Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2024-10-30 For: 2024-10-30
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Added on April 06, 2026

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

Date of Report (Date of earliest event reported): October 30, 2024

MID-AMERICA APARTMENT COMMUNITIES, INC.

(Exact name of registrant as specified in its charter)

Tennessee 001-12762 62-1543819
(State or Other Jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

MID-AMERICA APARTMENTS, L.P.

(Exact name of registrant as specified in its charter)

Tennessee 333-190028-01 62-1543816
(State or Other Jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
6815 Poplar Avenue, Suite 500
--- ---
Germantown, Tennessee 38138
(Address of Principal Executive Offices) (Zip Code)

(901) 682-6600

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br><br>Symbol(s) Name of each exchange on which<br><br>registered
Common Stock, par value $.01 per share (Mid-America Apartment Communities, Inc.) MAA New York Stock Exchange
8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share (Mid-America Apartment Communities, Inc.) MAA*I New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02. Results of Operations and Financial Condition.

On October 30, 2024, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of September 30, 2024 and for the three and nine months then ended (the “Press Release”). Copies of the Press Release and supplemental data schedules are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

The information in this Current Report under this Item 2.02 (including Exhibits 99.1 and 99.2) is being “furnished” and shall not be deemed to be “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by MAA or Mid-America Apartments, L.P. (“MAALP”), under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”).

ITEM 7.01 Regulation FD Disclosure.

In the Press Release, MAA provided information with respect to its same store portfolio lease pricing and occupancy for the month of October 2024 (through October 28, 2024), as well as certain acquisition and disposition activities in October 2024. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report.

The information in this Current Report under this Item 7.01 (including Exhibit 99.1) is being “furnished” and shall not be deemed to be “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by MAA or MAALP under the Exchange Act or the Securities Act.

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description
99.1 Press Release dated October 30, 2024
99.2 Supplemental Data Schedules dated October 30, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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: October 30, 2024 /s/ A. Clay Holder
A. Clay Holder
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
MID-AMERICA APARTMENTS, L.P.
--- --- ---
By: Mid-America Apartment Communities, Inc., its general partner
Date: October 30, 2024 /s/ A. Clay Holder
A. Clay Holder
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-99.1

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TABLE OF CONTENTS
Earnings Release 3
Financial Highlights 8
Consolidated Statements of Operations/Share and Unit Data 9
Consolidated Balance Sheets 10
Reconciliation of Non-GAAP Financial Measures 11
Non-GAAP Financial Measures 14
Other Key Definitions 15
Portfolio Statistics S-1
Components of Net Operating Income/Components of Same Store Portfolio Property Operating Expenses S-3
Multifamily Same Store Portfolio NOI Contribution Percentage S-4
Multifamily Same Store Portfolio Comparisons S-5
Multifamily Development Pipeline/Multifamily Lease-up Communities/Multifamily Interior Redevelopment Pipeline S-8
Acquisition Activity/Debt and Debt Covenants as of September 30, 2024 S-9
2024 Guidance/Reconciliation of Earnings per Diluted Common Share to Core FFO and Core AFFO per Diluted Share for Full Year 2024 Guidance S-11
Credit Ratings/Common Stock/Investor Relations Data S-12
EARNINGS RELEASE
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MAA REPORTS THIRD QUARTER 2024 RESULTS

GERMANTOWN, TN, October 30, 2024/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three months ended September 30, 2024.

Third Quarter 2024 Operating Results Three months ended September 30, Nine months ended September 30,
2024 2023 2024 2023
Earnings per common share - diluted $ 0.98 $ 0.94 $ 3.07 $ 3.34
Funds from operations (FFO) per Share - diluted $ 2.10 $ 2.16 $ 6.57 $ 6.85
Core FFO per Share - diluted $ 2.21 $ 2.29 $ 6.65 $ 6.85

A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO, and discussion of the components of FFO and Core FFO, can be found later in this release. FFO per Share – diluted and Core FFO per Share – diluted include diluted common shares and units.

Eric Bolton, Chairman and Chief Executive Officer, said, “We continue to see strong demand for apartment housing, which is contributing to the steady absorption of the high volume of new supply delivered in the third quarter, which we believe has now peaked. Resident turnover is at record low levels, lease renewal pricing is strong, occupancy is steady, and collections also remain strong. We are confident that in calendar year 2025 we will see a meaningful decline in the amount of new supply impacting our portfolio, and we will enter a new multi-year cycle with demand outpacing supply. The upside opportunity within our current portfolio from these changing market conditions, coupled with the growing contribution from our new development and acquisitions pipeline, has MAA very well positioned.”

Highlights

  • During the third quarter of 2024, MAA’s Same Store Portfolio captured strong Average Physical Occupancy of 95.7%, matching the performance in the same period in the prior year. During the third quarter of 2024, MAA’s Same Store Portfolio produced flat revenue growth, as compared to the same period in the prior year, with Average Effective Rent per Unit down 0.4%, offset by a 2.6% increase in other property revenues.
  • During the third quarter of 2024, MAA’s Same Store Portfolio property operating expense increased by 3.0% and MAA's Same Store Portfolio Net Operating Income (NOI) decreased by 1.7%, in each case as compared to the same period in the prior year.
  • As of September 30, 2024, resident turnover remained historically low at 42.8% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
  • During the third quarter of 2024, MAA acquired a newly built 310-unit multifamily apartment community in initial lease-up located in Orlando, Florida. Subsequent to the end of the third quarter of 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas.
  • Subsequent to the end of the third quarter of 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina.
  • As of September 30, 2024, MAA had eight communities under development, representing 2,762 units once complete, with a projected total cost of $978.3 million and an estimated $367.9 million remaining to be funded. During the third quarter of 2024, MAA started construction on a 306-unit multifamily apartment community located in Richmond, Virginia. Also during the third quarter of 2024, MAA agreed to finance a third party's development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina. During the third quarter of 2024, MAA completed the development of Novel Daybreak, located in the Salt Lake City, Utah market.
  • As of September 30, 2024, MAA had two recently completed development communities and three recently acquired communities in lease-up. Two communities are expected to stabilize in the fourth quarter of 2024, one is expected to stabilize in the first quarter of 2025 and two are expected to stabilize in the second quarter of 2025. During the third quarter of 2024, MAA completed the lease-up of MAA Central Avenue, located in Phoenix, Arizona.
  • MAA’s balance sheet remains strong with a Net Debt/Adjusted EBITDAre ratio of 3.9x and $805.7 million of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of September 30, 2024. MAALP refers to Mid-America Apartments, L.P., which is MAA's operating partnership.

Same Store Portfolio Operating Results

To ensure comparable reporting with prior periods, the Same Store Portfolio includes properties that were owned by MAA and stabilized at the beginning of the previous year. Same Store Portfolio results for the three and nine months ended September 30, 2024 as compared to the same periods in the prior year are summarized below:

Three months ended September 30, 2024 vs. 2023 Nine months ended September 30, 2024 vs. 2023
Revenues Expenses NOI Average Effective Rent per Unit Revenues Expenses NOI Average Effective Rent per Unit
Same Store Operating Growth 0.0% 3.0% (1.7 )% (0.4)% 0.7% 4.0% (1.1 )% 0.6%

A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, and discussion of the components of NOI, can be found later in this release.

Same Store Portfolio operating statistics for the three and nine months ended September 30, 2024 are summarized below:

Three months ended September 30, 2024 Nine months ended September 30, 2024 September 30, 2024
Average Effective Rent per Unit Average Physical Occupancy Average Effective Rent per Unit Average Physical Occupancy Resident Turnover
Same Store Operating Statistics $ 1,691 95.7% $ 1,690 95.5% 42.8%

Same Store Portfolio lease pricing for new leases that were effective during the third quarter of 2024 declined 5.4%, while Same Store Portfolio lease pricing for renewing leases that were effective during the third quarter of 2024 increased 4.1%, producing a decrease of 0.2% for both new and renewing lease pricing on a blended basis in the third quarter of 2024 as compared to the prior lease.

Same Store Portfolio lease pricing for both new and renewing leases effective during the nine months ended September 30, 2024, on a blended basis, declined 0.2% as compared to the prior lease, driven by a 5.5% decrease for leases to new move-in residents, partially offset by a 4.5% increase for renewing leases.

Brad Hill, President and Chief Investment Officer, said, “Despite the record level of new apartment deliveries in many of our markets, we are encouraged by the momentum we are beginning to see, and as we approach the slower winter leasing season, where only 16% of our leases are set to expire, our portfolio is well positioned. Through October 28th, our 60-day exposure (which represents all current vacant units plus all notices to vacate over the next 60 days) at 6.3% is the lowest level we've seen in more than five years, our fourth quarter sequential seasonal deceleration in blended pricing should be better than previous years with October blends relatively consistent with the prior month, and our average physical occupancy is stable at 95.4%. Additionally, our recent acquisitions and our record, under-construction, development pipeline of nearly $1 billion are expected to provide continued, incremental earnings growth as we enter a multi-year period where the delivery of new apartment supply is poised to decline.”

Acquisition and Disposition Activity

In September 2024, MAA acquired a 310-unit multifamily community currently in lease-up and located in Orlando, Florida for approximately $84 million.

In October 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas for approximately $106 million and closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina for net proceeds of approximately $39 million.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the third quarter of 2024 is set forth below (dollars in thousands):

Units as of Development Costs as of Expected Project
Total September 30, 2024 September 30, 2024 Completions By Year
Development Expected Spend Expected
Projects (1) Total Delivered Leased Total to Date Remaining 2024 2025 2026 2027
8 2,762 506 356 $ 978,300 $ 610,370 $ 367,930 2 2 3 1
  • Three of the development projects are currently leasing.

During the third quarter of 2024, MAA funded approximately $167 million of costs for current and planned projects, including predevelopment activities.

In July 2024, MAA agreed to finance a third party's development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina. This development is expected to deliver its first units in the third quarter of 2025, to be completed in the first quarter of 2026 and to reach stabilization in the fourth quarter of 2026 at a total cost of approximately $112 million. MAA has the option to purchase the development once it is stabilized.

In September 2024, MAA started construction on a 306-unit multifamily apartment community located in Richmond, Virginia on a land parcel acquired by MAA in August 2024. The development is expected to deliver its first units in the first quarter of 2027, to be completed in the third quarter of 2027 and to reach stabilization in the first quarter of 2028 at a total cost of approximately $100 million.

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 2024 is set forth below (dollars in thousands):

Total As of September 30, 2024
Lease-Up Total Physical Spend
Projects (1) Units Occupancy to Date
5 1,708 76.2 % $ 457,837
  • Two of the lease-up projects are expected to stabilize in the fourth quarter of 2024, one in the first quarter of 2025 and two in the second quarter of 2025.

Property Redevelopment and Repositioning Activity

A summary of MAA’s interior redevelopment program as of the end of the third quarter of 2024 is set forth below:

As of September 30, 2024
Units Average Cost Increase in Average
Completed per Unit Effective Rent per Unit
YTD YTD YTD
Redevelopment 4,535 $ 6,406 $ 107

As of September 30, 2024, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 94,000 units across its apartment community portfolio providing an increase in Average Effective Rent per Unit of approximately $25 since the initiative began during the first quarter of 2019.

During the third quarter of 2024, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities for higher and above market rent growth after projects are completed and units are fully repriced. For the nine months ended September 30, 2024, MAA spent $1.7 million on this program. Under this program, MAA started six projects during the third quarter of 2024.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and nine months ended September 30, 2024 and 2023 is set forth below (dollars in millions, except per Share data):

Three months ended September 30, Nine months ended September 30,
2024 2023 2024 2023
Core FFO attributable to common shareholders and unitholders $ 264.8 $ 274.9 $ 797.6 $ 820.4
Recurring capital expenditures (33.6 ) (36.4 ) (88.8 ) (85.4 )
Core Adjusted FFO (Core AFFO) attributable to common shareholders and unitholders 231.2 238.5 708.8 735.0
Redevelopment, revenue enhancing, commercial and other capital expenditures (60.1 ) (47.5 ) (145.8 ) (156.3 )
FAD attributable to common shareholders and unitholders $ 171.1 $ 191.0 $ 563.0 $ 578.7
Core FFO per Share - diluted $ 2.21 $ 2.29 $ 6.65 $ 6.85
Core AFFO per Share - diluted $ 1.93 $ 1.99 $ 5.91 $ 6.14

A reconciliation of Net income available for MAA common shareholders to FFO, Core FFO, Core AFFO and FAD, and discussion of the components of FFO, Core FFO, Core AFFO and FAD, can be found later in this release.

Balance Sheet and Financing Activities

As of September 30, 2024, MAA had $805.7 million of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2024 were $176.3 million, as compared to $167.8 million for the same period in the prior year.

Balance sheet highlights as of September 30, 2024 are summarized below (dollars in billions):

Total debt to adjusted total assets (1) Net Debt/Adjusted EBITDAre (2) Total debt outstanding Average effective interest rate Fixed rate debt as a % of total debt Total debt average years to maturity
28.7% 3.9x $ 4.9 3.8% 90.0% 7.0
  • As defined in the covenants for the bonds issued by MAALP.
  • Adjusted EBITDAre is calculated for the trailing twelve month period ended September 30, 2024.

A reconciliation of Unsecured notes payable and Secured notes payable to Net Debt and a reconciliation of Net income to Adjusted EBITDAre, along with discussion of the components of Net Debt and Adjusted EBITDAre, can be found later in this release.

123rd Consecutive Quarterly Common Dividend Declared

MAA declared its 123rd consecutive quarterly common dividend, which will be paid on October 31, 2024 to holders of record on October 15, 2024. The current annual dividend rate is $5.88 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.

2024 Earnings and Same Store Portfolio Guidance

MAA is updating its prior 2024 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to update its 2024 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.

2024 Guidance Previous Range Previous Midpoint Revised Range Revised Midpoint
Earnings: Full Year 2024 Full Year 2024 Full Year 2024 Full Year 2024
Earnings per common share - diluted $4.37 to $4.65 $4.51 $4.45 to $4.61 $4.53
Core FFO per Share - diluted $8.74 to $9.02 $8.88 $8.80 to $8.96 $8.88
Core AFFO per Share - diluted $7.78 to $8.06 $7.92 $7.84 to $8.00 $7.92
MAA Same Store Portfolio:
Property revenue growth 0.15% to 1.15% 0.65% 0.25% to 0.75% 0.50%
Property operating expense growth 3.75% to 4.75% 4.25% 3.25% to 4.25% 3.75%
NOI growth -2.50% to -0.10% -1.30% -1.90% to -0.70% -1.30%

MAA expects Core FFO for the fourth quarter of 2024 to be in the range of $2.15 to $2.31 per diluted Share, or $2.23 per diluted Share at the midpoint. The projected difference between Core FFO per diluted Share for the third quarter of 2024 to the midpoint of MAA's guidance for the fourth quarter of 2024 is summarized below:

Core FFO per diluted Share
Q3 2024 reported results $ 2.21
Same Store Revenues (0.03 )
Same Store Expenses 0.07
Non-Same Store NOI (1) 0.01
General and administrative expenses (0.01 )
Interest expense and Other non-operating (expense) income (0.02 )
Q4 2024 guidance midpoint $ 2.23
  • Non-Same Store NOI results for the third quarter of 2024 included $0.03 of storm-related clean-up costs. Guidance for the fourth quarter of 2024 includes $0.02 to $0.03 of projected storm costs to be reflected in Non-Same Store NOI.

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 31, 2024, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. 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, 2024, MAA had ownership interest in 104,469 apartment units, including communities currently in development, across 16 states and the District of Columbia. 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

Sections of this release contain 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. 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 involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

  • inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
  • exposure to risks inherent in investments in a single industry and sector;
  • adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
  • 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;
  • inability to obtain appropriate insurance coverage at reasonable rates, or at all, 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;
  • the effect of any rating agency actions on the cost and availability of new debt financing;
  • the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, which could cause continued or worsening economic and market volatility, and regulatory responses thereto;
  • significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;
  • ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of MAALP to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
  • inability to attract and retain qualified personnel;
  • cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
  • potential liability for environmental contamination;
  • 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;
  • impact of climate change on our properties or operations;
  • legal proceedings or class action lawsuits;
  • impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;
  • compliance costs associated with numerous federal, state and local laws and regulations; and
  • other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.

New factors may also emerge from time to time that could have a material adverse effect on our business. 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 September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Rental and other property revenues $ 551,126 $ 542,042 $ 1,641,183 $ 1,606,221
Net income available for MAA common shareholders $ 114,273 $ 109,810 $ 358,131 $ 389,564
Total NOI (1) $ 339,565 $ 342,819 $ 1,026,024 $ 1,029,862
Earnings per common share: (2)
Basic $ 0.98 $ 0.94 $ 3.07 $ 3.34
Diluted $ 0.98 $ 0.94 $ 3.07 $ 3.34
Funds from operations per Share - diluted: (2)
FFO (1) $ 2.10 $ 2.16 $ 6.57 $ 6.85
Core FFO (1) $ 2.21 $ 2.29 $ 6.65 $ 6.85
Core AFFO (1) $ 1.93 $ 1.99 $ 5.91 $ 6.14
Dividends declared per common share $ 1.47 $ 1.40 $ 4.41 $ 4.20
Dividends/Core FFO (diluted) payout ratio 66.5 % 61.1 % 66.3 % 61.3 %
Dividends/Core AFFO (diluted) payout ratio 76.2 % 70.4 % 74.6 % 68.4 %
Consolidated interest expense $ 42,726 $ 36,651 $ 124,352 $ 110,655
Mark-to-market debt adjustment — — — 25
Debt discount and debt issuance cost amortization (1,514 ) (1,501 ) (4,569 ) (4,562 )
Capitalized interest 5,048 3,182 12,188 9,065
Total interest incurred $ 46,260 $ 38,332 $ 131,971 $ 115,183
Amortization of principal on notes payable $ — $ 124 $ — $ 854
  • A reconciliation of the following items and discussion of their respective components can be 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.
  • See the “Share and Unit Data” section for additional information.
Dollars in thousands, except share price
September 30, 2024 December 31, 2023
Gross Assets (1) $ 16,984,512 $ 16,349,193
Gross Real Estate Assets (1) $ 16,733,158 $ 16,089,909
Total debt $ 4,875,968 $ 4,540,225
Common shares and units outstanding 119,955,843 119,838,096
Share price $ 158.90 $ 134.46
Book equity value $ 6,154,112 $ 6,299,122
Market equity value $ 19,060,983 $ 16,113,430
Net Debt/Adjusted EBITDAre (2) 3.9x 3.6x
  • A reconciliation of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets, along with discussion of their components, can be found later in this release.
  • Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Unsecured notes payable and Secured notes payable 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 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Revenues:
Rental and other property revenues $ 551,126 $ 542,042 $ 1,641,183 $ 1,606,221
Expenses:
Operating expenses, excluding real estate taxes and insurance 134,475 122,660 378,887 347,868
Real estate taxes and insurance 77,086 76,563 236,272 228,491
Depreciation and amortization 146,722 146,702 434,764 424,175
Total property operating expenses 358,283 345,925 1,049,923 1,000,534
Property management expenses 17,265 16,298 54,461 50,317
General and administrative expenses 12,728 13,524 42,444 43,329
Interest expense 42,726 36,651 124,352 110,655
Loss on sale of depreciable real estate assets — 75 25 61
Gain on sale of non-depreciable real estate assets — — — (54 )
Other non-operating expense (income) 1,678 16,493 (2,604 ) (3,966 )
Income before income tax (expense) benefit 118,446 113,076 372,582 405,345
Income tax (expense) benefit (670 ) 209 (3,485 ) (3,596 )
Income from continuing operations before real estate joint venture activity 117,776 113,285 369,097 401,749
Income from real estate joint venture 454 447 1,405 1,214
Net income 118,230 113,732 370,502 402,963
Net income attributable to noncontrolling interests 3,035 3,000 9,605 10,633
Net income available for shareholders 115,195 110,732 360,897 392,330
Dividends to MAA Series I preferred shareholders 922 922 2,766 2,766
Net income available for MAA common shareholders $ 114,273 $ 109,810 $ 358,131 $ 389,564
Earnings per common share - basic:
Net income available for common shareholders $ 0.98 $ 0.94 $ 3.07 $ 3.34
Earnings per common share - diluted:
Net income available for common shareholders $ 0.98 $ 0.94 $ 3.07 $ 3.34
SHARE AND UNIT DATA
---
Shares and units in thousands Three months ended September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Net Income Shares (1)
Weighted average common shares - basic 116,820 116,633 116,758 116,479
Effect of dilutive securities — 78 — 134
Weighted average common shares - diluted 116,820 116,711 116,758 116,613
Funds From Operations Shares And Units
Weighted average common shares and units - basic 119,900 119,787 119,865 119,635
Weighted average common shares and units - diluted 119,954 119,833 119,919 119,683
Period End Shares And Units
Common shares at September 30, 116,880 116,687 116,880 116,687
Operating Partnership units at September 30, 3,076 3,148 3,076 3,148
Total common shares and units at September 30, 119,956 119,835 119,956 119,835
  • 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 quarterly period ended September 30, 2024, expected to be filed with the SEC on or about October 31, 2024.
CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
--- --- --- --- --- --- ---
September 30, 2024 December 31, 2023
Assets
Real estate assets:
Land $ 2,085,464 $ 2,031,403
Buildings and improvements and other 13,956,601 13,515,949
Development and capital improvements in progress 499,619 385,405
16,541,684 15,932,757
Less: Accumulated depreciation (5,217,893 ) (4,864,690 )
11,323,791 11,068,067
Undeveloped land 73,861 73,861
Investment in real estate joint venture 41,693 41,977
Real estate assets, net 11,439,345 11,183,905
Cash and cash equivalents 50,232 41,314
Restricted cash 13,829 13,777
Other assets 237,525 245,507
Assets held for sale 15,321 —
Total assets $ 11,756,252 $ 11,484,503
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,515,733 $ 4,180,084
Secured notes payable 360,235 360,141
Accrued expenses and other liabilities 726,172 645,156
Total liabilities 5,602,140 5,185,381
Redeemable common stock 22,518 19,167
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,166 1,168
Additional paid-in capital 7,413,674 7,399,921
Accumulated distributions in excess of net income (1,458,816 ) (1,298,263 )
Accumulated other comprehensive loss (7,359 ) (8,764 )
Total MAA shareholders’ equity 5,948,674 6,094,071
Noncontrolling interests - Operating Partnership units 155,562 163,128
Total shareholders’ equity 6,104,236 6,257,199
Noncontrolling interests - consolidated real estate entities 27,358 22,756
Total equity 6,131,594 6,279,955
Total liabilities and equity $ 11,756,252 $ 11,484,503
RECONCILIATION 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 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Net income available for MAA common shareholders $ 114,273 $ 109,810 $ 358,131 $ 389,564
Depreciation and amortization of real estate assets 145,256 145,278 430,470 419,532
Loss on sale of depreciable real estate assets — 75 25 61
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 157 153 466 456
Gain on consolidation of third-party development (1) (11,033 ) — (11,033 ) —
Net income attributable to noncontrolling interests 3,035 3,000 9,605 10,633
FFO attributable to common shareholders and unitholders 251,688 258,316 787,664 820,246
Loss on embedded derivative in preferred shares (1) 18,257 11,250 14,451 1,863
Gain on sale of non-depreciable real estate assets — — — (54 )
Loss (gain) on investments, net of tax (1)(2) 533 5,166 (2,873 ) (603 )
Casualty related (recoveries) charges, net (1) (5,714 ) 217 (9,664 ) 588
Gain on debt extinguishment (1) — (57 ) — (57 )
Legal costs, settlements and (recoveries), net (1)(3) — — 8,000 (1,600 )
Mark-to-market debt adjustment (4) — — — (25 )
Core FFO attributable to common shareholders and unitholders 264,764 274,892 797,578 820,358
Recurring capital expenditures (33,535 ) (36,368 ) (88,810 ) (85,367 )
Core AFFO attributable to common shareholders and unitholders 231,229 238,524 708,768 734,991
Redevelopment capital expenditures (12,769 ) (19,723 ) (33,767 ) (77,442 )
Revenue enhancing capital expenditures (21,924 ) (19,123 ) (60,566 ) (51,168 )
Commercial capital expenditures (1,211 ) (2,104 ) (4,281 ) (4,540 )
Other capital expenditures (24,183 ) (6,554 ) (47,158 ) (23,109 )
FAD attributable to common shareholders and unitholders $ 171,142 $ 191,020 $ 562,996 $ 578,732
Dividends and distributions paid $ 176,329 $ 167,766 $ 528,824 $ 501,620
Weighted average common shares - diluted 116,820 116,711 116,758 116,613
FFO weighted average common shares and units - diluted 119,954 119,833 119,919 119,683
Earnings per common share - diluted:
Net income available for common shareholders $ 0.98 $ 0.94 $ 3.07 $ 3.34
FFO per Share - diluted $ 2.10 $ 2.16 $ 6.57 $ 6.85
Core FFO per Share - diluted $ 2.21 $ 2.29 $ 6.65 $ 6.85
Core AFFO per Share - diluted $ 1.93 $ 1.99 $ 5.91 $ 6.14
  • Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
  • For the three months ended September 30, 2024 and 2023, loss on investments is presented net of tax benefit of $0.1 million and $1.4 million, respectively. For the nine months ended September 30, 2024 and 2023, gain on investments is presented net of tax expense of $0.8 million and $0.1 million, respectively.
  • For the nine months ended September 30, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
  • Included in Interest expense in the Consolidated Statements of Operations.
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME
Dollars in thousands Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
September 30,<br>2024 June 30,<br>2024 September 30,<br>2023 September 30,<br>2024 September 30,<br>2023
Net income available for MAA common shareholders $ 114,273 $ 101,031 $ 109,810 $ 358,131 $ 389,564
Depreciation and amortization 146,722 145,022 146,702 434,764 424,175
Property management expenses 17,265 17,201 16,298 54,461 50,317
General and administrative expenses 12,728 12,671 13,524 42,444 43,329
Interest expense 42,726 41,265 36,651 124,352 110,655
Loss on sale of depreciable real estate assets — 23 75 25 61
Gain on sale of non-depreciable real estate assets — — — — (54 )
Other non-operating expense (income) 1,678 19,244 16,493 (2,604 ) (3,966 )
Income tax expense (benefit) 670 1,020 (209 ) 3,485 3,596
Income from real estate joint venture (454 ) (469 ) (447 ) (1,405 ) (1,214 )
Net income attributable to noncontrolling interests 3,035 2,709 3,000 9,605 10,633
Dividends to MAA Series I preferred shareholders 922 922 922 2,766 2,766
Total NOI $ 339,565 $ 340,639 $ 342,819 $ 1,026,024 $ 1,029,862
Same Store NOI $ 327,267 $ 328,280 $ 332,973 $ 990,130 $ 1,001,513
Non-Same Store and Other NOI 12,298 12,359 9,846 35,894 28,349
Total NOI $ 339,565 $ 340,639 $ 342,819 $ 1,026,024 $ 1,029,862
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- ---
September 30, 2024 September 30, 2023 September 30, 2024 December 31, 2023
Net income $ 118,230 $ 113,732 $ 535,370 $ 567,831
Depreciation and amortization 146,722 146,702 575,652 565,063
Interest expense 42,726 36,651 162,931 149,234
Income tax expense 670 (209 ) 4,633 4,744
EBITDA 308,348 296,876 1,278,586 1,286,872
Loss on sale of depreciable real estate assets — 75 26 62
Gain on consolidation of third-party development (1) (11,033 ) — (11,033 ) —
Adjustments to reflect MAA’s share of EBITDAre of an unconsolidated affiliate 340 340 1,356 1,350
EBITDAre 297,655 297,291 1,268,935 1,288,284
Loss (gain) on embedded derivative in preferred shares (1) 18,257 11,250 (5,940 ) (18,528 )
Gain on sale of non-depreciable real estate assets — — — (54 )
Loss (gain) on investments (1) 648 6,547 (7,369 ) (4,449 )
Casualty related (recoveries) charges, net (1) (5,714 ) 217 (9,272 ) 980
Gain on debt extinguishment (1) — (57 ) — (57 )
Legal costs, settlements and (recoveries), net (1)(2) — — 5,146 (4,454 )
Adjusted EBITDAre $ 310,846 $ 315,248 $ 1,251,500 $ 1,261,722
  • Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
  • During the twelve months ended September 30, 2024, in accordance with its accounting policies, MAA recognized $8.5 million of accrued legal defense costs that are expected to be incurred through July 2027.
RECONCILIATION OF UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE TO NET DEBT
Dollars in thousands
--- --- --- --- --- --- ---
September 30, 2024 December 31, 2023
Unsecured notes payable $ 4,515,733 $ 4,180,084
Secured notes payable 360,235 360,141
Total debt 4,875,968 4,540,225
Cash and cash equivalents (50,232 ) (41,314 )
Net Debt $ 4,825,736 $ 4,498,911
RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS
---
Dollars in thousands
--- --- --- --- ---
September 30, 2024 December 31, 2023
Total assets $ 11,756,252 $ 11,484,503
Accumulated depreciation 5,217,893 4,864,690
Accumulated depreciation for Assets held for sale (1) 10,367 —
Gross Assets $ 16,984,512 $ 16,349,193
  • 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, 2024 December 31, 2023
Real estate assets, net $ 11,439,345 $ 11,183,905
Accumulated depreciation 5,217,893 4,864,690
Assets held for sale, net 15,321 —
Accumulated depreciation for Assets held for sale (1) 10,367 —
Cash and cash equivalents 50,232 41,314
Gross Real Estate Assets $ 16,733,158 $ 16,089,909
  • 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 (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 (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.

NON-GAAP FINANCIAL MEASURES (Continued)

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 and Secured notes payable 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.

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

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.

CONTACT: Investor Relations of MAA, 866-576-9689 (toll free), investor.relations@maac.com

EX-99.2

Exhibit 99.2

PORTFOLIO STATISTICS

TOTAL MULTIFAMILY PORTFOLIO AT SEPTEMBER 30, 2024 (1)

In apartment units

Same<br>Store Non-Same<br>Store Lease-up Total<br>Completed<br>Communities Development<br>Units<br>Delivered Total
Atlanta, GA 11,434 — 340 11,774 — 11,774
Dallas, TX 10,116 — — 10,116 — 10,116
Austin, TX 6,829 350 — 7,179 — 7,179
Charlotte, NC 5,651 560 352 6,563 — 6,563
Orlando, FL 5,643 264 310 6,217 — 6,217
Raleigh/Durham, NC 5,350 — 306 5,656 26 5,682
Tampa, FL 5,416 — — 5,416 — 5,416
Houston, TX 5,175 — — 5,175 — 5,175
Nashville, TN 4,375 — — 4,375 — 4,375
Fort Worth, TX 3,687 — — 3,687 — 3,687
Jacksonville, FL 3,496 — — 3,496 — 3,496
Phoenix, AZ 2,968 323 — 3,291 215 3,506
Charleston, SC 3,168 — — 3,168 — 3,168
Greenville, SC 2,354 — — 2,354 — 2,354
Richmond, VA 1,732 272 — 2,004 — 2,004
Northern Virginia 1,888 — — 1,888 — 1,888
Savannah, GA 1,837 — — 1,837 — 1,837
Memphis, TN 1,811 — — 1,811 — 1,811
San Antonio, TX 1,504 — — 1,504 — 1,504
Birmingham, AL 1,462 — — 1,462 — 1,462
Fredericksburg, VA 1,435 — — 1,435 — 1,435
Denver, CO 1,118 — — 1,118 265 1,383
Huntsville, AL 1,228 — — 1,228 — 1,228
Kansas City, MO-KS 1,110 — — 1,110 — 1,110
Other 6,502 672 400 7,574 — 7,574
Total Multifamily Units 97,289 2,441 1,708 101,438 506 101,944
  • Schedule excludes MAA's 35% ownership in a 269-unit joint venture property in Washington, D.C.

Supplemental Data S-1

PORTFOLIO STATISTICS (CONTINUED)

TOTAL MULTIFAMILY COMMUNITY STATISTICS (1)

Dollars in thousands, except Average Effective Rent per Unit

As of September 30, 2024 Average<br>Effective As of September 30, 2024
Gross Real <br>Assets Percent to<br>Total of<br>Gross Real <br>Assets Physical<br>Occupancy Rent per<br>Unit for <br>the Three<br>Months Ended <br>September 30, 2024 Completed<br>Units Total Units,<br>Including<br>Development
Atlanta, GA $ 2,112,564 13.0 % 95.2 % $ 1,813 11,434
Dallas, TX 1,604,908 9.9 % 95.3 % 1,663 10,116
Charlotte, NC 1,164,345 7.2 % 95.7 % 1,651 6,211
Orlando, FL 1,037,612 6.4 % 95.6 % 1,997 5,907
Tampa, FL 1,021,710 6.3 % 96.0 % 2,093 5,416
Austin, TX 963,975 5.9 % 94.9 % 1,582 7,179
Raleigh/Durham, NC 737,874 4.5 % 95.6 % 1,544 5,350
Houston, TX 719,650 4.4 % 95.3 % 1,436 5,175
Phoenix, AZ 594,192 3.7 % 95.7 % 1,738 3,291
Northern Virginia 577,851 3.6 % 96.6 % 2,484 1,888
Nashville, TN 565,251 3.5 % 95.9 % 1,690 4,375
Charleston, SC 435,344 2.7 % 96.1 % 1,815 3,168
Fort Worth, TX 398,572 2.5 % 96.1 % 1,582 3,687
Jacksonville, FL 318,905 2.0 % 95.7 % 1,510 3,496
Denver, CO 297,533 1.8 % 95.6 % 1,978 1,118
Richmond, VA 283,208 1.7 % 96.7 % 1,627 2,004
Fredericksburg, VA 258,465 1.6 % 96.6 % 1,873 1,435
Greenville, SC 245,184 1.5 % 94.7 % 1,336 2,354
Savannah, GA 227,245 1.4 % 95.5 % 1,713 1,837
Kansas City, MO-KS 194,665 1.2 % 95.5 % 1,634 1,110
Birmingham, AL 172,927 1.1 % 95.3 % 1,412 1,462
San Antonio, TX 172,037 1.1 % 95.7 % 1,367 1,504
All Other Markets by State (individual markets <1% gross real assets)
Tennessee 207,772 1.3 % 95.1 % 1,348 2,754
Florida 194,801 1.2 % 95.6 % 1,839 1,806
Alabama 179,947 1.1 % 95.9 % 1,394 1,648
Virginia 169,423 1.0 % 93.6 % 1,778 1,039
Kentucky 103,711 0.6 % 95.9 % 1,270 1,308
Maryland 84,485 0.5 % 97.0 % 2,288 361
Nevada 75,588 0.5 % 96.3 % 1,592 721
South Carolina 39,437 0.2 % 93.1 % 1,263 576
Stabilized Communities $ 15,159,181 93.4 % 95.5 % $ 1,690 99,730
Charlotte, NC 224,002 1.4 % 85.5 % 1,889 352 893
Raleigh/Durham, NC 195,656 1.2 % 28.1 % 1,807 332 712
Tampa, FL 141,539 0.9 % — — — 495
Denver, CO 119,942 0.7 % 44.9 % 2,298 265 352
Phoenix, AZ 102,312 0.6 % 45.1 % 1,947 215 662
Salt Lake City, UT 94,997 0.6 % 64.0 % 1,761 400 400
Atlanta, GA 91,353 0.6 % 78.8 % 2,094 340 340
Orlando, FL 83,727 0.5 % 89.7 % 2,026 310 310
Richmond, VA 14,679 0.1 % — — — 306
Lease-up / Development Communities $ 1,068,207 6.6 % 57.6 % $ 1,959 2,214 4,470
Total Multifamily Communities $ 16,227,388 100.0 % 94.5 % $ 1,696 101,944 104,200
  • Schedule excludes MAA's 35% ownership in a 269-unit joint venture property in Washington, D.C. As of September 30, 2024, the gross investment in real estate for this community was $82.5 million and includes a mortgage note payable of $51.9 million. For the nine months ended September 30, 2024, this apartment community achieved NOI of $6.2 million.

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

Three Months Ended As of September 30, 2024
September 30, 2024 September 30, 2023 Percent<br>Change Apartment Units Gross Real Assets
Operating Revenues
Same Store Communities $ 523,533 $ 523,510 0.0 % 97,289 $ 14,685,767
Non-Same Store Communities 13,312 11,171 2,441 473,414
Lease-up/Development Communities 7,779 901 2,214 1,068,207
Total Multifamily Portfolio $ 544,624 $ 535,582 101,944 $ 16,227,388
Commercial Property/Land 6,502 6,460 — 372,532
Total Operating Revenues $ 551,126 $ 542,042 101,944 $ 16,599,920
Property Operating Expenses
Same Store Communities $ 196,266 $ 190,537 3.0 %
Non-Same Store Communities 4,693 4,688
Lease-up/Development Communities 4,351 1,256
Storm Costs 3,349 —
Total Multifamily Portfolio $ 208,659 $ 196,481
Commercial Property/Land 2,902 2,742
Total Property Operating Expenses $ 211,561 $ 199,223
Net Operating Income
Same Store Communities $ 327,267 $ 332,973 -1.7 %
Non-Same Store Communities 8,619 6,483
Lease-up/Development Communities 3,428 (355 )
Storm Costs (3,349 ) —
Total Multifamily Portfolio $ 335,965 $ 339,101
Commercial Property/Land 3,600 3,718
Total Net Operating Income $ 339,565 $ 342,819 -0.9 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Nine Months Ended
September 30, 2024 September 30, 2023 Percent Change September 30, 2024 September 30, 2023 Percent<br>Change
Property Taxes $ 65,593 $ 65,428 0.3 % $ 201,960 $ 197,907 2.0 %
Personnel 43,205 41,598 3.9 % 124,537 119,062 4.6 %
Utilities 36,347 35,018 3.8 % 101,520 98,244 3.3 %
Building Repair and Maintenance 26,888 26,371 2.0 % 74,842 73,211 2.2 %
Office Operations 8,881 7,765 14.4 % 25,914 22,362 15.9 %
Insurance 8,324 8,320 0.0 % 24,756 22,491 10.1 %
Marketing 7,028 6,037 16.4 % 21,043 19,137 10.0 %
Total Property Operating Expenses $ 196,266 $ 190,537 3.0 % $ 574,572 $ 552,414 4.0 %

Supplemental Data S-3

MULTIFAMILY SAME STORE PORTFOLIO NOI CONTRIBUTION PERCENTAGE
Average Physical Occupancy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Percent of Three Months Ended Nine Months Ended
Apartment Units Same Store NOI September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Atlanta, GA 11,434 11.7 % 95.0 % 94.5 % 94.4 % 94.5 %
Dallas, TX 10,116 9.1 % 95.7 % 96.0 % 95.3 % 95.7 %
Orlando, FL 5,643 7.3 % 95.9 % 96.1 % 96.0 % 96.0 %
Tampa, FL 5,416 7.3 % 96.0 % 95.9 % 95.9 % 95.7 %
Charlotte, NC 5,651 6.1 % 95.9 % 95.8 % 95.5 % 95.6 %
Austin, TX 6,829 5.4 % 95.5 % 95.3 % 94.9 % 95.3 %
Raleigh/Durham, NC 5,350 5.4 % 95.7 % 96.4 % 95.8 % 95.8 %
Nashville, TN 4,375 4.8 % 96.0 % 96.1 % 95.9 % 95.7 %
Houston, TX 5,175 4.2 % 95.4 % 95.3 % 95.3 % 95.5 %
Charleston, SC 3,168 3.8 % 96.5 % 96.6 % 96.2 % 96.0 %
Fort Worth, TX 3,687 3.6 % 95.5 % 95.9 % 95.3 % 95.7 %
Phoenix, AZ 2,968 3.5 % 96.0 % 95.3 % 95.2 % 95.6 %
Jacksonville, FL 3,496 3.2 % 95.9 % 95.6 % 95.6 % 95.8 %
Northern Virginia 1,888 3.1 % 96.6 % 96.6 % 96.7 % 96.2 %
Greenville, SC 2,354 1.9 % 95.3 % 96.0 % 95.7 % 96.1 %
Savannah, GA 1,837 1.9 % 95.5 % 96.5 % 95.7 % 96.2 %
Richmond, VA 1,732 1.9 % 96.6 % 96.2 % 96.5 % 95.9 %
Fredericksburg, VA 1,435 1.8 % 96.4 % 96.2 % 96.8 % 96.2 %
Memphis, TN 1,811 1.5 % 95.3 % 94.0 % 95.4 % 94.5 %
Denver, CO 1,118 1.5 % 95.6 % 95.5 % 95.7 % 95.4 %
Birmingham, AL 1,462 1.2 % 96.0 % 96.4 % 95.6 % 96.2 %
San Antonio, TX 1,504 1.2 % 96.0 % 96.3 % 95.6 % 95.7 %
Kansas City, MO-KS 1,110 1.1 % 96.0 % 96.2 % 96.0 % 95.9 %
Huntsville, AL 1,228 1.0 % 95.4 % 94.7 % 95.1 % 95.2 %
Other 6,502 6.5 % 96.0 % 96.3 % 95.9 % 95.9 %
Total Same Store 97,289 100.0 % 95.7 % 95.7 % 95.5 % 95.6 %

Supplemental Data S-4

MULTIFAMILY SAME STORE PORTFOLIO QUARTER OVER QUARTER COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg
Atlanta, GA 11,434 $ 65,177 $ 66,155 (1.5 )% $ 26,808 $ 24,772 8.2 % $ 38,369 $ 41,383 (7.3 )% $ 1,813 $ 1,861 (2.6 )%
Dallas, TX 10,116 53,356 53,563 (0.4 )% 23,411 21,068 11.1 % 29,945 32,495 (7.8 )% 1,663 1,671 (0.5 )%
Orlando, FL 5,643 35,215 35,497 (0.8 )% 11,347 12,164 (6.7 )% 23,868 23,333 2.3 % 1,978 2,000 (1.1 )%
Tampa, FL 5,416 35,722 35,757 (0.1 )% 11,892 12,469 (4.6 )% 23,830 23,288 2.3 % 2,093 2,108 (0.7 )%
Charlotte, NC 5,651 29,557 29,542 0.1 % 9,503 8,766 8.4 % 20,054 20,776 (3.5 )% 1,642 1,651 (0.5 )%
Austin, TX 6,829 34,750 35,635 (2.5 )% 17,041 15,824 7.7 % 17,709 19,811 (10.6 )% 1,580 1,635 (3.4 )%
Raleigh/Durham, NC 5,350 26,725 26,769 (0.2 )% 9,171 8,686 5.6 % 17,554 18,083 (2.9 )% 1,544 1,549 (0.3 )%
Nashville, TN 4,375 23,616 23,766 (0.6 )% 8,064 7,979 1.1 % 15,552 15,787 (1.5 )% 1,690 1,705 (0.9 )%
Houston, TX 5,175 23,707 23,578 0.5 % 10,065 11,282 (10.8 )% 13,642 12,296 10.9 % 1,436 1,427 0.6 %
Charleston, SC 3,168 18,264 17,736 3.0 % 5,868 5,642 4.0 % 12,396 12,094 2.5 % 1,815 1,756 3.4 %
Fort Worth, TX 3,687 19,311 19,181 0.7 % 7,537 8,135 (7.4 )% 11,774 11,046 6.6 % 1,582 1,579 0.2 %
Phoenix, AZ 2,968 16,355 16,402 (0.3 )% 4,818 4,564 5.6 % 11,537 11,838 (2.5 )% 1,730 1,756 (1.5 )%
Jacksonville, FL 3,496 16,198 16,754 (3.3 )% 5,708 6,407 (10.9 )% 10,490 10,347 1.4 % 1,510 1,559 (3.1 )%
Northern Virginia 1,888 14,695 13,783 6.6 % 4,705 4,344 8.3 % 9,990 9,439 5.8 % 2,484 2,345 5.9 %
Greenville, SC 2,354 10,314 10,297 0.2 % 3,946 3,637 8.5 % 6,368 6,660 (4.4 )% 1,336 1,329 0.5 %
Savannah, GA 1,837 10,078 10,031 0.5 % 3,845 3,399 13.1 % 6,233 6,632 (6.0 )% 1,713 1,684 1.7 %
Richmond, VA 1,732 9,114 9,119 (0.1 )% 2,949 2,891 2.0 % 6,165 6,228 (1.0 )% 1,668 1,644 1.4 %
Fredericksburg, VA 1,435 8,623 8,296 3.9 % 2,606 2,473 5.4 % 6,017 5,823 3.3 % 1,873 1,801 4.0 %
Memphis, TN 1,811 7,983 7,795 2.4 % 3,144 3,098 1.5 % 4,839 4,697 3.0 % 1,378 1,362 1.2 %
Denver, CO 1,118 7,046 7,082 (0.5 )% 2,214 2,196 0.8 % 4,832 4,886 (1.1 )% 1,978 1,983 (0.3 )%
Birmingham, AL 1,462 6,886 6,714 2.6 % 2,821 2,513 12.3 % 4,065 4,201 (3.2 )% 1,412 1,386 1.9 %
San Antonio, TX 1,504 6,612 6,716 (1.5 )% 2,684 2,567 4.6 % 3,928 4,149 (5.3 )% 1,367 1,393 (1.9 )%
Kansas City, MO-KS 1,110 5,761 5,537 4.0 % 2,153 2,164 (0.5 )% 3,608 3,373 7.0 % 1,634 1,569 4.1 %
Huntsville, AL 1,228 5,354 5,358 (0.1 )% 2,012 2,014 (0.1 )% 3,342 3,344 (0.1 )% 1,307 1,325 (1.4 )%
Other 6,502 33,114 32,447 2.1 % 11,954 11,483 4.1 % 21,160 20,964 0.9 % 1,613 1,579 2.2 %
Total Same Store 97,289 $ 523,533 $ 523,510 0.0 % $ 196,266 $ 190,537 3.0 % $ 327,267 $ 332,973 (1.7 )% $ 1,691 $ 1,697 (0.4 )%

Supplemental Data S-5

MULTIFAMILY SAME STORE PORTFOLIO SEQUENTIAL QUARTER COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q3 2024 Q2 2024 % Chg Q3 2024 Q2 2024 % Chg Q3 2024 Q2 2024 % Chg Q3 2024 Q2 2024 % Chg
Atlanta, GA 11,434 $ 65,177 $ 64,917 0.4 % $ 26,808 $ 26,298 1.9 % $ 38,369 $ 38,619 (0.6 )% $ 1,813 $ 1,827 (0.8 )%
Dallas, TX 10,116 53,356 53,009 0.7 % 23,411 22,172 5.6 % 29,945 30,837 (2.9 )% 1,663 1,664 (0.0 )%
Orlando, FL 5,643 35,215 35,335 (0.3 )% 11,347 12,898 (12.0 )% 23,868 22,437 6.4 % 1,978 1,982 (0.2 )%
Tampa, FL 5,416 35,722 35,792 (0.2 )% 11,892 12,541 (5.2 )% 23,830 23,251 2.5 % 2,093 2,097 (0.2 )%
Charlotte, NC 5,651 29,557 29,368 0.6 % 9,503 9,126 4.1 % 20,054 20,242 (0.9 )% 1,642 1,638 0.3 %
Austin, TX 6,829 34,750 34,860 (0.3 )% 17,041 15,558 9.5 % 17,709 19,302 (8.3 )% 1,580 1,601 (1.3 )%
Raleigh/Durham, NC 5,350 26,725 26,727 (0.0 )% 9,171 9,005 1.8 % 17,554 17,722 (0.9 )% 1,544 1,540 0.3 %
Nashville, TN 4,375 23,616 23,588 0.1 % 8,064 7,930 1.7 % 15,552 15,658 (0.7 )% 1,690 1,697 (0.5 )%
Houston, TX 5,175 23,707 23,584 0.5 % 10,065 9,185 9.6 % 13,642 14,399 (5.3 )% 1,436 1,431 0.3 %
Charleston, SC 3,168 18,264 18,015 1.4 % 5,868 5,968 (1.7 )% 12,396 12,047 2.9 % 1,815 1,792 1.3 %
Fort Worth, TX 3,687 19,311 19,230 0.4 % 7,537 7,876 (4.3 )% 11,774 11,354 3.7 % 1,582 1,579 0.2 %
Phoenix, AZ 2,968 16,355 16,142 1.3 % 4,818 4,553 5.8 % 11,537 11,589 (0.4 )% 1,730 1,741 (0.6 )%
Jacksonville, FL 3,496 16,198 16,319 (0.7 )% 5,708 6,188 (7.8 )% 10,490 10,131 3.5 % 1,510 1,519 (0.6 )%
Northern Virginia 1,888 14,695 14,388 2.1 % 4,705 4,357 8.0 % 9,990 10,031 (0.4 )% 2,484 2,421 2.6 %
Greenville, SC 2,354 10,314 10,331 (0.2 )% 3,946 3,911 0.9 % 6,368 6,420 (0.8 )% 1,336 1,328 0.6 %
Savannah, GA 1,837 10,078 10,157 (0.8 )% 3,845 3,904 (1.5 )% 6,233 6,253 (0.3 )% 1,713 1,706 0.4 %
Richmond, VA 1,732 9,114 9,053 0.7 % 2,949 2,805 5.1 % 6,165 6,248 (1.3 )% 1,668 1,650 1.1 %
Fredericksburg, VA 1,435 8,623 8,522 1.2 % 2,606 2,386 9.2 % 6,017 6,136 (1.9 )% 1,873 1,832 2.3 %
Memphis, TN 1,811 7,983 7,972 0.1 % 3,144 3,056 2.9 % 4,839 4,916 (1.6 )% 1,378 1,368 0.7 %
Denver, CO 1,118 7,046 7,052 (0.1 )% 2,214 2,222 (0.4 )% 4,832 4,830 0.0 % 1,978 1,979 (0.0 )%
Birmingham, AL 1,462 6,886 6,759 1.9 % 2,821 2,739 3.0 % 4,065 4,020 1.1 % 1,412 1,402 0.7 %
San Antonio, TX 1,504 6,612 6,605 0.1 % 2,684 3,001 (10.6 )% 3,928 3,604 9.0 % 1,367 1,375 (0.5 )%
Kansas City, MO-KS 1,110 5,761 5,654 1.9 % 2,153 2,042 5.4 % 3,608 3,612 (0.1 )% 1,634 1,598 2.2 %
Huntsville, AL 1,228 5,354 5,374 (0.4 )% 2,012 1,821 10.5 % 3,342 3,553 (5.9 )% 1,307 1,313 (0.5 )%
Other 6,502 33,114 32,787 1.0 % 11,954 11,718 2.0 % 21,160 21,069 0.4 % 1,613 1,598 0.9 %
Total Same Store 97,289 $ 523,533 $ 521,540 0.4 % $ 196,266 $ 193,260 1.6 % $ 327,267 $ 328,280 (0.3 )% $ 1,691 $ 1,690 0.1 %

Supplemental Data S-6

MULTIFAMILY SAME STORE PORTFOLIO YEAR TO DATE COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg Q3 2024 Q3 2023 % Chg
Atlanta, GA 11,434 $ 195,215 $ 195,897 (0.3 )% $ 77,996 $ 72,330 7.8 % $ 117,219 $ 123,567 (5.1 )% $ 1,826 $ 1,847 (1.1 )%
Dallas, TX 10,116 159,315 158,733 0.4 % 66,542 63,396 5.0 % 92,773 95,337 (2.7 )% 1,665 1,656 0.6 %
Orlando, FL 5,643 105,970 105,813 0.1 % 36,569 36,305 0.7 % 69,401 69,508 (0.2 )% 1,982 1,980 0.1 %
Tampa, FL 5,416 107,237 106,335 0.8 % 36,817 36,189 1.7 % 70,420 70,146 0.4 % 2,095 2,091 0.2 %
Charlotte, NC 5,651 88,007 86,807 1.4 % 27,054 25,663 5.4 % 60,953 61,144 (0.3 )% 1,639 1,621 1.1 %
Austin, TX 6,829 104,423 106,535 (2.0 )% 47,643 46,401 2.7 % 56,780 60,134 (5.6 )% 1,596 1,630 (2.1 )%
Raleigh/Durham, NC 5,350 79,950 79,085 1.1 % 26,436 24,616 7.4 % 53,514 54,469 (1.8 )% 1,542 1,530 0.8 %
Nashville, TN 4,375 70,798 70,507 0.4 % 23,527 22,736 3.5 % 47,271 47,771 (1.0 )% 1,695 1,692 0.2 %
Houston, TX 5,175 70,876 70,227 0.9 % 29,706 30,847 (3.7 )% 41,170 39,380 4.5 % 1,432 1,412 1.4 %
Charleston, SC 3,168 54,094 51,946 4.1 % 17,457 16,213 7.7 % 36,637 35,733 2.5 % 1,796 1,720 4.4 %
Fort Worth, TX 3,687 57,500 57,229 0.5 % 21,923 22,520 (2.7 )% 35,577 34,709 2.5 % 1,579 1,567 0.8 %
Phoenix, AZ 2,968 48,706 49,363 (1.3 )% 13,677 12,818 6.7 % 35,029 36,545 (4.1 )% 1,738 1,758 (1.1 )%
Jacksonville, FL 3,496 48,910 50,057 (2.3 )% 17,733 17,719 0.1 % 31,177 32,338 (3.6 )% 1,521 1,554 (2.1 )%
Northern Virginia 1,888 43,089 40,724 5.8 % 13,411 12,738 5.3 % 29,678 27,986 6.0 % 2,427 2,306 5.2 %
Greenville, SC 2,354 31,001 30,819 0.6 % 11,490 10,135 13.4 % 19,511 20,684 (5.7 )% 1,330 1,313 1.3 %
Savannah, GA 1,837 30,248 29,565 2.3 % 11,306 9,638 17.3 % 18,942 19,927 (4.9 )% 1,705 1,654 3.1 %
Richmond, VA 1,732 27,189 26,785 1.5 % 8,538 8,422 1.4 % 18,651 18,363 1.6 % 1,654 1,620 2.1 %
Fredericksburg, VA 1,435 25,569 24,779 3.2 % 7,432 7,129 4.3 % 18,137 17,650 2.8 % 1,837 1,792 2.5 %
Memphis, TN 1,811 23,878 23,498 1.6 % 9,086 8,769 3.6 % 14,792 14,729 0.4 % 1,369 1,353 1.1 %
Denver, CO 1,118 21,220 21,037 0.9 % 6,556 6,396 2.5 % 14,664 14,641 0.2 % 1,976 1,961 0.8 %
Birmingham, AL 1,462 20,315 19,956 1.8 % 8,206 7,628 7.6 % 12,109 12,328 (1.8 )% 1,403 1,371 2.3 %
San Antonio, TX 1,504 19,810 19,908 (0.5 )% 8,473 8,279 2.3 % 11,337 11,629 (2.5 )% 1,376 1,388 (0.9 )%
Kansas City, MO-KS 1,110 16,979 16,299 4.2 % 6,136 6,110 0.4 % 10,843 10,189 6.4 % 1,604 1,548 3.6 %
Huntsville, AL 1,228 16,032 16,042 (0.1 )% 5,842 5,799 0.7 % 10,190 10,243 (0.5 )% 1,312 1,311 0.1 %
Other 6,502 98,371 95,981 2.5 % 35,016 33,618 4.2 % 63,355 62,363 1.6 % 1,599 1,560 2.5 %
Total Same Store 97,289 $ 1,564,702 $ 1,553,927 0.7 % $ 574,572 $ 552,414 4.0 % $ 990,130 $ 1,001,513 (1.1 )% $ 1,690 $ 1,681 0.6 %

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of Development Costs as of
September 30, 2024 September 30, 2024 Expected
Expected Spend Expected Start Initial
Location Total Delivered Leased Total to Date Remaining Date Occupancy Completion Stabilization (1)
Novel Val Vista (2) Phoenix, AZ 317 215 176 $ 79,800 $ 77,279 $ 2,521 4Q20 4Q23 4Q24 3Q25
MAA Milepost 35 Denver, CO 352 265 178 125,000 119,942 5,058 1Q22 4Q23 4Q24 3Q25
MAA Nixie Raleigh/Durham, NC 406 26 2 145,500 114,668 30,832 4Q22 3Q24 3Q25 3Q26
MAA Breakwater Tampa, FL 495 — — 197,500 141,539 55,961 4Q22 1Q25 4Q25 1Q27
Modera Liberty Row (3) Charlotte, NC 239 — — 112,000 90,860 21,140 1Q22 3Q25 1Q26 4Q26
MAA Plaza Midwood (4) (5) Charlotte, NC 302 — — 101,500 26,370 75,130 2Q24 2Q26 4Q26 4Q27
Modera Chandler (5) Phoenix, AZ 345 — — 117,500 25,033 92,467 2Q24 2Q26 4Q26 4Q27
MAA Porter Richmond, VA 306 — — 99,500 14,679 84,821 3Q24 1Q27 3Q27 1Q28
Total Active 2,762 506 356 $ 978,300 $ 610,370 $ 367,930
  • Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
  • MAA owns 80% of the joint venture that owns this property.
  • In July 2024, MAA agreed to finance the third party development of this property currently under construction. MAA has the option to purchase the development once it is stabilized.
  • Previously reported as Alta 10th.
  • MAA owns 95% of the joint venture that owns this property.
MULTIFAMILY LEASE-UP COMMUNITIES

Dollars in thousands

As of September 30, 2024
Location Total Units Physical Occupancy Spend to Date Construction Completed Expected Stabilization (1)
MAA Optimist Park Charlotte, NC 352 85.5% $ 106,772 (3) 4Q24
MAA Boggy Creek Orlando, FL 310 89.7% 83,727 (3) 4Q24
Novel West Midtown (2) Atlanta, GA 340 78.8% 91,353 3Q23 1Q25
Novel Daybreak (2) Salt Lake City, UT 400 64.0% 94,997 3Q24 2Q25
MAA Vale Raleigh/Durham, NC 306 65.0% 80,988 (3) 2Q25
Total 1,708 76.2% $ 457,837
  • Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
  • MAA owns 80% of the joint venture that owns this property.
  • Property was acquired while in lease-up; construction was complete prior to acquisition by MAA.
MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Nine months ended September 30, 2024
Units Completed Redevelopment Spend Average Cost per Unit Increase in Average Effective Rent per Unit Increase in Average Effective Rent per Unit Estimated Units Remaining in Pipeline
4,535 $ 29,053 $ 6,406 $ 107 7.5% 6,000 - 10,000

Supplemental Data S-8

2024 ACQUISITION ACTIVITY (THROUGH SEPTEMBER 30, 2024)
Multifamily Acquisitions Market Apartment Units Closing Date
--- --- --- ---
MAA Boggy Creek Orlando, FL 310 Sep-24
MAA Vale Raleigh, NC 306 May-24
Modera Chandler (1) Phoenix, AZ 345 Apr-24
  • Represents a pre-purchase multifamily development. MAA owns 95% of the joint venture that owns this property. Construction of this development commenced in the second quarter of 2024. See “Multifamily Development Pipeline” above for additional information.
Land Acquisition Market Acreage Closing Date
MAA Porter Richmond, VA 3.3 Aug-24
DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2024
---

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Rate Debt Balance Percent of Total Effective Interest Rate Average Years to Rate Maturity
Fixed rate debt $ 4,385,968 90.0 % 3.6 % 7.7
Floating rate debt 490,000 10.0 % 5.1 % 0.1
Total $ 4,875,968 100.0 % 3.8 % 7.0
Unsecured Versus Secured Debt Balance Percent of Total Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,515,733 92.6 % 3.7 % 5.6
Secured debt 360,235 7.4 % 4.4 % 24.3
Total $ 4,875,968 100.0 % 3.8 % 7.0
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q3 2024 NOI Percent of Total
Unencumbered gross assets $ 16,216,116 95.5 % $ 325,427 95.8 %
Encumbered gross assets 768,396 4.5 % 14,138 4.2 %
Total $ 16,984,512 100.0 % $ 339,565 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Effective Interest Rate
2024 $ — —
2025 399,142 4.2 %
2026 298,552 1.2 %
2027 597,924 3.7 %
2028 397,759 4.2 %
2029 556,740 3.7 %
2030 298,144 3.1 %
2031 446,138 1.8 %
2032 394,531 5.4 %
2033 — —
Thereafter 997,038 4.2 %
Total $ 4,385,968 3.6 %

Supplemental Data S-9

DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2024 (CONTINUED)

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity Commercial Paper (1) & Revolving Credit Facility (2) Public Bonds Secured Total
2024 $ 490,000 $ — $ — $ 490,000
2025 — 399,142 — 399,142
2026 — 298,552 — 298,552
2027 — 597,924 — 597,924
2028 — 397,759 — 397,759
2029 — 556,740 — 556,740
2030 — 298,144 — 298,144
2031 — 446,138 — 446,138
2032 — 394,531 — 394,531
2033 — — — —
Thereafter — 636,803 360,235 997,038
Total $ 490,000 $ 4,025,733 $ 360,235 $ 4,875,968
  • The $490.0 million maturing in 2024 reflects the principal outstanding under MAALP’s unsecured commercial paper program as of September 30, 2024. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $625.0 million. For the three months ended September 30, 2024, average daily borrowings outstanding under the commercial paper program were $403.8 million.
  • There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of September 30, 2024. The unsecured revolving credit facility has a maturity date of October 2026 with two six-month extension options.

DEBT COVENANT ANALYSIS (1)

Bond Covenants Required Actual Compliance
Total debt to adjusted total assets 60% or less 28.7% Yes
Total secured debt to adjusted total assets 40% or less 2.1% Yes
Consolidated income available for debt service to total annual debt service charge 1.5x or greater for trailing 4 quarters 7.0x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 350.4% Yes
Bank Covenants Required Actual Compliance
Total debt to total capitalized asset value 60% or less 21.1% Yes
Total secured debt to total capitalized asset value 40% or less 1.6% Yes
Total adjusted EBITDA to fixed charges 1.5x or greater for trailing 4 quarters 7.4x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 20.3% Yes
  • The calculations of the Bond Covenants and Bank Covenants are specifically defined in MAALP’s debt agreements, which have been filed by MAA and MAALP with the SEC.

Supplemental Data S-10

2024 GUIDANCE

MAA provides guidance on expected Core FFO per diluted Share and Core AFFO per diluted Share, which are non-GAAP financial measures, along with guidance for expected Earnings per diluted common share. A reconciliation of expected Earnings per diluted common share to expected Core FFO per diluted Share and Core AFFO per diluted Share is provided below.
Earnings: Current Midpoint
Earnings per common share - diluted $4.53
Core FFO per Share - diluted $8.88
Core AFFO per Share - diluted $7.92
MAA Same Store Portfolio:
Number of units 97,290
Average physical occupancy 95.5%
Property revenue growth 0.50%
Effective rent growth 0.35%
Property operating expense growth 3.75%
NOI growth -1.30%
Real estate tax expense growth 2.0%
Corporate Expenses: ( in millions)
Property management expenses $72.0
General and administrative expenses $56.5
Total overhead $128.5
Transaction/Investment Volume: ( in millions)
Multifamily acquisition volume $400.0
Multifamily disposition volume $85.0
Development investment $350.0
Debt:
Average effective interest rate 3.6%
Capitalized interest ( in millions) $17.0
Diluted FFO Shares Outstanding:
Diluted common shares and units 120.0 million

All values are in US Dollars.

RECONCILIATION OF EARNINGS PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER DILUTED SHARE FOR FULL YEAR 2024 GUIDANCE
Full Year 2024 Guidance Range
--- --- --- --- --- --- ---
Low High
Earnings per common share - diluted $ 4.45 $ 4.61
Real estate depreciation and amortization 4.83 4.83
Gains on sale of depreciable assets (0.47 ) (0.47 )
Gain on consolidation of third-party development (0.09 ) (0.09 )
FFO per Share - diluted 8.72 8.88
Non-Core FFO items (1) 0.08 0.08
Core FFO per Share - diluted 8.80 8.96
Recurring capital expenditures (0.96 ) (0.96 )
Core AFFO per Share - diluted $ 7.84 $ 8.00
  • Non-Core FFO items may include 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 (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments.

Supplemental Data S-11

CREDIT RATINGS
Commercial Long-Term
--- --- --- ---
Paper Rating Debt Rating Outlook
Fitch Ratings (1) F1 A- Stable
Moody’s Investors Service (2) P-2 A3 Stable
Standard & Poor’s Ratings Services (1) A-2 A- Stable
  • Corporate credit rating assigned to MAA and MAALP
  • Corporate credit rating assigned to MAALP
COMMON STOCK
Stock Symbol: MAA
--- --- --- --- --- --- --- --- --- --- ---
Exchange Traded: NYSE
Estimated Future Dates: Q4 2024 Q1 2025 Q2 2025 Q3 2025
Earnings release & conference call Early<br>February Early<br>May Late<br>July Late<br>October
Dividend Information - Common Shares: Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Declaration date 9/29/2023 12/12/2023 3/19/2024 5/21/2024 9/24/2024
Record date 10/13/2023 1/12/2024 4/15/2024 7/15/2024 10/15/2024
Payment date 10/31/2023 1/31/2024 4/30/2024 7/31/2024 10/31/2024
Distributions per share $ 1.4000 $ 1.4700 $ 1.4700 $ 1.4700 $ 1.4700
INVESTOR RELATIONS DATA
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MAA does not send quarterly reports, earnings releases and supplemental data to shareholders, but provides them upon request.

For recent press releases, SEC filings and other information, call 866-576-9689 (toll free) or email investor.relations@maac.com. This information, as well as access to MAA’s quarterly conference call, is also available on the “For Investors” page of MAA’s website at www.maac.com.
For Questions Contact:
--- --- ---
Name Title
Andrew Schaeffer Senior Vice President, Treasurer and Director of Capital Markets
Jennifer Patrick Director of Investor Relations
Phone: 866-576-9689 (toll free)
Email: investor.relations@maac.com

Supplemental Data S-12

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