UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
July 2, 2001
Date of Report (Date of earliest event reported)
MID-AMERICA APARTMENT COMMUNITIES, INC.
(Exact Name of Registrant as Specified in Charter)
TENNESSEE 1-12762 62-1543819
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
6584 POPLAR AVENUE, SUITE 340
MEMPHIS, TENNEESSEE 38138
(Address of principal executive offices)
(901) 682-6600
(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
ITEM 9. Regulation FD
On July 2, 2001, Mid-America Apartment Communities, Inc. issued the following
press release.
Mid-America Apartment Communities Sells Canyon Creek Apartments, Negotiates
Possible Further Sales and Credit Options, and Refinances Debt
July 2, 2001; Memphis, TN. Mid-America Apartment Communities, Inc (MAA:NYSE)
announced today that it has sold Canyon Creek Apartments, a 320-unit community
in St Louis, MO, for $15.6 million., $48,750/unit. The company expects to record
a net gain of $6.6 million on the sale of the property which it purchased in
1994. Proceeds were applied to pay-down debt.
Eric Bolton, President, said "we are very pleased with all aspects of this
transaction, which typifies our expertise at repositioning properties. Through
numerous upgrades, including the purchase of additional land for improved
access, we were able to add significantly to Canyon Creek's value, leading to
the sale of this older property at an 8.5% cap rate".
Mid-America is negotiating the possible sale of two other properties expected to
close during 2001.
In a series of transactions, Mid-America has refinanced $84 million of its fixed
rate conventional and tax-free debt, including a $40 million mortgage at 8.6%
that matured today. So far this year it has fixed the rate on $92 million of
debt through swaps and new debt using its Fannie Mae credit and tax-free bond
facilities with Prudential Mortgage Capital. The average rate on this new
fixed-rate debt is 6.2% and the rate is fixed for an average of 6 years,
increasing the Company's total fixed-rate debt of all kinds to 88% of debt
outstanding. Mid-America also announced that it has renegotiated its $70 million
bank line of credit and extended its maturity to May, 2003, and expects to
realize significant savings from this replacement facility.
Simon Wadsworth, CFO, added "These sales will enable us to build capacity for
potential future joint venture acquisitions. We anticipated the interest expense
benefits from the refinancings and they are fully incorporated in our prior
projections."
MAA is a self-administered, self-managed apartment-only real estate investment
trust which owns or has ownership interest in 34,025 apartment units throughout
the southeast, south central and Texas, including 248 units in the development
pipeline.
Certain matters in this press release may constitute forward-looking statements
within the meaning of Section 27-A of the Securities Act of 1933 and Section 21E
of the Securities and Exchange Act of 1934. Such statements include, but are not
limited to, statements about anticipated future earnings and savings from
financing transactions. Actual results and the timing of certain events could
differ materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including a downturn in general economic
conditions or the capital markets, competitive factors including overbuilding or
other supply/demand imbalances in some or all of our markets, construction
delays that could cause additional apartment units to reach the market later
than anticipated, changes in interest rates, and other items that are difficult
to control such as insurance rates, increases in real estate taxes ,and other
general risks inherent in the apartment business. Reference is hereby made to
the filings of Mid-America Apartment Communities, Inc., with the Securities and
Exchange Commission, including quarterly reports on Form 10-Q, reports on Form
8-K, and its annual report on Form 10-K, particularly including the risk factors
contained in the latter filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchnage 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: July 2, 2001 /s/Simon R.C. Wadsworth
Simon R.C. Wadsworth
Executive Vice President
(Principal Financial and Accounting Officer)