MAA Reports First Quarter Results

• Combined Adjusted Same Store NOI for the first quarter increased 3.6% as compared to the same period in the prior year, based on a 2.8% increase in revenue and a 1.3% increase in property operating expenses.
• Average Effective Rent per Unit for the Combined Adjusted Same Store Portfolio increased to $1,153 during the first quarter, a 2.9% increase as compared to the same period in the prior year, while Average Physical Occupancy was at 96.0% for the first quarter.
• Resident turnover for the Combined Adjusted Same Store Portfolio remained low for the first quarter at 50.5% on a rolling twelve month basis.
• During the first quarter, MAA acquired one property, a newly built 279-unit community in initial lease-up located in Nashville, Tennessee.
• As of the end of the first quarter, MAA had seven development projects underway. In total, MAA's development projects contain 2,420 units, with a total projected cost of approximately $505.4 million, of which approximately $128.7 million remained to be funded as of the end of the first quarter.
• As of the end of the first quarter, six properties remained in lease-up, including the new property acquired during the quarter, with average quarter-end physical occupancy of 85.6% for the group.
• During the first quarter, MAA completed renovation of 1,521 units under its redevelopment program, achieving average rental rate increases of 8.9% above non-renovated units.
• During the first quarter, Moody's Investors Service upgraded the senior unsecured rating of MAA's primary operating partnership, Mid-America Apartments, L.P., to Baa1 with a stable outlook. 

First Quarter Combined Adjusted Same Store Portfolio Operating Results
To ensure comparable reporting with prior periods, our same store portfolio, or MAA Same Store Portfolio, includes properties which are stabilized and which were owned by us at the beginning of the previous year. To provide relevant operating metrics for the first quarter, stabilized communities acquired from the Post Properties Merger that would otherwise have met our requirements to be included in the MAA Same Store Portfolio, are presented on a combined adjusted basis, as if owned by MAA during the prior period. The Combined Adjusted Same Store Portfolio presentation below represents the MAA Same Store Portfolio and the Post Adjusted Same Store Portfolio considered as a single portfolio.  Those Post Properties communities will not be eligible to enter the MAA Same Store Portfolio until January 1, 2018.  Operating results for the Combined Adjusted Same Store Portfolio of 91,700 units in MAA's Large Market and Secondary Market segments of the portfolio are presented below:

Combined Adjusted Same Store Portfolio revenue growth of 2.8% during the first quarter of 2017 was primarily produced by a 2.9% increase in Average Effective Rent per Unit, as compared to the same period in the prior year.   Average Physical Occupancy for the Combined Adjusted Same Store Portfolio was 96.0% for the first quarter of 2017, as compared to 96.1% in the same period of the prior year. Property operating expenses increased 1.3% for the first quarter of 2017, with the largest portion of the growth related to property taxes and building repair and maintenance, partially offset by declining personnel, insurance and office operations costs.

A reconciliation of NOI, including Combined Adjusted Same Store NOI, to net income available for MAA common shareholders, and an expanded discussion of the components of NOI, can be found later in this release.

Acquisition and Disposition Activity
During the first quarter of 2017, MAA acquired a newly developed apartment community, Charlotte at Midtown, a 279-unit property located in the highly desirable Downtown/West End submarket of Nashville, Tennessee, for a purchase price of $62.5 million.

Development and Lease-up Activity
As of the end of the first quarter of 2017, MAA had seven development communities under construction, consisting of three expansion projects and four new development communities.  Total development costs for the seven communities are projected to be $505.4 million, with an expected average stabilized NOI yield of 6.3%. During the first quarter of 2017, MAA funded $62.5 million of construction costs leaving an estimated $128.7 million remaining to be funded. 

MAA had six communities remaining in initial lease-up as of the end of the first quarter of 2017: Residences at Fountainhead, located in the Phoenix, Arizona market; Innovation Apartment Homes, located in Greenville, South Carolina; 1201 Midtown, located in the Charleston, South Carolina market; Retreat at West Creek II, a phase two expansion of a community located in Richmond, Virginia; Colonial Grand at Randal Lakes II, a phase two expansion of a community located in Orlando, Florida; and Charlotte at Midtown, located in Nashville, Tennessee. Physical occupancy for the six lease-up projects averaged 85.6% at the end of the first quarter of 2017.

Redevelopment Activity
MAA continues its interior redevelopment program at select communities throughout the portfolio.  During the first quarter of 2017, MAA redeveloped a total of 1,521 units at an average cost of $4,164 per unit, achieving average rental rate increases of 8.9% above non-renovated units.  We expect a total of 6,000 to 7,000 units to be redeveloped in 2017.

Capital Expenditures
Recurring capital expenditures totaled $11.2 million for the first quarter of 2017, or approximately $0.10 per Share, as compared to $9.5 million, or $0.12 per Share, for the same period in 2016.  These expenditures led to Adjusted Funds from Operations, or AFFO, of $1.36 per Share, for the first quarter of 2017, compared to $1.38 per Share for the same period in 2016.

Redevelopment, revenue enhancing and other capital expenditures during the first quarter of 2017 were $15.3 million, as compared to $15.3 million for the same period in 2016. These expenditures led to Funds Available for Distribution, or FAD, of $145.2 million for the first quarter of 2017, compared to $94.5 million for the same period in 2016.

A reconciliation of FFO, AFFO and FAD to net income available for MAA common shareholders, and an expanded discussion of the components of FFO, AFFO and FAD, can be found later in this release.

Balance Sheet
As of March 31, 2017:

• Total debt to total assets (as defined in our debt covenants) was 34.1% compared to 33.9% as of December 31, 2016;
• Total debt outstanding was $4.6 billion at an average effective interest rate of 3.4%;
• 81.8% of total debt was fixed or hedged against rising interest rates for an average of 4.1 years;
• Approximately $461.8 million combined cash and capacity under MAA's unsecured revolving credit facility was available; and
• Unencumbered assets increased to 80.7% of Gross Assets, as compared to 80.3% as of December 31, 2016.

A reconciliation of Gross Assets to Total assets, and an expanded discussion of the components of Gross Assets, can be found later in this release.

Merger Related Activities
In connection with the merger with Post Properties that was consummated on December 1, 2016, MAA incurred a total of $2.9 million, or $0.02 per Share, of merger costs during the first quarter of 2017, consisting primarily of severance, legal, professional and advisory costs.

Integration efforts continue to progress well, with the Post Properties portfolio consolidated into the company's operating structure and with activities to combine the operating and financial system platforms well underway. During the first quarter of 2017, MAA incurred $3.3 million, or $0.03 per Share, of integration costs, which were primarily related to temporary systems, staffing, facilities and consulting costs necessary for the integration of the companies' business platforms.  MAA expects to incur additional integration costs through the remainder of 2017, as integration efforts are projected to continue through early 2018.

Once the business platforms are fully integrated, MAA continues to forecast expected synergies of approximately $20 million in gross overhead costs (combined general and administrative costs and property management expense savings) to be realized.  MAA also anticipates additional opportunities and savings to be gained from enhanced efficiencies due to increased portfolio scale, from various improvements to operating practices, from significant redevelopment opportunities at a number of existing properties, and from an improved cost of capital due to increased strength and liquidity of the combined balance sheet.

93rd Consecutive Quarterly Common Dividend Declared
MAA declared its 93rd consecutive quarterly common dividend at an annual rate of $3.48 per common share, which will be paid on April 28, 2017 to holders of record on April 13, 2017.

2017 Net Income per diluted common share and FFO and AFFO per Share Guidance
MAA is updating 2017 guidance for Net income per diluted common share, as well as FFO per Share and AFFO per Share, which are non-GAAP measures. Net income per diluted common share is expected to be in the range of $2.54 to $2.74 per diluted common share for the full year of 2017.  FFO per Share for the year is expected to be in the range of $5.74 to $5.94 per Share, or $5.84 per Share at the mid-point, as compared to a prior range of $5.72 to $5.92.  FFO per Share for the second quarter is expected to be in the range of $1.36 to $1.46 per share, or $1.41 per share at the midpoint.  MAA does not forecast net income available for common shareholders per diluted common share on a quarterly basis as it is not reasonable to accurately predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year).  Acquisition and disposition activity materially affects depreciation and capital gains or losses, which, combined, generally represent the difference between net income available for common shareholders and FFO. As outlined in the definitions of non-GAAP measures accompanying this release, MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT, definition. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation expense of real estate assets and certain other non-routine items.

Supplemental Material and Conference Call
Supplemental data to this release can be found under the "Financial Results" navigation tab on the "For Investors" page of our website at www.maac.com. MAA will host a conference call to further discuss first quarter results on Thursday, April 27, 2017, at 9:00 AM Central Time.  The conference call-in number is 800-895-4790.  You may also join the live webcast of the conference call by accessing the "For Investors" page of our website at www.maac.com.  MAA's filings with the Securities and Exchange Commission, or SEC, are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA
MAA, an S&P 500 company, is a real estate investment trust focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities throughout the United States. As of March 31, 2017, MAA had ownership interest in 101,788 apartment units, including communities currently in development, across 17 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6584 Poplar Ave., Memphis, TN  38138, Attn: Investor Relations.

Forward-Looking Statements
Sections of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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 about the anticipated benefits from the completed merger with Post Properties and statements concerning 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, operating performance and results and interest rate and other economic expectations. Words such as "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 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. Such factors include, among other things, unanticipated adverse business developments affecting us, or our properties, adverse changes in the real estate markets and general and local economies and business conditions. 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 release 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 future results to differ materially from those expressed 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;
• 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;
• failure of new acquisitions to achieve anticipated results or be efficiently integrated;
• failure of development communities to be completed, if at all, within budget and on a timely basis or to lease-up as anticipated;
• unexpected capital needs;
• 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 or interest rate caps;
• the continuation of the good credit of our interest rate swap and cap providers;
• price volatility, dislocations and liquidity disruptions in the financial markets and the resulting impact on financing;
• the effect of any rating agency actions on the cost and availability of new debt financing;
• significant decline in market value of real estate serving as collateral for mortgage obligations;
• 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;
• 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 our 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;
• inability to attract and retain qualified personnel;
• cyberliability or potential liability for breaches of our privacy or information security systems;
• potential liability for environmental contamination;
• adverse legislative or regulatory tax changes;
• litigation and compliance costs associated with laws requiring access for disabled persons;
• risks associated with unexpected costs or unexpected liabilities that may arise from the Post Properties Merger;
• risks associated with the Post Properties Merger, including the integration of MAA's and Post Properties' businesses and achieving expected revenue synergies and/or cost savings as a result of the merger; and
• other risks identified in this press release and, from time to time, in other reports we file with the SEC or in other documents that we publicly disseminate.

We undertake no obligation to publicly update or revise these forward-looking statements to reflect events, circumstances or changes in expectations after the date of this release.

FINANCIAL HIGHLIGHTS
Dollars in thousands, except per share data
	Three months ended March 31,
	2017				2016
Total operating revenues	$	378,908			$	269,016
Net income available for MAA common shareholders	$	40,983			$	43,413
Total NOI	$	237,635			$	168,135
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