GERMANTOWN, Tenn., Oct. 28, 2026 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three and nine months ended September 30, 2026.
Three months ended September Nine months ended September
30, 30,
2026 2025 2026 2025
Earnings per common share - diluted $
0.72 $
0.84 $
2.82 $
3.30
Funds from operations (FFO) per Share - diluted (1) $
2.11 $
2.14 $
6.43 $
6.53
Core FFO per Share - diluted (1) $
2.10 $
2.16 $
6.31 $
6.51
(1) A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO is found later in this release.
Brad Hill, President and Chief Executive Officer, said, "Third quarter Core FFO met our expectations as we built occupancy through the quarter and expense management remained disciplined. Our focus on resident service and satisfaction supports sector-leading results, with renewing resident lease pricing increasing 80 basis points year-over-year to 5.3%, and record retention. Our revised forecast reflects higher interest rates and new resident year-over-year pricing improvement occurring about a quarter later than we expected, impacting our blended pricing and occupancy as we built occupancy through the quarter. With stable occupancy and strong market absorption, October new resident lease pricing improved from September, counter to the normal seasonal pattern, resulting in the year's first year-over-year improvement in new resident lease-over-lease pricing, and October blended pricing accelerated more than 100 basis points year-over-year. These trends support our continued optimism that pricing trends will grow increasingly positive into the new year."
- During the third quarter of 2026, MAA's Same Store effective blended lease rate growth was 0.4%, a 10 basis point improvement over the same period in the prior year driven by an 80 basis point improvement in renewal lease pricing.
- As of September 30, 2026, resident turnover in the Same Store Portfolio remained historically low at 39.6% with a record low level of move-outs associated with buying single-family homes of 10.1% for the quarter.
- During the third quarter of 2026, MAA completed the initial lease-up of MAA Val Vista in the Phoenix, Arizona market and MAA Breakwater in Tampa, Florida, completed the development of MAA Milepost II located in Denver, Colorado and began construction of multifamily apartment communities in the Northern Virginia and Nashville, Tennessee markets as well as a phase II multifamily expansion in the Kansas City market.
- During the third quarter of 2026, Mid-America Apartments, L.P. (MAALP), MAA's operating partnership, borrowed an additional $250.0 million under its unsecured delayed draw term loan (referred to in this release as the DDTL Facility) that was established in June 2026. As of September 30, 2026, there was $350.0 million outstanding under the DDTL Facility.
- On October 1, 2026, MAA redeemed all of the outstanding shares of MAA's 8.50% Series I Cumulative Redeemable Preferred Stock (referred to in this release as the Series I preferred shares), with $43.4 million of cash funded from proceeds received from the sale of 0.3 million shares of common stock through MAA's at-the-market share offering program upon settlement in September 2026 of a forward sale agreement that had a forward sale price of $130.34 per share.
- During the third quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $126.72 for total consideration of $50.0 million.
Same Store Operating Results
Same Store results for the three and nine months ended September 30, 2026 as compared to the same periods in the prior year are summarized below:
Three months ended September 30, 2026 vs. 2025 Nine months ended September 30, 2026 vs. 2025
NOI Average NOI Average
Effective Effective
Revenues Expenses (1) Revenues Expenses (1)
Rent per Unit Rent per Unit
Same Store Operating Growth -0.4 % 2.0 % -1.8 % -0.1 % -0.3 % 1.4 % -1.4 % -0.2 %
(1) A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, is found later in this release.
Same Store operating statistics for the three and nine months ended September 30, 2026 are summarized below:
Three months ended September 30, 2026 Nine months ended September 30, As of September
30,
2026 2026
Average Average Average
Effective Physical Effective Average Physical Resident Turnover
Rent per Unit Occupancy Rent per Unit Occupancy
Same Store Operating Statistics $
1,691 95.3 % $
1,688 95.4 % 39.6 %
Same Store net effective lease pricing statistics for the three and nine months ended September 30, 2026 are summarized below:
Same Store Net Effective Lease Pricing Statistics Three Months Ended Nine Months Ended
September 30, 2026 September 30,
2026
Effective Blended Lease Rate Growth 0.4 % 0.4 %
Effective New Lease Rate Growth -6.0 % -6.0 %
Effective Renewal Lease Rate Growth 5.3 % 5.3 %
Acquisition and Disposition Activity
In July 2026, MAA closed on the acquisition of a land parcel located in the Northern Virginia market through its pre-purchase development program and began development of a 306-unit multifamily apartment community at the property in August 2026.
In September 2026, a 269-unit multifamily apartment community located in Washington, D.C. was sold for gross proceeds of approximately $147 million. MAA holds a 35% interest in the joint venture that owned the property. The joint venture has no ongoing operations and is expected to distribute the net proceeds during the fourth quarter of 2026.
Development and Lease-up Activity
A summary of MAA's development communities under construction as of the end of the third quarter of 2026 is set forth below (dollars in thousands):
Units as of Development Costs as of Expected Project
Total September 30, 2026 September 30, 2026 Completions By Year
Development Expected Costs Expected
Projects
(1) Total Delivered Leased Total to Date Remaining 2026 2027 2028 2029
8 2,236 137 125 $
760,000 $
395,581 $
364,419 1 2 4 1
(1) One of the development projects was leasing as of September 30, 2026.
During the third quarter of 2026, MAA completed the development of MAA Milepost II in Denver, Colorado and began construction of multifamily apartment communities in the Northern Virginia and Nashville, Tennessee markets as well as a phase II multifamily expansion in the Kansas City market.
MAA funded approximately $84 million of costs for current and planned development projects, including predevelopment activities, during the third quarter of 2026.
A summary of the total units, physical occupancy and cost of MAA's lease-up communities as of the end of the third quarter of 2026 is set forth below (dollars in thousands):
Total As of September 30, 2026
Lease-Up Total Physical Costs
Projects
(1) Units Occupancy to Date
4 1,166 77.6
% $
422,201
(1) Two of the lease-up projects are expected to stabilize in the fourth quarter of 2026, one in the second quarter of 2027 and one in the third quarter of 2027.
During the third quarter of 2026, MAA completed the lease-up of MAA Val Vista in the Phoenix, Arizona market and MAA Breakwater in Tampa, Florida.
Balance Sheet and Financing Activities
As of September 30, 2026, MAA had $660.7 million of combined cash and available capacity under MAALP's unsecured revolving credit facility.
During the third quarter of 2026, MAALP borrowed an additional $250.0 million on its DDTL Facility that was established in June 2026. The DDTL Facility is scheduled to mature in November 2030 and also contains an uncommitted accordion feature that allows MAALP to increase the total amount of unsecured indebtedness under the DDTL Facility to $550.0 million. As of September 30, 2026, there was $350.0 million outstanding under the DDTL Facility.
On October 1, 2026, MAA redeemed all of the outstanding Series I preferred shares with $43.4 million of cash funded from proceeds received from the sale of 0.3 million shares of common stock through MAA's at-the-market share offering program upon settlement in September 2026 of a forward sale agreement that had a forward sale price of $130.34 per share.
During the third quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $126.72 for total consideration of $50.0 million.
Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2026 were $182.0 million, as compared to $181.8 million for the same period in the prior year.
Balance sheet highlights as of September 30, 2026 are summarized below (dollars in billions):
Total debt to adjusted Net Debt/ Total debt Average Fixed rate debt as Total debt
Adjusted effective a % average
total assets EBITDA years to
(1) maturity
re
(2) outstanding interest rate of total debt
31.7 %
4.7x $
5.8 4.1 % 79.3 % 5.6
(1)
As defined in the covenants for the unsecured senior notes issued by MAALP.
(2) Adjusted EBITDAre is calculated for the trailing twelve month period ended September 30, 2026. A reconciliation of Unsecured notes payable, net and Secured
notes payable, net to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.
131st Consecutive Quarterly Common Dividend Declared
MAA declared its 131st consecutive quarterly common dividend, which will be paid on October 30, 2026 to holders of record on October 15, 2026. The current annual dividend rate is $6.12 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA's financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA's Board of Directors deems relevant. MAA's Board of Directors may modify the dividend policy from time to time.
2026 Earnings and Same Store Guidance
MAA is updating its prior 2026 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to provide updates to its 2026 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.
FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT's, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
2026 Guidance Previous Range Previous
Midpoint Updated Range Updated Midpoint
Earnings: Full Year 2026 Full Year 2026 Full Year 2026 Full Year 2026
Earnings per common share - diluted
$3.96 to $4.20 $4.08
$3.61 to $3.73 $3.67
Core FFO per Share - diluted
$8.41 to $8.65 $8.53
$8.43 to $8.55 $8.49
Core AFFO per Share - diluted
$7.38 to $7.62 $7.50
$7.40 to $7.52 $7.46
MAA Same Store Portfolio:
Property revenue growth -0.20% to 0.40% 0.10 % -0.40% to
-0.10% -0.25 %
Property operating expense growth 1.25% to 2.25% 1.75 % 1.15% to 1.65% 1.40 %
NOI growth -1.70% to -0.90 % -1.70% to
-0.10% -0.80% -1.25 %
MAA expects Core FFO for the fourth quarter of 2026 to be in the range of $2.12 to $2.24 per diluted Share, or $2.18 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the third quarter of 2026 to the midpoint of MAA's guidance for the fourth quarter of 2026 is summarized below:
Core FFO per diluted
Share
Q3 2026 per diluted Share reported results $
2.10
Same Store NOI 0.09
Non Same Store NOI 0.02
Total Overhead 0.01
Interest expense (0.04)
Q4 2026 per diluted Share guidance midpoint $
2.18
MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.
Supplemental Material and Conference Call
Supplemental Data to this release can be found on the "For Investors" page of the MAA website at www.maac.com. MAA will host a conference call to further discuss third quarter results on October 29, 2026, at 9:00 AM Central Time. The conference call-in number is (833) 461-5787. You may also join the live webcast of the conference call by accessing the "For Investors" page of the MAA website at www.maac.com. MAA's filings with the Securities and Exchange Commission (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 (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of September 30, 2026, MAA had ownership interest in 105,136 apartment units, including communities in development, across 16 states. 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, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.
Forward-Looking Statements
This release (as well as the Supplemental Data to this release) contains 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead are statements related to expectations, projections, intentions, assumptions and beliefs regarding the future. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "forecasts," "projects," "assumes," "will," "may," "could," "should," "budget," "target," "outlook," "proforma," "opportunity," "guidance" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding quarterly and full year 2026 guidance (including earnings guidance, Same Store Portfolio guidance and other related projections and assumptions), development costs for our development communities, timelines for occupancy, completion and stabilization of our development communities, and timelines for stabilization of our lease-up communities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance, achievements or outcomes to be materially different from the future results, performance, achievements or outcomes expressed or implied by such forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such statements should not be regarded as a representation by us or any other person that the results, performance, achievements or outcomes described in such statements will be achieved.
The following factors, among others, could cause our actual results, performance, achievements or outcomes to differ materially from those expressed or implied in the forward-looking statements: adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions; adverse changes in real estate markets, including changes in supply and/or demand for multifamily housing or increased competition from alternative housing options; failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results; unexpected capital needs; material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors; losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits; ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures; level and volatility of interest or capitalization rates or capital market conditions; changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations; extreme weather and natural disasters; disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events; legal proceedings or class action lawsuits; and other risks identified in our annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026, our quarterly reports on Form 10-Q, other reports we file with the SEC and in other documents that we publicly disseminate.
Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release 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 Nine months ended September
30,
September 30,
2026 2025 2026 2025
Rental and other property revenues $
560,130 $
554,373 $
1,668,982 $
1,653,570
Net income available for MAA common shareholders $
83,076 $
98,616 $
327,341 $
386,572
Total NOI (1) $
337,862 $
338,309 $
1,022,422 $
1,021,499
Earnings per common share: (2)
Basic $
0.72 $
0.84 $
2.82 $
3.30
Diluted $
0.72 $
0.84 $
2.82 $
3.30
Funds from operations per Share - diluted: (2)
FFO (1) $
2.11 $
2.14 $
6.43 $
6.53
Core FFO (1) $
2.10 $
2.16 $
6.31 $
6.51
Core AFFO (1) $
1.79 $
1.81 $
5.53 $
5.70
Dividends declared per common share $
1.530 $
1.515 $
4.590 $
4.545
Dividends/Core FFO (diluted) payout ratio 72.9 70.1 72.7 69.8
% % % %
Dividends/Core AFFO (diluted) payout ratio 85.5 83.7 83.0 79.7
% % % %
Consolidated interest expense $
54,625 $
46,277 $
159,166 $
136,549
Debt discount and debt issuance cost amortization (1,860) (1,625) (5,395) (4,866)
Capitalized interest 4,393 4,538 12,673 14,691
Total interest incurred $
57,158 $
49,190 $
166,444 $
146,374
(1) The following reconciliations are found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for
MAA common shareholders to FFO, Core FFO and Core AFFO.
(2)
See the "Share and Unit Data" section for additional information.
Dollars in thousands, except share price September 30,
2026 December 31, 2025
Gross Assets (1) $
18,453,131 $
17,921,913
Gross Real Estate Assets (1) $
18,132,825 $
17,662,513
Total debt $
5,839,258 $
5,405,372
Common shares and units outstanding 118,887,055 119,819,916
Share price $
117.74 $
138.91
Book equity value $
5,444,415 $
5,839,645
Market equity value $
13,997,762 $
16,644,185
Net Debt/Adjusted EBITDAre (2)
4.7x
4.3x
(1)
Reconciliations of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets are found later in this release.
(2) Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. The following reconciliations are found later in this release:
(i) Unsecured notes payable, net and Secured notes payable, net to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.
CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data (Unaudited) Three months ended September Nine months ended September
30, 30,
2026 2025 2026 2025
Revenues:
Rental and other property revenues $
560,130 $
554,373 $
1,668,982 $
1,653,570
Expenses:
Operating expenses, excluding real estate taxes and insurance 143,794 137,235 407,932 394,655
Real estate taxes and insurance 78,474 78,829 238,628 237,416
Depreciation and amortization 166,745 156,650 491,163 462,521
Total property operating expenses 389,013 372,714 1,137,723 1,094,592
Property management expenses 18,191 18,183 58,607 56,272
General and administrative expenses 13,393 12,525 45,255 40,957
Interest expense 54,625 46,277 159,166 136,549
Gain on sale of depreciable real estate assets (55,419) (71,842)
Other non-operating (income) expense (3,027) 1,253 (21,134) (4,303)
Income before income tax expense 87,935 103,421 344,784 401,345
Income tax expense (826) (1,766) (6,801) (3,404)
Income from continuing operations before real estate joint venture activity 87,109 101,655 337,983 397,941
(Expense) income from real estate joint venture (1,299) 389 (744) 1,384
Net income 85,810 102,044 337,239 399,325
Net income attributable to noncontrolling interests 1,812 2,506 7,132 9,987
Net income available for shareholders 83,998 99,538 330,107 389,338
Dividends to MAA Series I preferred shareholders 922 922 2,766 2,766
Net income available for MAA common shareholders $
83,076 $
98,616 $
327,341 $
386,572
Earnings per common share - basic:
Net income available for common shareholders $
0.72 $
0.84 $
2.82 $
3.30
Earnings per common share - diluted:
Net income available for common shareholders $
0.72 $
0.84 $
2.82 $
3.30
SHARE AND UNIT DATA
Shares and units in thousands Three months ended September Nine months ended September
30, 30,
2026 2025 2026 2025
Net Income Shares
(1)
Weighted average common shares - basic 115,899 117,012 116,197 116,943
Effect of dilutive securities 53 143 84 218
Weighted average common shares - diluted 115,952 117,155 116,281 117,161
Funds From Operations Shares And Units
Weighted average common shares and units - basic 118,808 119,960 119,124 119,941
Weighted average common shares and units - diluted 118,892 120,022 119,203 120,004
Period End Shares And Units
Common shares at September 30, 115,993 117,082 115,993 117,082
Operating Partnership units at September 30, 2,894 2,942 2,894 2,942
Total common shares and units at September 30, 118,887 120,024 118,887 120,024
(1) For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated
Financial Statements in MAA's Quarterly Report on Form 10-Q for the three months ended September 30, 2026, expected to be filed with the SEC on or about
October 29, 2026.
CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
September 30,
2026 December 31, 2025
Assets
Real estate assets:
Land $
2,187,214 $
2,129,401
Buildings and improvements and other 15,388,830 14,852,509
Development and capital improvements in progress 418,226 426,759
17,994,270 17,408,669
Less: Accumulated depreciation (6,410,518) (5,914,017)
11,583,752 11,494,652
Undeveloped land 73,359 73,359
Investment in real estate joint venture 39,503 41,313
Real estate assets, net 11,696,614 11,609,324
Cash and cash equivalents 25,693 60,258
Restricted cash 59,727 13,717
Other assets 260,579 245,683
Assets held for sale 46,401
Total assets $
12,042,613 $
11,975,383
Liabilities and equity
Liabilities:
Unsecured notes payable, net $
5,478,771 $
5,044,979
Secured notes payable, net 360,487 360,393
Accrued expenses and other liabilities 758,940 730,366
Total liabilities 6,598,198 6,135,738
Redeemable common stock 16,254 20,402
Shareholders' equity:
Preferred stock 9
Common stock 1,157 1,166
Additional paid-in capital 7,225,241 7,401,962
Accumulated distributions in excess of net income (1,937,929) (1,734,986)
Accumulated other comprehensive loss (4,184) (5,300)
Total MAA shareholders' equity 5,284,285 5,662,851
Noncontrolling interests - Operating Partnership units 132,104 141,503
Total shareholders' equity 5,416,389 5,804,354
Noncontrolling interests - consolidated real estate entities 11,772 14,889
Total equity 5,428,161 5,819,243
Total liabilities and equity $
12,042,613 $
11,975,383
RECO
NCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD
Amounts in thousands, except per share and unit data Three months ended September Nine months ended September
30, 30,
2026 2025 2026 2025
Net income available for MAA common shareholders $
83,076 $
98,616 $
327,341 $
386,572
Depreciation and amortization of real estate assets 165,354 155,267 486,884 458,407
Gain on sale of depreciable real estate assets (55,419) (71,842)
MAA's share of depreciation and amortization of real estate 135 168 473 499
assets of real estate joint venture
Net income attributable to noncontrolling interests 1,812 2,506 7,132 9,987
FFO attributable to common shareholders and unitholders 250,377 256,557 766,411 783,623
(Gain) loss on embedded derivative in preferred shares (1) (2,009) 483 (3,292)
Gain on investments, net of tax (1)(2) (3) (4,396) (16,172) (4,733)
Casualty related charges and (recoveries), net (1) 476 (127) 2,696 (3,695)
Legal (recoveries), costs and settlements, net (1)(3) (959) 8,908 (959) 8,908
Core FFO attributable to common shareholders and unitholders 249,891 258,933 752,459 780,811
Recurring capital expenditures (37,633) (41,666) (93,623) (97,115)
Core AFFO attributable to common shareholders and unitholders 212,258 217,267 658,836 683,696
Redevelopment capital expenditures (29,973) (16,331) (72,489) (49,175)
Revenue enhancing capital expenditures (22,437) (20,820) (60,518) (56,112)
Commercial capital expenditures (3,166) (3,108) (6,545) (9,837)
Other capital expenditures (13,531) (12,070) (36,234) (39,559)
FAD attributable to common shareholders and unitholders $
143,151 $
164,938 $
483,050 $
529,013
Dividends and distributions paid $
181,986 $
181,830 $
547,892 $
545,411
Weighted average common shares - diluted 115,952 117,155 116,281 117,161
FFO weighted average common shares and units - diluted 118,892 120,022 119,203 120,004
Earnings per common share - diluted:
Net income available for common shareholders $
0.72 $
0.84 $
2.82 $
3.30
FFO per Share - diluted $
2.11 $
2.14 $
6.43 $
6.53
Core FFO per Share - diluted $
2.10 $
2.16 $
6.31 $
6.51
Core AFFO per Share - diluted $
1.79 $
1.81 $
5.53 $
5.70
(1)
Included in Other non-operating (income) expense in the Consolidated Statements of Operations.
(2) For the three months ended September 30, 2025, gain on investments is presented net of tax expense of $1.0 million. For the nine months ended September 30,
2026 and 2025, gain on investments is presented net of tax expense of $4.3 million and $1.0 million, respectively.
(3) During the three and nine months ended September 30, 2025, in accordance with its accounting policies, MAA recognized $8.9 million of accrued legal
settlements and legal defense costs.
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
Dollars in thousands
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2026 2026 2025 2026 2025
Net income available for MAA common shareholders $
83,076 $
120,828 $
98,616 $
327,341 $
386,572
Depreciation and amortization 166,745 162,548 156,650 491,163 462,521
Property management expenses 18,191 17,955 18,183 58,607 56,272
General and administrative expenses 13,393 15,146 12,525 45,255 40,957
Interest expense 54,625 53,132 46,277 159,166 136,549
Gain on sale of depreciable real estate assets (35,255) (55,419) (71,842)
Other non-operating (income) expense (3,027) (2,102) 1,253 (21,134) (4,303)
Income tax expense 826 454 1,766 6,801 3,404
Expense (income) from real estate joint venture 1,299 (289) (389) 744 (1,384)
Net income attributable to noncontrolling interests 1,812 3,068 2,506 7,132 9,987
Dividends to MAA Series I preferred shareholders 922 922 922 2,766 2,766
Total NOI $
337,862 $
336,407 $
338,309 $
1,022,422 $
1,021,499
Same Store NOI $
316,039 $
316,219 $
321,879 $
960,954 $
974,297
Non-Same Store and Other NOI 21,823 20,188 16,430 61,468 47,202
Total NOI $
337,862 $
336,407 $
338,309 $
1,022,422 $
1,021,499
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
Dollars in thousands Three Months Ended Twelve Months Ended
September 30, September 30, September 30, December 31,
2026 2025 2026 2025
Net income 85,810 $
102,044 $
394,480 $
456,566
Depreciation and amortization 166,745 156,650 650,937 622,295
Interest expense 54,625 46,277 207,874 185,257
Income tax expense 826 1,766 7,992 4,595
EBITDA 308,006 306,737 1,261,283 1,268,713
Gain on sale of depreciable real estate assets (55,643) (72,066)
Adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates 327 351 1,547 1,424
EBITDAre 308,333 307,088 1,207,187 1,198,071
(Gain) loss on embedded derivative in preferred shares (1) (2,009) 2,664 (1,111)
Loss (gain) on investments (1) 29 (5,357) (22,138) (7,457)
Casualty related charges and (recoveries), net (1) 476 (127) 1,793 (4,598)
Legal (recoveries), costs and settlements, net (1)(2) (959) 8,908 52,041 61,908
Adjusted EBITDAre 307,879 $
308,503 $
1,241,547 $
1,246,813
(1)
Included in Other non-operating (income) expense in the Consolidated Statements of Operations
(2) During the three months ended September 30, 2025 and the twelve months ended September 30, 2026 and December 31, 2025, in accordance with its accounting
policies, MAA recognized $8.9 million, $52.0 million and $61.9 million, respectively, of accrued legal settlements and legal defense costs.
RECONCILIATION OF UNSECURED NOTES PAYABLE, NET AND SECURED NOTES PAYABLE, NET TO NET DEBT
Dollars in thousands
September 30, 2026 December 31, 2025
Unsecured notes payable, net $
5,478,771 $
5,044,979
Secured notes payable, net 360,487 360,393
Total debt 5,839,258 5,405,372
Cash and cash equivalents (25,693) (60,258)
Net Debt $
5,813,565 $
5,345,114
RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS
Dollars in thousands
September 30,
2026 December 31, 2025
Total assets $
12,042,613 $
11,975,383
Accumulated depreciation 6,410,518 5,914,017
Accumulated depreciation for Assets held for sale (1) 32,513
Gross Assets $
18,453,131 $
17,921,913
(1) Included in Assets held for sale in the Consolidated Balance Sheets.
RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS
Dollars in thousands
September 30,
2026 December 31, 2025
Real estate assets, net $
11,696,614 $
11,609,324
Accumulated depreciation 6,410,518 5,914,017
Assets held for sale, net 46,401
Accumulated depreciation for Assets held for sale (1) 32,513
Cash and cash equivalents 25,693 60,258
Gross Real Estate Assets $
18,132,825 $
17,662,513
(1) Included in Assets held for sale in the Consolidated Balance Sheets.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDAre
For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA's core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges and (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA's computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Core Adjusted Funds from Operations (Core AFFO)
Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.
Core Funds from Operations (Core FFO)
Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges and (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA's methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
EBITDA
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.
EBITDAre
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA's share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA's definition of EBITDAre is in accordance with NAREIT's definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Funds Available for Distribution (FAD)
FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.
Funds From Operations (FFO)
FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA's definition of FFO is in accordance with NAREIT's definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Assets
Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Real Estate Assets
Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Net Debt
Net Debt represents Unsecured notes payable, net and Secured notes payable, net less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.
Net Operating Income (NOI)
Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Non-Same Store and Other NOI
Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Same Store NOI
Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
OTHER KEY DEFINITIONS
Average Effective Rent per Unit
Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.
Average Physical Occupancy
Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.
Development Communities
Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.
Effective Blended Lease Rate Growth
Effective Blended Lease Rate Growth represents the combined weighted average of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth from our Same Store Portfolio for the applicable period.
Effective New Lease Rate Growth
Effective New Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for new leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Effective Renewal Lease Rate Growth
Effective Renewal Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for renewal leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Lease-up Communities
New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
Non-Same Store and Other Portfolio
Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.
Resident Turnover
Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.
Same Store Portfolio (or Same Store)
MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA's Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.
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SOURCE MAA
