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 14, 2004
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Mid-America first quarter results to exceed forecast as property performance
strengthens.
Memphis, TN, Mid-America Apartment Communities, Inc. (NYSE: MAA) announced today
that it expects its first quarter 2004 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 REITs) between $17.0 million and $17.6 million,
representing a range of 74 to 76 cents per share and unit for the first quarter
of 2004. This compares to the Company's prior FFO guidance of 71 to 73 cents per
share and unit and to consensus analysts' estimates of 71 cents per share and
unit as reported by First Call. Net income is expected to be between $4.5
million and $5.2 million, and net income available for common shareholders
between $0.8 million and $1.5 million, representing a range of 4 to 7 cents per
share.
Simon Wadsworth, CFO, said "We achieved higher occupancy rates than anticipated
and several expense items (including interest) were lower than forecast.
Occupancy on a same-store basis was on average about 1.3% greater than the same
quarter a year ago. We are reviewing our forecasts for the balance of 2004 and
will give further guidance with our formal quarterly earnings release on May
6th."
The following table is a reconciliation of expected FFO to expected net income
for the three months ended March 31, 2004 (in thousands):
Three Months Ended
March 31, 2004
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Low High
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Funds from operations $ 16,962 $ 17,609
Depreciation and amortization real estate assets (16,898) (16,898)
Depreciation and amortization real estate assets
of unconsolidated entities (452) (452)
Minority interest in operating partnership (407) (423)
Net gain on insurance settlement proceeds 1,628 1,628
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Net income available for common shareholders 833 1,464
Preferred dividend distribution 3,706 3,706
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Net income $ 4,539 $ 5,170
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March 31,
2004
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Diluted weighted average shares and units:
Shares 20,365
Units 2,679
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Total diluted weighted average shares and units 23,044
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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.
FFO represents net income (computed in accordance with accounting principles
generally accepted in the United States of America, or GAAP) excluding
extraordinary items, minority interest in Operating Partnership income, gain on
sale of discontinued operations and insurance settlement proceeds, plus
depreciation and amortization of real estate and adjustments for joint ventures
to reflect FFO on the same basis. This definition of FFO is in accordance with
the National Association of Real Estate Investment Trust's definition. Our
calculation of FFO may differ from the methodology for calculating FFO utilized
by other REITs and, accordingly, may not be comparable to such other REITs. FFO
should not be considered as an alternative to net income.
The Company believes that FFO is helpful in understanding the Company's
operating performance in that FFO excludes depreciation expense on real estate
assets. The Company believes 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.
MAA is a self-administered, self-managed apartment-only real estate investment
trust which currently owns or has ownership interest in 36,712 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.