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Mid-America Apartment Communities Inc. Message Board

  • storkdoc63 storkdoc63 Mar 19, 1999 7:01 PM Flag

    Looks like Mr Cates..

    was buying again in January...
    2000 shares at $22.69.
    very reassuring, since it had looked
    like insider buying had dried up.

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    • I suppose the way to ask the question is: what is
      the amount of non-earning assets in the pipeline for
      which MAA is currently paying the cost of capital? I
      recognize that properties are in different phases of
      leasing up...and therefore are not at full earning power
      making a one sentence answer difficult. I would
      appreciate any comments about my reasoning in trying to get
      a rough grasp on future cashflow performance.


      One might assume that the completed properties are
      more 3/4's leased and producing say 4% return on
      invested equity(after paying related mortgage
      costs)---which means that these properties have a potential of
      growing by 5.6% to reach 9.6% (average return,FFO, on
      shareholders equity) over the next 6 months. Thus $102mil of
      completed properties could add $5.7 mil to FFO at the end
      of 6 months. The $18 mil (actually spent) under
      construction might be completed and leased up in 18 mos., and
      would add $1.7 mil to FFO. Therefore, earnings would
      increase in 12 months by $5.7 mil from the properties
      above, resulting in an increase of 9.3% over 12 months
      and by $7.4 mil over 18 months --- assuming no
      improvement in operating earnings from existing portfolio of
      properties and MAA earns 9.6% on invested capital. This
      results in a combined annualized growth rate of about 8%
      over 18 months, assuming no bad surprises. If pipeline
      being emptied then, a slow down in FFO growth occurs in
      18 months --- unless economy slows and MAA can
      purchase some bargain properties again. Is this an
      approximation of MAA's business model?

    • Mr. Cates : How does an investor determine
      approximate impact on $FFO of your pipeline? According to
      6/30/99 10Q, MAA has $104 mil in lease-up phase and $127
      mil in some stage of development. If I assume that
      MAA owns all of this amount, then MAA might be
      producing 5% FFO return (next quarter and eventually 9.6%)
      on the $104 mil and 9.6% FFO return on the $127 mil
      when it is completed and fully leased. This would
      result in about $17 mil additional in total $FFO
      produced for MAA. This sounds too good to be true...so I
      missed something, unless your J.V. partners own a large
      percentage of the pipeline.

      The return on "invested
      equity" that I assumed (as opposed to net shareholder
      equity) is from MAA's recent quarterly performance. If
      MAA owns all of this $FFO amount then nice effect on
      $FFO in next 12 months.

    • and nice to hear from one of our former key
      folks, whom we hated to lose (but don't get the big
      head, Tim, we're still trucking along!). We sold the
      properties as a method of financing, for the most part (one
      we'll probably fully sell even when the j.v. winds
      down, i.e. will sell our portion of the j.v. on that
      property rather than buying it back). The money was and is
      being and will be used to fund our big development
      pipeline. Refer also to some of the letters posted
      (including touching on this point) on our web
      page.

      This brings best to you and yours, hope all goes well
      with you, as with me.

    • I certainly appreciate your response based on how
      busy I know you are. I continue to follow the progress
      of the company and read recently about the joint
      venture tied into some of the older properties in
      Memphis. What moved this decision other than maybe a good
      offer?

      Wishing you the best,
      Tim Stover

    • step forward and identify yourself with your real
      name!

      We're making very rapid strides in revenue enhancing
      (contact Louise Bagby louise.bagby@maac.net and she'll
      provide you with particulars from the annual report,
      other sources).

      Short strokes: In 1995, 4.95% of
      our revenues (excluding interest income) were from
      other than rent itself, and of that 5.1% was from
      non-traditional sources such as late fees, pet fees, and the
      like.

      By last year, and on a much larger base, 5.59% of
      our revenues were from other than rent, and of that
      segment 25.6% was from non-traditional sources...and
      growing very rapidly, with this pronounced trend
      continuing into 1999, with no prospect of dampening in
      sight. As you know, this is an area of intense focus for
      us.

    • It is unfortunate this service is being exploited to try selling unrelated services of questionable value.

    • Leverage always multiplies the effects - good and bad.
      Home sales seem to be declining, probably due to rising interest rates. This may be of some help to apartment REITs such as MAA.

    • MAA seems to have been pretty volitile in past
      couple of weeks. Most REITS that I own have been up or
      down a quarter or half. This one, which has the bigest
      percentage loss of any REIT stock I own, seems to be more
      jumpy lately.

    • With market in rally mode! Anybody got a guess...?

    • We are looking at the oil service sector very
      closely folks. Today SBL got upgraded and a look at their
      chart shows they may indeed be ready for a sustained
      rise. Two favorites from a long time ago...DO and RIG
      appear ready to make a nice move here also. We also like
      the Chart on FLC as it has been beaten to an
      incredible price. We still have TYC, BAANF, CCL, and RCL on
      the list.

      http://207.158.224.126/NP/NP5.htm
      (FREE trial)
      http://207.158.224.126/past.htm
      (Performance #s)

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MAA
67.140.00(0.00%)Sep 19 4:06 PMEDT

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