EXHIBIT 99.1 Press Release
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PRESS RELEASE
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FROM: Simon R. C. Wadsworth
SUBJECT: MID-AMERICA FIRST QUARTER RESULTS TO EXCEED FORECAST
DATE: APRIL 15, 2003
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Mid-America first quarter results to exceed forecast
Memphis, TN, Mid-America Apartment Communities, Inc. (NYSE: MAA) announced today
that it expects its first quarter 2003 Funds From Operations ("FFO") to exceed
its prior guidance and analysts' estimates.
Based on preliminary results, the Company expects to report FFO (the standard
earnings measurement used by the REIT Industry) between $14.3 and $14.6 million,
representing a range of 69 to 71 cents per share and unit for the first quarter
of 2003. This compares to its prior FFO guidance of 66 to 68 cents per share and
unit and to analysts' estimates of 66 cents per share and unit. Net income is
expected to be between $160,000 and $486,000, representing a range of 1 to 3
cents per share.
Simon Wadsworth, CFO, said "We achieved lower operating expenses than we had
forecast as several new initiatives focusing on property-level efficiency and
productivity have shown solid progress. Additionally, interest expense is
running below our earlier forecast as rates continue to remain low. We will be
reviewing our forecasts for the balance of 2003 and will give further guidance
with our formal quarterly earnings release on May 8th, but we think that it is
reasonable at this time to expect full year FFO in the upper end of the range of
our prior guidance of $2.74 to $2.78 per share."
The following table is a reconciliation of expected FFO to expected net income
for the three months ended March 31, 2003 (in thousands):
Three Months Ended
March 31, 2003
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Low High
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Funds from operations $ 14,259 $ 14,589
Real estate depreciation and amortization (13,551) (13,551)
Adjustment for joint ventures depreciation (498) (498)
Minority interest (129) (133)
Gain on dispositions, net 79 79
Gain on sale of non-depreciable assets - -
Extraordinary items - -
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Net income available for common shareholders $ 160 $ 486
March 31,
2003
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Diluted weighted average shares and units:
Shares 17,921
Units 2,736
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Total diluted weighted average shares and units 20,657
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The Company provides guidance on FFO and does not forecast net income available
for common shareholders. It is not possible to reasonably predict the timing and
certainty of acquisitions and dispositions that would materially affect
depreciation, capital gains or losses and minority interest, or to forecast
extraordinary items, which, combined, generally represent the difference between
net income available for common shareholders and FFO.
MAA is a self-administered, self-managed apartment-only real estate investment
trust which currently owns or has ownership interest in 34,507 apartment units
throughout the southeast and southcentral U.S. For further details, please refer
to our website at www.maac.net or contact Simon R. C. Wadsworth at (901)
682-6668, ext. 105. 6584 Poplar Ave., Suite 300, Memphis, TN 38138.
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 made about anticipated market conditions, anticipated
acquisitions, redevelopment opportunities, and property financing. 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, shortage of acceptable property
acquisition candidates, changes in interest rates and other items that are
difficult to control, as well as the other general risks inherent in the
apartment and real estate businesses. 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.