly Report on Form 10-Q filing in 2019.~~

~~2. Business Combinations~~

The Company completed the merger with Post Properties, Inc., or Post Properties on December 1, 2016, acquiring 61 wholly-owned apartment communities, six apartment communities that were under development at the date of the merger and one apartment community held in an unconsolidated entity. Post Properties had operations in ten markets across the United States. In addition to the apartment communities, the Company also acquired four commercial properties. The consolidated net assets and results of operations of Post Properties are included in the Company's consolidated financial statements from the closing date going forward.

~~The total purchase price of approximately $4.0 billion was determined~~incremental borrowing rate based on the number of shares of Post Properties' common stock, the number of shares of Post Properties’ 8 1/2% Series A Cumulative Redeemable Preferred Stock, and the number of units of Post Apartment Homes, L.P., or Post LP, Class A Units of limited partnership interest outstanding as of December 1, 2016, in addition to cash consideration provided by the Operating Partnership immediately prior to the merger to retire a $300.0 million unsecured term loan and a $162.0 million line of credit. The total purchase price also included $2.0 million of other consideration, a majority of which related to assumed stock compensation plans.

Each share of Post Properties common stock was converted into the right to receive 0.71 of a newly issued share of MAA common stock, including the right, if any, to receive cash in lieu of fractional shares of MAA common stock. In addition, each limited partner interest in Post LP designated as a Class A Unit automatically converted into the right to receive 0.71 of a newly issued limited partnership unit of MAALP. Also, each share of Post Properties' 8 1/2% Series A Cumulative Redeemable Preferred Stock was automatically converted into the right to receive one newly issued share of MAA's 8.50% Series I Cumulative Redeemable Preferred Stock, $0.01 par value per share, which is referred to as MAA Series I preferred stock. In all

cases in which MAA’s common stock price was a determining factor in arriving at final consideration for the merger, the stock price used to determine the purchase price was the opening price of MAA’s common stock on December 1, 2016 ($91.41 per share). At the date of acquisition, the MAA Series I preferred stock consideration was valued at $77.02 per share, which included a $14.24 per share bifurcated call option (See Notes 7 and 9). As a result of the merger, the Company issued approximately 38.0 million shares of MAA common stock, approximately 80,000 OP Units, and 867,846 newly issued shares of MAA’s Series I preferred stock.

~~The merger was accounted for using the acquisition method of accounting in accordance with ASC Topic 805,~~ ~~Business Combinations~~, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their acquisition date fair values. For larger, portfolio style acquisitions, such as the Post Properties merger, management engages a third party valuation specialist to assist with the fair value assessment, which includes an allocation of the purchase price. Similar to management's methods, the third party generally uses cash flow analysis as well as an income approach and a market approach to determine the fair value of assets acquired. The third party specialist uses stabilized NOI and market specific capitalization and discount rates. Management reviews the inputs used by the third party specialist as well as the allocation of the purchase price provided by the third party specialist to ensure reasonableness and the procedures are performed in accordance with management's policies. The allocation of the purchase price valuation described above required a significant amount of judgment and represented management's best estimate of the fair value as of the acquisition date. The following final purchase price allocation for the Post Properties merger was based on the Company's valuation as well as estimates and assumptions of the acquisition date fair value of the tangible and intangible assets acquired and liabilities assumed. The following table summarizes the final purchase price allocationinformation available as of the date of adoption and based on the ~~Post Properties merger (in thousands):~~

December 1, 2016
Land $ 874,616
Buildings and improvements and other 3,479,483
Development and capital improvements in progress 183,881
Undeveloped land 24,200
Investment in real estate joint venture 44,435
Cash and cash equivalents 34,292
Restricted cash 3,608
Other assets 94,899
Total assets acquired 4,739,414
Notes payable (595,609)
Accrued expenses and other liabilities (132,906)
Total liabilities assumed, including debt (728,515 )
Noncontrolling interest - consolidated real estate entity (2,306 )
Total purchase price $ 4,008,593

~~The allocation of fair values~~remaining lease terms as of the ~~assets acquired~~date of initial application. Operating leases recognized upon adoption had a weighted-average remaining lease term of approximately 33 years and ~~liabilities assumed has not changed from the allocation reported in the Annual Report on Form 10-K for the year ended~~management estimated a weighted-average discount rate of approximately 4.4%. Operating leases as of December 31, ~~2017, filed with the SEC on February 23, 2018. In connection with the Post Properties merger, the Company incurred total merger~~2019 have a weighted-average remaining lease term of approximately 32 years and ~~integration related expenses~~a weighted-average discount rate of ~~$9.1 million, $20.0 million, and $40.8 million~~approximately 4.4%. Lease expense recognized for the years ended December 31, 2019, 2018, and 2017 was immaterial to the Company and ~~2016, respectively. The~~was recognized in a similar manner for all years presented. Cash paid for amounts ~~were expensed as incurred and are~~ included in the ~~Consolidated Statements~~measurement of ~~Operations~~operating lease liabilities during the year ended December 31, 2019 was also immaterial.

Revenue Recognition

The Company primarily leases multifamily residential apartments under operating leases generally due on a monthly basis with terms of approximately one year or less, which are recorded as operating leases. Rental revenues are recognized in ~~"Merger~~accordance with ASC Topic 842 using a method that represents a straight-line basis over the term of the lease. In addition, in circumstances where a lease incentive is provided to tenants, the incentive is recognized as a reduction of rental revenues on a straight-line basis over the reasonably assured lease term. Rental revenues represent approximately 93% of the Company's total revenues and ~~integration expenses". Merger related expenses~~include gross rents charged less adjustments for concessions and bad debt. Approximately 6% of the Company's total revenues represents reimbursable property revenues from its tenants for utility reimbursements, which are generally recognized and due on a monthly basis as tenants obtain control of the service over the term of the lease. The remaining 1% of the Company's total revenues represents other non-lease revenues primarily ~~consisted~~driven by nonrefundable fees and commissions.

With the adoption of ~~severance~~ASC Topic 842, rental revenues and ~~professional costs,~~non-lease reimbursable property revenues meet the criteria to be aggregated into a single lease component and ~~integration related expenses primarily consisted~~are reported on a combined basis, while non-lease reimbursable property revenues recognized prior to January 1, 2019 is reported as non-lease revenues and recognized in accordance with ASC Topic 606, Revenue Recognition. ASC Topic 606 requires revenue recognized outside of ~~temporary systems, staffing,~~the scope of ASC Topic 842 to be recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which amends the current approach to estimate credit losses on certain financial assets, including trade and ~~facilities costs.~~

other receivables, available-for-sale securities and other financial instruments. The ASU requires entities to estimate a lifetime expected credit loss for most financial instruments, including trade receivables. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses is permitted. In November 2018, the FASB issued an amendment excluding operating lease receivables accounted for under ASU 2016-02 from the scope of the new credit losses standard. The Company has completed its analysis regarding the measurement of estimated credit losses and the impact this ASU will have on the Company. Management elected to adopt this standard on January 1, 2020. The adoption of ASU No. 2016-13 has not resulted in significant changes in the accounting for the Company’s approach to estimate credit losses on financial assets, as substantially all of the Company’s financial assets are operating lease receivables.

2.	Earnings per Common Share of MAA

~~3. Earnings per Common Share of MAA~~

Basic earnings per share is computed by dividing net income available to MAA common shareholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis with diluted earnings per share being the more dilutive of the treasury stock or two-class methods. OP Units are included in dilutive earnings per share calculations when the units are dilutive to earnings per share.

For the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016, MAA's basic earnings per share was computed using the two-class method and~~2017, MAA's diluted earnings per share was computed using the ~~more dilutive of the~~ treasury stock ~~method or the two-class~~ method as presented below (dollars and shares in thousands, except per share amounts):

	2019				2018				2017
Calculation of Earnings per common share - basic
Net income	$	366,618			$	231,022			$	340,536
Net income attributable to noncontrolling interests		(12,807	)			(8,123	)			(12,157	)
Unvested restricted stock (allocation of earnings)		(519	)			(291	)			(535	)
Preferred dividends		(3,688	)			(3,688	)			(3,688	)
Net income available for MAA common shareholders, adjusted	$	349,604			$	218,920			$	324,156

Weighted average common shares - basic		113,854				113,638				113,407
Earnings per common share - basic	$	3.07			$	1.93			$	2.86

Calculation of Earnings per common share - diluted
Net income	$	366,618			$	231,022			$	340,536
Net income attributable to noncontrolling interests		(12,807	)	⁽¹⁾		(8,123	)	⁽¹⁾		(12,157	)	⁽¹⁾
Preferred dividends		(3,688	)			(3,688	)			(3,688	)
Net income available for MAA common shareholders, adjusted	$	350,123			$	219,211			$	324,691

Weighted average common shares - basic		113,854				113,638				113,407
Effect of dilutive securities		259				198				280
Weighted average common shares - diluted		114,113				113,836				113,687
Earnings per common share - diluted	$	3.07			$	1.93			$	2.86

2018 2017 2016
Calculation of Earnings per common share - basic

Net income $ 231,022
$ 340,536
$ 224,402

Net income attributable to noncontrolling interests (8,123 ) (12,157 ) (12,180 )
Unvested restricted stock (allocation of earnings) (291 ) (535 ) (572 )
Preferred dividends (3,688 ) (3,688 ) (307 )
Net income available for common shareholders, adjusted $ 218,920
$ 324,156
$ 211,343

Weighted average common shares - basic 113,638
113,407
78,502

Earnings per common share - basic $ 1.93
$ 2.86
$ 2.69

Calculation of Earnings per common share - diluted

Net income $ 231,022
$ 340,536
$ 224,402

Net income attributable to noncontrolling interests (8,123 )
⁽¹⁾
(12,157 )
⁽¹⁾
(12,180 )
⁽¹⁾
Preferred dividends (3,688 ) (3,688 ) (307 )
Net income available for common shareholders, adjusted $ 219,211
$ 324,691
$ 211,915

Weighted average common shares - basic 113,638
113,407
78,502

Effect of dilutive securities 198
280
298

Weighted average common shares - diluted 113,836
113,687
78,800

Earnings per common share - diluted $ 1.93
$ 2.86
$ 2.69

⁽¹⁾ For the years ended December 31, 2018, 2017 and 2016, 4.1 million, 4.2 million and 4.2 million OP Units and their related income, respectively, are not included in the diluted earnings per share calculations as they are not dilutive.

⁽¹⁾	For the years ended December 31, 2019, 2018 and 2017, 4.1 million, 4.1 million and 4.2 million OP Units and their related income, respectively, are not included in the diluted earnings per share calculations as they are not dilutive.

3.	Earnings per OP Unit of MAALP

~~4. Earnings per OP Unit of MAALP~~

Basic earnings per common unit is computed using the two-class method by dividing net income available for common unitholders by the weighted average number of OP Units outstanding during the period. All outstanding unvested restricted unit awards contain rights to non-forfeitable distributions and participate in undistributed earnings with common unitholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common unit. Diluted earnings per common unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units. ~~A reconciliation of~~Both the ~~numerators~~unvested restricted unit awards and ~~denominators of~~other potentially dilutive common units, and the ~~basic and~~related impact to earnings, are considered when calculating earnings per common unit on a diluted basis with diluted earnings per common unit ~~computations for~~being the more dilutive of the treasury stock or two-class methods.

For the years ended December 31, 2019, 2018 and 2017, ~~and 2016 is~~MAALP’s diluted earnings per common unit was computed using the treasury stock method as presented below (dollars and units in thousands, except per unit amounts):

	2019			2018			2017
Calculation of Earnings per common unit - basic
Net income	$	366,618		$	231,022		$	340,536
Net income attributable to noncontrolling interests		(136	)		—			—
Unvested restricted stock (allocation of earnings)		(519	)		(291	)		(535	)
Preferred unit distributions		(3,688	)		(3,688	)		(3,688	)
Net income available for MAALP common unitholders, adjusted	$	362,275		$	227,043		$	336,313

Weighted average common units - basic		117,944			117,777			117,617
Earnings per common unit - basic	$	3.07		$	1.93		$	2.86

Calculation of Earnings per common unit - diluted
Net income	$	366,618		$	231,022		$	340,536
Net income attributable to noncontrolling interests		(136	)		—			—
Preferred unit distributions		(3,688	)		(3,688	)		(3,688	)
Net income available for MAALP common unitholders, adjusted	$	362,794		$	227,334		$	336,848

Weighted average common units - basic		117,944			117,777			117,617
Effect of dilutive securities		259			198			280
Weighted average common units - diluted		118,203			117,975			117,897
Earnings per common unit - diluted	$	3.07		$	1.93		$	2.86

4.	Stock-Based Compensation

2018 2017 2016
Calculation of Earnings per common unit - basic

Net income $ 231,022
$ 340,536
$ 224,402

Unvested restricted stock (allocation of earnings) (291 ) (535 ) (574 )
Preferred unit distributions (3,688 ) (3,688 ) (307 )
Net income available for common unitholders, adjusted $ 227,043
$ 336,313
$ 223,521

Weighted average common units - basic 117,777
117,617
82,661

Earnings per common unit - basic $ 1.93
$ 2.86
$ 2.70

Calculation of Earnings per common unit - diluted

Net income $ 231,022
$ 340,536
$ 224,402

Preferred unit distributions (3,688 ) (3,688 ) (307 )
Net income available for common unitholders, adjusted $ 227,334
$ 336,848
$ 224,095

Weighted average common units - basic 117,777
117,617
82,661

Effect of dilutive securities 198
280
298

Weighted average common units - diluted 117,975
117,897
82,959

Earnings per common unit - diluted $ 1.93
$ 2.86
$ 2.70

5.~~Stock Based Compensation~~

Overview

MAA accounts for its ~~stock based~~stock-based employee compensation plans in accordance with accounting standards governing ~~stock based~~stock-based compensation. These standards require an entity to measure the cost of employee services received in exchange for an award of an equity instrument based on the award's fair value on the grant date and recognize the cost over the period during which the employee is required to provide service in exchange for the award, which is generally the vesting period. Any liability awards issued are remeasured at each reporting period.

MAA’s stock compensation plans consist of a number of incentives provided to attract and retain independent directors, executive officers and key employees. Incentives are currently granted under the Second Amended and Restated 2013 Stock Incentive Plan, or the Stock Plan, which was approved at the 2018 annual meeting of MAA shareholders. The Stock Plan allows for the grant of restricted stock and stock options up to 2,000,000 shares. MAA believes that such awards better align the interests of its employees with those of its shareholders.

Compensation expense is generally recognized for service based restricted stock awards using the straight-line method over the vesting period of the shares regardless of cliff or ratable vesting distinctions. Compensation expense for market and performance based restricted stock awards is generally recognized using the accelerated amortization method with each vesting tranche valued as a separate award, with a separate vesting date, consistent with the estimated value of the award at each period end. Additionally, compensation expense is adjusted for actual forfeitures for all awards in the period that the award was forfeited. Compensation expense for stock options is generally recognized on a straight-line basis over the requisite service period. MAA presents stock compensation expense in the Consolidated Statements of Operations in ~~"General~~“General and administrative ~~expenses"~~expenses”.

Total compensation expense under the Stock Plan was $14.7 million, $12.9 million ~~$10.8 million~~ and ~~$12.2~~$10.8 million for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, respectively. Of these amounts, total compensation expense capitalized was $1.0 million, $0.5 million ~~$0.2 million~~ and ~~$0.7~~$0.2 million for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, respectively. As of December 31, ~~2018~~,2019, the total unrecognized compensation expense was ~~$13.5~~$13.9 million. This cost is expected to be recognized over the remaining weighted average period of ~~1.1~~0.9 years. Total cash paid for the settlement of plan shares totaled $3.7 million, $2.9 million ~~$4.8 million~~ and ~~$2.0~~$4.8 million for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, respectively. Information concerning grants under the Stock Plan is provided below.

Restricted Stock

In general, restricted stock is earned based on either a service condition, performance condition, or market condition, or a combination thereof, and generally vests ratably over a period from ~~1 year~~at grant date to 5 years. Service based awards are earned when the employee remains employed over the requisite service period and are valued on the grant date based upon the market price of MAA common stock on the date of grant. Market based awards are earned when MAA reaches a specified stock price or specified return on the stock price (price appreciation plus dividends) and are valued on the grant date using a Monte Carlo simulation. Performance based awards are earned when MAA reaches certain operational goals, such as funds ~~from operations, or FFO,~~available for distribution targets, and are valued based upon the market price of MAA common stock on the date of grant as well as the probability of reaching the stated targets. MAA remeasures the fair value of the performance based awards each balance sheet date with adjustments made on a cumulative basis until the award is settled and the final compensation is known. The weighted average grant date fair value per share of restricted stock awards granted during the years ended December 31, 2019, 2018 and 2017, was $72.98, $71.85 and ~~2016, was $71.85,~~ $84.53, ~~and $73.20,~~ respectively.

The following is a summary of the key assumptions used in the valuation calculations for market based awards granted during the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~:2017:

	2019	2018	2017
Risk free rate	2.578%	1.61% - 2.14%	0.65% - 1.57%
Dividend yield	4.043%	3.884%	3.573%
Volatility	18.95%	15.05% - 17.18%	20.43% - 21.85%
Requisite service period	3 years	3 years	3 years

2018 2017 2016
Risk free rate 1.61% - 2.14% 0.65% - 1.57% 0.49% - 1.27%
Dividend yield 3.884% 3.573% 3.634%
Volatility 15.05% - 17.18% 20.43% - 21.85% 18.41% - 19.45%
Requisite service period 3 years 3 years 3 years

The risk free rate was based on a zero coupon risk-free rate. The minimum risk free rate was based on a period of 0.25 years for the years ended December 31, 2018, 2017 and 2016. The maximum risk free rate was based on a period of 3 years for the years ended December 31, 2018, 2017 and 2016. The dividend yield was based on the closing stock price of MAA stock on the

date of grant. Volatility for MAA was obtained by using a blend of both historical and implied volatility calculations. Historical volatility was based on the standard deviation of daily total continuous returns, and implied volatility was based on the trailing month average of daily implied volatilities interpolating between the volatilities implied by stock call option contracts that were closest to the terms shown and closest to the money. The minimum volatility was based on a period of 1 year, 3 years and 2 years for the years ended December 31, 2018, 2017 and 2016, respectively. The maximum volatility was based on a period of 3 years, 1 year and 1 year for the years ended December 31, 2018, 2017 and 2016, respectively. The requisite service period is based on the criteria for the separate programs according to the vesting schedule.

For the years ended December 31, 2018 and 2017, the minimum risk free rate was based on a period of 0.25 years, and the maximum risk free rate was based on a period of 3 years. For the years ended December 31, 2018 and 2017, the minimum volatility was based on a period of1 year and 3 years, respectively, and the maximum volatility was based on a period of3 years and 1 year, respectively.

A summary of the status of the nonvested restricted shares as of December 31, ~~2018~~,2019, and the changes for the year ended December 31, ~~2018~~,2019, is presented below:

Nonvested Shares	Shares			Weighted Average Grant-Date Fair Value
Nonvested as of January 1, 2019		187,777		$	88.79
Issued		173,174			88.59
Vested		(125,381	)		74.35
Forfeited		(1,692	)		95.44
Nonvested as of December 31, 2019		233,878		$	96.33

Nonvested Shares Shares Weighted Average Grant-Date Fair Value
Nonvested as of January 1, 2018 180,692
$ 81.13
Issued 115,177
89.67
Vested (106,434 ) 71.80
Forfeited (1,658 ) 90.30
Nonvested as of December 31, 2018 187,777
$ 88.79

The total fair value of shares vested during the years ended December 31, 2019, 2018, and 2017 ~~and 2016~~ was $9.3 million, $7.6 million and $10.5 million, ~~and $5.1 million,~~ respectively.

Stock Options

Stock options are earned when the employee remains employed over the requisite service period and vest ratably over a period from 0.3 years to 2.3 years. Stock options exercised result in new common shares being issued on the open market by the Company. The fair value of stock option awards is determined using the ~~Black-Scholes or~~ Monte Carlo valuation ~~models. No~~model. NaN stock options were granted during the years ended December 31, 2019, 2018 or 2017. During the year ended December 31, 2016, 108,198 fully vested stock options were granted with a weighted average grant date fair value of $18.08 per option as a result of options exchanged in the merger with Post Properties.

~~The following is a summary of the key assumptions used in the Monte Carlo valuation calculations for stock options granted during the year ended December 31, 2016:~~



		~~2016~~
~~Risk free rate~~		~~0.64% - 2.63%~~
~~Dividend yield~~		~~3.81%~~
~~Volatility~~		~~21.02% - 21.57%~~
~~Expected term~~		~~1.11 - 2.11 years~~

The U.S. Treasury bill rate was used to represent the risk-free rate based on the expected life of the option. The current dividend yield at the time of grant was used to estimate the dividend yield over the life of the option. Volatility is based on the actual changes in the market value of MAA’s stock and is calculated using daily market value changes from the date of grant over a past period equal to the expected term of the stock options. The expected term represents an estimate of the period of time the stock options are expected to remain outstanding.

A summary of the status of the outstanding stock options as of December 31, ~~2018~~2019 and the changes for the year ended December 31, ~~2018~~2019 is presented below:

Stock Options	Options			Weighted Average Exercise Price
Outstanding as of January 1, 2019		90,615		$	77.16
Granted		—			—
Exercised		(69,852	)		76.96
Expired		—			—
Outstanding as of December 31, 2019		20,763		$	77.82

Stock Options Options Weighted Average Exercise Price
Outstanding as of January 1, 2018 108,438
$ 72.93
Granted —
—
Exercised (17,823 ) 51.42
Expired —
—
Outstanding as of December 31, 2018 90,615
$ 77.16

All options outstanding as of December 31, ~~2018~~2019 were exercisable and had an intrinsic value of ~~$1.7~~$1.2 million with a weighted average remaining term of ~~5.9~~5.2 years. There were 69,852 options, 17,823 options and 21,006 options exercised during the years ended December 31, 2019, 2018 and 2017, respectively. Cash received from the exercise of stock options totaled $2.9 million, $0.9 million and $0.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. ~~During the year ended December 31, 2016, no cash was~~

5.	Borrowings

~~received from the exercise of stock options as no options were exercised.~~

~~6. Borrowings~~

The following table summarizes the Company's outstanding debt as of December 31, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands):

	Balance						As of December 31, 2019
	December 31, 2019			December 31, 2018			Weighted Average Effective Rate			Weighted Average Contract Maturity
Unsecured debt
Variable rate revolving credit facility	$	—		$	540,000			—	%		—
Variable rate commercial paper program		70,000			—			2.1	%	1/8/2020
Fixed rate senior notes		3,472,000			2,642,000			3.9	%	7/19/2026
Term loans fixed with swaps		300,000			300,000			2.3	%	3/1/2022
Variable rate term loans		—			600,000			—	%		—
Debt issuance costs, discounts, premiums and fair market value adjustments		(13,799	)		(28,698	)
Total unsecured debt	$	3,828,201		$	4,053,302			3.7	%

Fixed rate secured debt
Individual property mortgages	$	629,817		$	476,161			4.5	%	4/2/2037
Debt issuance costs and fair market value adjustments		(3,420	)		(1,135	)
Total secured debt	$	626,397		$	475,026			4.5	%
Total outstanding debt	$	4,454,598		$	4,528,328			3.8	%

Borrowed Balance As of December 31, 2018
December 31, 2018 December 31, 2017 Weighted Average Effective Rate Weighted Average Contract Maturity
Unsecured debt

Variable rate revolving credit facility $ 540,000
$ 410,000
3.4 % 4/15/2020
Fixed rate senior notes 2,642,000
2,292,000
4.0 % 7/12/2025
Term loans fixed with swaps 300,000
550,000
2.3 % 3/1/2022
Variable rate term loans 600,000
300,000
3.3 % 1/22/2020
Fair market value adjustments, debt issuance costs and discounts (28,698 ) (26,235 )
Total unsecured debt $ 4,053,302
$ 3,525,765
3.7 %
Fixed rate secured debt
Individual property mortgages $ 476,161
$ 882,752
4.6 % 2/23/2031
Variable rate secured debt ⁽¹⁾

Credit facility $ —
$ 80,000

Fair market value adjustments and debt issuance costs (1,135 ) 13,540

Total secured debt $ 475,026
$ 976,292
4.6 %
Total outstanding debt $ 4,528,328
$ 4,502,057
3.8 %

⁽¹⁾~~Includes capped balances.~~

Unsecured Revolving Credit Facility

In May 2019, MAALP ~~maintains~~entered into a $1.0 billion unsecured revolving credit facility with a syndicate of banks led by ~~KeyBank~~Wells Fargo Bank, National Association, or Wells Fargo, and fifteen other banks, which is referred to as the ~~KeyBank~~Credit Facility. The ~~KeyBank~~Credit Facility replaced MAALP’s previous unsecured revolving credit facility, and it includes an expansion option up to $1.5 billion. The ~~KeyBank~~Credit Facility bears an interest rate of the London Interbank Offered Rate, or LIBOR, plus a spread of ~~0.85%~~0.75% to ~~1.55%~~1.45% based on an investment grade pricing ~~grid and, as of December 31, 2018, the interest rate was 3.42%.~~grid. The ~~KeyBank~~Credit Facility ~~expires~~matures in ~~April 2020~~May 2023 with an option to extend for antwo additional ~~six months.~~six-month periods. As of December 31, ~~2018,~~2019, MAALP had ~~$540.0 million~~0 balance outstanding under the ~~KeyBank facility with another $4.2~~Credit Facility, while $2.7 million of ~~additional~~ capacity was being used to support outstanding letters of credit.

~~Senior~~

Unsecured ~~Notes~~

Commercial Paper

In May 2019, MAALP established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $500.0 million. As of December 31, ~~2018,~~2019, MAALP had ~~approximately $2.4~~$70.0 million outstanding under the commercial paper program with a weighted average interest rate of 2.05% and a weighted average maturity of eight days.

Senior Unsecured Notes

As ofDecember 31, 2019, MAALP had $3.3 billion in principal amount of publicly issued senior unsecured notes and ~~$242.0~~$222.0 million of privately placed senior unsecured ~~notes.~~notes outstanding. The senior unsecured notes had maturities at issuance ranging from ~~seven~~ten to twelve years, with an average of ~~6.5~~6.6 years remaining until maturity as of December 31, ~~2018.~~

2019.

In ~~May 2018,~~March 2019, MAALP publicly issued ~~$400.0~~$300.0 million in aggregate principal amount of senior unsecured notes, maturing ~~June 2028~~March 2029 with ~~an interest~~a coupon rate of ~~4.20%~~3.950% per annum, or the ~~2028~~Initial 2029 Notes. The purchase price paid by the ~~initial~~ purchasers was ~~99.403%~~99.720% of the principal amount. The ~~2028~~Initial 2029 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other senior unsecured indebtedness of MAALP. Interest on the ~~2028~~Initial 2029 Notes is payable on ~~June~~March 15 and ~~December~~September 15 of each year, beginning on ~~December~~September 15, ~~2018.~~2019. The net proceeds ~~from~~of the offering, after deducting the original issue discount, ~~of $2.4 million and~~ underwriting commissions and expenses of ~~$2.6~~approximately $2.8 million, were ~~$395.0~~$297.2 million. The ~~2028~~Initial 2029 Notes have been reflected net of discount and debt issuance costs in the Consolidated Balance Sheets as of December 31, ~~2018.~~2019. In connection with the issuance of the ~~2028~~Initial 2029 Notes, MAALP cash settled ~~$200.0~~$300.0 million in forward interest rate swap agreements, ~~which were~~ entered into ~~earlier in the year~~during 2018 to effectively lock the interest rate on ~~a portion of~~ the planned transaction, resulting in an effective interest rate of ~~4.21%~~4.240% over the 10ten year life of the ~~2028~~Initial 2029 Notes.

In ~~July 2018,~~August 2019, MAALP publicly issued an additional $250.0 million in aggregate principal amount of senior unsecured, maturing March 2029 with a coupon rate of 3.950% per annum, or the Additional 2029 Notes. The purchase price paid by the purchasers of the Additional Notes was 107.827% of the principal amount. The Additional 2029 Notes were issued under the indenture and the supplemental indenture pursuant to which MAALP issued the Initial 2029 Notes in March 2019. The Additional 2029 Notes are treated as a single series of securities with the Initial 2029 Notes and have the same CUSIP number as, and are fungible with, the Initial 2029 Notes. The net proceeds of the offering, after considering the original issue premium, cash received for interest due but not accrued, underwriting commissions and expenses totaling a net amount of approximately $22.1 million, were $272.1 million. The Additional 2029 Notes have an effective interest rate of 2.985% and have been reflected net of premium and debt issuance costs in the Consolidated Balance Sheets as of December 31, 2019.

In November 2019, MAALP publicly issued $300.0 million in aggregate principal amount of senior unsecured notes, maturing March 2030 with a coupon rate of 2.750% per annum, or the 2030 Notes. The purchase price paid by the purchasers was 99.762% of the principal amount. The 2030 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other senior unsecured indebtedness of MAALP. Interest on the 2030 Notes is payable on March 15 and September 15 of each year, beginning on March 15, 2020. The net proceeds of the offering, after deducting the original issue discount, underwriting commissions and expenses of approximately $2.7 million, were $297.3 million. The 2030 Notes have been reflected net of discount and debt issuance costs in the Consolidated Balance Sheets as of December 31, 2019. In connection with the issuance of the 2030 Notes, MAALP cash settled $150.0 million in forward interest rate swap agreements, entered into during the first half of 2019 to effectively lock the interest rate on the planned transaction, resulting in an effective interest rate of 3.065% over the ten year life of the 2030 Notes.

In November 2019, MAALP retired a ~~$50.0~~$20.0 million tranche of privately placed senior unsecured ~~private placement~~ notes ~~at maturity.~~

with an interest rate of 3.61% on its maturity date.

Unsecured Term Loans

As of December 31, 2019, MAALP ~~maintains four~~maintained 1 term ~~loans~~loan with a syndicate of banks, ~~one~~ led by ~~KeyBank National Association, or KeyBank, two by~~ Wells ~~Fargo Bank, N.A., or Wells Fargo, and one by U.S. Bank National Association, or U.S. Bank.~~Fargo. The ~~KeyBank~~ term loan has a balance of ~~$150.0~~$300.0 million, matures in ~~2021,~~2022, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.75%

based on the Company's credit ratings. Both Wells Fargo term loans have balances of $300.0 million, mature in 2022 and 2019, respectively, and have variable interest rates of LIBOR plus spreads of 0.90% to 1.75% and 0.75% to 1.65%, respectively, based on the Company's credit ratings. The interest rate of the ~~Wells Fargo~~ term loan ~~due in 2022~~ is fixed at 2.32% with ~~a forward swap through the swap's maturity date,~~interest rate swaps that mature in January 2020. ~~See Note 7 for additional details on cash flow hedges of interest rate risk. The Wells Fargo term loan due in~~

In May 2019, was entered into by the Company in December 2018. The U.S. Bank term loan has a balance of $150.0 million, matures in 2020, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.90% based on the Company's credit ratings.

~~In August 2018,~~ MAALP retired a ~~$250.0~~$300.0 million unsecured term loan with Wells Fargo ~~at maturity.~~

due in June 2019.

In August 2019, MAALP retired a $150.0 million unsecured term loan with U.S. Bank National Association due in March 2020.

In November 2019, MAALP retired a $150.0 million unsecured term loan with KeyBank National Association due in February 2021.

Secured Property Mortgages

As of December 31, ~~2018,~~2019, MAALP had ~~$476.2~~$629.8 millionof fixed rate conventional property mortgages with a weighted average interest rate of ~~4.6%~~4.50% and a weighted average maturity in ~~2031.~~

2037. In ~~December 2018,~~February 2019, MAALP entered into a ~~$172.0~~$191.3 million mortgage with a fixed rate of ~~4.44%~~4.43% associated with ~~five~~7 apartment ~~communities. The mortgage~~communities that is scheduled to mature in ~~January~~February 2049.

In ~~February 2018,~~August 2019, MAALP retired a ~~$38.3~~$13.2 million mortgage associated with ~~an apartment community.~~Colonial Grand at Canyon Creek. The mortgage was scheduled to mature in ~~May 2018.~~

October 2019.

In November 2018, MAALP retired a ~~$350.0~~$17.2 million mortgage associated with ~~eighteen apartment communities.~~Stone Ranch at Westover Hills. The mortgage was scheduled to mature in ~~February 2019.~~

March 2020.

~~In December 2018, MAALP retired a $179.7 million mortgage associated with five apartment communities. The mortgage was scheduled to mature in February 2019.~~

~~In addition to these retirements, MAALP paid $10.6 million associated with property mortgage principal amortizations during the year ended December 31, 2018.~~

~~Secured Credit Facility~~

In December 2018, MAALP retired its secured credit facility, an $80.0 million secured credit facility with Prudential Mortgage Capital, which was credit enhanced by the Federal National Mortgage Association.

Schedule of Maturities

The following table includes scheduled principal repayments ~~on the Company's~~of MAALP’s outstanding borrowings as of December 31, ~~2018,~~2019, as well as the amortization of the fair market value of debt assumed, debt discounts, premiums and issuance costs (in thousands):

Year	Maturities		Amortization			Total
2020	$	211,108	$	(3,323	)	$	207,785
2021		192,903		(3,393	)		189,510
2022		668,401		(3,098	)		665,303
2023		363,731		(2,487	)		361,244
2024		421,566		(1,509	)		420,057
Thereafter		2,614,108		(3,409	)		2,610,699
	$	4,471,817	$	(17,219	)	$	4,454,598

Year Maturities Amortization Total
2019 $ 333,115
$ 2,583
$ 335,698
2020 842,456
1,291
843,747
2021 340,618
(2,138 ) 338,480
2022 667,000
(2,713 ) 664,287
2023 362,250
(2,023 ) 360,227
Thereafter 1,992,018
(6,129 ) 1,985,889
$ 4,537,457
$ (9,129 ) $ 4,528,328

Guarantees

As of December 31, ~~2018,~~2019, MAA fully and unconditionally guaranteed ~~$242.0~~$222.0 million of the privately placed senior unsecured notes issued by MAALP.

6.	Financial Instruments and Derivatives

~~7. Financial Instruments and Derivatives~~

Financial Instruments Not Carried at Fair Value

Cash and cash equivalents, restricted cash and accrued expenses and other liabilities are carried at amounts that reasonably approximate their fair value due to their short term nature.

Fixed rate notes payable as of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, totaled ~~$3.1~~$4.1 billion and ~~$3.2~~$3.1 billion, respectively, and had estimated fair values of ~~$3.1~~$4.5 billion and ~~$3.3~~$3.1 billion (excluding prepayment penalties) as of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, respectively. The carrying values of variable rate ~~notes payable~~debt (excluding the effect of interest rate swap ~~and cap~~ agreements) as of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, totaled ~~$1.1~~$0.4 billion and ~~$1.3~~$1.1 billion, respectively, and had estimated fair values of ~~$1.1~~$0.4 billion and ~~$1.3~~$1.1 billion (excluding prepayment penalties) as of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, respectively. The fair values of fixed rate debt are determined by using the present value of future cash outflows discounted with the applicable current market rate plus a credit spread. The fair values of variable rate debt are determined using the stated variable rate plus the current market credit spread. The variable rates reset every 30 to 90 days, and management concluded ~~that~~ these rates reasonably estimate current market rates.

Financial Instruments Measured at Fair Value on a Recurring Basis

The Company uses interest rate swaps to add stability to interest expense and to manage, or hedge, its exposure to interest rate movements associated with ~~our~~its variable rate debt or as hedges in anticipation of future debt transactions. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

The fair value of interest rate derivative contracts designated as hedging instruments recorded in "Other assets" in the accompanying Consolidated Balance Sheets was $3.7 million and $3.6 million as of December 31, 2018 and December 31, 2017, respectively. The fair value of interest rate derivative contract liabilities recorded in "Accrued expenses and other liabilities" in the accompanying Consolidated Balance Sheets was $5.3 million and $1.3 million as of December 31, 2018 and December 31, 2017, respectively.

To comply with the provisions of ASC Topic 820, management incorporates credit valuation adjustments to appropriately reflect both its nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of the derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Based on guidance issued by the FASB, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

As of December 31, 2019, the Company had 4 outstanding interest rate derivatives with a total notional balance of $300.0 million that were designated as cash flow hedges of interest rate risk. The fair value of interest rate derivative contracts designated as hedging instruments recorded in “Other assets” in the accompanying Consolidated Balance Sheets was $0.1 million and $3.7 million as of December 31, 2019 and December 31, 2018, respectively. The fair value of interest rate derivative contract liabilities recorded in “Accrued expenses and other liabilities” in the accompanying Consolidated Balance Sheets was $5.3 million as of December 31, 2018. There were 0 interest rate derivative contract liabilities recorded as of December 31, 2019.

The Company has recognized a derivative asset related to the redemption feature embedded in the MAA Series I preferred ~~stock issued in connection with the merger with Post Properties~~stock. The derivative asset is valued using widely accepted valuation techniques, including a discounted cash flow analysis in which the perpetual value of the preferred shares is compared to the value of the preferred shares assuming the call option is exercised, with the value of the bifurcated call option as the difference between the two values. ~~This~~The analysis reflects the contractual terms of the redeemable preferred shares, which are redeemable at the Company's option beginning on October 1, 2026 and at the redemption price of $50 per

share (see Note 9)8). The ~~analysis~~Company uses ~~observable market-based~~various inputs in the anlaysis, including trading data available on the preferred shares, coupon yields on preferred stock issuances from REITs with similar credit ratings as MAA and treasury rates to determine the fair value of the bifurcated call option.

The redemption feature embedded in the MAA Series I preferred stock is reported as a derivative asset in ~~"Other assets"~~“Other assets” in the accompanying Consolidated Balance Sheets and is adjusted to its fair value at each reporting date, with a corresponding non-cash adjustment to ~~"Other~~“Other non-operating ~~(income) expense"~~income” in the accompanying Consolidated Statements of Operations. As a result of ~~mark-to-market~~ adjustments of non-cash ~~expense~~income recorded to reflect the change in fair value of the derivative asset during the year ended December 31, ~~2018,~~2019, the fair value of the embedded derivative asset ~~decreased~~increased to $36.5million as of December 31, 2019 as compared to $18.6 million as of December 31, ~~2018 as compared to $21.2 million as of December 31, 2017.~~

2018.

The Company has determined the majority of the inputs used to value its outstanding debt and derivatives, including its embedded derivative, fall within Level 2 of the fair value hierarchy, and as a result, the fair ~~market~~value valuation of its debt and all of its derivatives held as of December 31, ~~2018~~2019 and December 31, ~~2017~~2018 were classified as Level 2 in the fair value hierarchy. The Company’s derivative financial instruments and their related gains and losses are reported in ~~"Net~~“Net change in operating accounts and ~~other"~~other operating activities” in the accompanying Consolidated Statements of Cash Flows.

Cash Flow Hedges of Interest Rate Risk

~~As of January 1, 2018, the Company early adopted ASU 2017-12,~~ ~~Derivatives and Hedging (Topic 815),~~ which clarifies hedge accounting requirements, improves disclosure of hedging arrangements and better aligns risk management activities and financial reporting for hedging relationships. The Company adopted the standard using a modified retrospective approach via the elimination of the previously recorded cumulative ineffectiveness for cash flow and net investment hedges existing at date of adoption as a cumulative-effect adjustment of $0.2 million to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings. The adoption of the ASU did not have a material impact on the consolidated financial statements or the Company's accounting policies.

The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in ~~"Accumulated~~“Accumulated other comprehensive ~~(loss) income"~~loss” and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. ~~In conjunction with the adoption of ASU 2017-12, as~~As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses will be recognized in the period in which hedged transactions impact earnings, regardless of whether or not economic mismatches exist in the hedging relationship. Amounts reported in ~~"Accumulated~~“Accumulated other comprehensive ~~(loss) income"~~loss” related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company's variable rate or fixed rate debt. During the next twelve months, the Company estimates that an additional ~~$2.8~~$1.1 millionwill be reclassified to earnings as a ~~reduction~~decrease to ~~"Interest expense"~~“Interest expense”, which primarily represents the difference between the fixed interest rate swap payments and the projected variable interest rate swap receipts.

~~As of~~ ~~December 31, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):~~

Interest Rate Derivative Number of Instruments Notional
Interest rate swaps ⁽¹⁾
10 $600,000


⁽¹⁾	Includes six forward rate swaps totaling $300.0 million, which hedge the first 10 years of interest payments on debt the Company anticipates issuing in 2019. These swaps are not included in the debt discussion in Note 6.

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Operations

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, respectively ~~(in~~(dollars in thousands):

Derivatives in

Cash Flow Hedging

Relationships

(Loss) Gain Recognized in OCI on

Derivative

Location of Gain

(Loss) Reclassified

Gain (Loss) Reclassified from

Accumulated OCL into

Interest Expense⁽¹⁾

For the Year ended

December 31,

2019

2018

2017

from Accumulated

OCL into Income

2019

2018

2017

Interest rate contracts

(11,676

)

(751

)

319

Interest expense

1,747

1,938

(730

)

Derivatives in Cash Flow Hedging Relationships (Loss) Gain Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from Accumulated OC(L)I into Income
Gain (Loss) Reclassified from Accumulated OC(L)I into Interest Expense⁽¹⁾
Year ended December 31, 2018 2017 2016 2018 2017 2016
Interest rate contracts $ (751 ) $ 319
$ (1,500 ) Interest expense $ 1,938
$ (730 ) $ (4,364 )


⁽¹⁾	See the Consolidated Statements of Comprehensive Income for changes in accumulated other comprehensive ~~(loss) income~~loss as these changes are presented net of the allocation to noncontrolling interests.

Derivatives Not Designated as

Hedging Instruments

Location of Gain (Loss) Recognized in

Gain (Loss) Recognized in Earnings on Derivative

For the year ended December 31,

Income on Derivative

2019

2018

2017

Preferred stock embedded derivative

Other non-operating income

17,886

(2,576

)

8,807

Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized in Income on Derivative (Loss) Gain Recognized in Earnings on Derivative
For the year ended December 31, 2018 2017 2016
Preferred stock embedded derivative Other non-operating (income) expense $ (2,576 ) $ 8,807
$ —

Credit-Risk-Related Contingent Features

Certain of the Company's derivative contracts contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of December 31, ~~2018,~~2019, the Company had not breached the provisions of these agreements. If the provisions had been breached, the Company could have been required to settle its obligations under the agreements, ~~at the~~although there was 0 termination value ~~of $5.5 million~~liability as of December 31, ~~2018.~~ 2019.Although the Company's derivative contracts are subject to master netting arrangements, which serve as credit mitigants to both the Company and its counterparties under certain situations, the Company does not net its derivative fair values or any existing rights or obligations to cash collateral in the Consolidated Balance Sheets.

7.	Income Taxes

~~8. Income Taxes~~

Due to the structure of MAA as a REIT and the nature of the operations of its operating properties, no provision for federal income taxes has been made at the MAA level. In addition, as MAALP is structured as a limited partnership, and its partners recognize their proportionate share of income or loss in their tax returns, no provision for federal income taxes has been made at the MAALP level. Historically, the Company has incurred certain state and local income, excise and franchise taxes.

Taxable REIT Subsidiaries

A TRS is an entity that is subject to federal, state and any applicable local corporate income tax without the benefit of the dividends paid deduction applicable to REITs. The Company’s TRS did not generate any material taxable income or income tax expense for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016.~~2017. The Company’s TRS generally provide the Company with third party services ~~(payroll~~(property management services to a real estate joint venture and other services) for which the Company reimburses its TRS. In addition, one of the Company’s TRS has an investment in a limited partnership that generates investment income and losses. All intercompany transactions are eliminated in the accompanying consolidated financial statements.

For the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016,~~2017, the reconciliation of income tax attributable to continuing operations for the Company’s TRS computed at the U.S. statutory rate to the income tax provision was as follows (in thousands):

	2019		2018		2017
Tax expense at U.S. statutory rates on the Company's TRS income subject to tax	$	1,026	$	115	$	2,177
Valuation allowance		—		127		(2,177	)
TRS income tax provision	$	1,026	$	242	$	—

2018 2017 2016
Tax expense at U.S. statutory rates on TRS income subject to tax $ 115
$ 2,177
$ 3,185
Valuation allowance 127
(2,177 ) (3,185 )
TRS income tax provision $ 242
$ —
$ —

Income tax expense for the years ended December 31, 2018, 2017 and 2016 was $2.6 million, $2.6 million and $1.7 million, respectively, and is presented in “Income tax expense” in the accompanying Consolidated Statements of Operations.

Income tax expense primarily relates to the Texas-based margin tax for all Texas apartment communities in addition to the Company’s TRS income tax provision discussed above.

Income tax expense for the Company for the years ended December 31, 2019, 2018 and 2017 was $3.7 million, $2.6 million and $2.6 million, respectively, and is presented in “Income tax expense” in the accompanying Consolidated Statements of Operations.

The Company’s TRS deferred tax asset and liability balances as of December 31, ~~2018~~2019 and ~~2017~~2018 were immaterial. The ~~Company~~TRS had no reserve for uncertain tax positions for the years ended December 31, ~~2018~~2019 and ~~2017,~~2018, and management does not believe there will be any material changes in the ~~Company's~~TRS unrecognized tax positions over the next 12 months. If necessary, the ~~Company~~TRS accrues interest and penalties on unrecognized tax benefits as a component of income tax expense.

NOL Carryforwards

As of December 31, ~~2018~~2019 and ~~2017,~~2018, the Company held federal NOL carryforwards of $70.8 million and $71.5 million, respectively, for income tax purposes that expire in years 2019 to 2033. Utilization of any NOL carryforwards is subject to an annual limitation due to ownership change limitations provided by Section 382 of the Code and similar state provisions. The annual limitations may result in the expiration of NOL carryforwards before utilization. The Company may use these NOLs to offset all or a portion of the taxable income generated at the REIT level. Tax years ~~2015~~2016 through ~~2018~~2019 are subject to examination by the Internal Revenue Service. No tax examination is currently in process.

Taxable Composition of Distributions

For income tax purposes, dividends paid to holders of common stock primarily consist of ordinary income, return of capital, capital gains, qualified dividends and un-recaptured Section 1250 gains, or a combination thereof. For the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016,~~2017, dividends per share held for the entire year were estimated to be taxable as follows:

	2019					2018					2017
	Amount		Percentage			Amount		Percentage			Amount		Percentage
Ordinary income	$	3.51		91.4	%	$	3.66		99.3	%	$	2.79		80.2	%
Capital gain		0.21		5.5	%		0.02		0.6	%		0.31		8.9	%
Un-recaptured Section 1250 gain		0.12		3.1	%		0.01		0.1	%		0.38		10.9	%
	$	3.84		100	%	$	3.69		100	%	$	3.48		100	%

2018 2017 2016
Amount Percentage Amount Percentage Amount Percentage
Ordinary income $ 3.66
99.3 % $ 2.79
80.2 % $ 3.28
100 %
Capital gain 0.02
0.6 % 0.31
8.9 % —
— %
Un-recaptured Section 1250 gain 0.01
0.1 % 0.38
10.9 % —
— %
$ 3.69
100.00 % $ 3.48
100.00 % $ 3.28
100.00 %

The Company designated the per share amounts above as capital gain dividends in accordance with the requirements of the Code. The difference between net income available to common shareholders for financial reporting purposes and taxable income before dividend deductions relates primarily to temporary differences such as depreciation and amortization and taxable gains on sold properties.

U.S. Tax Reform

In December 2017, the Tax Cuts and Jobs Act, or the Act, was enacted in the United States, requiring companies to account in

2017 for the current and future effects of the legislative changes. As REITs are pass-through entities for the purpose of U.S. federal taxation, the legislative changes created by the Act ~~are~~were largely not applicable to the Company. Generally, the effects to REITs resulting from the Act ~~include~~included a reduction in the TRS federal statutory tax rate to 21% and a one-time inclusion in REIT taxable income of foreign subsidiary earnings. As noted above, the Company's TRS recognized no material taxable income in 2019, 2018 and 2017, and the Company has no foreign subsidiaries. Management has concluded there was no material effect to the Company’s consolidated financial statements from either a tax or financial statement perspective as a result of the Act.

8.	Shareholders' Equity of MAA

~~9. Shareholders' Equity of MAA~~

As of December 31, 2019, 114,246,393 shares of common stock of MAA and 4,067,174 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of 118,313,567 common shares and units. As of December 31, 2018,, 113,844,267 shares of common stock of MAA and 4,111,301 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of 117,955,568 common shares and units.

Preferred Stock

As of December 31, ~~2017, 113,643,166 shares of common stock of MAA and 4,191,586 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of~~ ~~117,834,752~~ ~~common shares and units.~~

~~Preferred Stock~~

~~As of~~ ~~December 31, 2018~~,2019, MAA had one outstanding series of cumulative redeemable preferred stock which has the following characteristics:

Description		Outstanding Shares				Liquidation Preference⁽¹⁾				Optional Redemption Date		Redemption Price⁽²⁾				Stated Dividend Yield			Approximate Dividend Rate
Series I			867,846			$	50.00			10/1/2026		$	50.00			8.50%			$	4.25

⁽¹⁾	The total liquidation preference for the outstanding preferred stock is $43.4 million.

⁽²⁾	The redemption price is the price at which the preferred stock is redeemable, at MAA's option, for cash.

Description Outstanding Shares
Liquidation Preference⁽¹⁾
Optional Redemption Date
Redemption Price ⁽²⁾
Stated Dividend Yield Approximate Dividend Rate
Series I 867,846 $50.00 10/1/2026 $50.00 8.50% $4.25

⁽¹⁾~~The total liquidation preference~~

See Note 6 for details of the ~~outstanding~~valuation of the derivative asset related to the redemption feature embedded in the MAA Series I preferred ~~stock is $43.4 million.~~

⁽²⁾~~The redemption price is the price at which the preferred stock is redeemable, at MAA's option, for cash.~~

stock.

Direct Stock Purchase and Distribution Reinvestment Plan

MAA has a Dividend and Distribution Reinvestment and Share Purchase Plan, or DRSPP, pursuant to which MAA’s common shareholders have the ability to reinvest all or part of their distributions from MAA into shares of MAA’s common stock and holders of Class A OP Units have the ability to reinvest all or part of their distributions from the Operating Partnership into MAA’s common stock. The DRSPP also provides the opportunity to make optional cash investments in MAA's common stock of at least ~~$250~~,$250, but not more than ~~$5,000~~$5,000 in any given month, free of brokerage commissions and charges. MAA, in its absolute discretion, may grant waivers to allow for optional cash payments in excess of ~~$5,000~~.$5,000. To fulfill its obligations under the DRSPP, MAA may either issue additional shares of common stock or repurchase common stock in the open market. MAA currently has registered with the SEC the offer and sale of up to 1,940,500 shares of common stock pursuant to the DRSPP. MAA may elect to sell shares under the DRSPP at up to a 5% discount. Shares of MAA's common stock totaling 16,219 in 2019, 9,721 in 2018,, and 9,568 in 2017~~, and~~ ~~7,906~~ in ~~2016~~ were acquired by participants under the DRSPP. MAA did not offer a discount for optional cash purchases in 2019, 2018 or 2017.

At-the-Market Share Offering Program

The Company has entered into separate distribution agreements with each of J.P. Morgan Securities LLC, BMO Capital Markets Corp. and KeyBanc Capital Markets Inc. to establish an at-the-market share offering program, or ATM program, allowing MAA to sell shares of its common stock from time to time into the existing market at current market prices or through negotiated transactions. Under the ATM program, MAA has the authority to issue up to an aggregate of 4.0 million shares of its common stock, at such times to be determined by MAA. The ATM program currently has a maturity of September 28, 2021. MAA has no obligation to issue shares through the ATM program.

During the year ended December 31, 2019, MAA sold 146,301 shares of common stock for net proceeds of $19.6 million through its ATM program, all of which shares were sold during the three months ended December 31, 2019. During the years ended December 31, 2018 and 2017, MAA did not sell any shares of common stock under its ATM program. As of December 31, 2019, ~~2017~~ or ~~2016~~.

~~10. Partners' Capital of MAALP~~

there were 3.9 million shares remaining under the ATM program.

9.	Partners' Capital of MAALP

Common units of limited partnership interests in MAALP are represented by OP Units. As of December 31, ~~2018,~~2019, there were ~~117,955,568~~118,313,567 OP Units outstanding, ~~113,844,267,~~114,246,393, or ~~96.5%~~96.6%, of which represent Class B OP Units (common units issued to or held by MAALP's general partner or any of its subsidiaries), which were owned by MAA, MAALP's general partner. The remaining ~~4,111,301~~4,067,174 OP Units were Class A OP Units owned by Class A limited partners. As of December 31, ~~2017,~~2018, there were ~~117,834,752~~117,955,568 OP Units outstanding, ~~113,643,166,~~113,844,267, or ~~96.4%~~96.5%, of which were owned by MAA and ~~4,191,586~~4,111,301 of which were owned by the Class A limited partners.

MAA, as the sole general partner of MAALP, has full, complete and exclusive discretion to manage and control the business of MAALP subject to the restrictions specifically contained within MAALP's agreement of limited partnership, or the Partnership Agreement. Unless otherwise stated in the Partnership Agreement, this power includes, but is not limited to, acquiring, leasing or disposing of any real property; constructing buildings and making other improvements to properties owned; borrowing money, modifying or extinguishing current borrowings, issuing evidence of indebtedness and securing such indebtedness by mortgage, deed of trust, pledge or other lien on MAALP's assets; and distribution of MAALP's cash or other assets in accordance with the Partnership Agreement. MAA can generally, at its sole discretion, issue and redeem OP Units and determine the consideration to be received or the redemption price to be paid, as applicable. The general partner may delegate these and other powers granted if the general partner remains in supervision of the designee.

Under the Partnership Agreement, MAALP may issue Class A OP Units and Class B OP Units. Class A OP Units are any OP Units other than Class B OP Units, while Class B OP Units are those issued to or held by MAALP's general partner or any of its subsidiaries. In general, the limited partners do not have the power to participate in the management or control of MAALP's business except in limited circumstances, including changes in the general partner and protective rights if the general partner acts outside of the provisions provided in the Partnership Agreement. The transferability of Class A OP Units is also limited by the Partnership Agreement.

Net income (after allocations to preferred ownership interests) is allocated to the general partner and limited partners based on their respective ownership percentages of MAALP. Issuance or redemption of additional Class A OP Units or Class B OP Units changes the relative ownership percentage of the partners. The issuance of Class B OP Units generally occurs when MAA issues common stock and the proceeds from that issuance are contributed to MAALP in exchange for the issuance to MAA of a number of OP Units equal to the number of shares of common stock issued. Likewise, if MAA repurchases or redeems outstanding shares of common stock, MAALP generally redeems an equal number of Class B OP Units with similar terms held by MAA for a redemption price equal to the purchase price of those shares of common stock. At each reporting period, the allocation between general partner capital and limited partner capital is adjusted to account for the change in the respective percentage ownership of the underlying capital of MAALP. Holders of the Class A OP Units may require MAA to redeem their Class A OP Units, in which case MAA may, at its option, pay the redemption price either in cash (in an amount per Class A OP Unit equal, in general, to the average closing price of MAA's common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA common stock (subject to adjustment under specified circumstances) for each Class A OP Unit so redeemed.

As of December 31, 2019, a total of 4,067,174Class A OP Units were outstanding and redeemable for 4,067,174 shares of MAA common stock, with an approximate value of $536.3 million, based on the closing price of MAA’s common stock on December 31, 2019 of $131.86 per share. As of December 31, 2018, a total of 4,111,301 Class A OP Units were outstanding and redeemable for 4,111,301 shares of MAA common stock, with an approximate value of $393.5 million, based on the closing price of MAA’s common stock on December 31, 2018 of $95.70 per share. ~~As of December 31, 2017, a total of 4,191,586 Class A OP Units were outstanding and redeemable for 4,191,586 shares of MAA common stock, with an approximate value of~~ ~~$421.5 million, based on the closing price of MAA’s common stock on December 31, 2017 of~~ ~~$100.56~~ ~~per share.~~ MAALP pays the same per unit distributions in respect to the OP Units as the per share dividends MAA pays in respect to its common stock.

As of December 31, ~~2018,~~2019, MAALP had one outstanding series of cumulative redeemable preferred units, or the MAALP Series I Preferred Units. The MAALP Series I Preferred Units have the same characteristics as the MAA Series I preferred stock described in Note 8. As of December 31, ~~2018,~~2019, 867,846 units of the MAALP Series I Preferred Units were outstanding.

10.	Employee Benefit Plans

~~11. Employee Benefit Plans~~

The following provides details of the employee benefit plans not previously discussed in Note 5.

401(k) Savings Plans

MAA's 401(k) Savings Plan, or 401(k) Plan, is a defined contribution plan that satisfies the requirements of Section 401(a) and 401(k) of the Code. Subsequent to the merger with Post Properties, eligible employees of Post Properties continued to actively participate in the Post Properties 401(k) Plan, which also is a defined contribution plan that satisfies the requirements of Section 401(a) and 401(k) of the Code. MAA's Board of Directors has the discretion to approve matching contributions to ~~these plans.~~the 401(k) Plan. MAA recognized expense from ~~these plans~~the 401(k) Plan of $3.5 million, $3.2 million ~~$2.8~~and $2.8 million ~~and~~ ~~$2.0 million~~ for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, respectively.

Non-Qualified Executive Deferred Compensation Retirement Plan

MAA has adopted the MAA Non-Qualified Executive Deferred Compensation Retirement Plan Amended and Restated effective January 1, 2016, or the Deferred Compensation Plan, for certain executive employees. Under the terms of the Deferred Compensation Plan, employees may elect to defer a percentage of their compensation and bonus, and MAA may, but is not obligated to, match a portion of the employees' salary deferral. MAA recognized expense on its match to the Deferred Compensation Plan for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016~~2017 of $0.3 million, $0.3 million and $0.2 million, ~~and $0.1 million,~~ respectively.

Non-Qualified Deferred Compensation Plan for Outside Company Directors

MAA has adopted the Non-Qualified Deferred Compensation Plan for Outside Company Directors as Amended effective November 20, 2010, or the Directors Deferred Compensation Plan, which allows non-employee directors to defer their director fees by having the fees held by MAA as shares of MAA's common stock. Directors can also choose to have their annual

restricted stock grants issued into the Directors Deferred Compensation Plan. Amounts deferred through the Directors Deferred Compensation Plan are distributed to the directors in ~~two~~2 annual installments beginning in the first 90 days of the year following the director’s departure from the board. Participating directors may choose to have the amount issued to them in shares of MAA's common stock or paid to them as cash at the market value of MAA's common stock as of the end of the year the director ceases to serve on the board.

For the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~,2017, directors deferred 10,738 shares, 12,240 shares ~~12,293~~ ~~shares~~ and ~~10,166~~12,293 shares of common stock, respectively, with weighted-average grant date fair values of $117.73, $92.63 ~~$101.34~~and ~~$97.99~~,$101.34, respectively, into the Directors Deferred Compensation Plan. The shares of common stock held in the Directors Deferred Compensation Plan are classified outside of permanent equity in redeemable stock with changes in redemption amount recorded immediately to retained earnings because the directors have redemption rights not solely within the control of MAA. Additionally, any shares that become mandatorily redeemable because a departed director has elected to receive a cash payout are recorded as a liability. MAA did not record a liability related to mandatorily redeemable shares for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~.

2017.

Employee Stock Ownership Plan

MAA’s Employee Stock Ownership Plan, or ESOP, is a non-contributory stock bonus plan that satisfies the requirements of Section 401(a) of the Code. On December 31, 2010, the ESOP was frozen by amendment, whereby effective January 1, 2011, no additional employees became eligible for the plan, no additional contributions were made to the ESOP, and all Participants with an account balance under the ESOP became 100% vested. The Company did not contribute to the ESOP during 2019, 2018 ~~2017~~ or ~~2016.~~2017. As of December 31, ~~2018,~~2019, there were ~~139,436~~ 131,165shares outstanding with a fair value of ~~$13.3~~ $17.3million.

11.	Commitments and Contingencies

~~12. Commitments and Contingencies~~

~~Land and Equipment~~

Leases

The ~~Company has~~Company's leases include a ground lease expiring in 2074 related to one of its apartment communities ~~acquired~~and an office lease expiring in ~~the merger with Post Properties. This lease contains~~2028 related to its corporate headquarters. Both leases contain stated rent increases that generally compensate for the impact of inflation. The Company also has other commitments related to immaterial office ~~equipment~~ and ~~other~~equipment operating leases. ~~Future minimum~~

The table below reconciles undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease ~~payments for non-cancelable land, equipment and other operating leases~~obligations recorded on the Consolidated Balance Sheets as of December 31, ~~2018 were as follows~~2019 (in thousands):

	Operating Leases
2020	$	2,825
2021		2,854
2022		2,885
2023		2,875
2024		2,853
Thereafter		65,863
Total minimum lease payments		80,155
Net present value adjustments		(47,036	)
Operating lease obligations	$	33,119

Minimum Lease Payments
2019 $ 2,729
2020 2,744
2021 2,771
2022 2,767
2023 2,761
Thereafter 68,516
Total $ 82,288

Legal Proceedings

In September 2010, the United States Department of Justice, or DOJ, filed suit against Post Properties (and by virtue of the merger with Post Properties, MAA) in the United States District Court for the District of Columbia alleging that certain of Post Properties’ apartments violated accessibility requirements of the Fair Housing Act, or FHA, and the Americans with Disabilities Act of 1990, or ADA. The DOJ sought, among other things, an injunction against MAA, requiring MAA to retrofit the properties and comply with FHA and ADA standards in future design and construction, as well as monetary damages and civil penalties. In October 2018, MAA and the DOJ reached an agreement in principle to settle the lawsuit. In November 2018, the settlement agreement was fully executed. In December 2018, a stipulation of dismissal of the case with prejudice was filed with the District Court, concluding the case.

the Texas Property Code, or Section 92.019, which provides that a landlord may not charge a tenant a late fee for failing to pay rent unless, among other things, the fee is a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation and

result from the late payment of rent. The plaintiffs are seeking monetary damages and attorneys' fees and costs. In September 2018, the District Court certified a class proposed by the plaintiffs. Additionally, in September 2018, the District Court denied the Company’s motion for summary judgment and granted the plaintiffs’ motion for partial summary judgment. Because the District Court certified a class prior to granting the plaintiffs’ motion for partial summary judgment, the District Court’s ruling applies to the entire class. In October 2018, the Fifth Circuit Court of Appeals accepted the Company’s petition to review the District Court’s order granting class certification. In September 2019, the Fifth Circuit Court of Appeals heard the Company’s oral arguments. The Company also intends to appeal the District Court’s order granting ~~plaintiff’s~~plaintiff's motion for summary judgment to the Fifth Circuit Court of Appeals if permission to appeal is granted. The Company will continue to vigorously defend the action and pursue such appeals. Management estimates that the Company's maximum exposure in the lawsuit, given the ~~recent~~ class certification and summary judgment ruling, is $54.6 million, which includes both potential damages and attorneys' fees but excludes any prejudgment interest that may be awarded.

In April 2017, plaintiff Nathaniel Brown, on behalf of a purported class of plaintiffs, filed a complaint against the Operating Partnership, as the successor by merger to Post Properties' primary operating partnership, and MAA in the United States District Court for the Western District of Texas, Austin Division. The lawsuit alleges that Post Properties (and, following the Post Properties merger in December 2016, the Operating Partnership) charged late fees at its Texas properties that violate Section 92.019. The plaintiffs are seeking monetary damages and ~~attorneys'~~attorney's fees and costs. In September 2018, the District Court certified a class proposed by the plaintiff. Additionally, in September 2018, the District Court denied the Company’s motion for summary judgment and granted the plaintiff’s motion for partial summary judgment. Because the District Court certified a class prior to granting the plaintiff’s motion for partial summary judgment, the District Court’s ruling applies to the entire class. In October 2018, the Fifth Circuit Court of Appeals accepted the Company's petition to review the District Court's order granting class certification. In September 2019, the Fifth Circuit Court of Appeals heard the Company’s oral arguments. The Company also intends to appeal the District Court’s order granting plaintiff’s motion for summary judgment to the Fifth Circuit Court of Appeals if permission to appeal is granted. The Company will continue to vigorously defend the action and pursue such appeals. Management estimates that the Company's maximum exposure in the lawsuit, given the ~~recent~~ class certification and summary judgment ruling, is $8.4 million, which includes both potential damages and attorneys' fees but excludes any prejudgment interest that may be awarded.

The Company is subject to various other legal proceedings and claims that arise in the ordinary course of its business operations. Matters which arise out of allegations of bodily injury, property damage and employment practices are generally covered by insurance. While the resolution of these other matters cannot be predicted with certainty, management does not currently believe that such matters, either individually or in the aggregate, will have a material adverse effect on the Company's financial condition, results of operations or cash flows in the event of a negative outcome.

Loss Contingencies

The outcomes of claims, disputes and legal proceedings are subject to significant uncertainty. The Company records an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. The Company also accrues an estimate of defense costs expected to be incurred in connection with legal matters. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If the Company cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed.

The assessment of whether a loss is probable or a reasonable possibility, and whether the loss or range of loss is reasonably estimable, often involves a series of complex judgments about future events. Among the factors considered in this assessment, are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if reasonably estimable), the progress of the matter, existing law and precedent, the opinions or views of legal counsel and other advisers, management's experience in similar matters, the facts available to management at the time of assessment, and how the Company intends to respond, or has responded, to the proceeding or claim. Management's assessment of these factors may change over time as individual proceedings or claims progress. For matters where management is not currently able to reasonably estimate a range of reasonably possible loss, the factors that have contributed to this determination include the following: (i) the damages sought are indeterminate; (ii) the proceedings are in the early stages; (iii) the matters involve novel or unsettled legal theories or a large or uncertain number of actual or potential cases or parties; and/or (iv) discussions with the parties in matters that are ultimately expected to be resolved through negotiation and settlement have not reached the point where management believes a reasonable estimate of loss, or range of loss, can be made. The Company believes that there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss or business impact, if any.

As of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company's accrual for loss contingencies relating to unresolved legal matters was ~~$8.7~~$8.6 million and ~~$32.1~~$8.7 million in the aggregate, respectively. The loss contingencies are presented in ~~"Accrued~~“Accrued expenses and other ~~liabilities"~~

liabilities” in the accompanying Consolidated Balance Sheets.

12.	Related Party Transactions

~~13. Related Party Transactions~~

The Company holds investments in unconsolidated affiliates accounted for under the equity method of accounting. All significant intercompany transactions were eliminated in the accompanying consolidated financial statements.

The cash management of the Company is managed by the Operating Partnership. In general, cash receipts are remitted to the Operating Partnership and all cash disbursements are funded by the Operating Partnership. As a result of these transactions, the Operating Partnership had a payable to MAA, its general partner, of $19,000 as of December 31, ~~2018~~2019 and December 31, ~~2017,~~2018, respectively. The Partnership Agreement does not require the due to/due from balance to be settled in cash until liquidation of the Operating Partnership, and therefore, there is no regular settlement schedule for such amounts.

13.	Segment Information

~~14. Segment Information~~

As of December 31, ~~2018~~,2019, the Company owned and operated ~~303~~299 multifamily apartment communities in 1716 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. 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 ~~two~~2 reportable segments for the Company:

•

Same Store communities are communities that the Company has owned and have 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 incurred a significant casualty loss. Also included in Non-Same Store and Other are non-multifamily activities.

~~Same Store communities are communities that the Company has owned and 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 recent acquisitions, communities in development or lease-up, communities that have been identified for disposition, and communities that have incurred a significant casualty loss. Also included in Non-Same Store and Other are non-multifamily activities.

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. Properties in development or lease-up are added to the Same Store portfolio on the first day of the calendar year after ita community 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 chief operating decision maker utilizes net operating income, or NOI, in evaluating the performance of its 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.

Effective January 1, 2018, the Company revised its reportable segment presentation. The revision eliminated the distinction between large and secondary same store markets and combined the two previously reported segments into the Same Store reportable segment referred to above. The communities acquired in the merger with Post Properties became eligible for the same store designation on January 1, 2018 as the properties had been owned and stabilized for a full 12 months and are predominantly located in large markets, resulting in a more homogeneous property portfolio in terms of market dynamics. The chief operating decision maker no longer makes decisions about capital resource allocations and does not assess operating performance by large and secondary same store markets. Further, the chief operating decision maker no longer reviews financial information segregating the Company’s operating segments into large and secondary same store markets. The change in the Company’s portfolio caused the distinction between large and secondary markets to no longer be meaningful. As a result, the Company now discloses two reportable segments: Same Store and Non-Same Store and Other. There were no changes in the structure of the Company’s internal organization that prompted the change in reportable segments. Prior year amounts have been revised to conform to the current year presentation shown below.

Revenues and NOI for each reportable segment for the years ended December 31, 2019, 2018, ~~2017~~ and ~~2016~~2017 were as follows (in thousands):

	2019			2018			2017
Revenues:
Same Store
Rental revenues	$	1,505,775		$	1,364,744		$	1,313,836
Reimbursable property revenues ⁽¹⁾		—			91,020			88,774
Other property revenues		12,100			11,696			12,229
Total Same Store revenues		1,517,875			1,467,460			1,414,839
Non-Same Store and Other
Rental revenues		121,829			99,281			105,865
Reimbursable property revenues ⁽¹⁾		—			3,744			5,282
Other property revenues		1,313			861			3,001
Total Non-Same Store and Other revenues		123,142			103,886			114,148
Total rental and other property revenues	$	1,641,017		$	1,571,346		$	1,528,987
Net Operating Income:
Same Store NOI	$	956,075		$	921,240		$	889,176
Non-Same Store and Other NOI		72,097			55,518			63,080
Total NOI		1,028,172			976,758			952,256
Depreciation and amortization		(496,843	)		(489,759	)		(493,708	)
Property management expenses		(55,011	)		(47,633	)		(43,588	)
General and administrative expenses		(46,121	)		(34,786	)		(40,194	)
Merger and integration expenses		—			(9,112	)		(19,990	)
Interest expense		(179,847	)		(173,594	)		(154,751	)
Gain (loss) on sale of depreciable real estate assets		80,988			(39	)		127,386
Gain on sale of non-depreciable real estate assets		12,047			4,532			21
Other non-operating income		25,275			5,434			14,353
Income tax expense		(3,696	)		(2,611	)		(2,619	)
Income from real estate joint venture		1,654			1,832			1,370
Net income attributable to noncontrolling interests		(12,807	)		(8,123	)		(12,157	)
Dividends to MAA Series I preferred shareholders		(3,688	)		(3,688	)		(3,688	)
Net income available for MAA common shareholders	$	350,123		$	219,211		$	324,691

⁽¹⁾	As a result of the adoption of ASC Topic 842 referenced in Note 1, for the year ended December 31, 2019, Same Store and Non-Same Store reimbursable property revenues of $94.7 million and $4.2 million, respectively, are reflected as rental revenues.

2018 2017
2016 ⁽¹⁾
Revenues:

Same Store
Rental revenues $ 1,340,914
$ 1,313,836
$ 909,688
Reimbursable property revenues 89,281
88,774
74,814
Other property revenues 11,616
12,229
8,219
Total Same Store revenues $ 1,441,811
$ 1,414,839
$ 992,721
Non-Same Store and Other
Rental revenues $ 123,112
$ 105,865
$ 121,964
Reimbursable property revenues 5,483
5,282
8,733
Other property revenues 940
3,001
1,930
Total Non-Same Store and Other revenues $ 129,535
$ 114,148
$ 132,627
Total rental and other property revenues $ 1,571,346
$ 1,528,987
$ 1,125,348

Net Operating Income:
Same Store NOI $ 905,756
$ 889,176
$ 620,567
Non-Same Store and Other NOI 71,002
63,080
81,425
Total NOI 976,758
952,256
701,992
Depreciation and amortization (489,759 ) (493,708 ) (322,958 )
Property management expenses (47,633 ) (43,588 ) (34,093 )
General and administrative expenses (34,786 ) (40,194 ) (29,040 )
Merger and integration expenses (9,112 ) (19,990 ) (40,823 )
Interest expense (173,594 ) (154,751 ) (129,947 )
(Loss) gain on sale of depreciable real estate assets (39 ) 127,386
80,397
Gain on sale of non-depreciable real estate assets 4,532
21
2,171
Other non-operating income (expense) 5,434
14,353
(1,839 )
Income tax expense (2,611 ) (2,619 ) (1,699 )
Income from real estate joint ventures 1,832
1,370
241
Net income attributable to noncontrolling interests (8,123 ) (12,157 ) (12,180 )
Dividends to MAA Series I preferred shareholders (3,688 ) (3,688 ) (307 )
Net income available for MAA common shareholders $ 219,211
$ 324,691
$ 211,915

⁽¹⁾The 2016 column shows the segment break down based on the 2017 Same Store portfolio. A comparison using the 2018 Same Store portfolio would not be comparative due to the nature of the segment classifications.

Assets for each reportable segment as of December 31, ~~2018~~2019 and ~~2017~~2018 were as follows (in thousands):

	December 31, 2019		December 31, 2018
Assets:
Same Store	$	9,661,935	$	9,921,270
Non-Same Store and Other		1,362,974		1,233,351
Corporate assets		205,541		169,160
Total assets	$	11,230,450	$	11,323,781

December 31, 2018 December 31, 2017
Assets:

Same Store $ 9,589,141
$ 9,864,321
Non-Same Store and Other 1,565,480
1,427,778
Corporate assets 169,160
199,820
Total assets $ 11,323,781
$ 11,491,919

14.	Real Estate Acquisitions and Dispositions

~~15. Real Estate Acquisitions and Dispositions~~

The following table reflects the Company's acquisition activity for the year ended December 31, ~~2018~~:2019:

Multifamily Acquisitions	Market	Units		Date Acquired
The Greene	Greenville, SC	271		November 2019
Jefferson Sand Lake ⁽¹⁾	Orlando, FL	264		October 2019
Novel Midtown ⁽²⁾	Phoenix, AZ	345		February 2019

Commercial Acquisition	Market	Sq Ft		Date Acquired
220 Riverside Retail ⁽³⁾	Jacksonville, FL		14,941	August 2019

Land Acquisition	Market	Acres		Date Acquired
North Orange Avenue – Outparcel	Orlando, FL	2		April 2019

⁽¹⁾	This pre-purchase multifamily community development is being developed through a joint venture with a local developer. The Company owns 95% of the joint venture that owns this property.


⁽²⁾
~~Multifamily Acquisition~~	~~Market~~	~~Units~~	~~Date Acquired~~
~~Sync 36~~	~~Denver, CO~~	~~374~~	~~April 26, 2018~~

~~Commercial Acquisition~~	~~Market~~	~~Sq Ft~~	~~Date Acquired~~
~~Hue Retail~~ ⁽¹⁾	~~Raleigh, NC~~	~~7,500~~	~~August 1, 2018~~

~~Land Acquisition~~	~~Market~~	~~Acres~~	~~Date Acquired~~
~~Westminster~~	~~Denver, CO~~	10	~~October 1, 2018~~
~~Long Point Road~~	~~Houston, TX~~	9	~~November 1, 2018~~This pre-purchase multifamily community development is being developed through a joint venture with a local developer. The Company owns 80% of the joint venture that owns this property.

⁽¹⁾ ~~The Company acquired the ground floor retail portion of one of its existing multifamily apartment communities.~~

⁽³⁾	The Company acquired the ground floor retail portion of one of its existing multifamily apartment communities.

The following table reflects the Company's disposition activity for the year ended December 31, ~~2018~~:

2019:

Multifamily Dispositions	Market	Units				Date Sold
Ridge at Chenal Valley	Little Rock, AR	312				October 2019
~~Land Dispositions~~ Calais Forest	~~Market~~ Little Rock, AR	~~Acres~~ 260			~~Date Sold~~	November 2019
~~Craft Farms Residential~~ Napa Valley	Little Rock, AR	240				November 2019
Westside Creek	Little Rock, AR	308				November 2019
Palisades at Chenal Valley	Little Rock, AR	248				December 2019

Commercial Disposition	Market	Sq Ft				Date Sold
Poplar Avenue Office	Memphis, TN		42,000			March 2019

Land Dispositions	Market	Acres				Date Sold
Peachtree Road – Outparcel	Atlanta, GA	1				February 2019
Colonial Promenade – Outparcel	Huntsville, AL	4				April 2019
Forty Seven Canal Place – Outparcel	Gulf Shores, AL	3 45			~~January 24, 2018~~	October 2019
~~Randal Park~~ Craft Farms – Outparcel	~~Orlando, FL~~ Gulf Shores, AL	34 33			~~February 27, 2018~~
~~Colonial Grand at Azure~~	~~Las Vegas, NV~~	29		~~April 19, 2018~~
~~Spring Hill~~	~~Atlanta, GA~~	10		~~July 2, 2018 and~~ December ~~21, 2018~~2019

15.	Selected Quarterly Financial Information of MAA (Unaudited)

The following table reflects MAA's selected quarterly financial information for the year ended December 31, 2019 (dollars in thousands, except per share data):

	Year Ended December 31, 2019
	First		Second		Third		Fourth
Rental and other property revenues	$	401,178	$	407,390	$	415,632	$	416,817
Net income		65,958		64,141		81,459		155,060
Net income available for MAA common shareholders		62,738		60,995		77,723		148,667
Per share:
Earnings per common share - basic	$	0.55	$	0.53	$	0.68	$	1.30
Earnings per common share - diluted		0.55		0.53		0.68		1.30

~~16. Selected Quarterly Financial Information of MAA (Unaudited)~~

The following table reflects MAA's selected quarterly financial information for the year ended December 31, 2018 (dollars in thousands, except per share data):

	Year Ended December 31, 2018
	First		Second		Third		Fourth
Rental and other property revenues	$	386,017	$	390,073	$	397,108	$	398,148
Net income		50,820		61,981		54,704		63,517
Net income available for MAA common shareholders		48,097		58,885		51,869		60,360
Per share:
Earnings per common share - basic	$	0.42	$	0.52	$	0.46	$	0.53
Earnings per common share - diluted		0.42		0.52		0.46		0.53

16.	Selected Quarterly Financial Information of MAALP (Unaudited)

The following table reflects ~~MAA's~~MAALP's selected quarterly financial information for the year ended December 31, ~~2017~~2019 (dollars in thousands, except per ~~share~~unit data):

	Year Ended December 31, 2019
	First		Second		Third		Fourth
Rental and other property revenues	$	401,178	$	407,390	$	415,632	$	416,817
Net income		65,958		64,141		81,459		155,060
Net income available for MAALP common unitholders		65,036		63,219		80,537		154,002
Per unit:
Earnings per common unit - basic	$	0.55	$	0.53	$	0.68	$	1.30
Earnings per common unit - diluted		0.55		0.53		0.68		1.30

Year Ended December 31, 2017
First Second Third Fourth
Rental and other property revenues $ 378,908
$ 382,791
$ 384,550
$ 382,738
Net income 43,416
50,155
118,958
128,007
Net income available for MAA common shareholders 40,983
47,393
113,787
122,528

Per share:

Earnings per common share - basic $ 0.36
$ 0.42
$ 1.00
$ 1.08
Earnings per common share - diluted 0.36
0.42
1.00
1.08

~~17. Selected Quarterly Financial Information of MAALP (Unaudited)~~

The following table reflects MAALP's selected quarterly financial information for the year ended December 31, 2018 (dollars in thousands, except per unit data):

	Year Ended December 31, 2018
	First		Second		Third		Fourth
Rental and other property revenues	$	386,017	$	390,073	$	397,108	$	398,148
Net income		50,820		61,981		54,704		63,517
Net income available for MAALP common unitholders		49,898		61,059		53,782		62,595
Per unit:
Earnings per common unit - basic	$	0.42	$	0.52	$	0.46	$	0.53
Earnings per common unit - diluted		0.42		0.52		0.46		0.53

~~The following table reflects MAALP's selected quarterly financial information for the year ended December 31, 2017 (dollars in thousands, except per unit data):~~

Year Ended December 31, 2017
First Second Third Fourth
Rental and other property revenues $ 378,908
$ 382,791
$ 384,550
$ 382,738
Net income 43,416
50,155
118,958
128,007
Net income available for MAALP common unitholders 42,494
49,233
118,036
127,085

Per unit:
Earnings per common unit - basic $ 0.36
$ 0.42
$ 1.00
$ 1.08
Earnings per common unit - diluted 0.36
0.42
1.00
1.08

~~18. Subsequent Events~~

~~Disposition~~

In February 2019, MAALP closed on the disposition of a 0.4 acre land parcel located in the Atlanta, Georgia market, resulting in a net gain of $9.0 million on the sale of non-depreciable real estate assets recognized in the first quarter of 2019.

~~Financing~~

~~In February 2019, MAALP entered into a $191.3 million secured property mortgage with a fixed rate of 4.43%, maturing in February 2049.~~

Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

Schedule III - Real Estate and Accumulated Depreciation

December 31, ~~2018~~

2019

(Dollars in thousands)


				Initial Cost				Costs Capitalized Subsequent to Acquisition					Gross Amount carried as of December 31, 2018																	Initial Cost				Costs Capitalized Subsequent to Acquisition					Gross Amount carried as of December 31, 2019
Property	Location	Encumbrances		Land		Buildings and Fixtures		Land			Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽³⁾		Accumulated Depreciation ⁽⁴⁾			Net		Date of Construction	Date Acquired	Location	Encumbrances			Land		Buildings and Fixtures		Land			Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽⁴⁾		Accumulated Depreciation ⁽⁵⁾			Net		Date of Construction	Date Acquired
Birchall at Ross Bridge	Birmingham, AL	—		$	2,640	$	28,842	$	—		$	1,619	$	2,640	$	30,463	$	33,103	$	(7,815	)	$	25,288	2009	2011	Birmingham, AL		—		$	2,640	$	28,842	$	—		$	2,141	$	2,640	$	30,983	$	33,623	$	(8,991	)	$	24,632	2009	2011
Colonial Grand at Riverchase Trails	Birmingham, AL	—		3,761		22,079		—			3,875		3,761		25,954		29,715		(6,747		)	22,968		2010	2013	Birmingham, AL		—			3,761		22,079		—			4,561		3,761		26,640		30,401		(8,107	)		22,294	2010	2013
Colonial Village at Trussville	Birmingham, AL	—		3,402		31,813		—			2,878		3,402		34,691		38,093		(8,256		)	29,837		1996/97	2013	Birmingham, AL		—			3,402		31,813		—			3,287		3,402		35,100		38,502		(9,866	)		28,636	1996/97	2013
Eagle Ridge	Birmingham, AL	—		851		7,667		—			4,467		851		12,134		12,985		(7,908		)	5,077		1986	1998	Birmingham, AL		—			851		7,667		—			4,736		851		12,403		13,254		(8,302	)		4,952	1986	1998
Colonial Grand at Traditions	Gulf Shores,AL	—		3,211		25,162		—			2,589		3,211		27,751		30,962		(7,063		)	23,899		2007	2013	Gulf Shores,AL		—			3,211		25,162		—			2,875		3,211		28,037		31,248		(8,408	)		22,840	2007	2013
Colonial Grand at Edgewater	Huntsville, AL	—		4,943		38,673		—			4,374		4,943		43,047		47,990		(9,439		)	38,551		1990	2013	Huntsville, AL		—			4,943		38,673		—			6,488		4,943		45,161		50,104		(11,276	)		38,828	1990	2013
Paddock Club at Providence	Huntsville, AL	—		909		10,152		830			14,269		1,739		24,421		26,160		(14,497		)	11,663		1993	1997	Huntsville, AL		—			909		10,152		830			14,583		1,739		24,735		26,474		(15,146	)		11,328	1993	1997
Colonial Grand at Madison	Madison, AL	—		3,601		28,934		—			1,653		3,601		30,587		34,188		(7,467		)	26,721		2000	2013	Madison, AL		—			3,601		28,934		—			1,849		3,601		30,783		34,384		(8,864	)		25,520	2000	2013
Cypress Village	Orange Beach, AL	—		1,290		12,238		—			1,790		1,290		14,028		15,318		(3,117		)	12,201		2008	2013	Orange Beach, AL		—			1,290		12,238		—			2,017		1,290		14,255		15,545		(3,746	)		11,799	2008	2013
Colonial Grand at Liberty Park	Vestavia Hills, AL	—		3,922		30,977		—			5,387		3,922		36,364		40,286		(8,819		)	31,467		2000	2013	Vestavia Hills, AL		—			3,922		30,977		—			5,946		3,922		36,923		40,845		(10,703	)		30,142	2000	2013
Edge at Lyon's Gate	Phoenix, AZ	—		7,901		27,182		—			2,930		7,901		30,112		38,013		(10,854		)	27,159		2007	2008	Phoenix, AZ		—			7,901		27,182		—			2,896		7,901		30,078		37,979		(11,872	)		26,107	2007	2008
Residences at Fountainhead	Phoenix, AZ	—		12,212		56,705		—			921		12,212		57,626		69,838		(4,515		)	65,323		2015	2016	Phoenix, AZ		—	⁽³⁾		12,212		56,705		—			1,132		12,212		57,837		70,049		(6,366	)		63,683	2015	2016
Sky View Ranch	Gilbert, AZ	—		2,668		14,577		—			2,336		2,668		16,913		19,581		(5,888		)	13,693		2007	2009	Gilbert, AZ		—			2,668		14,577		—			2,509		2,668		17,086		19,754		(6,531	)		13,223	2007	2009
Talus Ranch	Phoenix, AZ	—		12,741		47,701		—			3,879		12,741		51,580		64,321		(21,278		)	43,043		2005	2006	Phoenix, AZ		—			12,741		47,701		—			4,058		12,741		51,759		64,500		(22,976	)		41,524	2005	2006
Colonial Grand at Inverness Commons	Mesa, AZ	—		4,219		26,255		—			1,755		4,219		28,010		32,229		(6,523		)	25,706		2002	2013	Mesa, AZ		—			4,219		26,255		—			2,343		4,219		28,598		32,817		(7,720	)		25,097	2002	2013
Colonial Grand at Scottsdale	Scottsdale, AZ	—		3,612		20,273		—			2,192		3,612		22,465		26,077		(5,301		)	20,776		1999	2013	Scottsdale, AZ		—			3,612		20,273		—			2,490		3,612		22,763		26,375		(6,313	)		20,062	1999	2013
Colonial Grand at OldTown Scottsdale	Scottsdale, AZ	—		7,820		51,627		—			4,843		7,820		56,470		64,290		(12,886		)	51,404		1994/95	2013	Scottsdale, AZ		—			7,820		51,627		—			5,233		7,820		56,860		64,680		(15,311	)		49,369	1994/95	2013
SkySong	Scottsdale, AZ	—		—		55,748		—			1,602		—		57,350		57,350		(5,419		)	51,931		2014	2015	Scottsdale, AZ		—			—		55,748		—			2,142		—		57,890		57,890		(7,075	)		50,815	2014	2015
Calais Forest	Little Rock, AR	—		1,026		9,244		—			7,894		1,026		17,138		18,164		(11,927		)	6,237		1987	1994
Napa Valley	Little Rock, AR	—		960		8,642		—			5,702		960		14,344		15,304		(9,664		)	5,640		1984	1996
Palisades at Chenal Valley	Little Rock, AR	—		2,560		25,234		—			3,804		2,560		29,038		31,598		(7,613		)	23,985		2006	2011
Ridge at Chenal Valley	Little Rock, AR	—		2,626		—		—			28,104		2,626		28,104		30,730		(4,795		)	25,935		2012	2011
Westside Creek	Little Rock, AR	—		1,271		11,463		—			8,605		1,271		20,068		21,339		(13,058		)	8,281		1984/86	1997
Sync 36 I	Denver, CO	—		18,887		81,317		134			4,397		19,021		85,714		104,735		(1,670		)	103,065		2017	2018	Denver, CO		—			18,887		81,317		134			4,625		19,021		85,942		104,963		(4,201	)		100,762	2017	2018
Sync 36 II																										Denver, CO		—			5,090		—		—			16,726		5,090		16,726		21,816		(228	)		21,588	2019	2018
Post River North	Denver, CO	—		14,500		28,900		—			44,157		14,500		73,057		87,557		(2,527		)	85,030		2018	2016	Denver, CO		—			14,500		28,900		—			44,149		14,500		73,049		87,549		(5,147	)		82,402	2018	2016
Tiffany Oaks	Altamonte Springs, FL	—		1,024		9,219		—			5,608		1,024		14,827		15,851		(10,235		)	5,616		1985	1996	Altamonte Springs, FL		—			1,024		9,219		—			5,726		1,024		14,945		15,969		(10,732	)		5,237	1985	1996
Indigo Point	Brandon, FL	—		1,167		10,500		—			3,985		1,167		14,485		15,652		(9,125		)	6,527		1989	2000	Brandon, FL		—			1,167		10,500		—			4,323		1,167		14,823		15,990		(9,602	)		6,388	1989	2000
Paddock Club Brandon	Brandon, FL	—		2,896		26,111		—			6,690		2,896		32,801		35,697		(20,855		)	14,842		1998	1997	Brandon, FL		—			2,896		26,111		—			6,865		2,896		32,976		35,872		(21,933	)		13,939	1998	1997
Colonial Grand at Lakewood Ranch	Bradenton, FL	—		2,980		40,230		—			3,618		2,980		43,848		46,828		(9,961		)	36,867		1999	2013	Bradenton, FL		—			2,980		40,230		—			4,234		2,980		44,464		47,444		(11,937	)		35,507	1999	2013
The Preserve at Coral Square	Coral Springs, FL	—		9,600		40,004		—			11,089		9,600		51,093		60,693		(24,698		)	35,995		1996	2004	Coral Springs, FL		—			9,600		40,004		—			11,573		9,600		51,577		61,177		(26,530	)		34,647	1996	2004
Paddock Club Gainesville	Gainesville, FL	—		1,800		15,879		—			5,081		1,800		20,960		22,760		(10,315		)	12,445		1999	1998	Gainesville, FL		—			1,800		15,879		—			5,121		1,800		21,000		22,800		(10,970	)		11,830	1999	1998
The Retreat at Magnolia Park	Gainesville, FL	—		2,040		16,338		—			876		2,040		17,214		19,254		(4,568		)	14,686		2009	2011	Gainesville, FL		—			2,040		16,338		—			987		2,040		17,325		19,365		(5,221	)		14,144	2009	2011
Colonial Grand at Heathrow	Heathrow, FL	—		4,101		35,684		—			3,296		4,101		38,980		43,081		(9,198		)	33,883		1997	2013	Heathrow, FL		—			4,101		35,684		—			4,053		4,101		39,737		43,838		(11,024	)		32,814	1997	2013
220 Riverside	Jacksonville, FL	—		2,500		38,416		—			3,847		2,500		42,263		44,763		(3,494		)	41,269		2015	2012	Jacksonville, FL		—			2,381		35,514		—			7,722		2,381		43,236		45,617		(4,666	)		40,951	2015	2012
Atlantic Crossing	Jacksonville, FL	—		4,000		19,495		—			1,759		4,000		21,254		25,254		(5,820		)	19,434		2008	2011	Jacksonville, FL		—			4,000		19,495		—			1,941		4,000		21,436		25,436		(6,580	)		18,856	2008	2011
Cooper's Hawk	Jacksonville, FL	—		854		7,500		—			3,890		854		11,390		12,244		(8,391		)	3,853		1987	1995	Jacksonville, FL		—			854		7,500		—			3,923		854		11,423		12,277		(8,666	)		3,611	1987	1995
Hunter's Ridge at Deerwood	Jacksonville, FL	—		1,533		13,835		—			5,957		1,533		19,792		21,325		(13,275		)	8,050		1987	1997	Jacksonville, FL		—			1,533		13,835		—			5,620		1,533		19,455		20,988		(13,462	)		7,526	1987	1997
Lakeside	Jacksonville, FL	—		1,430		12,883		—			8,445		1,430		21,328		22,758		(15,455		)	7,303		1985	1996	Jacksonville, FL		—			1,430		12,883		—			8,825		1,430		21,708		23,138		(16,048	)		7,090	1985	1996
Lighthouse at Fleming Island	Jacksonville, FL	—		4,047		35,052		—			5,515		4,047		40,567		44,614		(21,171		)	23,443		2003	2003	Jacksonville, FL		—			4,047		35,052		—			5,714		4,047		40,766		44,813		(22,455	)		22,358	2003	2003
Paddock Club Mandarin	Jacksonville, FL	—		1,411		14,967		—			3,190		1,411		18,157		19,568		(9,523		)	10,045		1998	1998	Jacksonville, FL		—			1,411		14,967		—			3,220		1,411		18,187		19,598		(9,988	)		9,610	1998	1998
St. Augustine	Jacksonville, FL	—		2,857		6,475		—			19,937		2,857		26,412		29,269		(13,080		)	16,189		1987/ 2008	1995	Jacksonville, FL		—			2,857		6,475		—			19,663		2,857		26,138		28,995		(13,342	)		15,653	1987/ 2008	1995
Tattersall at Tapestry Park	Jacksonville, FL	—		6,417		36,069		—			1,336		6,417		37,405		43,822		(9,701		)	34,121		2009	2011	Jacksonville, FL		—			6,417		36,069		—			1,521		6,417		37,590		44,007		(11,060	)		32,947	2009	2011
Woodhollow	Jacksonville, FL	—		1,686		15,179		(8		)	9,049		1,678		24,228		25,906		(17,118		)	8,788		1986	1997	Jacksonville, FL		—			1,686		15,179		(8	)		9,418		1,678		24,597		26,275		(17,793	)		8,482	1986	1997
Colonial Grand at Town Park	Lake Mary, FL	—		5,742		56,562		—			4,208		5,742		60,770		66,512		(14,774		)	51,738		2005	2013	Lake Mary, FL		—			5,742		56,562		—			5,605		5,742		62,167		67,909		(17,694	)		50,215	2005	2013
Colonial Grand at Town Park Reserve	Lake Mary, FL	—		3,481		10,311		—			415		3,481		10,726		14,207		(2,657		)	11,550		2004	2013	Lake Mary, FL		—			3,481		10,311		—			438		3,481		10,749		14,230		(3,150	)		11,080	2004	2013
Colonial Grand at Lake Mary	Lake Mary, FL	—	⁽¹⁾	6,346		41,539		—			23,290		6,346		64,829		71,175		(11,864		)	59,311		2012	2013	Lake Mary, FL		—	⁽¹⁾		6,346		41,539		—			23,620		6,346		65,159		71,505		(14,085	)		57,420	2012	2013
Colonial Grand at Randal Lakes	Orlando, FL	—		5,659		50,553		—			10,940		5,659		61,493		67,152		(7,653		)	59,499		2013	2013	Orlando, FL		—			5,659		50,553		—			11,136		5,659		61,689		67,348		(9,287	)		58,061	2013	2013
Colonial Grand at Randal Lakes II	Orlando, FL	—		3,200		—		—			36,775		3,200		36,775		39,975		(1,903		)	38,072		2013	2013	Orlando, FL		—			3,200		—		—			36,854		3,200		36,854		40,054		(2,837	)		37,217	2013	2013
Retreat at Lake Nona	Orlando, FL	—		7,880		41,175		—			4,720		7,880		45,895		53,775		(10,388		)	43,387		2006	2012	Orlando, FL		—			7,880		41,175		—			5,617		7,880		46,792		54,672		(12,331	)		42,341	2006	2012
Colonial Grand at Heather Glen	Orlando, FL	—		4,662		56,988		—			5,547		4,662		62,535		67,197		(14,061		)	53,136		2000	2013	Orlando, FL		—			4,662		56,988		—			6,482		4,662		63,470		68,132		(16,941	)		51,191	2000	2013
Post Lake at Baldwin Park	Orlando, FL	—		18,101		144,200		—			1,747		18,101		145,947		164,048		(12,134		)	151,914		2011	2016	Orlando, FL		—			18,101		144,200		—			2,728		18,101		146,928		165,029		(18,240	)		146,789	2011	2016
Post Lakeside	Orlando, FL	—		7,046		52,585		—			363		7,046		52,948		59,994		(4,058		)	55,936		2013	2016	Orlando, FL		—			7,046		52,585		—			713		7,046		53,298		60,344		(6,058	)		54,286	2013	2016
Post Parkside	Orlando, FL	—		5,669		49,754		—			2,399		5,669		52,153		57,822		(4,332		)	53,490		1999	2016	Orlando, FL		—			5,669		49,754		—			3,047		5,669		52,801		58,470		(6,651	)		51,819	1999	2016
Park Crest at Innisbrook	Palm Harbor, FL	26,483		6,900		26,613		—			2,858		6,900		29,471		36,371		(10,455		)	25,916		2000	2009	Palm Harbor, FL		25,777			6,900		26,613		—			3,568		6,900		30,181		37,081		(11,639	)		25,442	2000	2009
The Club at Panama Beach	Panama City, FL	—		898		14,276		(5		)	3,996		893		18,272		19,165		(10,384		)	8,781		2000	1998	Panama City, FL		—			898		14,276		(5	)		4,616		893		18,892		19,785		(10,754	)		9,031	2000	1998
Colonial Village at Twin Lakes	Sanford, FL	22,778		3,091		47,793		—			2,329		3,091		50,122		53,213		(11,617		)	41,596		2005	2013	Sanford, FL		22,286			3,091		47,793		—			2,754		3,091		50,547		53,638		(13,761	)		39,877	2005	2013
Paddock Club Tallahassee																										Tallahassee, FL		—			530		4,805		950			14,765		1,480		19,570		21,050		(13,777	)		7,273	1992	1997
Verandas at Southwood																										Tallahassee, FL		—			3,600		25,914		—			1,361		3,600		27,275		30,875		(5,341	)		25,534	2003	2011
Belmere																										Tampa, FL		—			852		7,667		—			7,442		852		15,109		15,961		(10,861	)		5,100	1984	1994
Links at Carrollwood																										Tampa, FL		—			817		7,355		110			5,896		927		13,251		14,178		(8,978	)		5,200	1980	1998
Post Bay at Rocky Point																										Tampa, FL		—			4,541		28,381		—			1,542		4,541		29,923		34,464		(3,648	)		30,816	1997	2016
Post Harbour Place																										Tampa, FL		—			16,296		116,193		—			8,145		16,296		124,338		140,634		(15,944	)		124,690	1997	2016
Post Hyde Park																										Tampa, FL		—			16,891		95,259		—			5,245		16,891		100,504		117,395		(12,853	)		104,542	1994	2016
Post Rocky Point																										Tampa, FL		—			35,260		153,102		—			11,659		35,260		164,761		200,021		(20,256	)		179,765	1994-1996	2016
Post Soho Square																										Tampa, FL		—	⁽³⁾		5,190		56,296		—			418		5,190		56,714		61,904		(6,384	)		55,520	2012	2016
Village Oaks																										Tampa, FL		—			2,738		19,055		153			2,927		2,891		21,982		24,873		(8,554	)		16,319	2005	2008
Colonial Grand at Hampton Preserve																										Tampa, FL		—			6,233		69,535		—			1,852		6,233		71,387		77,620		(18,041	)		59,579	2012	2013
Colonial Grand at Seven Oaks																										Wesley Chapel, FL		—			3,051		42,768		—			2,918		3,051		45,686		48,737		(11,929	)		36,808	2004	2013
Colonial Grand at Windermere																										Windermere, FL		—	⁽³⁾		2,711		36,710		—			1,522		2,711		38,232		40,943		(9,579	)		31,364	2009	2013
Allure at Brookwood																										Atlanta, GA		—	⁽¹⁾		11,168		52,758		—			5,295		11,168		58,053		69,221		(15,536	)		53,685	2008	2012
Allure in Buckhead Village																										Atlanta, GA		—			8,633		19,844		—			7,324		8,633		27,168		35,801		(8,418	)		27,383	2002	2012
The High Rise at Post Alexander																										Atlanta, GA		—			8,435		92,294		—			151		8,435		92,445		100,880		(15,186	)		85,694	2015	2016


				Initial Cost		Costs Capitalized Subsequent to Acquisition			Gross Amount carried as of December 31, 2018												Initial Cost				Costs Capitalized Subsequent to Acquisition					Gross Amount carried as of December 31, 2019											-----------------	----------------------
Property	Location	Encumbrances		Land	Buildings and Fixtures	Land		Buildings and Fixtures	Land	Buildings and Fixtures	Total ⁽³⁾	Accumulated Depreciation ⁽⁴⁾		Net	Date of Construction	Date Acquired	Location	Encumbrances			Land		Buildings and Fixtures		Land			Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽⁴⁾		Accumulated Depreciation ⁽⁵⁾			Net		Date of Construction	Date Acquired
Paddock Club Tallahassee	Tallahassee, FL	—		530	4,805	950		14,783	1,480	19,588	21,068	(13,247	)	7,821	1992	1997
Verandas at Southwood	Tallahassee, FL	—		3,600	25,914	—		1,108	3,600	27,022	30,622	(4,260	)	26,362	2003	2011
Belmere	Tampa, FL	—		852	7,667	—		7,172	852	14,839	15,691	(10,394	)	5,297	1984	1994
Links at Carrollwood	Tampa, FL	—		817	7,355	110		5,753	927	13,108	14,035	(8,528	)	5,507	1980	1998
Post Bay at Rocky Point	Tampa, FL	—		4,541	28,381	—		1,017	4,541	29,398	33,939	(2,378	)	31,561	1997	2016
Post Harbour Place	Tampa, FL	—		16,296	116,193	—		5,422	16,296	121,615	137,911	(10,385	)	127,526	1997	2016
Post Hyde Park	Tampa, FL	—		16,891	95,259	—		3,230	16,891	98,489	115,380	(8,415	)	106,965	1994	2016
Post Rocky Point	Tampa, FL	—		35,260	153,102	—		6,858	35,260	159,960	195,220	(13,220	)	182,000	1994-1996	2016
Post Soho Square	Tampa, FL	—		5,190	56,296	—		204	5,190	56,500	61,690	(4,290	)	57,400	2012	2016
Village Oaks	Tampa, FL	—		2,738	19,055	153		2,619	2,891	21,674	24,565	(7,809	)	16,756	2005	2008
Colonial Grand at Hampton Preserve	Tampa, FL	—		6,233	69,535	—		1,595	6,233	71,130	77,363	(15,289	)	62,074	2012	2013
Colonial Grand at Seven Oaks	Wesley Chapel, FL	—		3,051	42,768	—		2,611	3,051	45,379	48,430	(9,952	)	38,478	2004	2013
Colonial Grand at Windermere	Windermere, FL	—		2,711	36,710	—		1,197	2,711	37,907	40,618	(8,096	)	32,522	2009	2013
Allure at Brookwood	Atlanta, GA	—	⁽¹⁾	11,168	52,758	—		4,800	11,168	57,558	68,726	(13,286	)	55,440	2008	2012
Allure in Buckhead Village	Atlanta, GA	—		8,633	19,844	—		6,289	8,633	26,133	34,766	(7,187	)	27,579	2002	2012
The High Rise at Post Alexander	Atlanta, GA	—		8,435	92,294	—		152	8,435	92,446	100,881	(10,258	)	90,623	2015	2016
Post Alexander	Atlanta, GA	—		15,440	73,278	—		1,628	15,440	74,906	90,346	(4,920	)	85,426	2006	2016	Atlanta, GA		—			15,440		73,278		—			2,280		15,440		75,558		90,998		(7,470	)		83,528	2006	2016
Post Briarcliff	Atlanta, GA	—		24,645	114,921	—		2,783	24,645	117,704	142,349	(9,380	)	132,969	1996	2016	Atlanta, GA		—			24,645		114,921		—			4,138		24,645		119,059		143,704		(14,258	)		129,446	1996	2016
Post Brookhaven	Atlanta, GA	—		29,048	106,463	—		5,284	29,048	111,747	140,795	(9,425	)	131,370	1989/92	2016	Atlanta, GA		—			29,048		106,463		—			7,939		29,048		114,402		143,450		(14,588	)		128,862	1989/92	2016
Post Chastain	Atlanta, GA	—		30,223	82,964	—		1,638	30,223	84,602	114,825	(6,721	)	108,104	1990	2016	Atlanta, GA		—			30,223		82,964		—			2,332		30,223		85,296		115,519		(10,162	)		105,357	1990	2016
Post Crossing	Atlanta, GA	—		15,799	48,054	—		1,738	15,799	49,792	65,591	(4,113	)	61,478	1995	2016	Atlanta, GA		—			15,799		48,054		—			3,238		15,799		51,292		67,091		(6,284	)		60,807	1995	2016
Post Gardens	Atlanta, GA	—		17,907	56,093	—		2,385	17,907	58,478	76,385	(5,019	)	71,366	1996	2016	Atlanta, GA		—			17,907		56,093		—			3,416		17,907		59,509		77,416		(7,713	)		69,703	1996	2016
Post Glen	Atlanta, GA	—		13,878	51,079	—		2,657	13,878	53,736	67,614	(4,328	)	63,286	1996	2016	Atlanta, GA		—			13,878		51,079		—			4,328		13,878		55,407		69,285		(6,734	)		62,551	1996	2016
Post Midtown	Atlanta, GA	—		7,000	44,000	—		39,882	7,000	83,882	90,882	(3,294	)	87,588	2017	2016	Atlanta, GA		—			7,000		44,000		—			40,268		7,000		84,268		91,268		(5,611	)		85,657	2017	2016
Post Parkside	Atlanta, GA	—		11,025	34,277	—		999	11,025	35,276	46,301	(2,689	)	43,612	1999	2016	Atlanta, GA		—			11,025		34,277		—			1,491		11,025		35,768		46,793		(4,114	)		42,679	1999	2016
Post Peachtree Hills	Atlanta, GA	—		11,974	55,264	—		351	11,974	55,615	67,589	(4,356	)	63,233	1992-1994/2009	2016	Atlanta, GA		—			11,974		55,264		—			620		11,974		55,884		67,858		(6,503	)		61,355	1992-1994/2009	2016
Post Riverside	Atlanta, GA	—		23,765	89,369	—		4,108	23,765	93,477	117,242	(8,384	)	108,858	1996	2016	Atlanta, GA		—			23,765		89,369		—			6,527		23,765		95,896		119,661		(12,894	)		106,767	1996	2016
Post Spring	Atlanta, GA	—		18,596	57,819	—		2,412	18,596	60,231	78,827	(5,262	)	73,565	1999	2016	Atlanta, GA		—			18,596		57,819		—			4,519		18,596		62,338		80,934		(8,099	)		72,835	1999	2016
Post Stratford	Atlanta, GA	—		—	30,051	—		2,091	—	32,142	32,142	(2,793	)	29,349	1999	2016	Atlanta, GA		—			—		30,051		—			2,800		—		32,851		32,851		(4,328	)		28,523	1999	2016
Sanctuary at Oglethorpe	Atlanta, GA	—		6,875	31,441	—		5,512	6,875	36,953	43,828	(13,085	)	30,743	1994	2008	Atlanta, GA		—			6,875		31,441		—			6,949		6,875		38,390		45,265		(14,173	)		31,092	1994	2008
Post Centennial Park	Atlanta, GA	—		13,650	10,950	—		61,120	13,650	72,070	85,720	(1,344	)	84,376	2018	2016	Atlanta, GA		—			13,650		10,950		—			61,577		13,650		72,527		86,177		(3,643	)		82,534	2018	2016
Prescott	Duluth, GA	—	⁽²⁾	3,840	24,011	—		4,565	3,840	28,576	32,416	(13,745	)	18,671	2001	2004	Duluth, GA		—	⁽²⁾		3,840		24,011		—			4,769		3,840		28,780		32,620		(14,796	)		17,824	2001	2004
Colonial Grand at Berkeley Lake	Duluth, GA	—		1,960	15,707	—		2,080	1,960	17,787	19,747	(4,889	)	14,858	1998	2013	Duluth, GA		—			1,960		15,707		—			2,400		1,960		18,107		20,067		(5,875	)		14,192	1998	2013
Colonial Grand at River Oaks	Duluth, GA	—		4,360	13,579	—		1,952	4,360	15,531	19,891	(5,275	)	14,616	1992	2013	Duluth, GA		—			4,360		13,579		—			2,626		4,360		16,205		20,565		(6,296	)		14,269	1992	2013
Colonial Grand at River Plantation	Duluth, GA	—		2,059	19,158	—		2,051	2,059	21,209	23,268	(5,773	)	17,495	1994	2013	Duluth, GA		—			2,059		19,158		—			2,763		2,059		21,921		23,980		(6,877	)		17,103	1994	2013
Colonial Grand at McDaniel Farm	Duluth, GA	—		3,985	32,206	—		3,951	3,985	36,157	40,142	(9,744	)	30,398	1997	2013	Duluth, GA		—			3,985		32,206		—			4,638		3,985		36,844		40,829		(11,637	)		29,192	1997	2013
Colonial Grand at Pleasant Hill	Duluth, GA	—		6,753	32,202	—		4,304	6,753	36,506	43,259	(9,415	)	33,844	1996	2013	Duluth, GA		—			6,753		32,202		—			5,299		6,753		37,501		44,254		(11,240	)		33,014	1996	2013
Colonial Grand at Mount Vernon	Dunwoody, GA	—		6,861	23,748	—		3,342	6,861	27,090	33,951	(6,144	)	27,807	1997	2013	Dunwoody, GA		—			6,861		23,748		—			3,794		6,861		27,542		34,403		(7,438	)		26,965	1997	2013
Lake Lanier Club	Gainesville, GA	—	⁽²⁾	6,710	40,994	—		8,419	6,710	49,413	56,123	(23,407	)	32,716	1998/2001	2005	Gainesville, GA		—	⁽²⁾		6,710		40,994		—			9,326		6,710		50,320		57,030		(25,292	)		31,738	1998/2001	2005
Colonial Grand at Shiloh	Kennesaw, GA	—		4,864	45,893	—		4,098	4,864	49,991	54,855	(12,220	)	42,635	2002	2013	Kennesaw, GA		—			4,864		45,893		—			5,182		4,864		51,075		55,939		(14,614	)		41,325	2002	2013
Millstead Village	LaGrange, GA	—		3,100	29,240	—		1,263	3,100	30,503	33,603	(6,527	)	27,076	1998	2008	LaGrange, GA		—			3,100		29,240		—			1,932		3,100		31,172		34,272		(7,789	)		26,483	1998	2008
Colonial Grand at Barrett Creek	Marietta, GA	—		5,661	26,186	—		2,932	5,661	29,118	34,779	(8,050	)	26,729	1999	2013	Marietta, GA		—			5,661		26,186		—			3,255		5,661		29,441		35,102		(9,620	)		25,482	1999	2013
Colonial Grand at Godley Station	Pooler, GA	9,028		1,800	35,454	—		3,484	1,800	38,938	40,738	(8,635	)	32,103	2001	2013	Pooler, GA		7,842			1,800		35,454		—			3,866		1,800		39,320		41,120		(10,375	)		30,745	2001	2013
Colonial Grand at Godley Lake	Pooler, GA	—		1,750	30,893	—		1,249	1,750	32,142	33,892	(7,473	)	26,419	2008	2013	Pooler, GA		—			1,750		30,893		—			1,459		1,750		32,352		34,102		(8,818	)		25,284	2008	2013
Avala at Savannah Quarters	Savannah, GA	—		1,500	24,862	—		2,046	1,500	26,908	28,408	(6,972	)	21,436	2009	2011	Savannah, GA		—			1,500		24,862		—			2,183		1,500		27,045		28,545		(8,001	)		20,544	2009	2011
Georgetown Grove	Savannah, GA	—		1,288	11,579	—		3,693	1,288	15,272	16,560	(10,078	)	6,482	1997	1998	Savannah, GA		—			1,288		11,579		—			3,695		1,288		15,274		16,562		(10,571	)		5,991	1997	1998
Colonial Grand at Hammocks	Savannah, GA	—		2,441	36,863	—		4,338	2,441	41,201	43,642	(9,202	)	34,440	1997	2013	Savannah, GA		—			2,441		36,863		—			4,772		2,441		41,635		44,076		(11,130	)		32,946	1997	2013
Colonial Village at Greentree	Savannah, GA	—		1,710	10,494	—		1,739	1,710	12,233	13,943	(3,430	)	10,513	1984	2013	Savannah, GA		—			1,710		10,494		—			2,030		1,710		12,524		14,234		(4,088	)		10,146	1984	2013
Colonial Village at Huntington	Savannah, GA	—		2,521	8,223	—		1,276	2,521	9,499	12,020	(2,374	)	9,646	1986	2013	Savannah, GA		—			2,521		8,223		—			1,633		2,521		9,856		12,377		(2,860	)		9,517	1986	2013
Colonial Village at Marsh Cove	Savannah, GA	—		5,231	8,555	—		1,373	5,231	9,928	15,159	(2,876	)	12,283	1983	2013	Savannah, GA		—			5,231		8,555		—			1,675		5,231		10,230		15,461		(3,428	)		12,033	1983	2013
Oaks at Wilmington Island	Savannah, GA	—		2,910	25,315	(46	)	4,733	2,864	30,048	32,912	(12,626	)	20,286	1999	2006	Savannah, GA		—			2,910		25,315		(46	)		4,968		2,864		30,283		33,147		(13,747	)		19,400	1999	2006
Highlands of West Village	Smyrna, GA	—		14,410	73,733	—		7,056	14,410	80,789	95,199	(12,206	)	82,993	2006/12	2014	Smyrna, GA		—			14,410		73,733		—			7,605		14,410		81,338		95,748		(15,459	)		80,289	2006/12	2014
Haven at Prairie Trace	Overland Park, KS	—		3,500	40,614	—		1,228	3,500	41,842	45,342	(3,862	)	41,480	2015	2015	Overland Park, KS		—			3,500		40,614		—			1,421		3,500		42,035		45,535		(5,063	)		40,472	2015	2015
Grand Reserve at Pinnacle	Lexington, KY	—		2,024	31,525	—		5,875	2,024	37,400	39,424	(18,490	)	20,934	2000	1998	Lexington, KY		—			2,024		31,525		—			6,570		2,024		38,095		40,119		(19,649	)		20,470	2000	1998
Lakepointe	Lexington, KY	—		411	3,699	—		2,707	411	6,406	6,817	(4,737	)	2,080	1986	1994	Lexington, KY		—			411		3,699		—			2,790		411		6,489		6,900		(4,872	)		2,028	1986	1994
The Mansion	Lexington, KY	—		694	6,242	—		3,887	694	10,129	10,823	(7,501	)	3,322	1989	1994	Lexington, KY		—			694		6,242		—			3,931		694		10,173		10,867		(7,692	)		3,175	1989	1994
The Village	Lexington, KY	—		900	8,097	—		4,776	900	12,873	13,773	(9,579	)	4,194	1989	1994	Lexington, KY		—			900		8,097		—			4,862		900		12,959		13,859		(9,861	)		3,998	1989	1994
Stonemill Village	Louisville, KY	—		1,169	10,518	—		9,830	1,169	20,348	21,517	(14,568	)	6,949	1985	1994	Louisville, KY		—			1,169		10,518		—			10,063		1,169		20,581		21,750		(15,189	)		6,561	1985	1994
Crosswinds	Jackson, MS	—		1,535	13,826	—		5,735	1,535	19,561	21,096	(13,735	)	7,361	1989	1996	Jackson, MS		—			1,535		13,826		—			6,428		1,535		20,254		21,789		(14,410	)		7,379	1989	1996
Pear Orchard	Jackson, MS	—		1,351	12,168	—		8,855	1,351	21,023	22,374	(15,488	)	6,886	1985	1994	Jackson, MS		—			1,351		12,168		—			8,874		1,351		21,042		22,393		(15,921	)		6,472	1985	1994
Reflection Pointe	Jackson, MS	—		710	8,770	138		8,743	848	17,513	18,361	(12,444	)	5,917	1986	1988	Jackson, MS		—			710		8,770		138			8,868		848		17,638		18,486		(12,826	)		5,660	1986	1988
Lakeshore Landing	Ridgeland, MS	—		676	6,284	—		3,647	676	9,931	10,607	(5,141	)	5,466	1974	1994	Ridgeland, MS		—			676		6,284		—			3,968		676		10,252		10,928		(5,503	)		5,425	1974	1994
Market Station																	Kansas City, MO		—			5,814		46,241		—			2,575		5,814		48,816		54,630		(12,251	)		42,379	2010	2012
The Denton																	Kansas City, MO		—			750		8,795		—			809		750		9,604		10,354		(1,019	)		9,335	2014	2015
The Denton II																	Kansas City, MO		—			770		—		—			24,397		770		24,397		25,167		(1,289	)		23,878	2017	2015
The Denton III																	Kansas City, MO		—			4,000		42,144		—			1,907		4,000		44,051		48,051		(5,775	)		42,276	2013/14	2015
Colonial Grand at Desert Vista																	North Las Vegas, NV		—			4,091		29,826		—			2,113		4,091		31,939		36,030		(8,840	)		27,190	2009	2013
Colonial Grand at Palm Vista																	North Las Vegas, NV		—			4,909		25,643		—			3,518		4,909		29,161		34,070		(8,533	)		25,537	2007	2013
Colonial Village at Beaver Creek																	Apex, NC		—			7,491		34,863		—			2,589		7,491		37,452		44,943		(9,809	)		35,134	2007	2013
Hermitage at Beechtree																	Cary, NC		—			900		8,099		—			5,267		900		13,366		14,266		(9,113	)		5,153	1988	1997
Waterford Forest																	Cary, NC		—	⁽²⁾		4,000		20,250		—			4,131		4,000		24,381		28,381		(12,221	)		16,160	1996	2005
1225 South Church I																	Charlotte, NC		—			9,612		22,342		—			28,834		9,612		51,176		60,788		(10,860	)		49,928	2010	2010
Colonial Grand at Ayrsley																	Charlotte, NC		—			2,481		52,119		—			14,683		2,481		66,802		69,283		(16,143	)		53,140	2008	2013
Colonial Grand at Beverly Crest																	Charlotte, NC		—			3,161		24,004		—			3,305		3,161		27,309		30,470		(7,335	)		23,135	1996	2013
Colonial Grand at Legacy Park																	Charlotte, NC		—			2,891		28,272		—			2,861		2,891		31,133		34,024		(8,502	)		25,522	2001	2013
Colonial Grand at Mallard Creek																	Charlotte, NC		—			4,591		27,713		—			2,293		4,591		30,006		34,597		(8,302	)		26,295	2005	2013
Colonial Grand at Mallard Lake																	Charlotte, NC		—			3,250		31,389		—			4,623		3,250		36,012		39,262		(10,139	)		29,123	1998	2013
Colonial Grand at University Center																	Charlotte, NC		—			1,620		17,499		—			975		1,620		18,474		20,094		(4,753	)		15,341	2005	2013
Colonial Reserve at South End																	Charlotte, NC		—			4,628		44,282		—			12,031		4,628		56,313		60,941		(8,234	)		52,707	2013	2013
Colonial Village at Chancellor Park																	Charlotte, NC		—			5,311		28,016		—			4,688		5,311		32,704		38,015		(8,916	)		29,099	1999	2013
Colonial Village at South Tryon																	Charlotte, NC		—			2,260		19,489		—			2,330		2,260		21,819		24,079		(5,977	)		18,102	2002	2013
Colonial Village at Timber Crest																	Charlotte, NC		—			2,901		17,192		—			2,870		2,901		20,062		22,963		(5,219	)		17,744	2000	2013
Enclave																	Charlotte, NC		—			1,461		18,984		—			1,439		1,461		20,423		21,884		(4,800	)		17,084	2008	2013
Post Ballantyne																	Charlotte, NC		—			16,216		44,817		—			2,698		16,216		47,515		63,731		(5,770	)		57,961	2004	2016
Post Gateway Place																	Charlotte, NC		—			17,528		57,444		—			4,397		17,528		61,841		79,369		(8,021	)		71,348	2000	2016
Post Park at Phillips Place																	Charlotte, NC		—			20,869		65,517		—			4,950		20,869		70,467		91,336		(8,729	)		82,607	1996	2016
Post South End																	Charlotte, NC		—			18,835		58,795		—			2,136		18,835		60,931		79,766		(6,803	)		72,963	2009	2016
Post Uptown Place																	Charlotte, NC		—			10,888		30,078		—			2,196		10,888		32,274		43,162		(4,034	)		39,128	2000	2016
Colonial Grand at Cornelius																	Cornelius, NC		—			4,571		29,151		—			1,749		4,571		30,900		35,471		(8,758	)		26,713	2009	2013
Colonial Grand at Patterson Place																	Durham, NC		—			2,590		27,126		—			3,459		2,590		30,585		33,175		(8,218	)		24,957	1997	2013
Colonial Village at Deerfield																	Durham, NC		—			3,271		15,609		—			1,692		3,271		17,301		20,572		(5,556	)		15,016	1985	2013
Colonial Grand at Research Park																	Durham, NC		—			4,201		37,682		—			3,420		4,201		41,102		45,303		(11,279	)		34,024	2002	2013

Initial Cost Costs Capitalized Subsequent to Acquisition Gross Amount carried as of December 31, 2018
Property Location Encumbrances

Land Buildings and Fixtures Land Buildings and Fixtures Land Buildings and Fixtures
Total ⁽³⁾

Accumulated Depreciation ⁽⁴⁾
Net Date of Construction Date Acquired
Market Station Kansas City, MO —
5,814
46,241
—
2,309
5,814
48,550
54,364
(10,451 ) 43,913
2010 2012
The Denton Kansas City, MO —
750
8,795
—
834
750
9,629
10,379
(716 ) 9,663
2014 2015
The Denton II Kansas City, MO —
770
—
—
24,258
770
24,258
25,028
(695 ) 24,333
2017 2015
The Denton III Kansas City, MO —
4,000
42,144
—
1,372
4,000
43,516
47,516
(4,530 ) 42,986
2013/14 2015
Colonial Grand at Desert Vista North Las Vegas, NV —
4,091
29,826
—
1,534
4,091
31,360
35,451
(7,505 ) 27,946
2009 2013
Colonial Grand at Palm Vista North Las Vegas, NV —
4,909
25,643
—
2,829
4,909
28,472
33,381
(7,116 ) 26,265
2007 2013
Colonial Village at Beaver Creek Apex, NC —
7,491
34,863
—
2,160
7,491
37,023
44,514
(8,248 ) 36,266
2007 2013
Hermitage at Beechtree Cary, NC —
900
8,099
—
5,086
900
13,185
14,085
(8,663 ) 5,422
1988 1997
Waterford Forest Cary, NC —
⁽²⁾
4,000
20,250
—
3,893
4,000
24,143
28,143
(11,450 ) 16,693
1996 2005
1225 South Church I Charlotte, NC —
9,612
22,342
—
27,932
9,612
50,274
59,886
(9,111 ) 50,775
2010 2010
Colonial Grand at Ayrsley Charlotte, NC —
2,481
52,119
—
13,986
2,481
66,105
68,586
(13,604 ) 54,982
2008 2013
Colonial Grand at Beverly Crest Charlotte, NC —
3,161
24,004
—
2,928
3,161
26,932
30,093
(6,125 ) 23,968
1996 2013
Colonial Grand at Legacy Park Charlotte, NC —
2,891
28,272
—
2,267
2,891
30,539
33,430
(7,185 ) 26,245
2001 2013
Colonial Grand at Mallard Creek Charlotte, NC —
4,591
27,713
—
1,813
4,591
29,526
34,117
(6,969 ) 27,148
2005 2013
Colonial Grand at Mallard Lake Charlotte, NC —
3,250
31,389
—
4,003
3,250
35,392
38,642
(8,411 ) 30,231
1998 2013
Colonial Grand at University Center Charlotte, NC —
1,620
17,499
—
826
1,620
18,325
19,945
(4,019 ) 15,926
2005 2013
Colonial Reserve at South End Charlotte, NC —
4,628
44,282
—
11,654
4,628
55,936
60,564
(6,741 ) 53,823
2013 2013
Colonial Village at Chancellor Park Charlotte, NC —
5,311
28,016
—
4,292
5,311
32,308
37,619
(7,298 ) 30,321
1999 2013
Colonial Village at South Tryon Charlotte, NC —
2,260
19,489
—
1,953
2,260
21,442
23,702
(4,998 ) 18,704
2002 2013
Colonial Village at Timber Crest Charlotte, NC —
2,901
17,192
—
2,416
2,901
19,608
22,509
(4,294 ) 18,215
2000 2013
Enclave Charlotte, NC —
1,461
18,984
—
1,114
1,461
20,098
21,559
(3,988 ) 17,571
2008 2013
Post Ballantyne Charlotte, NC —
16,216
44,817
—
2,063
16,216
46,880
63,096
(3,760 ) 59,336
2004 2016
Post Gateway Place Charlotte, NC —
17,528
57,444
—
2,901
17,528
60,345
77,873
(5,223 ) 72,650
2000 2016
Post Park at Phillips Place Charlotte, NC —
20,869
65,517
—
3,304
20,869
68,821
89,690
(5,683 ) 84,007
1996 2016
Post South End Charlotte, NC —
18,835
58,795
—
1,488
18,835
60,283
79,118
(4,505 ) 74,613
2009 2016
Post Uptown Place Charlotte, NC —
10,888
30,078
—
1,487
10,888
31,565
42,453
(2,630 ) 39,823
2000 2016
Colonial Grand at Cornelius Cornelius, NC —
4,571
29,151
—
1,455
4,571
30,606
35,177
(7,365 ) 27,812
2009 2013
Colonial Grand at Patterson Place Durham, NC —
2,590
27,126
—
3,044
2,590
30,170
32,760
(6,840 ) 25,920
1997 2013
Colonial Village at Deerfield Durham, NC —
3,271
15,609
—
1,510
3,271
17,119
20,390
(4,695 ) 15,695
1985 2013
Colonial Grand at Research Park Durham, NC —
4,201
37,682
—
2,921
4,201
40,603
44,804
(9,458 ) 35,346
2002 2013
Colonial Grand at Huntersville Huntersville, NC —
4,251
31,948
—
2,609
4,251
34,557
38,808
(8,033 ) 30,775
2008 2013
Colonial Village at Matthews Matthews, NC —
3,071
21,830
—
4,630
3,071
26,460
29,531
(6,991 ) 22,540
2008 2013
Colonial Grand at Matthews Commons Matthews, NC —
3,690
28,536
—
2,147
3,690
30,683
34,373
(7,088 ) 27,285
2008 2013
Colonial Grand at Arringdon Morrisville, NC —
6,401
31,134
—
2,948
6,401
34,082
40,483
(7,917 ) 32,566
2003 2013
Colonial Grand at Brier Creek Raleigh, NC —
7,372
50,202
—
2,278
7,372
52,480
59,852
(11,622 ) 48,230
2010 2013
Colonial Grand at Brier Falls Raleigh, NC —
6,572
48,910
—
1,808
6,572
50,718
57,290
(11,066 ) 46,224
2008 2013
Colonial Grand at Crabtree Valley Raleigh, NC —
2,241
18,434
—
1,649
2,241
20,083
22,324
(4,336 ) 17,988
1997 2013
Hue Raleigh, NC —
3,690
29,910
—
2,539
3,690
32,449
36,139
(7,630 ) 28,509
2009 2010
Colonial Grand at Trinity Commons Raleigh, NC —
5,232
45,138
—
3,240
5,232
48,378
53,610
(11,612 ) 41,998
2000/02 2013
Post Parkside at Wade Raleigh, NC —
7,196
51,972
—
673
7,196
52,645
59,841
(4,150 ) 55,691
2011 2016
Post Parkside at Wade II Raleigh, NC —
9,450
46,316
587
1,646
10,037
47,962
57,999
(5,918 ) 52,081
2017 2016
Preserve at Brier Creek Raleigh, NC —
5,850
21,980
(19 ) 25,470
5,831
47,450
53,281
(17,903 ) 35,378
2004 2006
Providence at Brier Creek Raleigh, NC —
4,695
29,007
—
1,897
4,695
30,904
35,599
(11,254 ) 24,345
2007 2008
Tanglewood Anderson, SC —
427
3,853
—
3,120
427
6,973
7,400
(5,346 ) 2,054
1980 1994
Colonial Grand at Cypress Cove Charleston, SC —
3,610
28,645
—
2,198
3,610
30,843
34,453
(7,287 ) 27,166
2001 2013
Colonial Village at Hampton Pointe Charleston, SC —
3,971
22,790
—
5,072
3,971
27,862
31,833
(6,473 ) 25,360
1986 2013
Colonial Grand at Quarterdeck Charleston, SC —
920
24,097
—
5,846
920
29,943
30,863
(6,799 ) 24,064
1987 2013
Colonial Village at Westchase Charleston, SC —
4,571
20,091
—
3,457
4,571
23,548
28,119
(6,236 ) 21,883
1985 2013
River's Walk Charleston, SC —
8,831
39,430
—
1,644
8,831
41,074
49,905
(4,579 ) 45,326
2013/16 2013
1201 Midtown Charleston, SC —
11,929
57,885
—
614
11,929
58,499
70,428
(3,592 ) 66,836
2015 2016
1201 Midtown II Charleston, SC —
6,750
5,874
—
15,605
6,750
21,479
28,229
(87 ) 28,142
2018 2016
The Fairways Columbia, SC —
910
8,207
—
3,435
910
11,642
12,552
(8,718 ) 3,834
1992 1994
Paddock Club Columbia Columbia, SC —
1,840
16,560
—
5,143
1,840
21,703
23,543
(14,550 ) 8,993
1991 1997
Colonial Village at Windsor Place Goose Creek, SC —
1,321
14,163
—
2,919
1,321
17,082
18,403
(4,520 ) 13,883
1985 2013
Highland Ridge Greenville, SC —
482
4,337
—
2,790
482
7,127
7,609
(4,803 ) 2,806
1984 1995
Howell Commons Greenville, SC —
1,304
11,740
—
3,900
1,304
15,640
16,944
(10,801 ) 6,143
1987 1997
Paddock Club Greenville Greenville, SC —
1,200
10,800
—
2,427
1,200
13,227
14,427
(8,894 ) 5,533
1996 1997
Park Haywood Greenville, SC —
325
2,925
35
4,640
360
7,565
7,925
(5,558 ) 2,367
1983 1993
Spring Creek Greenville, SC —
597
5,374
(14 ) 3,043
583
8,417
9,000
(5,995 ) 3,005
1985 1995
Innovation Apartment Homes Greenville, SC —
4,437
52,026
—
1,226
4,437
53,252
57,689
(4,168 ) 53,521
2015 2016
Runaway Bay Mt. Pleasant, SC —
1,085
7,269
12
6,620
1,097
13,889
14,986
(9,420 ) 5,566
1988 1995
Colonial Grand at Commerce Park North Charleston, SC —
2,780
33,966
—
2,013
2,780
35,979
38,759
(8,116 ) 30,643
2008 2013

					Initial Cost				Costs Capitalized Subsequent to Acquisition					Gross Amount carried as of December 31, 2019
Property	Location	Encumbrances			Land		Buildings and Fixtures		Land			Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽⁴⁾		Accumulated Depreciation ⁽⁵⁾			Net		Date of Construction	Date Acquired
Colonial Grand at Huntersville	Huntersville, NC		—			4,251		31,948		—			3,139		4,251		35,087		39,338		(9,644	)		29,694	2008	2013
Colonial Village at Matthews	Matthews, NC		—			3,071		21,830		—			5,249		3,071		27,079		30,150		(8,434	)		21,716	2008	2013
Colonial Grand at Matthews Commons	Matthews, NC		—			3,690		28,536		—			2,357		3,690		30,893		34,583		(8,470	)		26,113	2008	2013
Colonial Grand at Arringdon	Morrisville, NC		—			6,401		31,134		—			3,734		6,401		34,868		41,269		(9,465	)		31,804	2003	2013
Colonial Grand at Brier Creek	Raleigh, NC		—			7,372		50,202		—			2,589		7,372		52,791		60,163		(13,800	)		46,363	2010	2013
Colonial Grand at Brier Falls	Raleigh, NC		—			6,572		48,910		—			2,375		6,572		51,285		57,857		(13,103	)		44,754	2008	2013
Colonial Grand at Crabtree Valley	Raleigh, NC		—			2,241		18,434		—			2,078		2,241		20,512		22,753		(5,207	)		17,546	1997	2013
Hue	Raleigh, NC		—			3,690		29,910		—			2,635		3,690		32,545		36,235		(8,522	)		27,713	2009	2010
Colonial Grand at Trinity Commons	Raleigh, NC		—			5,232		45,138		—			4,133		5,232		49,271		54,503		(13,833	)		40,670	2000/02	2013
Post Parkside at Wade	Raleigh, NC		—			7,196		51,972		—			1,212		7,196		53,184		60,380		(6,259	)		54,121	2011	2016
Post Parkside at Wade II	Raleigh, NC		—			9,450		46,316		587			1,636		10,037		47,952		57,989		(8,923	)		49,066	2017	2016
Post Parkside at Wade III	Raleigh, NC		—			2,200		—		—			21,523		2,200		21,523		23,723		(283	)		23,440	2019	2016
Preserve at Brier Creek	Raleigh, NC		—			5,850		21,980		(19	)		25,997		5,831		47,977		53,808		(19,476	)		34,332	2004	2006
Providence at Brier Creek	Raleigh, NC		—			4,695		29,007		—			2,211		4,695		31,218		35,913		(12,347	)		23,566	2007	2008
Tanglewood	Anderson, SC		—			427		3,853		—			3,065		427		6,918		7,345		(5,518	)		1,827	1980	1994
Colonial Grand at Cypress Cove	Charleston, SC		—			3,610		28,645		—			2,475		3,610		31,120		34,730		(8,683	)		26,047	2001	2013
Colonial Village at Hampton Pointe	Charleston, SC		—			3,971		22,790		—			6,112		3,971		28,902		32,873		(7,846	)		25,027	1986	2013
Colonial Grand at Quarterdeck	Charleston, SC		—			920		24,097		—			6,135		920		30,232		31,152		(8,238	)		22,914	1987	2013
Colonial Village at Westchase	Charleston, SC		—			4,571		20,091		—			4,373		4,571		24,464		29,035		(7,483	)		21,552	1985	2013
River's Walk	Charleston, SC		—			8,831		39,430		—			1,847		8,831		41,277		50,108		(5,699	)		44,409	2013/16	2013
1201 Midtown	Charleston, SC		—			11,929		57,885		—			677		11,929		58,562		70,491		(5,346	)		65,145	2015	2016
1201 Midtown II	Charleston, SC		—			6,750		5,874		—			16,021		6,750		21,895		28,645		(826	)		27,819	2018	2016
The Fairways	Columbia, SC		—			910		8,207		—			3,446		910		11,653		12,563		(8,994	)		3,569	1992	1994
Paddock Club Columbia	Columbia, SC		—			1,840		16,560		—			5,450		1,840		22,010		23,850		(15,348	)		8,502	1991	1997
Colonial Village at Windsor Place	Goose Creek, SC		—			1,321		14,163		—			3,343		1,321		17,506		18,827		(5,448	)		13,379	1985	2013
Highland Ridge	Greenville, SC		—			482		4,337		—			2,982		482		7,319		7,801		(5,037	)		2,764	1984	1995
Howell Commons	Greenville, SC		—			1,304		11,740		—			4,126		1,304		15,866		17,170		(11,380	)		5,790	1987	1997
Paddock Club Greenville	Greenville, SC		—			1,200		10,800		—			2,677		1,200		13,477		14,677		(9,306	)		5,371	1996	1997
Park Haywood	Greenville, SC		—			325		2,925		35			4,816		360		7,741		8,101		(5,797	)		2,304	1983	1993
Spring Creek	Greenville, SC		—			597		5,374		(14	)		3,031		583		8,405		8,988		(6,216	)		2,772	1985	1995
Innovation Apartment Homes	Greenville, SC		—			4,437		52,026		—			1,546		4,437		53,572		58,009		(6,098	)		51,911	2015	2016
The Greene	Greenville, SC		—			5,420		66,546		7			103		5,427		66,649		72,076		(158	)		71,918	2019	2019
Runaway Bay	Mt. Pleasant, SC		—			1,085		7,269		12			6,840		1,097		14,109		15,206		(9,997	)		5,209	1988	1995
Colonial Grand at Commerce Park	North Charleston, SC		—			2,780		33,966		—			2,840		2,780		36,806		39,586		(9,678	)		29,908	2008	2013
535 Brookwood	Simpsonville, SC		11,690			1,216		18,666		—			1,775		1,216		20,441		21,657		(6,856	)		14,801	2008	2010
Park Place	Spartanburg, SC		—			723		6,504		—			3,161		723		9,665		10,388		(6,966	)		3,422	1987	1997
Farmington Village	Summerville, SC		—			2,800		26,295		—			2,613		2,800		28,908		31,708		(12,090	)		19,618	2007	2007
Colonial Village at Waters Edge	Summerville, SC		—			2,103		9,187		—			4,217		2,103		13,404		15,507		(4,789	)		10,718	1985	2013
Hamilton Pointe	Chattanooga, TN		—			1,131		10,632		—			4,722		1,131		15,354		16,485		(8,518	)		7,967	1989	1992
Hidden Creek	Chattanooga, TN		—			972		8,954		—			6,360		972		15,314		16,286		(7,235	)		9,051	1987	1988
Steeplechase	Chattanooga, TN		—			217		1,957		—			3,513		217		5,470		5,687		(3,822	)		1,865	1986	1991
Windridge	Chattanooga, TN		—			817		7,416		—			4,558		817		11,974		12,791		(8,409	)		4,382	1984	1997
Kirby Station	Memphis, TN		—			1,148		10,337		—			10,656		1,148		20,993		22,141		(14,910	)		7,231	1978	1994
Lincoln on the Green	Memphis, TN		—			1,498		20,483		—			17,155		1,498		37,638		39,136		(27,288	)		11,848	1992	1994
Park Estate	Memphis, TN		—			178		1,141		—			4,099		178		5,240		5,418		(3,950	)		1,468	1974	1977
Reserve at Dexter Lake	Memphis, TN		—			1,260		16,043		2,147			42,810		3,407		58,853		62,260		(28,908	)		33,352	2000	1998
Paddock Club Murfreesboro	Murfreesboro, TN		—			915		14,774		—			3,776		915		18,550		19,465		(10,187	)		9,278	1999	1998
Acklen West End	Nashville, TN		—			12,761		58,906		—			1,061		12,761		59,967		72,728		(4,369	)		68,359	2015	2017
Aventura at Indian Lake Village	Nashville, TN		—			4,950		28,053		—			2,146		4,950		30,199		35,149		(8,800	)		26,349	2010	2011
Avondale at Kennesaw	Nashville, TN		16,110			3,456		22,443		—			3,384		3,456		25,827		29,283		(8,530	)		20,753	2008	2010
Brentwood Downs	Nashville, TN		—			1,193		10,739		(2	)		8,918		1,191		19,657		20,848		(12,910	)		7,938	1986	1994
Charlotte at Midtown	Nashville, TN		—			7,898		54,480		—			1,046		7,898		55,526		63,424		(4,452	)		58,972	2016	2017
Colonial Grand at Bellevue	Nashville, TN		19,654			17,278		64,196		(2	)		4,799		17,276		68,995		86,271		(14,544	)		71,727	1996 / 2015	2013
Grand View Nashville	Nashville, TN		—			2,963		33,673		—			8,767		2,963		42,440		45,403		(21,265	)		24,138	2001	1998
Monthaven Park	Nashville, TN		—			2,736		28,902		—			6,143		2,736		35,045		37,781		(18,873	)		18,908	2000	2004
Park at Hermitage	Nashville, TN		—			1,524		14,800		—			9,496		1,524		24,296		25,820		(18,141	)		7,679	1987	1995
Venue at Cool Springs	Nashville, TN		—			6,670		—		—			52,305		6,670		52,305		58,975		(10,230	)		48,745	2012	2010
Verandas at Sam Ridley	Nashville, TN		19,828			3,350		28,308		—			3,048		3,350		31,356		34,706		(10,201	)		24,505	2009	2010
Balcones Woods	Austin, TX		—			1,598		14,398		—			10,035		1,598		24,433		26,031		(17,071	)		8,960	1983	1997
Colonial Grand at Canyon Creek	Austin, TX		—			3,621		32,137		—			1,965		3,621		34,102		37,723		(9,409	)		28,314	2008	2013
Colonial Grand at Canyon Ranch	Austin, TX		—			3,778		20,201		—			2,377		3,778		22,578		26,356		(6,907	)		19,449	2003	2013
Colonial Grand at Double Creek	Austin, TX		—			3,131		29,375		—			1,050		3,131		30,425		33,556		(8,413	)		25,143	2013	2013
Colonial Grand at Onion Creek	Austin, TX		—			4,902		33,010		—			2,277		4,902		35,287		40,189		(9,883	)		30,306	2009	2013
Grand Reserve at Sunset Valley	Austin, TX		—			3,150		11,393		—			3,877		3,150		15,270		18,420		(7,842	)		10,578	1996	2004
Colonial Village at Quarry Oaks	Austin, TX		—			4,621		34,461		—			6,446		4,621		40,907		45,528		(12,562	)		32,966	1996	2013
Colonial Grand at Wells Branch	Austin, TX		—	⁽³⁾		3,094		32,283		294			1,865		3,388		34,148		37,536		(8,933	)		28,603	2008	2013
Legacy at Western Oaks	Austin, TX		—	⁽¹⁾		9,100		49,339		—			1,094		9,100		50,433		59,533		(13,984	)		45,549	2001	2009
Post Barton Creek	Austin, TX		—			8,683		21,497		—			1,243		8,683		22,740		31,423		(3,159	)		28,264	1998	2016
Post Park Mesa	Austin, TX		—			4,653		19,828		—			949		4,653		20,777		25,430		(2,527	)		22,903	1992	2016
Post South Lamar	Austin, TX		—			11,542		41,293		—			2,181		11,542		43,474		55,016		(6,450	)		48,566	2011	2016
Post South Lamar II	Austin, TX		—			9,000		32,800		—			20,130		9,000		52,930		61,930		(3,724	)		58,206	2017	2016
Post West Austin	Austin, TX		—	⁽³⁾		7,805		48,843		—			1,423		7,805		50,266		58,071		(7,403	)		50,668	2009	2016
Silverado	Austin, TX		—			2,900		24,009		—			4,418		2,900		28,427		31,327		(13,376	)		17,951	2003	2006
Stassney Woods	Austin, TX		—			1,621		7,501		—			8,619		1,621		16,120		17,741		(10,746	)		6,995	1985	1995
Sixty 600	Austin, TX		—			2,281		6,169		—			8,290		2,281		14,459		16,740		(9,544	)		7,196	1987	1995
The Woods on Barton Skyway	Austin, TX		—			1,405		12,769		—			10,244		1,405		23,013		24,418		(11,343	)		13,075	1977	1997

					Initial Cost				Costs Capitalized Subsequent to Acquisition					Gross Amount carried as of December 31, 2019
Property	Location	Encumbrances			Land		Buildings and Fixtures		Land			Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽⁴⁾		Accumulated Depreciation ⁽⁵⁾			Net		Date of Construction	Date Acquired
Colonial Village at Shoal Creek	Bedford, TX		—			4,982		27,377		—			4,024		4,982		31,401		36,383		(9,230	)		27,153	1996	2013
Colonial Village at Willow Creek	Bedford, TX		—			3,109		33,488		—			8,223		3,109		41,711		44,820		(12,218	)		32,602	1996	2013
Colonial Grand at Hebron	Carrollton, TX		—			4,231		42,237		—			1,512		4,231		43,749		47,980		(10,937	)		37,043	2011	2013
Colonial Grand at Silverado	Cedar Park, TX		—			3,282		24,935		—			1,575		3,282		26,510		29,792		(7,245	)		22,547	2005	2013
Colonial Grand at Silverado Reserve	Cedar Park, TX		—			3,951		31,705		—			2,256		3,951		33,961		37,912		(9,071	)		28,841	2005	2013
Grand Cypress	Cypress, TX		—			3,881		24,267		—			1,537		3,881		25,804		29,685		(5,539	)		24,146	2008	2013
Courtyards at Campbell	Dallas, TX		—			988		8,893		—			4,166		988		13,059		14,047		(8,952	)		5,095	1986	1998
Deer Run	Dallas, TX		—			1,252		11,271		—			5,053		1,252		16,324		17,576		(11,455	)		6,121	1985	1998
Grand Courtyard	Dallas, TX		—			2,730		22,240		—			4,669		2,730		26,909		29,639		(12,285	)		17,354	2000	2006
Legends at Lowe's Farm	Dallas, TX		—			5,016		41,091		—			2,844		5,016		43,935		48,951		(13,043	)		35,908	2008	2011
Colonial Reserve at Medical District	Dallas, TX		—			4,050		33,779		—			2,540		4,050		36,319		40,369		(8,655	)		31,714	2007	2013
Post Abbey	Dallas, TX		—			2,711		4,369		—			282		2,711		4,651		7,362		(588	)		6,774	1996	2016
Post Addison Circle	Dallas, TX		—			12,308		189,419		—			11,330		12,308		200,749		213,057		(24,380	)		188,677	1998-2000	2016
Post Cole's Corner	Dallas, TX		—			13,030		14,383		—			2,394		13,030		16,777		29,807		(2,354	)		27,453	1998	2016
Post Eastside	Dallas, TX		—			7,134		58,095		—			1,213		7,134		59,308		66,442		(7,908	)		58,534	2008	2016
Post Gallery	Dallas, TX		—			4,391		7,910		—			894		4,391		8,804		13,195		(1,349	)		11,846	1999	2016
Post Heights	Dallas, TX		—			26,245		37,922		—			1,160		26,245		39,082		65,327		(5,198	)		60,129	1998-1999/2009	2016
Post Katy Trail	Dallas, TX		—			10,333		32,456		—			819		10,333		33,275		43,608		(3,806	)		39,802	2010	2016
Post Legacy	Dallas, TX		—	⁽³⁾		6,575		55,277		—			3,630		6,575		58,907		65,482		(7,083	)		58,399	2000	2016
Post Meridian	Dallas, TX		—			8,780		13,654		—			427		8,780		14,081		22,861		(1,921	)		20,940	1991	2016
Post Sierra at Frisco Bridges	Dallas, TX		—			6,777		32,553		—			830		6,777		33,383		40,160		(4,943	)		35,217	2009	2016
Post Square	Dallas, TX		—			13,178		24,048		—			2,059		13,178		26,107		39,285		(3,124	)		36,161	1996	2016
Post Uptown Village	Dallas, TX		—			34,974		33,213		—			4,541		34,974		37,754		72,728		(5,119	)		67,609	1995/2000	2016
Post Vineyard	Dallas, TX		—			7,966		7,471		—			1,040		7,966		8,511		16,477		(1,097	)		15,380	1996	2016
Post Vintage	Dallas, TX		—			13,621		8,608		—			1,517		13,621		10,125		23,746		(1,366	)		22,380	1993	2016
Post Worthington	Dallas, TX		—			13,713		43,268		—			1,552		13,713		44,820		58,533		(5,426	)		53,107	1993/2008	2016
Watermark	Dallas, TX		—	⁽²⁾		960		14,438		—			3,130		960		17,568		18,528		(9,253	)		9,275	2002	2004
Colonial Grand at Bear Creek	Euless, TX		—			6,453		30,048		—			3,199		6,453		33,247		39,700		(10,099	)		29,601	1998	2013
Colonial Grand at Fairview	Fairview, TX		—			2,171		35,077		—			1,161		2,171		36,238		38,409		(8,941	)		29,468	2012	2013
La Valencia at Starwood	Frisco, TX		—			3,240		26,069		—			1,851		3,240		27,920		31,160		(9,131	)		22,029	2009	2010
Colonial Reserve at Frisco Bridges	Frisco, TX		—			1,968		34,018		—			1,642		1,968		35,660		37,628		(8,643	)		28,985	2013	2013
Colonial Village at Grapevine	Grapevine, TX		—			2,351		29,757		—			6,465		2,351		36,222		38,573		(10,022	)		28,551	1985/86	2013
Greenwood Forest	Houston, TX		—			3,465		23,482		—			1,150		3,465		24,632		28,097		(5,897	)		22,200	1994	2013
Legacy Pines	Houston, TX		—	⁽²⁾		2,157		19,066		(15	)		4,170		2,142		23,236		25,378		(12,904	)		12,474	1999	2003
Park Place (Houston)	Houston, TX		—			2,061		15,830		—			3,264		2,061		19,094		21,155		(8,596	)		12,559	1996	2007
Post Midtown Square	Houston, TX		—			19,038		89,570		—			2,602		19,038		92,172		111,210		(11,984	)		99,226	1999/2013	2016
Post 510	Houston, TX		—			7,227		33,366		—			426		7,227		33,792		41,019		(4,713	)		36,306	2014	2016
Post Afton Oaks	Houston, TX		—			11,503		65,469		—			3,515		11,503		68,984		80,487		(10,736	)		69,751	2017	2016
Ranchstone	Houston, TX		—			1,480		14,807		—			2,941		1,480		17,748		19,228		(7,772	)		11,456	1996	2007
Reserve at Woodwind Lakes	Houston, TX		—			1,968		19,928		—			4,199		1,968		24,127		26,095		(11,050	)		15,045	1999	2006
Retreat at Vintage Park	Houston, TX		—	⁽³⁾		8,211		40,352		—			1,092		8,211		41,444		49,655		(5,573	)		44,082	2014	2014
Yale at 6th	Houston, TX		—	⁽¹⁾		13,107		62,764		—			1,345		13,107		64,109		77,216		(6,319	)		70,897	2015	2016
Cascade at Fall Creek	Humble, TX		—			5,985		40,011		—			3,312		5,985		43,323		49,308		(17,998	)		31,310	2007	2007
Bella Casita	Irving, TX		—	⁽²⁾		2,521		26,432		—			2,560		2,521		28,992		31,513		(9,293	)		22,220	2007	2010
Remington Hills	Irving, TX		—			4,390		21,822		—			12,278		4,390		34,100		38,490		(9,256	)		29,234	1984	2013
Colonial Reserve at Las Colinas	Irving, TX		—	⁽¹⁾		3,902		40,691		—			1,881		3,902		42,572		46,474		(10,301	)		36,173	2006	2013
Colonial Grand at Valley Ranch	Irving, TX		22,286			5,072		37,397		—			13,157		5,072		50,554		55,626		(14,925	)		40,701	1997	2013
Colonial Village at Oakbend	Lewisville, TX		—			5,598		28,616		—			5,009		5,598		33,625		39,223		(9,544	)		29,679	1997	2013
Times Square at Craig Ranch	McKinney, TX		—			1,130		28,058		—			4,769		1,130		32,827		33,957		(11,196	)		22,761	2009	2010
Venue at Stonebridge Ranch	McKinney, TX		—			4,034		19,528		—			1,741		4,034		21,269		25,303		(4,668	)		20,635	2000	2013
Cityscape at Market Center	Plano, TX		—			16,894		110,705		—			2,492		16,894		113,197		130,091		(14,691	)		115,400	2013/15	2014
Highwood	Plano, TX		—			864		7,783		—			3,631		864		11,414		12,278		(7,893	)		4,385	1983	1998
Los Rios Park	Plano, TX		—			3,273		28,823		—			6,921		3,273		35,744		39,017		(19,360	)		19,657	2000	2003
Boulder Ridge	Roanoke, TX		—			3,382		26,930		—			7,025		3,382		33,955		37,337		(16,567	)		20,770	1999	2005
Copper Ridge	Roanoke, TX		—			3,336		—		—			21,806		3,336		21,806		25,142		(6,506	)		18,636	2009	2008
Colonial Grand at Ashton Oaks	Round Rock, TX		—			5,511		36,241		—			2,376		5,511		38,617		44,128		(10,589	)		33,539	2009	2013
Colonial Grand at Round Rock	Round Rock, TX		—			4,691		45,379		—			2,738		4,691		48,117		52,808		(12,809	)		39,999	1997	2013
Colonial Village at Sierra Vista	Round Rock, TX		—			2,561		16,488		—			3,815		2,561		20,303		22,864		(6,188	)		16,676	1999	2013
Alamo Ranch	San Antonio, TX		—			2,380		26,982		—			3,026		2,380		30,008		32,388		(9,674	)		22,714	2009	2011
Bulverde Oaks	San Antonio, TX		—			4,257		36,759		—			1,590		4,257		38,349		42,606		(5,411	)		37,195	2014	2014
Haven at Blanco	San Antonio, TX		—			5,450		45,958		—			3,419		5,450		49,377		54,827		(13,066	)		41,761	2010	2012
Stone Ranch at Westover Hills	San Antonio, TX		—			4,000		24,992		—			2,961		4,000		27,953		31,953		(9,964	)		21,989	2009	2009
Cypresswood Court	Spring, TX		—	⁽²⁾		576		5,190		—			5,165		576		10,355		10,931		(6,378	)		4,553	1984	1994
Villages at Kirkwood	Stafford, TX		—			1,918		15,846		—			3,179		1,918		19,025		20,943		(9,804	)		11,139	1996	2004
Green Tree Place	Woodlands, TX		—	⁽²⁾		539		4,850		—			3,929		539		8,779		9,318		(6,438	)		2,880	1984	1994
Stonefield Commons	Charlottesville, VA		—			11,044		36,689		—			1,193		11,044		37,882		48,926		(5,561	)		43,365	2013	2014
Adalay Bay	Chesapeake, VA		—			5,280		31,341		—			3,565		5,280		34,906		40,186		(9,885	)		30,301	2002	2012
Colonial Village at Greenbrier	Fredericksburg, VA		—			4,842		21,677		—			2,549		4,842		24,226		29,068		(5,977	)		23,091	1980	2013
Seasons at Celebrate Virginia	Fredericksburg, VA		—			14,490		32,083		—			40,065		14,490		72,148		86,638		(15,520	)		71,118	2011	2011
Station Square at Cosner's Corner	Fredericksburg, VA		—			12,825		51,078		—			1,651		12,825		52,729		65,554		(7,962	)		57,592	2013/16	2013
Apartments at Cobblestone Square	Fredericksburg, VA		—			10,990		48,696		—			2,674		10,990		51,370		62,360		(7,440	)		54,920	2012	2016
Colonial Village at Hampton Glen	Glen Allen, VA		—			4,851		21,678		—			3,266		4,851		24,944		29,795		(6,757	)		23,038	1986	2013
Colonial Village at West End	Glen Allen, VA		—			4,661		18,908		—			2,943		4,661		21,851		26,512		(5,919	)		20,593	1987	2013
Township	Hampton, VA		—			1,509		8,189		—			8,663		1,509		16,852		18,361		(11,425	)		6,936	1987	1995
Colonial Village at Waterford	Midlothian, VA		—			6,733		29,221		—			4,768		6,733		33,989		40,722		(9,654	)		31,068	1989	2013
Ashley Park	Richmond, VA		—			4,761		13,365		—			2,363		4,761		15,728		20,489		(4,968	)		15,521	1988	2013

Initial Cost Costs Capitalized Subsequent to Acquisition Gross Amount carried as of December 31, 2018
Property Location Encumbrances

Land Buildings and Fixtures Land Buildings and Fixtures Land Buildings and Fixtures
Total ⁽³⁾

Accumulated Depreciation ⁽⁴⁾
Net Date of Construction Date Acquired
535 Brookwood Simpsonville, SC 12,011
1,216
18,666
—
1,565
1,216
20,231
21,447
(6,068 ) 15,379
2008 2010
Park Place Spartanburg, SC —
723
6,504
—
3,177
723
9,681
10,404
(6,721 ) 3,683
1987 1997
Farmington Village Summerville, SC —
2,800
26,295
—
2,465
2,800
28,760
31,560
(11,008 ) 20,552
2007 2007
Colonial Village at Waters Edge Summerville, SC —
2,103
9,187
—
3,787
2,103
12,974
15,077
(3,937 ) 11,140
1985 2013
Hamilton Pointe Chattanooga, TN —
1,131
10,632
—
4,952
1,131
15,584
16,715
(8,171 ) 8,544
1989 1992
Hidden Creek Chattanooga, TN —
972
8,954
—
5,978
972
14,932
15,904
(6,635 ) 9,269
1987 1988
Steeplechase Chattanooga, TN —
217
1,957
—
3,340
217
5,297
5,514
(3,748 ) 1,766
1986 1991
Windridge Chattanooga, TN —
817
7,416
—
4,464
817
11,880
12,697
(8,087 ) 4,610
1984 1997
Kirby Station Memphis, TN —
1,148
10,337
—
10,685
1,148
21,022
22,170
(14,339 ) 7,831
1978 1994
Lincoln on the Green Memphis, TN —
1,498
20,483
—
16,640
1,498
37,123
38,621
(26,261 ) 12,360
1992 1994
Park Estate Memphis, TN —
178
1,141
—
5,090
178
6,231
6,409
(4,878 ) 1,531
1974 1977
Reserve at Dexter Lake Memphis, TN —
1,260
16,043
2,147
41,631
3,407
57,674
61,081
(27,474 ) 33,607
2000 1998
Paddock Club Murfreesboro Murfreesboro, TN —
915
14,774
—
3,649
915
18,423
19,338
(9,763 ) 9,575
1999 1998
Acklen West End Nashville, TN —
12,761
58,906
—
450
12,761
59,355
72,116
(2,159 ) 69,957
2015 2017
Aventura at Indian Lake Village Nashville, TN —
4,950
28,053
—
1,676
4,950
29,729
34,679
(7,663 ) 27,016
2010 2011
Avondale at Kennesaw Nashville, TN 16,552
3,456
22,443
—
3,007
3,456
25,450
28,906
(7,550 ) 21,356
2008 2010
Brentwood Downs Nashville, TN —
1,193
10,739
(2 ) 8,590
1,191
19,329
20,520
(12,321 ) 8,199
1986 1994
Charlotte at Midtown Nashville, TN —
7,898
54,480
—
485
7,898
55,305
63,203
(2,791 ) 60,412
2016 2017
Colonial Grand at Bellevue Nashville, TN 20,088
17,278
64,196
(2 ) 3,367
17,276
67,563
84,839
(11,950 ) 72,889
1996 / 2015 2013
Grand View Nashville Nashville, TN —
2,963
33,673
—
8,552
2,963
42,225
45,188
(20,057 ) 25,131
2001 1998
Monthaven Park Nashville, TN —
2,736
28,902
—
6,033
2,736
34,935
37,671
(17,762 ) 19,909
2000 2004
Park at Hermitage Nashville, TN —
1,524
14,800
—
9,014
1,524
23,814
25,338
(17,472 ) 7,866
1987 1995
Venue at Cool Springs Nashville, TN —
6,670
—
—
51,922
6,670
51,922
58,592
(8,690 ) 49,902
2012 2010
Verandas at Sam Ridley Nashville, TN 20,372
3,350
28,308
—
2,321
3,350
30,629
33,979
(9,018 ) 24,961
2009 2010
Balcones Woods Austin, TX —
1,598
14,398
—
9,133
1,598
23,531
25,129
(16,270 ) 8,859
1983 1997
Colonial Grand at Canyon Creek Austin, TX 13,356
3,621
32,137
—
1,686
3,621
33,823
37,444
(7,986 ) 29,458
2008 2013
Colonial Grand at Canyon Ranch Austin, TX —
3,778
20,201
—
2,167
3,778
22,368
26,146
(5,831 ) 20,315
2003 2013
Colonial Grand at Double Creek Austin, TX —
3,131
29,375
—
914
3,131
30,289
33,420
(7,172 ) 26,248
2013 2013
Colonial Grand at Onion Creek Austin, TX —
4,902
33,010
—
1,797
4,902
34,807
39,709
(8,337 ) 31,372
2009 2013
Grand Reserve at Sunset Valley Austin, TX —
3,150
11,393
—
3,819
3,150
15,212
18,362
(7,409 ) 10,953
1996 2004
Colonial Village at Quarry Oaks Austin, TX —
4,621
34,461
—
5,880
4,621
40,341
44,962
(10,509 ) 34,453
1996 2013
Colonial Grand at Wells Branch Austin, TX —
3,094
32,283
294
1,624
3,388
33,907
37,295
(7,568 ) 29,727
2008 2013
Legacy at Western Oaks Austin, TX —
⁽¹⁾
9,100
49,339
—
491
9,100
49,830
58,930
(11,908 ) 47,022
2001 2009
Post Barton Creek Austin, TX —
8,683
21,497
—
905
8,683
22,402
31,085
(2,076 ) 29,009
1998 2016
Post Park Mesa Austin, TX —
4,653
19,828
—
674
4,653
20,502
25,155
(1,668 ) 23,487
1992 2016
Post South Lamar Austin, TX —
11,542
41,293
—
858
11,542
42,151
53,693
(4,271 ) 49,422
2011 2016
Post South Lamar II Austin, TX —
9,000
32,800
—
20,050
9,000
52,850
61,850
(632 ) 61,218
2017 2016
Post West Austin Austin, TX —
7,805
48,843
—
1,168
7,805
50,011
57,816
(4,930 ) 52,886
2009 2016
Silverado Austin, TX —
2,900
24,009
—
4,209
2,900
28,218
31,118
(12,387 ) 18,731
2003 2006
Stassney Woods Austin, TX —
1,621
7,501
—
8,655
1,621
16,156
17,777
(10,362 ) 7,415
1985 1995
Sixty 600 Austin, TX —
2,281
6,169
—
8,019
2,281
14,188
16,469
(9,227 ) 7,242
1987 1995
The Woods on Barton Skyway Austin, TX —
1,405
12,769
—
9,816
1,405
22,585
23,990
(10,639 ) 13,351
1977 1997
Colonial Village at Shoal Creek Bedford, TX —
4,982
27,377
—
3,635
4,982
31,012
35,994
(7,770 ) 28,224
1996 2013
Colonial Village at Willow Creek Bedford, TX —
3,109
33,488
—
7,415
3,109
40,903
44,012
(10,077 ) 33,935
1996 2013
Colonial Grand at Hebron Carrollton, TX —
4,231
42,237
—
1,277
4,231
43,514
47,745
(9,268 ) 38,477
2011 2013
Colonial Grand at Silverado Cedar Park, TX —
3,282
24,935
—
1,369
3,282
26,304
29,586
(6,132 ) 23,454
2005 2013
Colonial Grand at Silverado Reserve Cedar Park, TX —
3,951
31,705
—
1,954
3,951
33,659
37,610
(7,652 ) 29,958
2005 2013
Grand Cypress Cypress, TX —
3,881
24,267
—
1,316
3,881
25,583
29,464
(4,560 ) 24,904
2008 2013
Courtyards at Campbell Dallas, TX —
988
8,893
—
4,033
988
12,926
13,914
(8,572 ) 5,342
1986 1998
Deer Run Dallas, TX —
1,252
11,271
—
5,018
1,252
16,289
17,541
(10,942 ) 6,599
1985 1998
Grand Courtyard Dallas, TX —
2,730
22,240
—
3,615
2,730
25,855
28,585
(11,461 ) 17,124
2000 2006
Legends at Lowe's Farm Dallas, TX —
5,016
41,091
—
2,598
5,016
43,689
48,705
(11,336 ) 37,369
2008 2011
Colonial Reserve at Medical District Dallas, TX —
4,050
33,779
—
2,027
4,050
35,806
39,856
(7,301 ) 32,555
2007 2013
Post Abbey Dallas, TX —
2,711
4,369
—
112
2,711
4,481
7,192
(384 ) 6,808
1996 2016
Post Addison Circle Dallas, TX —
12,308
189,419
—
6,637
12,308
196,056
208,364
(15,940 ) 192,424
1998-2000 2016
Post Cole's Corner Dallas, TX —
13,030
14,383
—
1,541
13,030
15,924
28,954
(1,481 ) 27,473
1998 2016
Post Eastside Dallas, TX —
7,134
58,095
—
853
7,134
58,948
66,082
(5,277 ) 60,805
2008 2016
Post Gallery Dallas, TX —
4,391
7,910
—
687
4,391
8,597
12,988
(870 ) 12,118
1999 2016
Post Heights Dallas, TX —
26,245
37,922
—
823
26,245
38,745
64,990
(3,439 ) 61,551
1998-1999/2009 2016
Post Katy Trail Dallas, TX —
10,333
32,456
—
621
10,333
33,077
43,410
(2,524 ) 40,886
2010 2016
Post Legacy Dallas, TX —
6,575
55,277
—
2,264
6,575
57,541
64,116
(4,616 ) 59,500
2000 2016
Post Meridian Dallas, TX —
8,780
13,654
—
208
8,780
13,862
22,642
(1,279 ) 21,363
1991 2016

					Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amount carried as of December 31, 2019
Property	Location	Encumbrances			Land		Buildings and Fixtures		Land		Buildings and Fixtures		Land		Buildings and Fixtures		Total ⁽⁴⁾		Accumulated Depreciation ⁽⁵⁾			Net		Date of Construction	Date Acquired
Colonial Village at Chase Gayton	Richmond, VA		—			6,021		29,004		—		3,662		6,021		32,666		38,687		(9,211	)		29,476	1984	2013
Hamptons at Hunton Park	Richmond, VA		—			4,930		35,598		—		6,079		4,930		41,677		46,607		(12,283	)		34,324	2003	2011
Retreat at West Creek	Richmond, VA		—			7,112		36,136		—		1,957		7,112		38,093		45,205		(4,699	)		40,506	2015	2015
Retreat at West Creek II	Richmond, VA		—			3,000		—		—		12,141		3,000		12,141		15,141		(859	)		14,282	2017	2015
Radius	Newport News, VA		—			5,040		36,481		—		3,070		5,040		39,551		44,591		(4,966	)		39,625	2012	2015
Post Carlyle Square	Washington D.C.		—			29,728		154,309		—		2,338		29,728		156,647		186,375		(18,306	)		168,069	2006/13	2016
Post Corners at Trinity Center	Washington D.C.		—			7,664		70,012		—		2,011		7,664		72,023		79,687		(8,487	)		71,200	1996	2016
Post Fallsgrove	Washington D.C.		—			17,524		58,896		—		2,783		17,524		61,679		79,203		(7,557	)		71,646	2003	2016
Post Park	Washington D.C.		—			5,355		79,842		—		1,732		5,355		81,574		86,929		(12,442	)		74,487	2010	2016
Post Pentagon Row	Washington D.C.		—			30,452		125,091		—		6,189		30,452		131,280		161,732		(16,006	)		145,726	2001	2016
Post Tysons Corner	Washington D.C.		—			30,776		82,021		—		3,129		30,776		85,150		115,926		(10,043	)		105,883	1990	2016
Total Residential Properties			145,473			1,820,078		9,941,939		5,286		1,691,471		1,825,364		11,633,410		13,458,774		(2,915,332	)		10,543,442
Colonial Promenade at Huntsville Retail	Huntsville, AL		—			1,748		—		—		—		1,748		—		1,748		—			1,748	2017	2013
220 Riverside Retail	Jacksonville, FL		—			119		2,902		—		7		119		2,909		3,028		(40	)		2,988	2015	2019
Allure in Buckhead Retail	Atlanta, GA		—			867		3,465		—		430		867		3,895		4,762		(928	)		3,834	2012	2012
Highlands of West Village Retail	Smyrna, GA		—			2,500		8,446		908		1,356		3,408		9,802		13,210		(1,742	)		11,468	2012	2014
The Denton Retail	Kansas City, MO		—			700		4,439		—		510		700		4,949		5,649		(606	)		5,043	2014	2015
1225 South Church Retail	Charlotte, NC		—			43		199		9		242		52		441		493		(140	)		353	2010	2010
Bella Casita at Las Colinas Retail	Irving, TX		—	⁽²⁾		46		186		—		164		46		350		396		(102	)		294	2007	2010
Times Square at Craig Ranch Retail	McKinney, TX		—			253		1,310		—		3,551		253		4,861		5,114		(755	)		4,359	2009	2010
Post Rocky Point Retail	Tampa, FL		—			34		51		—		272		34		323		357		(79	)		278	1994-1996	2016
Post Training Facility	Atlanta, GA		—			1,092		968		—		32		1,092		1,000		2,092		(245	)		1,847	1999	2016
Post Riverside Office	Atlanta, GA		—			9,680		22,108		—		8,435		9,680		30,543		40,223		(4,560	)		35,663	1996	2016
Post Riverside Retail	Atlanta, GA		—			889		2,340		—		2,568		889		4,908		5,797		(499	)		5,298	1996	2016
Post Harbour Place Retail	Tampa, FL		—			386		4,315		—		306		386		4,621		5,007		(571	)		4,436	1997	2016
Post Soho Square Retail	Tampa, FL		—			268		4,033		—		6		268		4,039		4,307		(674	)		3,633	2012	2016
Post Parkside Atlanta Retail	Atlanta, GA		—			426		1,089		—		21		426		1,110		1,536		(146	)		1,390	1999	2016
Post Uptown Place Retail	Charlotte, NC		—			319		1,144		—		11		319		1,155		1,474		(159	)		1,315	1998	2016
Post Uptown Leasing Center	Charlotte, NC		—			1,290		1,488		—		114		1,290		1,602		2,892		(186	)		2,706	1998	2016
Post Park Maryland Retail	Washington D.C.		—			25		137		—		—		25		137		162		(14	)		148	2007	2016
Post South End Retail	Charlotte, NC		—			470		1,289		—		121		470		1,410		1,880		(205	)		1,675	2009	2016
Post Gateway Place Retail	Charlotte, NC		—			318		1,430		—		24		318		1,454		1,772		(222	)		1,550	2000	2016
Post Parkside at Wade Retail	Raleigh, NC		—			317		4,552		—		71		317		4,623		4,940		(774	)		4,166	2011	2016
Hue Retail	Raleigh, NC		—			—		2,129		—		65		—		2,194		2,194		(103	)		2,091	2010	2018
Post Parkside Orlando Retail	Orlando, FL		—			742		11,924		—		1,119		742		13,043		13,785		(1,604	)		12,181	1999	2016
Post Carlyle Square Retail	Washington D.C.		—			1,048		7,930		—		38		1,048		7,968		9,016		(1,002	)		8,014	2006/16	2016
Post Coles Corner Retail	Dallas, TX		—			347		716		—		52		347		768		1,115		(117	)		998	1998	2016
Post Square Retail	Dallas, TX		—			1,581		5,982		—		277		1,581		6,259		7,840		(810	)		7,030	1996	2016
Post Worthington Retail	Dallas, TX		—			108		495		—		359		108		854		962		(64	)		898	1993/2008	2016
Post Heights Retail	Dallas, TX		—			1,066		3,314		—		100		1,066		3,414		4,480		(475	)		4,005	1997	2016
Post Eastside Retail	Dallas, TX		—			682		10,645		—		209		682		10,854		11,536		(1,417	)		10,119	2008	2016
Post Addison Circle Retail	Dallas, TX		—			448		21,386		—		1,768		448		23,154		23,602		(3,551	)		20,051	1998-2000	2016
Post Addison Circle Office	Dallas, TX		—			1,395		4,280		—		693		1,395		4,973		6,368		(977	)		5,391	1998-2000	2016
Post Sierra Frisco Bridges Retail	Dallas, TX		—			779		6,593		—		557		779		7,150		7,929		(998	)		6,931	2009	2016
Post Katy Trail Retail	Dallas, TX		—			465		4,883		—		35		465		4,918		5,383		(589	)		4,794	2010	2016
Post Midtown Square Retail	Houston, TX		—			1,327		16,005		—		256		1,327		16,261		17,588		(1,984	)		15,604	1999/2013	2016
Rise Condo Devel LP Retail	Houston, TX		—			—		2,280		—		—		—		2,280		2,280		(313	)		1,967	1999/2013	2016
Post Legacy Retail	Dallas, TX		—			150		3,334		—		346		150		3,680		3,830		(428	)		3,402	2000	2016
Post South Lamar Retail	Austin, TX		—			421		3,072		—		436		421		3,508		3,929		(427	)		3,502	2011	2016
The Greene Retail	Greenville, SC		—			—		—		—		—		—		—		—		—			—	2019	2019
Total Retail / Commercial Properties			—			32,349		170,859		917		24,551		33,266		195,410		228,676		(27,506	)		201,170
Copper Ridge II	Roanoke, TX		—			830		—		—		19,350		830		19,350		20,180		—			20,180	N/A	2008
MAA at Frisco Bridges II	Dallas, TX		—			6,100		—		—		37,491		6,100		37,491		43,591		—			43,591	N/A	2016
Novel Midtown	Phoenix, AZ		—			9,381		—		—		20,734		9,381		20,734		30,115		—			30,115	N/A	2019
Jefferson Sand Lake	Orlando, FL		—			7,704		—		—		7,695		7,704		7,695		15,399		—			15,399	N/A	2019
Westglenn	Denver, CO		—			8,077		—		—		9,398		8,077		9,398		17,475		—			17,475	N/A	2018
Long Point	Houston, TX		—			9,031		—		—		1,437		9,031		1,437		10,468		—			10,468	N/A	2018
336 N Orange	Orlando, FL		—			6,004		—		—		6,819		6,004		6,819		12,823		—			12,823	N/A	2018
Total Active Development Properties			—			47,127		—		—		102,924		47,127		102,924		150,051		—			150,051
Total Properties			145,473			1,899,554		10,112,798		6,203		1,818,946		1,905,757		11,931,744		13,837,501		(2,942,838	)		10,894,663
Total Land Held for Future Developments			—			34,548		—		—		—		34,548		—		34,548		—			34,548	N/A	Various
Corporate Properties			—			—		—		—		26,658		—		26,658		26,658		(12,415	)		14,243	Various	Various
Total Other			—			34,548		—		—		26,658		34,548		26,658		61,206		(12,415	)		48,791
Total Real Estate Assets, net of Joint Ventures		$	145,473		$	1,934,102	$	10,112,798	$	6,203	$	1,845,604	$	1,940,305	$	11,958,402	$	13,898,707	$	(2,955,253	)	$	10,943,454

Initial Cost Costs Capitalized Subsequent to Acquisition Gross Amount carried as of December 31, 2018
Property Location Encumbrances

Land Buildings and Fixtures Land Buildings and Fixtures Land Buildings and Fixtures
Total ⁽³⁾

Accumulated Depreciation ⁽⁴⁾
Net Date of Construction Date Acquired
Post Sierra at Frisco Bridges Dallas, TX —
6,777
32,553
—
580
6,777
33,133
39,910
(3,291 ) 36,619
2009 2016
Post Square Dallas, TX —
13,178
24,048
—
1,017
13,178
25,065
38,243
(2,013 ) 36,230
1996 2016
Post Uptown Village Dallas, TX —
34,974
33,213
—
3,464
34,974
36,677
71,651
(3,231 ) 68,420
1995/2000 2016
Post Vineyard Dallas, TX —
7,966
7,471
—
628
7,966
8,099
16,065
(691 ) 15,374
1996 2016
Post Vintage Dallas, TX —
13,621
8,608
—
708
13,621
9,316
22,937
(851 ) 22,086
1993 2016
Post Worthington Dallas, TX —
13,713
43,268
—
917
13,713
44,185
57,898
(3,598 ) 54,300
1993/2008 2016
Watermark Dallas, TX —
⁽²⁾
960
14,438
—
3,047
960
17,485
18,445
(8,672 ) 9,773
2002 2004
Colonial Grand at Bear Creek Euless, TX —
6,453
30,048
—
2,874
6,453
32,922
39,375
(8,561 ) 30,814
1998 2013
Colonial Grand at Fairview Fairview, TX —
2,171
35,077
—
1,041
2,171
36,118
38,289
(7,590 ) 30,699
2012 2013
La Valencia at Starwood Frisco, TX —
3,240
26,069
—
1,677
3,240
27,746
30,986
(8,144 ) 22,842
2009 2010
Colonial Reserve at Frisco Bridges Frisco, TX —
1,968
34,018
—
1,445
1,968
35,463
37,431
(7,350 ) 30,081
2013 2013
Colonial Village at Grapevine Grapevine, TX —
2,351
29,757
—
5,669
2,351
35,426
37,777
(8,355 ) 29,422
1985/86 2013
Greenwood Forest Houston, TX —
3,465
23,482
—
523
3,465
24,005
27,470
(4,938 ) 22,532
1994 2013
Legacy Pines Houston, TX —
⁽²⁾
2,157
19,066
(15 ) 4,184
2,142
23,250
25,392
(12,252 ) 13,140
1999 2003
Park Place (Houston) Houston, TX —
2,061
15,830
—
3,285
2,061
19,115
21,176
(8,141 ) 13,035
1996 2007
Post Midtown Square Houston, TX —
19,038
89,570
—
1,617
19,038
91,187
110,225
(7,964 ) 102,261
1999/2013 2016
Post 510 Houston, TX —
7,227
33,366
—
289
7,227
33,655
40,882
(3,162 ) 37,720
2014 2016
Post Afton Oaks Houston, TX —
11,503
65,469
—
3,420
11,503
68,889
80,392
(7,027 ) 73,365
2017 2016
Ranchstone Houston, TX —
1,480
14,807
—
2,771
1,480
17,578
19,058
(7,245 ) 11,813
1996 2007
Reserve at Woodwind Lakes Houston, TX —
1,968
19,928
—
3,930
1,968
23,858
25,826
(10,313 ) 15,513
1999 2006
Retreat at Vintage Park Houston, TX —
8,211
40,352
—
887
8,211
41,239
49,450
(4,417 ) 45,033
2014 2014
Yale at 6th Houston, TX —
⁽¹⁾
13,107
62,764
—
1,104
13,107
63,868
76,975
(2,447 ) 74,528
2015 2016
Cascade at Fall Creek Humble, TX —
5,985
40,011
—
2,806
5,985
42,817
48,802
(16,666 ) 32,136
2007 2007
Bella Casita Irving, TX —
⁽²⁾
2,521
26,432
—
2,355
2,521
28,787
31,308
(8,207 ) 23,101
2007 2010
Remington Hills Irving, TX —
4,390
21,822
—
11,820
4,390
33,642
38,032
(7,517 ) 30,515
1984 2013
Colonial Reserve at Las Colinas Irving, TX —
⁽¹⁾
3,902
40,691
—
1,624
3,902
42,315
46,217
(8,743 ) 37,474
2006 2013
Colonial Grand at Valley Ranch Irving, TX 22,778
5,072
37,397
—
12,143
5,072
49,540
54,612
(12,067 ) 42,545
1997 2013
Colonial Village at Oakbend Lewisville, TX —
5,598
28,616
—
4,037
5,598
32,653
38,251
(8,001 ) 30,250
1997 2013
Times Square at Craig Ranch McKinney, TX —
1,130
28,058
—
4,324
1,130
32,382
33,512
(9,932 ) 23,580
2009 2010
Venue at Stonebridge Ranch McKinney, TX —
4,034
19,528
—
1,235
4,034
20,763
24,797
(3,791 ) 21,006
2000 2013
Cityscape at Market Center Plano, TX —
16,894
110,705
—
2,004
16,894
112,709
129,603
(11,590 ) 118,013
2013/15 2014
Highwood Plano, TX —
864
7,783
—
3,630
864
11,413
12,277
(7,612 ) 4,665
1983 1998
Los Rios Park Plano, TX —
3,273
28,823
—
6,720
3,273
35,543
38,816
(18,242 ) 20,574
2000 2003
Boulder Ridge Roanoke, TX —
3,382
26,930
—
6,364
3,382
33,294
36,676
(15,517 ) 21,159
1999 2005
Copper Ridge Roanoke, TX —
4,166
—
—
21,641
4,166
21,778
25,944
(5,880 ) 20,064
2009 2008
Colonial Grand at Ashton Oaks Round Rock, TX —
5,511
36,241
—
2,169
5,511
38,410
43,921
(8,934 ) 34,987
2009 2013
Colonial Grand at Round Rock Round Rock, TX —
4,691
45,379
—
2,351
4,691
47,730
52,421
(10,832 ) 41,589
1997 2013
Colonial Village at Sierra Vista Round Rock, TX —
2,561
16,488
—
3,576
2,561
20,064
22,625
(5,118 ) 17,507
1999 2013
Alamo Ranch San Antonio, TX —
2,380
26,982
—
2,677
2,380
29,659
32,039
(8,533 ) 23,506
2009 2011
Bulverde Oaks San Antonio, TX —
4,257
36,759
—
1,296
4,257
38,055
42,312
(4,283 ) 38,029
2014 2014
Haven at Blanco San Antonio, TX —
5,450
45,958
—
3,014
5,450
48,972
54,422
(11,161 ) 43,261
2010 2012
Stone Ranch at Westover Hills San Antonio, TX 17,533
4,000
24,992
—
2,770
4,000
27,762
31,762
(8,907 ) 22,855
2009 2009
Cypresswood Court Spring, TX —
⁽²⁾
576
5,190
—
5,203
576
10,393
10,969
(6,175 ) 4,794
1984 1994
Villages at Kirkwood Stafford, TX —
1,918
15,846
—
3,112
1,918
18,958
20,876
(9,286 ) 11,590
1996 2004
Green Tree Place Woodlands, TX —
⁽²⁾
539
4,850
—
3,761
539
8,611
9,150
(6,160 ) 2,990
1984 1994
Stonefield Commons Charlottesville, VA —
11,044
36,689
—
872
11,044
37,561
48,605
(4,500 ) 44,105
2013 2014
Adalay Bay Chesapeake, VA —
5,280
31,341
—
3,176
5,280
34,517
39,797
(8,461 ) 31,336
2002 2012
Colonial Village at Greenbrier Fredericksburg, VA —
4,842
21,677
—
1,614
4,842
23,291
28,133
(5,024 ) 23,109
1980 2013
Seasons at Celebrate Virginia Fredericksburg, VA —
14,490
32,083
—
39,598
14,490
71,681
86,171
(13,240 ) 72,931
2011 2011
Station Square at Cosner's Corner Fredericksburg, VA —
12,825
51,078
—
1,372
12,825
52,450
65,275
(6,508 ) 58,767
2013/16 2013
Apartments at Cobblestone Square Fredericksburg, VA —
10,990
48,696
—
2,389
10,990
51,085
62,075
(5,428 ) 56,647
2012 2016
Colonial Village at Hampton Glen Glen Allen, VA —
4,851
21,678
—
2,690
4,851
24,368
29,219
(5,628 ) 23,591
1986 2013
Colonial Village at West End Glen Allen, VA —
4,661
18,908
—
2,763
4,661
21,671
26,332
(4,926 ) 21,406
1987 2013
Township Hampton, VA —
1,509
8,189
—
8,439
1,509
16,628
18,137
(10,777 ) 7,360
1987 1995
Colonial Village at Waterford Midlothian, VA —
6,733
29,221
—
3,903
6,733
33,124
39,857
(8,040 ) 31,817
1989 2013
Ashley Park Richmond, VA —
4,761
13,365
—
1,934
4,761
15,299
20,060
(4,160 ) 15,900
1988 2013
Colonial Village at Chase Gayton Richmond, VA —
6,021
29,004
—
3,340
6,021
32,344
38,365
(7,720 ) 30,645
1984 2013
Hamptons at Hunton Park Richmond, VA —
4,930
35,598
—
5,430
4,930
41,028
45,958
(10,730 ) 35,228
2003 2011
Retreat at West Creek Richmond, VA —
7,112
36,136
—
1,594
7,112
37,730
44,842
(3,594 ) 41,248
2015 2015
Retreat at West Creek II Richmond, VA —
3,000
—
—
12,144
3,000
12,144
15,144
(555 ) 14,589
2017 2015
Radius Newport News, VA —
5,040
36,481
—
2,393
5,040
38,874
43,914
(3,672 ) 40,242
2012 2015
Post Carlyle Square Washington D.C. —
29,728
154,309
—
1,292
29,728
155,601
185,329
(12,256 ) 173,073
2006/13 2016

Initial Cost Costs Capitalized Subsequent to Acquisition Gross Amount carried as of December 31, 2018
Property Location Encumbrances

Land Buildings and Fixtures Land Buildings and Fixtures Land Buildings and Fixtures
Total ⁽³⁾

Accumulated Depreciation ⁽⁴⁾
Net Date of Construction Date Acquired
Post Corners at Trinity Center Washington D.C. —
7,664
70,012
—
1,512
7,664
71,524
79,188
(5,641 ) 73,547
1996 2016
Post Fallsgrove Washington D.C. —
17,524
58,896
—
1,828
17,524
60,724
78,248
(4,975 ) 73,273
2003 2016
Post Park Washington D.C. —
5,355
79,842
—
936
5,355
80,778
86,133
(8,316 ) 77,817
2010 2016
Post Pentagon Row Washington D.C. —
30,452
125,091
—
3,792
30,452
128,883
159,335
(10,510 ) 148,825
2001 2016
Post Tysons Corner Washington D.C. —
30,776
82,021
—
1,689
30,776
83,710
114,486
(6,679 ) 107,807
1990 2016
Total Residential Properties 180,979

1,816,760
9,932,878
5,279
1,555,397
1,822,039
11,488,753
13,310,792
(2,512,538 ) 10,798,254

Colonial Promenade at Huntsville Huntsville, AL —
2,000
—
—
—
2,000
—
2,000
—
2,000
2017 2013
Allure in Buckhead Atlanta, GA —
867
3,465
—
263
867
3,728
4,595
(790 ) 3,805
2012 2012
Highlands of West Village Smyrna, GA —
2,500
8,446
908
1,208
3,408
9,654
13,062
(1,388 ) 11,674
2012 2014
The Denton Kansas City, MO —
700
4,439
—
442
700
4,881
5,581
(415 ) 5,166
2014 2015
1225 South Church Charlotte, NC —
43
199
9
242
52
441
493
(122 ) 371
2010 2010
Bella Casita at Las Colinas Irving, TX —
⁽²⁾
46
186
—
152
46
338
384
(88 ) 296
2007 2010
Times Square at Craig Ranch McKinney, TX —
253
1,310
—
2,397
253
3,707
3,960
(608 ) 3,352
2009 2010
Post Rocky Point Tampa, FL —
34
51
—
272
34
323
357
(50 ) 307
1994-1996 2016
Post Training Facility Atlanta, GA —
1,092
968
—
—
1,092
968
2,060
(164 ) 1,896
1999 2016
Post Riverside Office Atlanta, GA —
9,680
22,108
—
5,918
9,680
28,026
37,706
(2,980 ) 34,726
1996 2016
Post Riverside Retail Atlanta, GA —
889
2,340
—
2,274
889
4,614
5,503
(306 ) 5,197
1996 2016
Post Harbour Place Tampa, FL —
386
4,315
—
256
386
4,571
4,957
(398 ) 4,559
1997 2016
Post Soho Square Retail Tampa, FL —
268
4,033
—
6
268
4,039
4,307
(454 ) 3,853
2012 2016
Post Parkside Atlanta Retail Atlanta, GA —
426
1,089
—
2
426
1,091
1,517
(99 ) 1,418
1999 2016
Post Uptown Place Retail Charlotte, NC —
319
1,144
—
11
319
1,155
1,474
(117 ) 1,357
1998 2016
Post Uptown Leasing Center Charlotte, NC —
1,290
1,488
—
114
1,290
1,602
2,892
(118 ) 2,774
1998 2016
Post Park Maryland Retail Washington DC, MD —
25
137
—
—
25
137
162
(10 ) 152
2007 2016
Post South End Retail Charlotte, NC —
470
1,289
—
121
470
1,410
1,880
(143 ) 1,737
2009 2016
Post Gateway Place Retail Charlotte, NC —
318
1,430
—
18
318
1,448
1,766
(161 ) 1,605
2000 2016
Post Parkside at Wade Retail Raleigh, NC —
317
4,552
—
72
317
4,624
4,941
(522 ) 4,419
2011 2016
Hue Retail Raleigh, NC —
—
2,129
—
56
—
2,185
2,185
(30 ) 2,155
2010 2018
Post Parkside Orlando Retail Orlando, FL —
742
11,924
—
983
742
12,907
13,649
(1,105 ) 12,544
1999 2016
Post Carlyle Square Retail Washington DC, VA —
1,048
7,930
—
39
1,048
7,969
9,017
(679 ) 8,338
2006/16 2016
Post Coles Corner Retail Dallas, TX —
347
716
—
26
347
742
1,089
(79 ) 1,010
1998 2016
Post Square Retail Dallas, TX —
1,581
5,982
—
149
1,581
6,131
7,712
(562 ) 7,150
1996 2016
Post Worthington Retail Dallas, TX —
108
495
—
94
108
589
697
(39 ) 658
1993/2008 2016
Post Heights Retail Dallas, TX —
1,066
3,314
—
75
1,066
3,389
4,455
(329 ) 4,126
1997 2016
Post Eastside Retail Dallas, TX —
682
10,645
—
104
682
10,749
11,431
(966 ) 10,465
2008 2016
Post Addison Circle Retail Dallas, TX —
448
21,386
—
1,195
448
22,581
23,029
(2,431 ) 20,598
1998-2000 2016
Post Addison Circle Office Dallas, TX —
1,395
4,280
—
444
1,395
4,724
6,119
(641 ) 5,478
1998-2000 2016
Post Sierra Frisco Bridges Retail Dallas, TX —
779
6,593
—
444
779
7,037
7,816
(659 ) 7,157
2009 2016
Post Katy Trail Retail Dallas, TX —
465
4,883
—
27
465
4,910
5,375
(397 ) 4,978
2010 2016
Post Midtown Square Retail Houston, TX —
1,327
16,005
—
89
1,327
16,094
17,421
(1,350 ) 16,071
1999/2013 2016
Rise Condo Devel LP Retail Houston, TX —
—
2,280
—
1
—
2,281
2,281
(217 ) 2,064
1999/2013 2016
Post Legacy Retail Dallas, TX —
150
3,334
—
202
150
3,536
3,686
(289 ) 3,397
2000 2016
Post South Lamar Retail Austin, TX —
421
3,072
—
209
421
3,281
3,702
(291 ) 3,411
2011 2016
Total Commercial Properties
—

32,482
167,957
917
17,905
33,399
185,862
219,261
(18,997 ) 200,264

Post Parkside at Wade III Raleigh, NC —
2,200
—
—
6,134
2,200
6,134
8,334
—
8,334
N/A 2016
Post Sierra at Frisco Bridges II Dallas, TX —
6,100
—
—
7,290
6,100
7,290
13,390
—
13,390
N/A 2016
Sync 36 II Denver, CO —
5,090
—
—
6,595
5,090
6,595
11,685
—
11,685
N/A 2018
Total Active Development Properties —

13,390
—
—
20,019
13,390
20,019
33,409
—
33,409

Total Properties 180,979

1,862,632
10,100,835
6,196
1,593,321
1,868,828
11,694,634
13,563,462
(2,531,535 ) 11,031,927

Total Land Held for Future Developments —

58,257
—
—
—
58,257
—
58,257
—
58,257
N/A Various
Corporate Properties —
—
—
—
35,088
—
35,088
35,088
(17,752 ) 17,336
Various Various
Total Other

58,257
—
—
35,088
58,257
35,088
93,345
(17,752 ) 75,593

Total Real Estate Assets, net of Joint Ventures $ 180,979

$ 1,920,889
$ 10,100,835
$ 6,196
$ 1,628,409
$ 1,927,085
$ 11,729,722
$ 13,656,807
$ (2,549,287 ) $ 11,107,520


⁽¹⁾	Encumbered by a ~~$172.1~~$172.0 million secured property mortgage, with a fixed interest rate of 4.44%, which matures on January 10, 2049.


⁽²⁾	Encumbered by a ~~$123.2~~$121.1 million ~~loan~~secured property mortgage, with a fixed interest rate of 5.08%, which matures on June 10, 2021.


⁽³⁾	Encumbered by a $191.3 million secured property mortgage, with a fixed interest rate of 4.43%, which matures on February 10, 2049.

⁽⁴⁾

The aggregate cost for federal income tax purposes was approximately ~~$11.1~~$11.4 billion at December 31, ~~2018.~~2019. The aggregate cost for book purposes exceeds the total gross amount of real estate assets for federal income tax purposes, principally due to purchase accounting adjustments recorded under accounting principles generally accepted in the United States of America.

⁽⁵⁾
⁽⁴⁾	Depreciation is recognized on a straight-line basis over the estimated useful asset life, which ranges from 8eight to 40 years for land improvements and buildings, 5five years for furniture, fixtures and equipment and six months for the fair market value of residential leases.

Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

Schedule III - Real Estate and Accumulated Depreciation

Years ended December 31, 2019, 2018 and 2017

The following table summarizes the Company’s changes in real estate investments and accumulated depreciation for the years ended December 31, 2019, 2018 and 2017 (dollars in thousands):

	2019			2018			2017
Real estate investments:
Balance at beginning of year	$	13,656,807		$	13,292,039		$	12,972,170
Acquisitions ⁽¹⁾		105,730			130,187			127,710
Less: FMV of leases included in acquisitions		(512	)		(796	)		(1,488	)
Improvement and development		302,380			253,954			322,829
Assets held for sale		—			—			(5,321	)
Disposition of real estate assets ⁽²⁾		(165,698	)		(18,577	)		(123,861	)
Balance at end of year	$	13,898,707		$	13,656,807		$	13,292,039
Accumulated depreciation:
Balance at beginning of year	$	2,549,287		$	2,075,071		$	1,674,801
Depreciation		493,674			485,654			463,590
Disposition of real estate assets ⁽²⁾		(87,708	)		(11,438	)		(63,320	)
Balance at end of year	$	2,955,253		$	2,549,287		$	2,075,071

⁽¹⁾	Includes non-cash activity related to acquisitions.


⁽²⁾
~~Mid-America Apartment Communities, Inc.~~ Includes assets sold, casualty losses, and ~~Mid-America Apartments, L.P.~~
~~Schedule III - Real Estate and Accumulated Depreciation~~
~~Years ended December 31, 2018, 2017 and 2016~~
~~A summary~~removal of ~~activity for real estate investments and accumulated depreciation is as follows (dollars in thousands):~~certain fully depreciated assets.

2018 2017 2016
Real estate investments:

Balance at beginning of year $ 13,292,039
$ 12,972,170
$ 8,215,768
Acquisitions ⁽¹⁾
130,187
127,710
4,961,140
Less: FMV of leases included in acquisitions (796 ) (1,488 ) (51,588 )
Improvement and development 253,954
322,829
202,614
Assets held for sale —
(5,321 ) —
Disposition of real estate assets ⁽²⁾
(18,577 ) (123,861 ) (355,764 )
Balance at end of year $ 13,656,807
$ 13,292,039
$ 12,972,170

Accumulated depreciation:

Balance at beginning of year $ 2,075,071
$ 1,674,801
$ 1,499,213
Depreciation 485,654
463,590
314,076
Assets held for sale —
—
—
Disposition of real estate assets ⁽²⁾
(11,438 ) (63,320 ) (138,488 )
Balance at end of year $ 2,549,287
$ 2,075,071
$ 1,674,801

⁽¹⁾ ~~Includes non-cash activity related to acquisitions.~~

⁽²⁾ ~~Includes assets sold, casualty losses, and removal of certain fully depreciated assets.~~

See accompanying reports of independent registered public accounting firm.

~~F-44~~

F-42


☒
~~UNITED STATES~~
~~SECURITIES AND EXCHANGE COMMISSION~~
~~Washington, D.C. 20549~~

~~FORM 10-K~~
~~(Mark One)~~
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the fiscal year ended December 31, ~~2018~~2019

OR
o ☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from __________ to ___________


~~Commission File Number 001-12762 (Mid-America Apartment Communities, Inc.)~~
~~Commission File Number 333-190028-01 (Mid-America Apartments, L.P.)~~

~~MID-AMERICA APARTMENT COMMUNITIES, INC.~~
~~MID-AMERICA APARTMENTS, L.P.~~
~~(Exact name of registrant as specified in its charter)~~
Tennessee (Mid-America Apartment Communities, Inc.)		62-1543819
Tennessee (Mid-America Apartments, L.P.)	62-1543816
~~(State~~ (State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

		~~6815 Poplar Avenue, Suite 500, Germantown, Tennessee, 38138~~
		~~(Address of principal executive offices) (Zip Code)~~
		~~Registrant's telephone number, including area code:~~ ~~(901) 682-6600~~

~~Securities registered pursuant to Section 12(b) of the Act:~~
Title of each class			Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share (Mid-America Apartment Communities, Inc.)	MAA	New York Stock Exchange
8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share (Mid-America Apartment Communities, Inc.)	MAA*I	New York Stock Exchange



~~Securities registered pursuant to Section 12(g) of the Act: None.~~

~~Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.~~
Mid-America Apartment Communities, Inc.		Yes ý ☒		No o☐
Mid-America Apartments, L.P.	Yes o ☐		No ý

~~Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.~~
~~Mid-America Apartment Communities, Inc.~~		~~Yes~~ o	No ý
~~Mid-America Apartments, L.P.~~		~~Yes~~ o	No ý

~~Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding~~
~~12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.~~
~~Mid-America Apartment Communities, Inc.~~		~~Yes~~ ý	No o
~~Mid-America Apartments, L.P.~~		~~Yes~~ ý	No o

~~Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)~~
~~during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).~~
~~Mid-America Apartment Communities, Inc.~~		~~Yes~~ ý	No o
~~Mid-America Apartments, L.P.~~		~~Yes~~ ý	No o

~~Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of~~
~~registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.~~ o

~~Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the~~
~~definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.~~☒



~~Mid-America Apartment Communities, Inc.~~
~~Large accelerated filer~~ ý	~~Accelerated filer~~ o	~~Non-accelerated filer~~ o	~~Smaller reporting company~~ o	~~Emerging growth company~~ o
~~Mid-America Apartments, L.P.~~
~~Large accelerated filer~~ o	~~Accelerated filer~~ o	~~Non-accelerated filer~~ ý	~~Smaller reporting company~~ o	~~Emerging growth company~~ o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Mid-America Apartment Communities, Inc.	Yes ☒	No ☐
Mid-America Apartments, L.P.	Yes ☒	No ☐

Mid-America Apartment Communities, Inc.
Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐
Mid-America Apartments, L.P.
Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☐	Emerging growth company ☐


Mid-America Apartment Communities, Inc.	Yes ☐	No ☒
Mid-America Apartments, L.P.	Yes ☐	No ☒



Project:	Market	Total Units	Units Completed	Cost to Date		Budgeted Cost		Estimated Cost Per Unit		Expected Completion
Post Parkside at Wade III	Raleigh, NC	150	—	$	7,235	$	25,000	$	167	4th Quarter 2019
Post Sierra at Frisco Bridges II	Dallas, TX	348	—	12,013		69,000		198		3rd Quarter 2020
Sync 36 II	Denver, CO	79	—	11,685		24,500		310		4th Quarter 2019
		577	—	$	30,933	$	118,500



	Number of Communities	Number of Units ⁽¹⁾	Average Unit Size (Square Footage)	Average Occupancy⁽²⁾
Atlanta, GA	28	10,664	1,040.4	95.9	%
Dallas, TX	29	9,404	884.2	95.3	%
Austin, TX	21	6,475	935.6	95.8	%
Charlotte, NC	21	6,149	965.0	96.2	%
Tampa, FL	14	5,220	1,015.6	96.3	%
Orlando, FL	12	4,498	1,027.4	96.2	%
Houston, TX	14	4,479	882.4	96.2	%
Raleigh/ Durham, NC	14	4,397	1,016.5	96.3	%
Fort Worth, TX	11	4,249	902.9	95.8	%
Washington, DC	10	4,080	926.4	96.7	%
Nashville, TN	10	3,776	1,019.6	95.6	%
Jacksonville, FL	10	3,496	964.4	96.6	%
Charleston, SC	10	2,726	956.9	95.8	%
Phoenix, AZ	7	2,301	980.2	96.7	%
Savannah, GA	9	2,219	1,021.3	96.6	%
Memphis, TN	4	1,811	974.2	95.7	%
Greenville, SC	8	1,748	902.0	96.4	%
Richmond, VA	6	1,668	862.3	96.7	%
San Antonio, TX	4	1,504	910.3	96.0	%
Birmingham, AL	5	1,462	1,054.8	96.2	%
Little Rock, AR	5	1,368	981.5	95.4	%
Jackson, MS	4	1,241	970.1	96.2	%
Huntsville, AL	3	1,228	1,089.9	97.3	%
Chattanooga, TN	4	943	905.7	96.2	%
Lexington, KY	4	924	914.4	96.2	%
Norfolk / Hampton / Virginia Beach, VA	3	788	924.5	96.9	%
Las Vegas, NV	2	721	953.5	96.3	%
Tallahassee, FL	2	604	1,111.2	96.1	%
Kansas City, MO / KS	2	603	965.9	95.9	%
Columbia, SC	2	576	1,028.6	96.8	%
South Florida, FL	1	480	1,189.4	96.2	%
Gainesville, FL	2	468	1,137.7	97.3	%
Louisville, KY	1	384	845.7	96.2	%
Gulf Shores, AL	1	324	993.0	96.9	%
Panama City, FL	1	254	1,117.5	97.6	%
Charlottesville, VA	1	251	943.5	97.3	%
Same Store	285	93,483	968.3	96.1	%
Atlanta, GA	2	770	859.1	61.5	%
Austin, TX	1	642	788.9	94.4	%
Charleston, SC	1	442	939.5	81.6	%
Dallas, TX	2	362	957.4	93.9	%
Denver, CO	2	733	832.1	61.6	%
Greenville, SC	1	336	1,029.5	94.6	%
Gulf Shores, AL	1	96	2,145.8	96.7	%
Houston, TX	1	388	866.4	96.2	%
Kansas City, MO	1	507	1,008.1	86.3	%
Nashville, TN	2	599	811.2	88.1	%
Orlando, FL	1	776	986.9	94.9	%
Phoenix, AZ	1	322	901.3	95.7	%
Raleigh/Durham, NC	1	803	892.6	95.7	%
Richmond, VA	1	336	994.2	96.7	%
Non-Same Store ⁽³⁾	18	7,112	918.4	86.5	%
Total	303	100,595



	Total Number of Shares Purchased⁽¹⁾	Average Price Paid per Share⁽²⁾		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs⁽³⁾
October 1, 2018 - October 31, 2018	—	$	—	—	4,000,000
November 1, 2018 - November 30, 2018	—	$	—	—	4,000,000
December 1, 2018 - December 31, 2018	93	$	97.20	—	4,000,000
Total	93			—	4,000,000



	Year Ending December 31,
	2013		2014		2015		2016		2017		2018
MAA	$	100.00	$	128.42	$	162.40	$	181.23	$	192.59	$	190.58
S&P 500	100.00		113.69		115.26		129.05		157.22		150.33
FTSE NAREIT Equity REIT Index	100.00		130.14		134.30		145.74		153.36		146.27



	December 31, 2018		December 31, 2017		Increase		% Increase
Same Store	$	1,441,811	$	1,414,839	$	26,972	1.9	%
Non-Same Store and Other	129,535		114,148		15,387		13.5	%
Total	$	1,571,346	$	1,528,987	$	42,359	2.8	%



	December 31, 2017		December 31, 2016		Increase		% Increase
Same Store	$	1,021,138	$	992,721	$	28,417	2.9	%
Non-Same Store and Other	507,849		132,627		375,222		282.9	%
Total	$	1,528,987	$	1,125,348	$	403,639	35.9	%



	Primary drivers of cash (outflow) inflow						Increase (Decrease) in Net Cash
	during the year ended December 31,
	2018			2017
Purchases of real estate and other assets	$	(129,487	)	$	(136,065	)	$	6,578
Capital improvements, development and other	(254,715		)	(343,890		)	89,175
Proceeds from disposition of real estate assets	19,982			187,245			(167,263		)



	Principal Balance			Average Years to Rate Maturity	Effective Rate
Unsecured debt
Fixed rate or swapped	$	2,942,000		6.0	3.8	%
Variable rate	1,140,000			0.1	3.4	%
Fair market value adjustments, debt issuance costs and discounts	(28,698		)
Total unsecured rate maturity	$	4,053,302		4.3	3.7	%
Secured debt
Conventional - fixed rate	$	476,161		12.2	4.6	%
Fair market value adjustments and debt issuance costs	(1,135		)
Total secured rate maturity	$	475,026		12.2	4.6	%
Total debt	$	4,528,328		5.1	3.8	%
Total fixed or hedged debt	$	3,389,249		6.8	3.9	%



	Unsecured Revolving Credit Facility		Public Bonds		Other Unsecured		Secured		Total
2019	$	—	$	—	$	319,508	$	13,524	$	333,032
2020	540,000		—		149,883		159,097		848,980
2021	—		—		222,294		122,837		345,131
2022	—		248,522		416,075		—		664,597
2023	—		346,826		12,217		—		359,043
Thereafter	—		1,778,037		19,940		179,568		1,977,545
Total	$	540,000	$	2,373,385	$	1,139,917	$	475,026	$	4,528,328



	Fixed Rate Debt		Interest Rate Swaps		Total Fixed Rate Balances		Contract Rate
2019	$	33,508	$	—	$	33,508	4.4	%
2020	159,097		299,353		458,450		3.2	%
2021	195,459		—		195,459		5.2	%
2022	365,244		—		365,244		3.6	%
2023	359,043		—		359,043		4.3	%
Thereafter	1,977,545		—		1,977,545		3.9	%
Total	$	3,089,896	$	299,353	$	3,389,249	3.9	%



	Mid-America Apartment Communities, Inc. Shareholders																Noncontrolling Interests - Operating Partnership			Noncontrolling Interest - Consolidated Real Estate Entity
	Preferred Stock			Common Stock				Additional Paid-In Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive (Loss) Income								Total Equity			Redeemable Stock
	Shares	Amount		Shares		Amount		Additional Paid-In Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive (Loss) Income								Total Equity			Redeemable Stock
EQUITY BALANCE DECEMBER 31, 2015	—	$	—	75,318		$	753	$	3,627,074		$	(634,141	)	$	(1,589	)	$	165,726		$	—	$	3,157,823		$	8,250
Net income	—	—		—		—		—			212,222			—			12,180			—		224,402			—
Other comprehensive income - derivative instruments	—	—		—		—		—			—			2,733			131			—		2,864			—
Issuance and registration of common shares	—	—		38,097		380		3,406,150			—			—			72,759			—		3,479,289			1,240
Issuance and registration of preferred shares	868	9		—		—		64,824			—			—			—			—		64,833			—
Shares repurchased and retired	—	—		(23	)	—		(2,019		)	—			—			—			—		(2,019		)	—
Shares issued in exchange for common units	—	—		23		—		902			—			—			(902		)	—		—			—
Shares issued in exchange for redeemable stock	—	—		—		—		122			—			—			—			—		122			(122		)
Redeemable stock fair market value adjustment	—	—		—		—		—			(705		)	—			—			—		(705		)	705
Adjustment for noncontrolling interests in Operating Partnership	—	—		—		—		(192		)	—			—			192			—		—			—
Amortization of unearned compensation	—	—		—		—		12,151			—			—			—			—		12,151			—
Noncontrolling interests distribution	—	—		—		—		—			—			—			(226		)	—		(226		)	—
Dividends on preferred stock	—	—		—		—		—			(307		)	—			—			—		(307		)	—
Dividends on common stock ($3.3300 per share)	—	—		—		—		—			(284,548		)	—			—			—		(284,548		)	—
Dividends on noncontrolling interests units ($3.3300 per unit)	—	—		—		—		—			—			—			(13,884		)	—		(13,884		)	—
Acquired capital from noncontrolling interest - consolidated real estate entity	—	—		—		—		—			—			—			—			2,306		2,306			—
EQUITY BALANCE DECEMBER 31, 2016	868	$	9	113,415		$	1,133	$	7,109,012		$	(707,479	)	$	1,144		$	235,976		$	2,306	$	6,642,101		$	10,073
Net income	—	—		—		—		—			328,379			—			12,157			—		340,536			—
Other comprehensive income - derivative instruments	—	—		—		—		—			—			1,013			36			—		1,049			—
Issuance and registration of common shares	—	—		137		1		615			—			—			—			—		616			1,588
Issuance and registration of preferred shares	—	—		—		—		2,007			—			—			—			—		2,007			—
Shares repurchased and retired	—	—		(51	)	—		(4,782		)	—			—			—			—		(4,782		)	—
Exercise of stock options	—	—		10		—		218			—			—			—			—		218			—
Shares issued in exchange for common units	—	—		29		—		1,602			—			—			(1,602		)	—		—			—
Shares issued in exchange for redeemable stock	—	—		—		—		1,482			—			—			—			—		1,482			(1,482		)
Redeemable stock fair market value adjustment	—	—		—		—		—			(229		)	—			—			—		(229		)	229
Adjustment for noncontrolling interests in Operating Partnership	—	—		—		—		42			—			—			(42		)	—		—			—
Amortization of unearned compensation	—	—		—		—		10,916			(114		)	—			—			—		10,802			—
Dividends on preferred stock	—	—		—		—		—			(3,688		)	—			—			—		(3,688		)	—
Dividends on common stock ($3.5325 per share)	—	—		—		—		—			(401,369		)	—			—			—		(401,369		)	—
Dividends on noncontrolling interests units ($3.5325 per unit)	—	—		—		—		—			—			—			(14,849		)	—		(14,849		)	—
EQUITY BALANCE DECEMBER 31, 2017	868	$	9	113,540		$	1,134	$	7,121,112		$	(784,500	)	$	2,157		$	231,676		$	2,306	$	6,573,894		$	10,408
Net income	—	—		—		—		—			222,899			—			8,123			—		231,022			—
Other comprehensive loss - derivative instruments	—	—		—		—		—			—			(2,602		)	(87		)	—		(2,689		)	—
Issuance and registration of common shares	—	—		142		1		(264		)	—			—			—			—		(263		)	1,482
Shares repurchased and retired	—	—		(34	)	—		(2,921		)	—			—			—			—		(2,921		)	—
Exercise of stock options	—	—		18		—		916			—			—			—			—		916			—
Shares issued in exchange for common units	—	—		80		1		4,443			—			—			(4,444		)	—		—			—
Shares issued in exchange for redeemable stock	—	—		—		—		1,915			—			—			—			—		1,915			(1,915		)
Redeemable stock fair market value adjustment	—	—		—		—		—			561			—			—			—		561			(561		)
Adjustment for noncontrolling interests in Operating Partnership	—	—		—		—		66			—			—			(66		)	—		—			—
Cumulative adjustment due to adoption of ASU 2017-12		—				—		—			(233		)	233			—					—			—
Amortization of unearned compensation	—	—		—		—		12,903			—			—			—			—		12,903			—
Dividends on preferred stock	—	—		—		—		—			(3,688		)	—			—			—		(3,688		)	—
Dividends on common stock ($3.7275 per share)	—	—		—		—		—			(424,302		)	—			—			—		(424,302		)	—
Dividends on noncontrolling interests units ($3.7275 per unit)	—	—		—		—		—			—			—			(15,159		)	—		(15,159		)	—
EQUITY BALANCE DECEMBER 31, 2018	868	$	9	113,746		$	1,136	$	7,138,170		$	(989,263	)	$	(212	)	$	220,043		$	2,306	$	6,372,189		$	9,414



	Mid-America Apartments, L.P. Unitholders												Noncontrolling Interest - Consolidated Real Estate Entity		Total Partnership Capital			Redeemable Units
	Limited Partner			General Partner			Preferred Units			Accumulated Other Comprehensive(Loss) Income			Noncontrolling Interest - Consolidated Real Estate Entity		Total Partnership Capital			Redeemable Units
CAPITAL BALANCE DECEMBER 31, 2015	$	165,726		$	2,993,696		$	—		$	(1,618	)	$	—	$	3,157,804		$	8,250
Net income	12,180			211,915			307			—			—		224,402			—
Other comprehensive income - derivative instruments	—			—			—			2,864			—		2,864			—
Issuance of units	72,759			3,406,530			64,833			—			—		3,544,122			1,240
Units repurchased and retired	—			(2,019		)	—			—			—		(2,019		)	—
General partner units issued in exchange for limited partner units	(902		)	902			—			—			—		—			—
Units issued in exchange for redeemable units	—			122			—			—			—		122			(122		)
Redeemable units fair market value adjustment	—			(705		)	—			—			—		(705		)	705
Adjustment for limited partners' capital at redemption value	323			(323		)	—			—			—		—			—
Amortization of unearned compensation	—			12,151			—			—			—		12,151			—
Noncontrolling interest distribution	(226		)	—			—			—			—		(226		)	—
Distributions to preferred unitholders	—			—			(307		)	—			—		(307		)	—
Distributions to common unitholders ($3.3300 per unit)	(13,884		)	(284,548		)	—			—			—		(298,432		)	—
Acquired capital from noncontrolling interest - consolidated real estate entity	—			—			—			—			2,306		2,306			—
CAPITAL BALANCE DECEMBER 31, 2016	$	235,976		$	6,337,721		$	64,833		$	1,246		$	2,306	$	6,642,082		$	10,073
Net income	12,157			324,691			3,688			—			—		340,536			—
Other comprehensive income - derivative instruments	—			—			—			1,049			—		1,049			—
Issuance of units	—			616			2,007			—			—		2,623			1,588
Units repurchased and retired	—			(4,782		)	—			—			—		(4,782		)	—
Exercise of unit options	—			218			—			—			—		218			—
General partner units issued in exchange for limited partner units	(1,602		)	1,602			—			—			—		—			—
Units issued in exchange for redeemable units	—			1,482			—			—			—		1,482			(1,482		)
Redeemable units fair market value adjustment	—			(229		)	—			—			—		(229		)	229
Adjustment for limited partners' capital at redemption value	(6		)	6			—			—			—		—			—
Amortization of unearned compensation	—			10,802			—			—			—		10,802			—
Distributions to preferred unitholders	—			—			(3,688		)	—			—		(3,688		)	—
Distributions to common unitholders ($3.5325 per unit)	(14,849		)	(401,369		)	—			—			—		(416,218		)	—
CAPITAL BALANCE DECEMBER 31, 2017	$	231,676		$	6,270,758		$	66,840		$	2,295		$	2,306	$	6,573,875		$	10,408
Net income	8,123			219,211			3,688			—			—		231,022			—
Other comprehensive loss - derivative instruments	—			—			—			(2,689		)	—		(2,689		)	—
Issuance of units	—			(264		)	—			—			—		(264		)	1,482
Units repurchased and retired	—			(2,921		)	—			—			—		(2,921		)	—
Exercise of unit options	—			916			—			—			—		916			—
General partner units issued in exchange for limited partner units	(4,444		)	4,444			—			—			—		—			—
Units issued in exchange for redeemable units	—			1,915			—			—			—		1,915			(1,915		)
Redeemable units fair market value adjustment	—			561			—			—			—		561			(561		)
Adjustment for limited partners' capital at redemption value	(153		)	153			—			—			—		—			—
Cumulative adjustment due to adoption of ASU 2017-12	—			(233		)	—			233			—		—			—
Amortization of unearned compensation	—			12,904			—			—			—		12,904			—
Distributions to preferred unitholders	—			—			(3,688		)	—			—		(3,688		)	—
Distributions to common unitholders ($3.7275 per unit)	(15,159		)	(424,302		)	—			—			—		(439,461		)	—
CAPITAL BALANCE DECEMBER 31, 2018	$	220,043		$	6,083,142		$	66,840		$	(161	)	$	2,306	$	6,372,170		$	9,414



	December 1, 2016
Land	$	874,616
Buildings and improvements and other	3,479,483
Development and capital improvements in progress	183,881
Undeveloped land	24,200
Investment in real estate joint venture	44,435
Cash and cash equivalents	34,292
Restricted cash	3,608
Other assets	94,899
Total assets acquired	4,739,414
Notes payable	(595,609)
Accrued expenses and other liabilities	(132,906)
Total liabilities assumed, including debt	(728,515		)
Noncontrolling interest - consolidated real estate entity	(2,306		)
Total purchase price	$	4,008,593



	Borrowed Balance						As of December 31, 2018
	December 31, 2018			December 31, 2017			Weighted Average Effective Rate		Weighted Average Contract Maturity
Unsecured debt
Variable rate revolving credit facility	$	540,000		$	410,000		3.4	%	4/15/2020
Fixed rate senior notes	2,642,000			2,292,000			4.0	%	7/12/2025
Term loans fixed with swaps	300,000			550,000			2.3	%	3/1/2022
Variable rate term loans	600,000			300,000			3.3	%	1/22/2020
Fair market value adjustments, debt issuance costs and discounts	(28,698		)	(26,235		)
Total unsecured debt	$	4,053,302		$	3,525,765		3.7	%
Fixed rate secured debt
Individual property mortgages	$	476,161		$	882,752		4.6	%	2/23/2031
Variable rate secured debt ⁽¹⁾
Credit facility	$	—		$	80,000
Fair market value adjustments and debt issuance costs	(1,135		)	13,540
Total secured debt	$	475,026		$	976,292		4.6	%
Total outstanding debt	$	4,528,328		$	4,502,057		3.8	%



Interest Rate Derivative	Number of Instruments	Notional
Interest rate swaps ⁽¹⁾	10	$600,000



Derivatives in Cash Flow Hedging Relationships	(Loss) Gain Recognized in OCI on Derivative								Location of Gain (Loss) Reclassified from Accumulated OC(L)I into Income	Gain (Loss) Reclassified from Accumulated OC(L)I into Interest Expense⁽¹⁾
Year ended December 31,	2018			2017		2016				2018		2017			2016
Interest rate contracts	$	(751	)	$	319	$	(1,500	)	Interest expense	$	1,938	$	(730	)	$	(4,364	)



Derivatives Not Designated as Hedging Instruments	Location of (Loss) Gain Recognized in Income on Derivative	(Loss) Gain Recognized in Earnings on Derivative
For the year ended December 31,	Location of (Loss) Gain Recognized in Income on Derivative	2018			2017		2016
Preferred stock embedded derivative	Other non-operating (income) expense	$	(2,576	)	$	8,807	$	—



	Minimum Lease Payments
2019	$	2,729
2020	2,744
2021	2,771
2022	2,767
2023	2,761
Thereafter	68,516
Total	$	82,288



	2018			2017			2016 ⁽¹⁾
Revenues:
Same Store
Rental revenues	$	1,340,914		$	1,313,836		$	909,688
Reimbursable property revenues	89,281			88,774			74,814
Other property revenues	11,616			12,229			8,219
Total Same Store revenues	$	1,441,811		$	1,414,839		$	992,721
Non-Same Store and Other
Rental revenues	$	123,112		$	105,865		$	121,964
Reimbursable property revenues	5,483			5,282			8,733
Other property revenues	940			3,001			1,930
Total Non-Same Store and Other revenues	$	129,535		$	114,148		$	132,627
Total rental and other property revenues	$	1,571,346		$	1,528,987		$	1,125,348

Net Operating Income:
Same Store NOI	$	905,756		$	889,176		$	620,567
Non-Same Store and Other NOI	71,002			63,080			81,425
Total NOI	976,758			952,256			701,992
Depreciation and amortization	(489,759		)	(493,708		)	(322,958		)
Property management expenses	(47,633		)	(43,588		)	(34,093		)
General and administrative expenses	(34,786		)	(40,194		)	(29,040		)
Merger and integration expenses	(9,112		)	(19,990		)	(40,823		)
Interest expense	(173,594		)	(154,751		)	(129,947		)
(Loss) gain on sale of depreciable real estate assets	(39		)	127,386			80,397
Gain on sale of non-depreciable real estate assets	4,532			21			2,171
Other non-operating income (expense)	5,434			14,353			(1,839		)
Income tax expense	(2,611		)	(2,619		)	(1,699		)
Income from real estate joint ventures	1,832			1,370			241
Net income attributable to noncontrolling interests	(8,123		)	(12,157		)	(12,180		)
Dividends to MAA Series I preferred shareholders	(3,688		)	(3,688		)	(307		)
Net income available for MAA common shareholders	$	219,211		$	324,691		$	211,915



	Year Ended December 31, 2017
	First		Second		Third		Fourth
Rental and other property revenues	$	378,908	$	382,791	$	384,550	$	382,738
Net income	43,416		50,155		118,958		128,007
Net income available for MAA common shareholders	40,983		47,393		113,787		122,528

Per share:
Earnings per common share - basic	$	0.36	$	0.42	$	1.00	$	1.08
Earnings per common share - diluted	0.36		0.42		1.00		1.08