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 EXCHANGE ACT OF 1934
August 7, 1996
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 (I.R.S. Employer
Number) Identification Number)
6584 POPLAR AVENUE, SUITE 340
MEMPHIS, TENNESSEE 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)
<PAGE>
Item 5. Other Events.
Following notification of the New York Stock Exchange, the following press
release was released to the press on July 25, 1996.
The audited Historical Summary of Gross Income and Direct Operating Expenses
of the three properties for the previous fiscal year are included herein as
an exhibit.
_______________
Memphis, Tennessee, July 25, 1996: Mid-America Apartment Communities, Inc.
(NYSE:MAA) today announced that it had completed of the purchase of
three apartment communities totaling 816 units.
Crosswinds, located in a surburb of Jackson, Mississippi, has 360 apartment
units each averaging 1,230 sf. The property was built in 1989 and is
presently 98% occupied at an average rent of $570.
Two of the acquisitions are located in DeSoto County, Mississippi,
contiguous to Memphis. Sutton Place was built in 1990 and has 252
apartments averaging 1,062 sf with an average rent of $525. Savannah Creek
was built in 1989 and has 204 apartments averaging 1,162 sf at an average
rent of $549. These properties are also 98% occupied.
The total purchase price and closing costs will total $32.1 million, which
will be funded by $7.3 million cash from the sale in June of the Company's
Laguna Pointe property and the balance by the Company's line of credit.
The Company anticipates a 11% unleveraged first year return on its
investment before replacement reserves and management expense. Two of
the acquisitions are being used to defer the taxable gain made on the
Laguna sale. The Company anticipates making a further $1 million
investment in the properties over the next two years for upgrades and
to install water meters at Crosswinds.
Separately, the Company announced that it has increased its unsecured line
of credit from $40 million to $65 million with its banks, AmSouth Bank of
Alabama and First Tennessee Bank National Association. The line continues
to bear interest at 175 over LIBOR.
Mid-America Apartment Communities is a self-advised, self-managed REIT
which, following the above acquisitions, owns 19,226 apartment units
(including 234 development units) in 12 states, primarily in the southeast.
For further information, please contact Louise Bagby at 901682-6668, ext.105.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange 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: August 7, 1996 /s/ SIMON R.C. WADSWORTH
---------------- -----------------------------
Simon R.C. Wadsworth
Executive Vice President
(Principal Financial and Accounting Officer)
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Crosswinds/Northgate Apartments)
December 31, 1995
<PAGE>
KPMG Peat Marwick LLP
Morgan Keegan Tower, Suite 900
Fifty North Front Street
Memphis, Tennessee 38103
Independent Auditors' Report
The Board of Directors
Mid-America Apartment Communities, Inc.:
We have audited the accompanying Historical Summary of Gross
Income and Direct Operating Expenses (Historical Summary) of the
Acquisition Property (Crosswinds/Northgate Apartments), as
described in Note 1, for the year ended December 31, 1995. This
historical summary is the responsibility of the Acquisition
Property's management. Our responsibility is to express an
opinion on this Historical Summary for the Acquisition Property
based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the historical summary for the
Acquisition Property. An audit also includes assessing the
accounting principles used and the significant estimates made by
management, as well as evaluating the overall presentation of the
Historical Summary for the Acquisition Property. We believe that
our audit provides a reasonable basis for our opinion.
The accompanying Historical Summary for the Acquisition Property
was prepared for the purpose of complying with the rules and
regulations of the Securities and Exchange Commission as
described in Note 1 and is not intended to be a complete
presentation of the Acquisition Property's revenues and expenses.
In our opinion, the Historical Summary referred to above presents
fairly, in all material respects, the gross income and direct
operating expenses described in Note 1 to the Historical Summary
for the year ended December 31, 1995, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
June 5, 1996
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Crosswinds/Northgate Apartments)
Year ended December 31, 1995
<TABLE>
<S> <C>
Gross income - total revenue $2,364,297
Direct operating expenses:
Operating expenses 409,432
Real estate taxes 184,527
Repairs and maintenance 165,440
759,399
-----------
Gross income in excess of
direct operating expenses $1,604,898
===========
</TABLE>
[FN]
See accompanying notes to Historical Summary of Gross Income and
Direct Operating Expenses for the Acquisition Property.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Notes to Historical Summary of Gross Income
and Direct Operating Expenses
(Crosswinds/Northgate Apartments)
December 31, 1995
(1) Accounting Policies
Description
The accompanying financial statement includes the operations
of Crosswinds/Northgate Apartments (the "Acquisition
Property") owned by parties unaffiliated with Mid-America
Apartment Communities, Inc. (the "Company"). The
Acquisition Property, a multi-family residential property
located in Jackson, Mississippi, is considered for
acquisition by the Company in June 1996 and contains 360
apartment units.
Basis of Presentation
The accompanying financial statement is not representative
of the actual operations for the period presented. Certain
expenses have been excluded because Mid-America Apartments,
L.P. (the "Operating Partnership") does not anticipate that
they will be incurred in future operations of the property.
Expenses excluded consist of depreciation and amortization,
management fees and other costs not directly related to the
future operations of the Acquisition Property. Operating
expenses include payroll, utilities, advertising, and other
general and administrative costs. Management is not aware
of any material factors relating to this Acquisition
Property that would cause this financial statement not to be
indicative of future operating results as related to gross
income and direct operating expenses.
Income Recognition
Revenues from rental property are recognized when due from
tenants. Leases are generally for one year or less.
(2) Pro Forma Taxable Operating Results and
Funds Generated From Operations (Unaudited)
The pro forma table reflects the taxable operating results
and funds generated from operations of the Acquisition
Property for the twelve months ended March 31, 1996 as
adjusted for certain items which can be factually supported.
This statement does not purport to forecast actual operating
results for any period in the future.
<TABLE>
<S> <C>
Pro forma net operating income (exclusive
of depreciation and amortization) $1,741,124
Less estimated depreciation expense 575,280
----------
Pro forma taxable operating income 1,165,844
Add depreciation not requiring
outlay of funds 575,280
----------
Pro forma funds generated from operations $1,741,124
==========
</TABLE>
Depreciation for the buildings is estimated using a straight-
line method over a 25-year life.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Savannah Creek Apartments)
December 31, 1995
<PAGE>
KPMG Peat Marwick LLP
Morgan Keegan Tower, Suite 900
Fifty North Front Street
Memphis, Tennessee 38103
Independent Auditors' Report
The Board of Directors
Mid-America Apartment Communities, Inc.:
We have audited the accompanying Historical Summary of Gross
Income and Direct Operating Expenses (Historical Summary) of the
Acquisition Property (Savannah Creek Apartments), as described in
Note 1, for the year ended December 31, 1995. This historical
summary is the responsibility of the Acquisition Property's
management. Our responsibility is to express an opinion on this
Historical Summary for the Acquisition Property based on our
audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the historical summary for the
Acquisition Property. An audit also includes assessing the
accounting principles used and the significant estimates made by
management, as well as evaluating the overall presentation of the
Historical Summary for the Acquisition Property. We believe that
our audit provides a reasonable basis for our opinion.
The accompanying Historical Summary for the Acquisition Property
was prepared for the purpose of complying with the rules and
regulations of the Securities and Exchange Commission as
described in Note 1 and is not intended to be a complete
presentation of the Acquisition Property's revenues and expenses.
In our opinion, the Historical Summary referred to above presents
fairly, in all material respects, the gross income and direct
operating expenses described in Note 1 to the Historical Summary
for the year ended December 31, 1995, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
June 5, 1996
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Savannah Creek Apartments)
Year ended December 31, 1995
<TABLE>
<S> <C>
Gross income - total revenue $1,279,486
Direct operating expenses:
Operating expenses 292,480
Real estate taxes 83,441
Repairs and maintenance 76,193
----------
452,114
Gross income in excess
of direct operating expenses $ 827,372
===========
</TABLE>
[FN]
See accompanying notes to Historical Summary of Gross Income and
Direct Operating Expenses for the Acquisition Property.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Notes to Historical Summary of Gross Income
and Direct Operating Expenses
(Savannah Creek Apartments)
December 31, 1995
(1) Accounting Policies
Description
The accompanying financial statement includes the operations
of Savannah Creek Apartments (the "Acquisition Property")
owned by parties unaffiliated with Mid-America Apartment
Communities, Inc. (the "Company"). The Acquisition
Property, a multi-family residential property located in
Southaven, Mississippi, is considered for acquisition by the
Company in June 1996 and contains 204 apartment units.
Basis of Presentation
The accompanying financial statement is not representative
of the actual operations for the period presented. Certain
expenses have been excluded because Mid-America Apartments,
L.P. (the "Operating Partnership") does not anticipate that
they will be incurred in future operations of the property.
Expenses excluded consist of depreciation and amortization,
management fees and other costs not directly related to the
future operations of the Acquisition Property. Operating
expenses include payroll, utilities, advertising, and other
general and administrative costs. Management is not aware
of any material factors relating to this Acquisition
Property that would cause this financial statement not to be
indicative of future operating results as related to gross
income and direct operating expenses.
Income Recognition
Revenues from rental property are recognized when due from
tenants. Leases are generally for one year or less.
(2) Pro Forma Taxable Operating Results and
Funds Generated From Operations (Unaudited)
The pro forma table reflects the taxable operating results
and funds generated from operations of the Acquisition
Property for the twelve months ended March 31, 1996 as
adjusted for certain items which can be factually supported.
This statement does not purport to forecast actual operating
results for any period in the future.
<TABLE>
<S> <C>
Pro forma net operating income (exclusive of
depreciation and amortization) $ 898,594
Less estimated depreciation expense 293,280
---------
Pro forma taxable operating income 605,314
Add depreciation not requiring outlay of funds 293,280
Pro forma funds generated from operations $ 898,594
=========
Depreciation for the buildings is estimated using a straight-
line method over a 25-year life.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Sutton Place Apartments)
December 31, 1995
<PAGE>
KPMG Peat Marwick LLP
Morgan Keegan Tower, Suite 900
Fifty North Front Street
Memphis, TN 38103
Independent Auditors' Report
The Board of Directors
Mid-America Apartment Communities, Inc.:
We have audited the accompanying Historical Summary of Gross
Income and Direct Operating Expenses (Historical Summary) of the
Acquisition Property (Sutton Place Apartments), as described in
Note 1, for the year ended December 31, 1995. This historical
summary is the responsibility of the Acquisition Property's
management. Our responsibility is to express an opinion on this
Historical Summary for the Acquisition Property based on our
audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the historical summary for the
Acquisition Property. An audit also includes assessing the
accounting principles used and the significant estimates made by
management, as well as evaluating the overall presentation of the
Historical Summary for the Acquisition Property. We believe that
our audit provides a reasonable basis for our opinion.
The accompanying Historical Summary for the Acquisition Property
was prepared for the purpose of complying with the rules and
regulations of the Securities and Exchange Commission as
described in Note 1 and is not intended to be a complete
presentation of the Acquisition Property's revenues and expenses.
In our opinion, the Historical Summary referred to above presents
fairly, in all material respects, the gross income and direct
operating expenses described in Note 1 to the Historical Summary
for the year ended December 31, 1995, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
June 5, 1996
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Sutton Place Apartments)
Year ended December 31, 1995
</TABLE>
<TABLE>
<S> <C>
Gross income - total revenue $1,529,763
Direct operating expenses:
Operating expenses 269,517
Real estate taxes 104,476
Repairs and maintenance 64,939
----------
438,932
Gross income in excess
of direct operating expenses $1,090,831
==========
</TABLE>
[FN]
See accompanying notes to Historical Summary of Gross Income and
Direct Operating Expenses for the Acquisition Property.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Notes to Historical Summary of Gross Income
and Direct Operating Expenses
(Sutton Place Apartments)
December 31, 1995
(1) Accounting Policies
Description
The accompanying financial statement includes the operations
of Sutton Place Apartments (the "Acquisition Property")
owned by parties unaffiliated with Mid-America Apartment
Communities, Inc. (the "Company"). The Acquisition
Property, a multi-family residential property located in
Hornlake, Mississippi, is considered for acquisition by the
Company in June 1996 and contains 252 apartment units.
Basis of Presentation
The accompanying financial statement is not representative
of the actual operations for the period presented. Certain
expenses have been excluded because Mid-America Apartments,
L.P. (the "Operating Partnership") does not anticipate that
they will be incurred in future operations of the property.
Expenses excluded consist of depreciation and amortization,
management fees and other costs not directly related to the
future operations of the Acquisition Property. Operating
expenses include payroll, utilities, advertising, and other
general and administrative costs. Management is not aware
of any material factors relating to this Acquisition
Property that would cause this financial statement not to be
indicative of future operating results as related to gross
income and direct operating expenses.
Income Recognition
Revenues from rental property are recognized when due from
tenants. Leases are generally for one year or less.
(2) Pro Forma Taxable Operating Results and
Funds Generated From Operations (Unaudited)
The pro forma table reflects the taxable operating results
and funds generated from operations of the Acquisition
Property for the twelve months ended March 31, 1996 as
adjusted for certain items which can be factually supported.
This statement does not purport to forecast actual operating
results for any period in the future.
<TABLE>
<S> <C>
Pro forma net operating income (exclusive of
depreciation and amortization) $1,189,989
Less estimated depreciation expense 334,640
----------
Pro forma taxable operating income 855,349
Add depreciation not requiring outlay of funds 334,640
----------
Pro forma funds generated from operations $1,189,989
==========
Depreciation for the buildings is estimated using a straight-
line method over a 25-year life.
</TABLE>
