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
November 3, 1997
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 Number) (I.R.S. Employer
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 event.
The Company released the following press release on November 5,
1997. The audited Historical Summary of Gross Income and Direct
Operating Expenses of the property for the previous fiscal year
is included herein as an exhibit.
Memphis, TN: November 5, 1997. Mid-America Apartment Communities,
Inc. (NYSE:MAA) announced the purchase on November 3 of Hermitage
at Beechtree, a 194 unit apartment community located in Cary,
North Carolina. Built in 1985, Hermitage at Beechtree has an
average rent of $648 and is 98% occupied. The Company, in an all
cash transaction, paid $8,936,200 or $46,063 per unit for the
property. This acquisition brings MAA's presence in North
Carolina to 738 units. The property will be managed from Mid-
America's regional office in Winston Salem, NC.
Mid-America Apartment Communities, Inc. is a self-administered,
self-managed Real Estate Investment Trust which owns and manages
22,453 apartments (including 126 under development) throughout
the southern crescent of the U.S. The Company recently announced
its intention to merge with Flournoy Development Company which
will bring the total number of apartments owned by the merged
Companies to 32,342 including 2,236 under development.
For further information, contact Simon R.C. Wadsworth at
(901) 682-6668, ext. 104. 6584 Poplar Ave., Suite 340, Memphis,
TN 38138, (901) 682-6600 FAX: (901) 682-6667
<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: November 19, 1997 /s/ Simon R.C. Wadsworth
---------------------- -----------------------------
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
(Hermitage at Beechtree Apartments)
December 31, 1996
<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 (Hermitage at Beechtree Apartments), as
described in Note 1, for the year ended December 31, 1996. 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, 1996, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
October 28, 1997
<PAGE>
MID-AMERICA APARTMENT COMMUNITIES, INC.
Historical Summary of Gross Income and Direct Operating Expenses
(Hermitage at Beechtree Apartments)
Year ended December 31, 1996
Gross income - total revenue $ 1,365,182
Direct operating expenses:
Operating expenses 260,518
Real estate taxes 79,309
Repairs and maintenance 114,266
-----------
454,093
-----------
Gross income in excess
of direct operating expenses $ 911,089
===========
[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
(Hermitage at Beechtree Apartments)
December 31, 1996
(1) Accounting Policies
Description
The accompanying financial statement includes the operations
of Hermitage at Beechtree Apartments (the Acquisition
Property) owned by parties unaffiliated with Mid-America
Apartment Communities, Inc. (the Company) and Mid-America
Apartments, L.P. (the Operating Partnership). The
Acquisition Property, a multi-family residential property
located in Cary, North Carolina was acquired by Hermitage at
Beechtree, LLC, a subsidiary of the Company and Operating
Partnership on November 3, 1997 and contains 194 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 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. Interest expense
has been included in the Historical Summary to the extent
that a bond payable is assumed in connection with the
acquisition 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
(Hermitage at Beechtree 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, 1997 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) $ 889,397
Less estimated depreciation expense 336,001
---------
Pro forma taxable operating income 553,396
Add depreciation not requiring outlay of funds 336,001
---------
Pro forma funds generated from operations $ 889,397
=========
Depreciation for the buildings is estimated using a straight-line
method over a 25-year life.
