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
December 26, 1996
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Date of Report (Date of earliest event reported)
MID-AMERICA APARTMENT COMMUNITIES, INC.
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(Exact Name of Registrant as Specified in Charter)
TENNESSEE 1-12762 62-1543819
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(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
6584 POPLAR AVENUE, SUITE 340
MEMPHIS, TENNESSEE 38138
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(Address of principal executive offices)
(901) 682-6600
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Registrant's telephone number, including area code
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(Former name or address, if changed since last report)
<PAGE>
Item 5. Other Events.
Mid-America Apartments, L.P., in which the registrant had a 77.9%
ownership interest at time of acquisition, has consummated the
acquisition of the apartment community below. Mid-America
Apartments L.P. will own and manage the property.
Apartment Purchase Number Date
Community Location Price of Units Acquired
- ----------- --------------- ---------- -------- --------
Napa Valley Little Rock, AR $9,500,000 240 10/20/96
The audited Historical Summary of Gross Income and Direct
Operating Expenses of the property for the previous fiscal year
are included herein as an exhibit.
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: December 26, 1996 /s/ Simon R.C. Wadsworth
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Simon R.C. Wadsworth
Executive Vice President
(Principal Financial and
Accounting Officer)
EXHIBIT 99.1
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income
and Direct Operating Expenses
(Napa Valley Apartments)
December 31, 1995
<PAGE>
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 (Napa Valley 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.
Memphis, Tennessee
November 4, 1996
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income and Direct Operating Expenses
(Napa Valley Apartments)
Year ended December 31, 1995
Gross income - total revenue $ 1,448,704
Direct operating expenses:
Operating expenses 335,883
Real estate taxes 90,975
Repairs and maintenance 22,847
449,705
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Gross income in excess of direct operating expenses $ 998,999
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[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
(Napa Valley Apartments)
December 31, 1995
(1) Accounting Policies
Description
The accompanying financial statement includes the operations
of Napa Valley 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
Little Rock, Arkansas, was acquired by the Company in
October 1996 and contains 240 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.
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Notes to Historical Summary of Gross Income
and Direct Operating Expenses
(Napa Valley Apartments)
(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 September 30, 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.
Pro forma net operating income (exclusive of
depreciation and amortization) $ 959,347
Less estimated depreciation expense 364,720
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Pro forma taxable operating income 594,627
Add depreciation not requiring outlay of funds 364,720
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Pro forma funds generated from operations $ 959,347
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Depreciation for the buildings is estimated using a straight-
line method over a 25-year life.
