Quarterlytics / Real Estate / REIT - Residential / Mid-America Apartment Communities

Mid-America Apartment Communities

maa · NYSE Real Estate
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Ticker maa
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Sector Real Estate
Industry REIT - Residential
Employees 1001-5000
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FY2009 Annual Report · Mid-America Apartment Communities
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WeLL 
positioned

Mid-America Apartment communities, inc.

2009 Annual Report

our portfolio of high-quality properties 
across the sunbelt region of the country 
generated record FFo results in 2009. 
A  disciplined  strategy  focused  on  the 
high-grow th sunbelt region, a portfolio 
of quality apartment homes, a strong 
technology-based  operating  platform 
and  a  strong  balance  sheet  has  our 
 company well positioned for the coming 
recovery cycle.

WELL POSITIONED 
IN PHOENIX, AZ

MID - A MERIC A 

A PA R T MEN T 

C OMMUNI T IE S,  INC.

is a publicly-traded real estate 

investment trust which owned or 

had an ownership interest in 147 

multifamily apartment communities 

with 43,604 apartment homes 

throughout the Sunbelt region of 

the United States at year end.

our AnnuAl ToTAl reTurn 

To shAreholDers over The 

lAsT Ten yeArs WAs 15.8% 

AnD represenTeD The highesT 

Ten-ye A r  shA reholDer 

perforMAnce AMong All 

ApArTMenT reAl esTATe 

invesTMenT TrusTs.

well positioned 
in nAsHVille, tn

well positioned 
in AUstin, tX

well positioned 
in RAleiGH, nC

well positioned 
in AtlAntA, GA

well positioned 
in dAllAs, tX

well positioned 
in HoUston, tX

well positioned 
in tAMpA, Fl

1

MAA

Dallas, Texas

Annual Cash 
Dividends Paid
Annual Cash Dividends Paid
(per Common Share)
(per Common Share)

6
4

.

2
$

6
4

.

2
$

2
4

.

2
$

8
3
.
2
$

5
3
.
2
$

'99

'20

'01

'02

'03

'04

'05

'06

'07

'08

2005

'09
2006 2007 2008

2009

MAA

2.500

2.375

2.250

2.125

2.000

$14,441

45000

40000

35000

30000

25000

20000

15000

10000

45000

40000

35000

30000

25000

20000

15000

10000

Return on Investment
Value of $10,000 Investment

$43,274

$28,327

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

MAA Investment
Peer Group Investment

Source: SNL Equity Research
Source: SNL Equity Research

2

$45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

45000

40000

35000

30000

25000

20000

15000

10000

'99

'20

'01

'02

'03

'04

'05

'06

'07

'08

'09

'99

'20

'01

'02

'03

'04

'05

'06

'07

'08

'09

To My felloW shAreholDers:

At the beginning of 2009 the U.S. economy was facing 

a  worrisome and uncertain future. Unemployment was 

 rising,  capital  markets  were  under  stress  and  asset 

values were declining. All of this combined to create a 

challenging  environment  for  the  apartment  business 

and our company. We took a number of actions early 

in the year to best position the company for this period 

of uncertainty and significant economic weakness. As 

a result of these actions together with the solid foun-

dation  we  built  over  the  past  several  years  through 

 disciplined investing and strengthening of our balance 

sheet, Mid-America Apartment Communities, or MAAC, 

delivered superior results in 2009 that were well ahead 

of expectations: 

•  Funds  from  Operations  per  diluted  share  and 

unit  for  the  year  2009  were  $3.79,  an  all-time 

high for our company.

•  Same  store  occupancy  throughout  last  year 

averaged  95.6%  and  was  well  ahead  of  the 

 performance captured in 2008.

•  Resident  move-outs  in  2009  were  at  the  low-

est  level  ever  incurred  in  our  company’s  history 

with same store unit turnover at 58%.

Employment growth projections:

2010

2011

2012

2013

Dallas

National

0.5%

2.7%

3.8%

4.0%

(0.7)%

1.6%

3.2%

2.9%

Source: Economy.com

3

letter to shareholders

We Are well positioned WiTh A unique AnD 

DiversifieD porTfolio sTrATegy DesigneD To conTinue 

To experTly exTrAcT vAlue froM MArkeTs Across 

The sunbelT region.

nashville, Tennessee

•  Same  store  collection  loss  as  a  percent  of 

potential rent was only 0.36%, the lowest in our 

company history.

• Our balance sheet remained in a strong position 

with  year-end  debt  to  gross  assets  at  50%  and 

our fixed-charge coverage ratio at 2.68 times.

• We acquired $141 million of new properties in 

2009 on a very attractive basis that will help drive 

higher shareholder value in the coming years.

•  And,  notably,  total  shareholder  return  for  the 

year 2009 was 39.3%, well ahead of the apart-

ment REIT sector average. 

Most economists suggest that it will be 2011 or later 

before  recovery  in  the  employment  markets  gets 

underway. As a result, 2010 will be another challeng-

ing  year  for  apartment  leasing.  We  expect  continued 

revenue pressure as a consequence of both the  pricing 

actions  taken  during  2009,  and  the  continued  weak-

ness  in  the  leasing  environment.  Our  focus  remains 

centered  on   protecting  occupancy,  aggressively 

 controlling expenses, keeping our balance sheet strong 

and  serving  our  residents  at  the  high  standards  that 

define our apartment communities and company. 

MAA

4

Employment growth projections:

2010

2011

2012

2013

Nashville

National

(0.3)%

(0.7)%

2.1%

3.2%

3.1%

1.6%

3.2%

2.9%

Source: Economy.com

Despite  the  expected  challenges  in  2010,  the  long-

term  outlook  for  the  apartment  business  is  arguably 

stronger  than  at  any  time  in  our  company  history. 

Demographic  trends  for  the  U.S.  population  suggest 

that  the  prime  apartment  rental  age  group,  those 

between  the  ages  of  21–35,  is  growing  both  in 

 absolute numbers and as a percent of the overall pop-

ulation  such  that  we  will  see  significantly  higher 

demand  for  apartment  housing  over  the  next  5  to  7 

years.  The  leading  edge  of  this  demographic  wave  is 

already  emerging  but  has  been  somewhat  restrained 

over the past couple of years as the weak employment 

market  has  driven  many  recent  college   graduates  to 

return home, double up with a roommate, or otherwise 

delay  establishing  their  own  household.  As  the  econ-

omy  and  employ ment  markets  improve,  this  pent-up 

demand is expected to help fuel a strong recovery for 

apartment leasing. 

Another significant shift underway continues to be the 

return to a more normal and sustainable mix of house-

holds  that  rent  versus  own  their  home.  Over  the  last 

5

letter to shareholders

phoenix, Arizona

few years, the aggressive financing market for single-

family housing served to artificially depress the demand 

for  apartment  rentals.  As  the  U.S.  returns  to  an 

appro priate and sustainable level of allocation between 

owner-occupied  and  rental  housing,  we  will  see 

 continued  growth  and  recovery  in  the  demand  for 

apartment housing.

Against  this  backdrop  of  growing  demand,  we  are 

experiencing  an  unprecedented  level  of  decline  in  the 

construction of new apartment properties. The lack of 

financing  available  for  new  apartment  construction, 

coupled  with  the  weaker  leasing  environment  and 

MAA

6

Technology, such As our Access 24/7 Web 

porTAl, hAs us well positioned To cApiTAliZe 

on operATionAl efficiencies AnD Deliver convenienT 

service To our resiDenTs.

decline in rent levels, simply doesn’t support construc-

tion.  The  expectation  is  that  it  will  be  this  way  for  a 

couple of years.

These  evolving  supply  and  demand  trends  for  apart-

ment  housing  create  an  environment  for  apartment 

leasing  that  should  be  very  strong  over  the  next 

few years.

What does all this mean for our company and why are 

we so optimistic about our future? Why do we believe 

MAAC  is   particularly  well  positioned  for  the  coming 

recovery  cycle  for  the  apartment  industry?  Let  me 

tell you…

•  The  southeast  and  southwest  regions  of  the 

U.S.,  where  MAAC  is  focused,  are  poised  to 

 capture  the  strongest  job  growth  trends  in  the 

country  over  the  next  ten  years.  Employers  are 

drawn  to  the  afford ability  of  the  region…lower 

costs for land, labor, housing and taxes. 

• MAAC has a portfolio of high-quality properties 

that are generally newer and higher-end than many 

of the properties we compete against in our local 

Employment growth projections:

2010

2011

2012

2013

Phoenix

National

(1.7)%

(0.7)%

0.8%

3.2%

3.9%

1.6%

3.2%

2.9%

Source: Economy.com

7

letter to shareholders

markets. We strive to serve a broad segment of 

the apartment market where demand is high.

•  Unlike  past  recovery  cycles  where  unbridled 

new  apart ment  construction  has  sometimes  led 

to  an  over supply  of  apartment  housing  in  our 

region,  we  believe  this  particular  recovery  cycle 

will  be  different  due  to  a  difficult  financing  envi-

ronment.  As  compared  to  past  recovery  cycles, 

annual  new  construction  deliveries  in  the  south-

east and southwest are expected to be at levels 

significantly  below  anything  we’ve  experienced  in 

the past 30 years.

•  MAAC  has  one  of  the  strongest  operating 

 platforms in the region with new  web-based tech-

nologies  and  systems  that  create   capabilities 

and  competitive  advantages  that  enable  our 

property  teams  to  drive  performance  in  excess 

of   market  norms  for  the  regions,  particularly  in 

our secondary markets. 

70000

68000

66000

64000
Propensity to Rent by Age Group
Propensity to Rent by Age Group
62000

58%

32%

25%

19%

'90

'91

'92

'93

'94

'95

'96

'97

'00

'01

'02

'03

'04

'05

'06

'07

'08

20%
'98
'99

'10E

'12E

'14E

'16E

'18E

'20E

'11E

'13E

'15E

'17E

'19E

'09

Population Aged 20–30

70

68

66

64

62

60

58

56

54

)
s
0
0
0
(

l

n
o
i
t
a
u
p
o
P

1990

1995

2000

2005

2010E

2015E

2020E

Source: U.S. Census Bureau
Source: U.S. Census Bureau

Source: U.S. Census Bureau, JCHS–
Source: U.S. Census Bureau, JCHS–
Harvard University
Harvard University

8

70000

68000

66000

64000

62000

60000

58000

56000

54000

<35

60000

35–44

58000

45–54

56000

55–64

>65

54000

MAA

A

B

C

D

E

9%

11%

8%

70000

9%

68000

66000

8%

11%

64000

62000

60000

58000

56000

54000

0

10

20

30

40

50

60

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'10E

'12E

'14E

'16E

'11E

'13E

'15E

'09

'18E

'20E

'17E

'19E

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'10E

'12E

'14E

'16E

'18E

'20E

'11E

'13E

'15E

'17E

'19E

'09

0

10

20

30

40

50

60

Source: U.S. Census Bureau, Green

 
The high quAliT y of our AsseTs hAs us 

well positioned To ouT-perforM The coMpeTiTion 

in our MArkeTs.

• As a result of our regional focus on markets in 

the southeast and southwest, we have a strong 

track record of success in capturing new growth 

opportunities in a disciplined fashion. We have an 

active  deal  flow  and  expect  to  execute  on  these 

opportunities  over  the  next  few  years  as  the 

weak operating environment continues to create 

more stress for over-leveraged properties.

•  Our  balance  sheet  is  in  terrific  shape.  The 

 company  is  well  positioned  to  support  steady 

recovery  from  our  exist ing  properties  and 

actively pursue new deals as well.

Taken together, these factors work to create a strong 

recovery opportunity for MAAC as the overall economy 

and employment markets begin to improve. 

Austin, Texas

4

3

2

1

0

Austin

National

1.5%

2.5%

3.9%

4.4%

(0.7)%

1.6%

3.2%

2.9%

Employment growth projections:

2010

2011

2012

2013

FFO Per Share/Unit
FFO Per Share/Unit

3
7
.
3
$

9
7
.
3
$

5
5
.
3
$

0
2
.
3
$

3
3
.
3
$

Source: Economy.com

2005

2006

2007

2008

2009

9

letter to shareholders

Our goal is to provide an investment return to share-

holders  that  outperforms  the  apartment  REIT  sector 

over the long haul. Importantly, we aim to deliver this 

performance with lower levels of volatility and risk than 

are inherent in other company strategies. Our strategy 

is built around a practice of disciplined capital  allocation 

and  careful  underwriting,  with  a  culture  and  focus 

directed  at  property  operations. We  like  to  be  out  at 

the properties and we believe in supporting our on-site 

folks in every way we can. While a disciplined strategy, 

high-quality properties and superior operating capabili-

ties  provide  a  solid  foundation  for  our  performance, 

it’s  our  MAAC   associates  that  work  directly  with  our 

residents  and  those  that  support  our  on-site  team 

members  that  really  make  it  all  come  together 

Management Team (from left) James Andrew Taylor, 

EVP and Director of Asset Management; Albert M. Campbell, 

III, EVP and CFO; H. Eric Bolton, Jr., CEO and Chairman of 

successfully.

the Board; Thomas L. Grimes, Jr., EVP and Director of 

Property Management Operations.

Employment growth projections:

2010

2011

2012

2013

Raleigh

National

0.6%

2.6%

3.9%

3.5%

(0.7)%

1.6%

3.2%

2.9%

Source: Economy.com

MAA

10

raleigh, north carolina

our sTrong bAlAnce sheeT hAs us well positioned 

To cApTure groW Th opporTuniTies in The 

recovering econoMy.

Though  the  economy  continues  to  face  uncertainty 

and a long road to recovery, we believe MAAC remains 

well  positioned  to  weather  this  down  cycle.  As  we 

begin  to  look  towards  the  future,  I’m  more  excited 

about our company’s prospects than I’ve ever been in 

my  sixteen  years  here  at  MAAC.  The  outlook  for  the 

apartment  business  is  bright  and  we  believe  our 

 company  is  particularly  well  positioned  to   capitalize 

on the  coming recovery.

We take our responsibilities to serve and perform for 

our  shareholders  seriously.  Thank  you  for  the  trust 

you  place  in  our  team  and  for  your  investment  in 

Mid-America. 

Sincerely,

H. Eric Bolton, Jr. 

chairman and ceo

11

letter to shareholders

40

30

20

10

0

-10

2009 finAnciAl highlighTs

Total Annual Investment Returns

1-YEAR

3-YEAR

5-YEAR

10-YEAR

%
3
.
9
3

%
9
.
3
3

%
5
.
6
2

MAA
PEER GROUP AVERAGE
S&P 500

%
2
.
9

%
0
.
2

%
6
.
0

%
8
.
8

%
7
.
1

%
4
.
0

%
8
.
5
1

%
0
.
0
1

%
0
.
1

-

recorD high ffo per shAre of $3.79

yeAr-enD physicAl occupAncy 95.1%

sAMe sTore uniT Turnover 58%

yeAr-enD DebT To gross AsseTs 50%

yeAr-enD fixeD chArge coverAge 2.68 TiMes

MAA

12

finAnciAl highlighTs

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

2009

2008

2007

years ended December 31,

Net income attributable to Mid-America Apartment Communities, Inc.

$ 

37,211

$ 

30,249

$ 

39,946

Preferred dividend distribution

12,865

12,865

13,688

Premiums and original issuance costs associated with the redemption  

  of preferred stock

Net income available for common shareholders

Depreciation of real estate assets

Net casualty (gains) loss and other settlement proceeds

Gains on dispositions within real estate joint ventures

Depreciation of real estate assets of discontinued operations

(Gains) loss on sales of discontinued operations

Depreciation of real estate assets of real estate joint ventures

Net income attributable to noncontrolling interests

—

24,346

94,020

(32)

—

—

(4,649)

970

2,010

—

589

17,384

88,555

247

(38)

706

120

953

1,822

25,669

83,532

(589)

(5,388)

1,517

(9,164)

15

3,510

Funds from operations

$  116,665

$  109,749

$ 

99,102

Weighted average shares, diluted

Net income available for common shareholders, diluted

Weighted average shares and units, diluted

Funds from operations per share and unit, diluted

Dividends paid per share

Real estate owned, at cost

Capital improvements in progress

Investments in and advances to real estate joint ventures

Total debt

Total equity and redeemable stock

Market capitalization (shares and units) (1)

28,348

27,084

25,503

0.85

$ 

0.64

$ 

1.01

30,802

29,459

27,943

3.79

$ 

3.73

$ 

3.55

2.46

$ 

2.46

$ 

2.42

$ 

$ 

$ 

$ 2,732,218

$ 2,552,808

$ 2,343,130

$ 

$ 

10,517

8,619

$ 

$ 

25,268

6,824

$ 

$ 

12,886

168

$ 1,399,596

$ 1,323,056

$ 1,264,620

$  456,028

$  444,422

$  432,398

$ 1,671,036

$ 1,293,145

$ 1,358,100

Number of properties, including joint venture ownership interest (2)

Number of apartment units, including joint venture ownership interest (2)

147

43,604

145

42,554

137

40,248

(1)  Market capitalization includes all series of preferred shares (value based on $25 per share liquidation preference) and common shares, regardless of classifica-

tion on balance sheet, and partnership units (value based on common stock equivalency).

(2) Property and apartment unit totals have not been adjusted to exclude properties held for sale.

13

financials

consoliDATeD bAlAnce sheeTs

(Dollars in thousands, except per share data)

Assets:

Real estate assets:

  Land

  Buildings and improvements

  Furniture, fixtures and equipment

  Capital improvements in progress

  Less accumulated depreciation

  Land held for future development

  Commercial properties, net

  Investments in real estate joint ventures

    Real estate assets, net

Cash and cash equivalents

Restricted cash

Deferred financing costs, net

Other assets

Goodwill

Assets held for sale

    Total assets

Liabilities and Shareholders’ Equity:

Liabilities:

  Notes payable

  Accounts payable

  Fair market value of interest rate swaps

  Accrued expenses and other liabilities

  Security deposits

  Liabilities associated with assets held for sale

    Total liabilities

Redeemable stock

Shareholders’ equity:

  Preferred stock, $0.01 par value per share, 20,000,000 shares authorized,  

    $155,000 or $25 per share liquidation preference;

       8.30% Series H Cumulative Redeemable Preferred Stock, 6,200,000 shares  

authorized, 6,200,000 shares issued and outstanding

  Common stock, $0.01 par value per share, 50,000,000 shares authorized; 29,095,251 and  

    28,224,708 shares issued and outstanding at December 31, 2009 and 2008, respectively (1)

  Additional paid-in capital

  Accumulated distributions in excess of net income

  Accumulated other comprehensive income

    Total Mid-America Apartment Communities, Inc. shareholders’ equity

  Noncontrolling interest

    Total equity

    Total liabilities and equity

December 31,  

2009 

2008

$  255,425

$  240,426

2,364,918

2,198,063

73,975

10,517  

65,540

25,268 

2,704,835

2,529,297

(788,260)

(694,054)

1,916,575

1,835,243

1,306

8,721

8,619  

1,306

7,958

6,824 

1,935,221

1,851,331

13,819

561

13,369

19,731

4,106

19 

9,426

414

15,681

16,840

4,106

24,157 

$ 1,986,826 

$ 1,921,955 

$ 1,399,596

$ 1,323,056

1,702

51,160

69,528

8,789

1,234

76,961

66,982

8,705

23 

595 

1,530,798

1,477,533

2,802

1,805

62

290

62

282

988,642

954,127

(510,993)

(464,617)

(47,435)

(72,885)

430,566

22,660

416,969

25,648

453,226 

442,617 

$ 1,986,826   $ 1,921,955 

(1)  Number of shares issued and outstanding represent total shares of common stock regardless of classification on the consolidated balance sheet. The number of 

shares classified as redeemable stock on the consolidated balance sheet for December 31, 2009, 2008 and 2007, are 58,038, 48,579 and 60,212, respectively.

MAA

14

 
consoliDATeD sTATeMenTs of operATions

(Dollars in thousands, except per share data)

Operating revenues:
  Rental revenues
  Other property revenues

  Total property revenues
  Management fee income

  Total operating revenues

Property operating expenses:
  Personnel
  Building repairs and maintenance
  Real estate taxes and insurance
  Utilities
  Landscaping
  Other operating
  Depreciation

  Total property operating expenses
Acquisition expenses
Property management expenses
General and administrative expenses

Income from continuing operations before non-operating items
Interest and other non-property income
Interest expense
Loss on debt extinguishment
Amortization of deferred financing costs
Incentive fees from real estate joint ventures
Net casualty (loss) gains and other settlement proceeds
Gain (loss) on sale of non-depreciable assets

Income from continuing operations before loss from real estate joint ventures
(Loss) gain from real estate joint ventures

Income from continuing operations
Discontinued operations:
   Income from discontinued operations before gain (loss) on sale
  Gain (loss) on sale of discontinued operations

Consolidated net income
  Net income attributable to noncontrolling interests

Net income attributable to Mid-America Apartment Communities, Inc.
Preferred dividend distributions
Premiums and original issuance costs associated with the  
  redemption of preferred stock

Net income available for common shareholders

Weighted average shares outstanding (in thousands):
  Basic
  Effect of dilutive securities

  Diluted

Net income available for common shareholders
Discontinued property operations

years ended December 31, 

2009 

2008 

2007 

$ 357,008
21,243 

$ 352,414
17,391 

$ 331,640
15,770 

378,251
293 

369,805
206 

347,410
34 

378,544 

370,011 

347,444 

47,633
14,161
45,572
22,334
9,548
20,457
96,019 

255,724
950
17,220
11,320 

93,330
385
(57,094)
(140)
(2,374)
—
32
15

34,154
(816)

33,338

1,234
4,649

39,221
2,010

37,211
12,865 

46,139
13,688
45,652
21,908
9,146
18,777
90,168 

245,478
—
16,799
11,837 

95,897
509
(62,010)
(116)
(2,307)
—
(247)
(3)

31,723
(844)

30,879

1,312
(120)

32,071
1,822

30,249
12,865 

42,102
12,900
42,639
20,009
8,594
16,137
84,789 

227,170
—
17,918
10,808 

91,548
195
(63,639)
(123)
(2,407)
1,019
589
534

27,716
5,330

33,046

1,246
9,164 

43,456
3,510

39,946
13,688 

— 

— 

589 

$  24,346 

$  17,384  $  25,669 

28,341
7 

26,943
141 

25,296
207 

28,348  

27,084 

25,503  

$  24,346
(5,883)

$  17,384
(1,192)

$  25,669
(10,410)

Income from continuing operations available for common shareholders

$  18,463 

$  16,192  $  15,259 

Earnings per share—basic:
  Income from continuing operations available for common shareholders
  Discontinued property operations

  Net income available for common shareholders

Earnings per share—diluted:
  Income from continuing operations available for common shareholders
  Discontinued property operations

  Net income available for common shareholders

Dividends declared per common share (1)

$ 

0.65
0.20 

$ 

0.60
0.04 

$ 

0.60
0.41 

$ 

0.85 

$ 

0.64  $ 

1.01 

$ 

0.65
0.20 

$ 

0.60
0.04 

$ 

0.60 
0.41 

$ 

0.85 

$ 

0.64  $ 

1.01 

$  2.460

$  2.460

$  2.430

(1)  Beginning in 2006, at their regularly scheduled meetings, the 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. Mid-America paid dividends of $2.46, $2.46 and 
$2.42 in 2009, 2008 and 2007, respectively.

15

financials

2009 civic AnD inDusTry AWArDs

MID-AMERICA APARTMENT COMMUNITIES, INC.: BusinessTN Magazine—BusinessTN Best Places to Work in TN (6th year)

MID-AMERICA APARTMENT COMMUNITIES, INC.: The Greater Lexington Apartment Assoc.—Property Management Company of the Year 

ABBINGTON PLACE: The City of Huntsville—Beautification Award

ANSLEY VILLAGE: Middle Georgia Apartment Assoc.—Beautification Award (for age group)

BRENTWOOD DOWNS: Nashville Apartment Assoc.—2nd Place Flowers

CALAIS FOREST: Arkansas Apartment Assoc.—Property of the Year (201+ units) 

CROSSWINDS: State of MS Apartment Assoc. Awards—Property of the Year (for age group) 

CROSSWINDS/ANGELA SNOW: State of MS Apartment Assoc. Awards—Property Manager of the Year 

CROSSWINDS/CRYSTAL MCCORMICk: State of MS Apartment Assoc. Awards—Assistant Manager of the Year—State of MS

GEORGETOWN GROVE : Savannah Apartment Assoc.—Landscape Beautification Award

GLENN EVERS: First Coast Apartment Assoc.—Regional Manager of the Year 

GRAND RESERVE: Greater Lexington Apartment Assoc.—Service Team of the Year 

GRAND RESERVE: Greater Lexington Apartment Assoc.—2nd Place Beautification Award

GRAND RESERVE/MARCUS ALExANDER: Greater Lexington Apartment Assoc.—Groundskeeper of the Year

GRANDE VIEW: Nashville Apartment Assoc.—Best Flowers

GREENBROOk/SAMMY BRADDOCk: Apartment Assoc. of Greater Memphis—Maintenance Tech of the Year (300+ units) 

HOWELL COMMONS: Upper State Apartment Assoc.—Best Landscape and Floral Design

kIRBY STATION: Apartment Assoc. of Greater Memphis—Best Landscape (for group)

kIRBY STATION: Apartment Assoc. of Greater Memphis—Renovation Under $1 million

LAkESHORE LANDING: State of MS Apartment Assoc. Awards—Property of the Year (for age group) 

LAkESHORE LANDING: Mississippi Multifamily Council—Beautification Showcase Winner (for group)

LAkESIDE: First Coast Apartment Assoc.—Conventional Community of the Year 

LAkESIDE/kRIS MILLERSCHONE: First Coast Apartment Assoc.—Maintenance Supervisor of the Year 

LAkESIDE/PAUL VAN VLIET: First Coast Apartment Assoc.—Groundskeeper of the Year 

OAkS AT WILMINGTON ISLAND: Savannah Apartment Assoc.—Platinum Award Best Overall Landscaping

PARk AT HERMITAGE: Nashville Apartment Assoc.—3rd Place

PARk ESTATE: Apartment Assoc. of Greater Memphis—Best Landscape (for group)

PARk PLACE: Spartanburg Chamber of Commerce—2nd Place

PEAR ORCHARD: Mississippi Multifamily Council—Beautification Showcase Winner (for group)

PRESCOTT: Metro Atlanta Landscape and Turf Assoc.—Distinction award for seasonal color

REFLECTION POINTE: Mississippi Multifamily Council—Best Entrance

RESERVE AT DExTER LAkE: Apartment Assoc. of Greater Memphis—Best Landscape (for group)

RESERVE AT DExTER LAkE: Apartment Assoc. of Greater Memphis—Outstanding Maintenance Team (300+ units) 

RESERVE AT DExTER LAkE/TONYA ANDERSON: Apartment Assoc. of Greater Memphis—Leasing Professional of the Year (300+ units) 

SILVERADO AT BRUSHY CREEk: PLANET—Environmental Improvement Award

ST. AUGUSTINE: USSC—United States Sign Council—Overall Best of Show

ST. AUGUSTINE/BRIAN CRON: First Coast Apartment Assoc.—Leasing Consultant of the Year 

TERRACES AT TOWNE LAkE: Metro Atlanta Landscape and Turf Assoc.—Distinction Award for Seasonal Color

THE COLONY AT SOUTH PARk: The Apartment Assoc. of Greater Augusta—Property of the Year Beautification Award (for age group)

THE CORNERS AT CRYSTAL LAkE/JAMIE CARROL: Triangle Apartment Assoc.—Leasing Professional of the Year

THE CORNERS AT CRYSTAL LAkE/MICHAEL WEAVER: Triangle Apartment Assoc.—Service Technician of the Year

THE FAIRWAYS/TERRY BACkMON: Columbia Apartment Assoc.—Maintenance Supervisor of the Year 

THE MANSION/JEFF MCkINNEY: Greater Lexington Apartment Assoc.—Maintenance Supervisor of the Year

THE VILLAGE: Greater Lexington Apartment Assoc.—2nd Place Beautification Award

THE VILLAGE/LANA MARIC: Greater Lexington Apartment Assoc.—Support Manager of the Year

TPC COLUMBIA: Columbia Apartment Assoc.—Property of the Year (for age group)

TPC GREENVILLE: Upper State Apartment Assoc.—Best Landscape and Floral Design

TPC MURFREESBORO: Nashville Apartment Assoc.—1st Place

WOODS OF POST HOUSE: City of Jackson, TN—Civic Pride Award

WOODWINDS: The Apartment Assoc. of Greater Augusta—Property of the Year Beautification Award (for age group)

MAA

16

corporAte inForMAtion

Corporate Headquarters
Mid-America Apartment Communities, Inc.
6584 Poplar Avenue
Memphis, TN 38138
901-682-6600
www.maac.net

Independent Registered 
Public Accounting Firm
Ernst & Young LLP, Memphis, TN

General Counsel
Baker, Donelson, Bearman, Caldwell & 
Berkowitz, PC, Memphis, TN

Annual Shareholders Meeting
Mid-America Apartment Communities, Inc. 
will hold its 2010 Annual Meeting of 
Shareholders on Thursday, May 27, 2010, 
at 1:00 p.m. CDT at the Reserve at Dexter 
Lake apartments in Memphis, TN.

Stock Listings
Mid-America’s stock is listed on the New 
York Stock Exchange (NYSE). Our common 
stock is traded under the stock symbol 
MAA. We have one outstanding series of 
publicly traded preferred stock which is 
traded under the stock symbol MAA Pr H.

Transfer Agent and Registrar
American Stock Transfer & Trust Company
866-668-6550 shareholder toll-free line
www.amstock.com

Shareholders who have questions about 
their accounts or who wish to change own-
ership or address of stock; to report lost, 
stolen or destroyed certificates; or wish 
to sign up for our dividend reinvestment 
plan or direct stock purchase plan should 
contact American Stock Transfer & Trust 
Company at the share holder  service num-
ber listed above or access their account at 
the web-site listed above. Limited partners 
of Mid-America Apartments, L.P. wishing 
to transfer their units or convert units into 
shares of common stock of Mid-America 
Apartment Communities, Inc. should con-
tact Mid-America directly at the corporate 
headquarters.

Annual Report and Form 10-K
A copy of Mid-America’s Annual Report and 
Form 10-K for the year ended December 31, 
2009, as filed with the Securities and 
Exchange Commission (SEC) will be sent 
without charge upon written request to the 
corporate headquarters address, attention 
Investor Relations, and is also available on 
the Investor Relations page of our web-site 
at www.maac.net. Mid-America’s other SEC 
filings as well as our corporate governance 
documents are also available.

CEO and CFO Certifications
As is required by Section 303A.12(a) of the 
NYSE’s corporate governance standards, 
the CEO Certification has been previously 
filed without qualification with the NYSE. 
Certifications of the CEO and CFO pursuant 
to Section 302 of the Sarbanes-Oxley Act 
of 2002 have been filed as exhibits to 
Mid-America’s Form 10-K.

The Open Arms Foundation
The Open Arms Foundation is Mid-America’s 
award-winning corporate charity that pro-
vides fully-furnished, two-bedroom apart-
ment homes free of charge to families 
displaced from their own homes by long-
term medical care needs. At the time of 
printing of this report, The Open Arms 
Foundation was  providing 39 homes to 
families in medical crisis. In its 16-year 
 history, the foundation has provided over 
2,000 families with 100,000 nights of rest 
away from home. To find out more about 
The Open Arms Foundation please visit 
www.openarmshomes.com

BoArd oF directors

H. Eric Bolton, Jr.
Chief Executive Officer and 
Chairman of the Board of Directors
Mid-America Apartment Communities, Inc.

Alan B. Graf, Jr.
Executive Vice President and 
Chief Financial Officer
FedEx Corporation
Committees: Audit (chairman)

Major General John S. Grinalds, 
USMC (Ret.)
Past President
The Citadel
Committees: Audit

Ralph Horn
Past President, Chief Executive Officer and 
Chairman of the Board of Directors
First Horizon National Corporation
Committees: Compensation, Nominating 
and Corporate Governance (chairman)

Philip W. Norwood
President and Chief Executive Officer
Faison Enterprises, Inc.
Committees: Compensation (chairman), 
Nominating and Corporate Governance

W. Reid Sanders
Managing Partner
Chickasaw Partners
Committees: Audit

William B. Sansom
President, Chief Executive Officer and 
Chairman of the Board of Directors
H.T. Hackney Co.
Committees: Compensation, Nominating 
and Corporate Governance

Simon R.C. Wadsworth
Past Executive Vice President and 
Chief Financial Officer
Mid-America Apartment Communities, Inc.

Designed by Curran & Connors, Inc. / www.curran-connors.com

MAA

Mid-AMericA ApArtMent coMMunities, inc.

6584 Poplar Avenue

Memphis, TN 38138

901-682-6600

www.maac.net

10%

Cert no. SGS-COC-2420