Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2021-07-28 For: 2021-07-28
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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):  July 28, 2021

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
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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><br>Symbol(s) Name of each exchange on which<br><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 2.02Results of Operations and Financial Condition.

On July 28, 2021, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of June 30, 2021 and for the three and six months then ended.  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.

ITEM 9.01Financial Statements and Exhibits.

(d)Exhibits.

Exhibit Number Description
99.1 Press Release dated July 28, 2021
99.2 Supplemental Data Schedules dated July 28, 2021
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: July 28, 2021 /s/Albert M. Campbell, III
Albert M. Campbell, III
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
MID-AMERICA APARTMENTS, L.P.
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By: Mid-America Apartment Communities, Inc., its general partner
Date: July 28, 2021 /s/Albert M. Campbell, III
Albert M. Campbell, III
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

maa-ex991_6.htm

Exhibit 99.1

TABLE OF CONTENTS
Overview 1
Financial Highlights 6
Consolidated Statements of Operations/Share and Unit Data 7
Consolidated Balance Sheets 8
Reconciliation of Non-GAAP Financial Measures 9
Non-GAAP Financial Measures 13
Other Key Definitions 14
Portfolio Statistics S-1
Components of Net Operating Income/Components of Same Store Portfolio Property Operating Expenses S-3
NOI Contribution Percentage by Market S-4
Multifamily Same Store Portfolio Comparisons S-5
Multifamily Development Pipeline/Multifamily Interior Redevelopment Pipeline/Multifamily Lease-up Communities/2021 Acquisition Activity/2021 Disposition Activity S-8
Debt and Debt Covenants as of June 30, 2021 S-9
2021 Guidance/Reconciliation of Net Income per Diluted Common Share to Core FFO and Core AFFO per Share Guidance S-11
Credit Ratings/Common Stock/Investor Relations Data S-12
OVERVIEW
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MAA REPORTS SECOND QUARTER RESULTS

GERMANTOWN, TN, July 28, 2021/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended June 30, 2021.

Second Quarter 2021 Operating Results Three months ended June 30, Six months ended June 30,
2021 2020 2021 2020
Earnings per common share - diluted $ 1.88 $ 0.65 $ 2.28 $ 0.96
Funds from operations (FFO) per Share - diluted $ 1.84 $ 1.71 $ 3.34 $ 3.08
Core FFO per Share - diluted $ 1.69 $ 1.59 $ 3.33 $ 3.21

A reconciliation of FFO and Core FFO to net income available for MAA common shareholders and an expanded 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, “Strong rent growth and high occupancy, driven by a growing demand for housing across the Sunbelt region, drove solid second quarter results that were ahead of expectations. Given the strong results year-to-date and expectations for continued robust leasing conditions, we have increased our earnings outlook for the year.  We believe our uniquely diversified portfolio across this high-growth region has MAA well positioned as the economy in our Sunbelt markets continues to recover, while these markets attract a growing number of employers, new jobs and households.  Our development pipeline continues to expand, and we expect increasing growth in Core FFO from this group of properties over the next couple of years as well.”

Second Quarter 2021 Highlights

• Property revenues from the Same Store Portfolio increased 4.7% during the second quarter of 2021 as compared to the same period in the prior year, ahead of expectations and supporting an increase in full-year expectations for growth in Core FFO.
• That increase in Property revenues was driven by a 3.1% growth in Average Effective Rent per Unit for the Same Store Portfolio, reflecting cumulative rent growth over the past year.  In addition, higher Average Physical Occupancy and improved collections on rents and fees during the second quarter of 2021 as compared to the same period in the prior year contributed to the strong results.
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• Positive momentum in rental pricing continues as Same Store Portfolio blended lease-over-lease pricing for both new and renewal leases effective during the second quarter of 2021 increased 8.2% as compared to the expiring leases.
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• Additionally, Same Store Portfolio blended lease-over-lease pricing for both new and renewal leases effective for July 2021 is over 12% through July 26, 2021.
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• Various programs introduced and actions taken by MAA to assist its residents impacted by the COVID-19 pandemic continued to have a positive impact during the second quarter of 2021.  The number of MAA residents seeking rental deferral has continued to decline with only 151 residents requesting a deferral on July 2021 rents.  Through July 26, 2021, cash collections represented 99.2% of billed residential rent for the second quarter of 2021.
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• Since the start of the COVID-19 pandemic, MAA has assisted over 8,200 residents with rent deferral plans and modifications to existing lease agreements.
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• As expected, Property operating expense growth was elevated for the Same Store Portfolio and increased 6.3% during the second quarter of 2021 as compared to the same period in the prior year when a number of normal operating activities were curtailed during the initial stages of the COVID-19 pandemic.
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• Net Operating Income (NOI) from the Same Store Portfolio increased 3.6% during the second quarter of 2021 as compared to the same period in the prior year.
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• Resident turnover remained low as resident move outs for the Same Store Portfolio for the second quarter of 2021 was 47.1% on a rolling twelve month basis.
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• During the second quarter of 2021, MAA closed on the disposition of all four of its properties located in the Jackson, Mississippi market for gross proceeds of approximately $160 million resulting in net gains on depreciable assets of $134.8 million.
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• MAA completed redevelopment of 1,836 apartment homes during the second quarter of 2021, capturing average rental rate increases of approximately 11% above non-renovated units.
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• MAA continues its initiative focused on installation of new Smart Home technology throughout the portfolio with 7,488 unit installations completed during the second quarter of 2021.
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• During the second quarter of 2021, MAA completed the construction of Novel Midtown in the Phoenix, Arizona market and commenced development of Novel Day Break in the Salt Lake City, Utah market and Novel West Midtown in the Atlanta, Georgia market under its third-party developer pre-purchase program.
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• As of the end of the second quarter of 2021, MAA had eight properties under development, representing 2,654 units once complete, with a total projected cost of $627.5 million and an estimated $301.3 million remaining to be funded.
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• During the second quarter of 2021, MAA completed the initial lease-up of Copper Ridge II in the Fort Worth, Texas market.  As of the end of the second quarter of 2021, MAA had two properties in their initial lease-up with physical occupancy averaging 69.7%.  One property is expected to stabilize in the third quarter of 2021 and the other property is expected to stabilize in the second quarter of 2022.
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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.

The Same Store Portfolio revenue growth of 4.7% during the second quarter of 2021 was primarily a result of a 3.1% increase in Average Effective Rent per Unit, as compared to the same period in the prior year. Average Physical Occupancy for the Same Store Portfolio was 96.4% for the second quarter of 2021, as compared to 95.4% in the same period in the prior year.  Same Store Portfolio lease pricing for leases effective during the second quarter of 2021, as compared to the prior lease, increased 8.7% for new leases, increased 7.8% for renewing leases and increased 8.2% for both new and renewing leases on a combined basis.  Property operating expenses for the Same Store Portfolio increased 6.3% for the second quarter of 2021 as compared to the same period in the prior year.  Growth in insurance expenses and building repairs and maintenance costs contributed to the increase. These changes resulted in a Same Store NOI increase of 3.6% for the second quarter of 2021 as compared to the same period in the prior year.

The Same Store Portfolio revenue growth of 3.0% during the six months ended June 30, 2021 was primarily a result of a 2.2% increase in Average Effective Rent per Unit, as compared to the same period in the prior year. Average Physical Occupancy for the Same Store Portfolio was 96.0% for the six months ended June 30, 2021, as compared to 95.5% in the same period in the prior year.  Same Store Portfolio lease pricing for leases effective during the six months ended June 30, 2021, as compared to the prior lease, increased 4.7% for new leases, increased 7.4% for renewing leases and increased 6.0% for both new and renewing leases on a combined basis.  Property operating expenses for the Same Store Portfolio increased 5.9% for the six months ended June 30, 2021 as compared to the same period in the prior year.  Growth in insurance expenses and building repairs and maintenance costs contributed to the increase.  These changes resulted in a Same Store NOI increase of 1.3% for the six months ended June 30, 2021 as compared to the same period in the prior year.

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

Acquisition and Disposition Activity

In April 2021, MAA closed on the pre-purchase of two multifamily apartment communities located in the Atlanta, Georgia market and the Salt Lake City, Utah market and started development on both properties during the second quarter of 2021.  In June 2021, MAA acquired a 19 acre land parcel located in the Tampa, Florida market for future development.

In June 2021, MAA exited the Jackson, Mississippi market upon closing on the disposition of its four multifamily properties totaling 1,241 apartment units.  MAA received combined gross proceeds of approximately $160 million and recognized combined net gains on the sale of real estate assets of $134.8 million from the sale of these apartment communities.

Development and Lease-up Activity

As of the end of the second quarter of 2021, MAA had eight development communities under construction.  MAA expects to complete construction of three of these development communities in 2021, two in 2022 and three in 2023.  Total development costs for the eight communities are projected to be $627.5 million, of which an estimated $301.3 million remained to be funded as of the end of the second quarter of 2021.  The expected average stabilized NOI yield on these communities is 6.0%. During the second quarter of 2021, MAA funded $55.3 million of costs for current and future projects, including predevelopment activities related to a land parcel located in the Denver, Colorado market.

During the second quarter of 2021, MAA completed construction on Novel Midtown, and that apartment community moved into MAA’s lease-up portfolio. As of the end of the second quarter of 2021, MAA had two apartment communities, representing a total of 693 units, in initial lease-up: MAA Frisco Bridges II, located in Dallas, Texas and Novel Midtown, located in Phoenix, Arizona.  Physical occupancy for these lease-up communities averaged 69.7% at the end of the second quarter of 2021.

Property Redevelopment and Repositioning Activity

MAA continued its interior redevelopment program at select apartment communities throughout the portfolio.  During the second quarter of 2021, MAA redeveloped the interior of 1,836 units, bringing the total renovated units during the six months ended June 30, 2021 to 2,800 at an average cost of $5,634 per unit, achieving average rental rate increases of approximately 11% above non-renovated units.

MAA continued its Smart Home technology initiative (mobile control of lights, thermostat and security, as well as leak monitoring) at select apartment communities.  During the second quarter of 2021, 7,488 units were installed, bringing the total units installed during the six months ended June 30, 2021 to 21,463 at an average cost of $1,323 per unit, achieving an average rental rate increase of approximately $25 per unit.

During the second quarter of 2021, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities.  The program includes targeted plans to move all units at the properties to higher rents that are expected to deliver yields on cost averaging 8%.  Eight properties were selected in 2020 for this program.  As of June 30, 2021, work has been completed at six of these properties with redevelopment work at the remaining two properties expected to be completed by the end of 2021.  For the six months ended June 30, 2021, MAA spent $3.5 million on this program. MAA is currently in the planning phase for similar repositioning projects at eight additional properties, with work likely to commence later in 2021.

Capital Expenditures

Recurring capital expenditures totaled $22.8 million for the second quarter of 2021, or approximately $0.20 per diluted common share and unit (Share), as compared to $25.1 million, or $0.21 per Share, for the same period in the prior year.  These expenditures led to Core Adjusted Funds from Operations (Core AFFO) of $1.49 per Share for the second quarter of 2021, compared to $1.38 per Share for the same period in the prior year.

Redevelopment, revenue enhancing, commercial and other capital expenditures during the second quarter of 2021 were $55.9 million, as compared to $24.8 million for the same period in the prior year. The increase was primarily driven by the investment in the Smart Home technology initiative.  These expenditures led to Funds Available for Distribution (FAD) of $121.0 million for the second quarter of 2021, compared to $139.0 million for the same period in the prior year.

Recurring capital expenditures totaled $35.4 million for the six months ended June 30, 2021, or approximately $0.30 per Share, as compared to $39.7 million, or $0.33 per Share, for the same period in the prior year.  These expenditures led to Core AFFO of $3.03 per Share for the six months ended June 30, 2021, compared to $2.88 per Share for the same period in the prior year.

Redevelopment, revenue enhancing, commercial and other capital expenditures during the six months ended June 30, 2021  were $92.5 million, as compared to $52.6 million for the same period in the prior year. These expenditures led to FAD of $266.3 million for the six months ended June 30, 2021, compared to $287.8 million for the same period in the prior year.

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

Financing Activities

As of June 30, 2021, MAA had $748.4 million of combined cash and available capacity under its operating partnership’s (Mid-America Apartments, L.P., referred to as MAALP or the Operating Partnership) unsecured revolving credit facility, net of commercial paper borrowings.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the second quarter of 2021 were $121.5 million, as compared to $118.4 million for the same period in the prior year.

During the second quarter of 2021, Fitch Ratings affirmed our long-term debt rating as BBB+ and revised our outlook to Positive from Stable.

Balance Sheet

As of June 30, 2021:

• Total debt to adjusted total assets (as defined in the covenants for the bonds issued by MAALP) was 30.6%;
• Total debt outstanding was $4.6 billion with an average effective interest rate of approximately 3.5%;
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• 93.9% of total debt was fixed against rising interest rates for an average of approximately 7.4 years; and
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• Unencumbered NOI was 94.6% of total NOI.
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110th Consecutive Quarterly Common Dividend Declared

MAA declared its 110th consecutive quarterly common dividend, which will be paid on July 30, 2021 to holders of record on July 15, 2021.  The current annual dividend rate is $4.10 per common share.

2021 Earnings and Same Store Portfolio Guidance

MAA is updating and increasing its prior 2021 guidance for Net income per diluted common share, Core FFO per Share and Core AFFO per Share in addition to updating its expectations for growth of Property revenue, Property operating expense and NOI for the Same Store Portfolio.

FFO, Core FFO and Core AFFO are non-GAAP 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 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 further 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.

Earnings: Full Year 2021
Earnings per common share - diluted $3.79 to $3.99
Midpoint $3.89
Core FFO per Share - diluted $6.65 to $6.85
Midpoint $6.75
Core AFFO per Share - diluted $5.97 to $6.17
Midpoint $6.07
MAA Same Store Portfolio:
Property revenue growth 3.75% to 4.25%
Property operating expense growth 4.25% to 4.75%
NOI growth 3.25% to 4.25%

MAA expects Core FFO for the third quarter of 2021 to be in the range of $1.62 to $1.74 per Share, or $1.68 per Share at the midpoint.  MAA does not forecast Net income per diluted 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).

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 second quarter results on July 29, 2021, at 9:00 AM Central Time.  The conference call-in number is 877-830-2598.  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 in the Southeast, Southwest, and Mid-Atlantic regions of the United States.  As of June 30, 2021, MAA had ownership interest in 102,271 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 the potential impact of the ongoing COVID-19 pandemic on our business, 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,” “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:

• the COVID-19 pandemic and measures taken or that may be taken by federal, state and local governmental authorities to combat the spread of the disease;
• 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;
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• exposure to risks inherent in investments in a single industry and sector;
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• 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;
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• 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;
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• unexpected capital needs;
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• material changes in operating costs, including real estate taxes, utilities and insurance costs;
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• inability to obtain appropriate insurance coverage at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverage;
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• ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
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• level and volatility of interest or capitalization rates or capital market conditions;
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• the effect of any rating agency actions on the cost and availability of new debt financing;
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• the effect of the phase-out of the London Interbank Offered Rate (LIBOR) as a variable rate debt benchmark by the end of 2021 and the transition to a different benchmark interest rate;
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• 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;
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• our 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;
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• inability to attract and retain qualified personnel;
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• cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
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• potential liability for environmental contamination;
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• changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;
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• extreme weather, natural disasters, disease outbreak and other public health events;
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• legal proceedings or class action lawsuits;
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• impact of reputational harm caused by negative press of our actions or policies, whether or not warranted;
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• compliance costs associated with numerous federal, state and local laws and regulations; and
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• other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.
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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 June 30, Six months ended June 30,
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2021 2020 2021 2020
Rental and other property revenues $ 436,927 $ 413,026 $ 861,932 $ 831,124
Net income available for MAA common shareholders $ 215,556 $ 74,140 $ 261,827 $ 109,866
Total NOI ^(1)^ $ 268,166 $ 255,555 $ 530,703 $ 520,481
Earnings per common share: ^(2)^
Basic $ 1.88 $ 0.65 $ 2.29 $ 0.96
Diluted $ 1.88 $ 0.65 $ 2.28 $ 0.96
Funds from operations per Share - diluted: ^(2)^
FFO ^(1)^ $ 1.84 $ 1.71 $ 3.34 $ 3.08
Core FFO ^(1)^ $ 1.69 $ 1.59 $ 3.33 $ 3.21
Core AFFO ^(1)^ $ 1.49 $ 1.38 $ 3.03 $ 2.88
Dividends declared per common share $ 1.025 $ 1.000 $ 2.050 $ 2.000
Dividends/Core FFO (diluted) payout ratio 60.7 % 62.9 % 61.6 % 62.3 %
Dividends/Core AFFO (diluted) payout ratio 68.8 % 72.5 % 67.7 % 69.4 %
Consolidated interest expense $ 38,867 $ 42,118 $ 78,539 $ 85,600
Mark-to-market debt adjustment (83 ) 58 (166 ) 92
Debt discount and debt issuance cost amortization (1,248 ) (1,190 ) (2,508 ) (2,380 )
Capitalized interest 2,783 1,628 5,333 3,019
Total interest incurred $ 40,319 $ 42,614 $ 81,198 $ 86,331
Amortization of principal on notes payable $ 329 $ 1,743 $ 844 $ 3,483
^(1)^ A reconciliation of the following items and an expanded discussion of their respective components can be found later in this release: (i) NOI to Net income available for MAA common shareholders; and (ii) FFO, Core FFO and Core AFFO to Net income available for MAA common shareholders.
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^(2)^ See the “Share and Unit Data” section for additional information.
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Dollars in thousands, except share price
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June 30, 2021 December 31, 2020
Gross Assets ^(1)^ $ 14,867,747 $ 14,609,896
Gross Real Estate Assets ^(1)^ $ 14,639,909 $ 14,407,418
Total debt $ 4,553,237 $ 4,562,712
Common shares and units outstanding 118,538,877 118,431,384
Share price $ 168.42 $ 126.69
Book equity value $ 6,142,359 $ 6,103,805
Market equity value $ 19,964,318 $ 15,004,072
Net Debt/Adjusted EBITDAre ^(2)^ 4.75x 4.81x
^(1)^ A reconciliation of Gross Assets to Total assets and Gross Real Estate Assets to Real estate assets, net, along with an expanded discussion of their components, can be found later in this release.
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^(2)^ Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and an expanded discussion of their respective components can be found later in this release: (i) EBITDA, EBITDAre and Adjusted EBITDAre to Net income; and (ii) Net Debt to Unsecured notes payable and Secured notes payable.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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Dollars in thousands, except per share data Three months ended June 30, Six months ended June 30,
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2021 2020 2021 2020
Revenues:
Rental and other property revenues $ 436,927 $ 413,026 $ 861,932 $ 831,124
Expenses:
Operating expenses, excluding real estate taxes and insurance 101,751 95,555 197,712 186,923
Real estate taxes and insurance 67,010 61,916 133,517 123,720
Depreciation and amortization 131,824 127,190 263,327 253,578
Total property operating expenses 300,585 284,661 594,556 564,221
Property management expenses 13,752 11,730 26,691 26,373
General and administrative expenses 13,114 10,557 26,093 23,821
Interest expense 38,867 42,118 78,539 85,600
(Gain) loss on sale of depreciable real estate assets (134,828 ) (2 ) (134,828 ) 27
(Gain) loss on sale of non-depreciable real estate assets (32 ) (5 ) (32 ) 371
Other non-operating (income) expense (20,126 ) (14,643 ) (4,213 ) 13,889
Income before income tax expense 225,595 78,610 275,126 116,822
Income tax expense (2,045 ) (1,200 ) (3,044 ) (1,867 )
Income from continuing operations before real estate joint venture activity 223,550 77,410 272,082 114,955
Income from real estate joint venture 325 318 657 725
Net income 223,875 77,728 272,739 115,680
Net income attributable to noncontrolling interests 7,397 2,666 9,068 3,970
Net income available for shareholders 216,478 75,062 263,671 111,710
Dividends to MAA Series I preferred shareholders 922 922 1,844 1,844
Net income available for MAA common shareholders $ 215,556 $ 74,140 $ 261,827 $ 109,866
Earnings per common share - basic:
Net income available for common shareholders $ 1.88 $ 0.65 $ 2.29 $ 0.96
Earnings per common share - diluted:
Net income available for common shareholders $ 1.88 $ 0.65 $ 2.28 $ 0.96
SHARE AND UNIT DATA
---
Shares and units in thousands Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- ---
2021 2020 2021 2020
Net Income Shares ^(1)^
Weighted average common shares - basic 114,494 114,204 114,379 114,158
Effect of dilutive securities 318 234 311 324
Weighted average common shares - diluted 114,812 114,438 114,690 114,482
Funds From Operations Shares And Units
Weighted average common shares and units - basic 118,411 118,263 118,365 118,220
Weighted average common shares and units - diluted 118,536 118,423 118,496 118,383
Period End Shares And Units
Common shares at June 30, 114,920 114,365 114,920 114,365
Operating Partnership units at June 30, 3,619 4,059 3,619 4,059
Total common shares and units at June 30, 118,539 118,424 118,539 118,424
^(1)^ For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to Consolidated Financial Statements in MAA’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021, expected to be filed with the SEC on or about July 29, 2021.
--- ---
CONSOLIDATED BALANCE SHEETS
---
Dollars in thousands
--- --- --- --- --- --- ---
June 30, 2021 December 31, 2020
Assets
Real estate assets:
Land $ 1,987,412 $ 1,929,181
Buildings and improvements and other 12,246,988 12,065,244
Development and capital improvements in progress 295,645 283,477
14,530,045 14,277,902
Less: Accumulated depreciation (3,625,627 ) (3,415,105 )
10,904,418 10,862,797
Undeveloped land 35,050 60,993
Investment in real estate joint venture 42,933 43,325
Real estate assets, net 10,982,401 10,967,115
Cash and cash equivalents 31,881 25,198
Restricted cash 11,123 10,417
Other assets 216,715 192,061
Total assets $ 11,242,120 $ 11,194,791
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,187,292 $ 4,077,373
Secured notes payable 365,945 485,339
Accrued expenses and other liabilities 546,524 528,274
Total liabilities 5,099,761 5,090,986
Redeemable common stock 21,692 15,397
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,147 1,141
Additional paid-in capital 7,201,885 7,176,793
Accumulated distributions in excess of net income (1,272,694 ) (1,294,182 )
Accumulated other comprehensive loss (11,632 ) (12,128 )
Total MAA shareholders’ equity 5,918,715 5,871,633
Noncontrolling interests - Operating Partnership units 185,340 206,927
Total Company’s shareholders’ equity 6,104,055 6,078,560
Noncontrolling interests - consolidated real estate entities 16,612 9,848
Total equity 6,120,667 6,088,408
Total liabilities and equity $ 11,242,120 $ 11,194,791
RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS
---
Amounts in thousands, except per share and unit data Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2021 2020 2021 2020
Net income available for MAA common shareholders $ 215,556 $ 74,140 $ 261,827 $ 109,866
Depreciation and amortization of real estate assets 130,031 125,668 259,783 250,514
(Gain) loss on sale of depreciable real estate assets (134,828 ) (2 ) (134,828 ) 27
Depreciation and amortization of real estate assets of real estate joint venture 154 153 309 305
Net income attributable to noncontrolling interests 7,397 2,666 9,068 3,970
Funds from operations attributable to the Company 218,310 202,625 396,159 364,682
(Gain) loss on embedded derivative in preferred shares ^(1)^ (13,168 ) (11,693 ) 1,940 15,945
(Gain) loss on sale of non-depreciable real estate assets (32 ) (5 ) (32 ) 371
Gain from unconsolidated limited partnerships, net of tax ^(1)(2)^ (4,962 ) (4,262 ) (6,246 ) (4,185 )
Net casualty (gain) loss and other settlement proceeds ^(3)^ (595 ) (151 ) 1,760 696
Loss (gain) on debt extinguishment ^(1)^ — — 37 (1 )
Non-routine legal costs and settlements ^(1)^ — — (16 ) 40
COVID-19 related costs ^(1)^ 109 2,411 419 2,607
Mark-to-market debt adjustment ^(4)^ 83 (58 ) 166 (92 )
Core funds from operations 199,745 188,867 394,187 380,063
Recurring capital expenditures (22,847 ) (25,118 ) (35,432 ) (39,692 )
Core adjusted funds from operations 176,898 163,749 358,755 340,371
Redevelopment capital expenditures (26,148 ) (10,075 ) (48,880 ) (24,023 )
Revenue enhancing capital expenditures (10,907 ) (8,447 ) (18,086 ) (16,375 )
Commercial capital expenditures (372 ) (1,143 ) (1,426 ) (1,538 )
Other capital expenditures ^(5)^ (18,429 ) (5,086 ) (24,108 ) (10,676 )
Funds available for distribution $ 121,042 $ 138,998 $ 266,255 $ 287,759
Dividends and distributions paid $ 121,492 $ 118,407 $ 242,893 $ 236,744
Weighted average common shares - diluted 114,812 114,438 114,690 114,482
FFO weighted average common shares and units - diluted 118,536 118,423 118,496 118,383
Earnings per common share - diluted:
Net income available for common shareholders $ 1.88 $ 0.65 $ 2.28 $ 0.96
Funds from operations per Share - diluted $ 1.84 $ 1.71 $ 3.34 $ 3.08
Core funds from operations per Share - diluted $ 1.69 $ 1.59 $ 3.33 $ 3.21
Core adjusted funds from operations per Share - diluted $ 1.49 $ 1.38 $ 3.03 $ 2.88
^(1)^ Included in Other non-operating (income) expense in the Consolidated Statements of Operations.
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^(2)^ For the three and six months ended June 30, 2021, $6.3 million and $7.9 million, respectively, of gains from unconsolidated limited partnerships are offset by $1.3 million and $1.7 million, respectively, of income tax expense.  For the three and six months ended June 30, 2020, $5.0 million and $4.9 million, respectively, of gains from unconsolidated limited partnerships are offset by $0.7 million of income tax expense.
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^(3)^ During the six months ended June 30, 2021, MAA incurred $37.3 million in casualty losses related to winter storm Uri (primarily building repairs, landscaping and asset write-offs).  The majority of the storm costs are expected to be reimbursed through insurance coverage.  A receivable has been recognized in Other non-operating (income) expense for the amount of the recorded losses that MAA expects to be recovered.  Additional costs related to the storm that are not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are reflected in this adjustment.  The adjustment is primarily included in Other non-operating (income) expense in the Consolidated Statements of Operations.
--- ---
^(4)^ Included in Interest expense in the Consolidated Statements of Operations.
--- ---
^(5)^ During the three and six months ended June 30, 2021, MAA spent $11.9 million and $14.2 million, respectively, in reconstruction-related capital expenditures due to winter storm Uri.
--- ---
RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS
---
Dollars in thousands Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
June 30,<br><br><br>2021 March 31,<br><br><br>2021 June 30,<br><br><br>2020 June 30,<br><br><br>2021 June 30,<br><br><br>2020
Net Operating Income
Same Store NOI $ 257,071 $ 252,730 $ 248,034 $ 509,801 $ 503,068
Non-Same Store and Other NOI 11,095 9,807 7,521 20,902 17,413
Total NOI 268,166 262,537 255,555 530,703 520,481
Depreciation and amortization (131,824 ) (131,503 ) (127,190 ) (263,327 ) (253,578 )
Property management expenses (13,752 ) (12,939 ) (11,730 ) (26,691 ) (26,373 )
General and administrative expenses (13,114 ) (12,979 ) (10,557 ) (26,093 ) (23,821 )
Interest expense (38,867 ) (39,672 ) (42,118 ) (78,539 ) (85,600 )
Gain (loss) on sale of depreciable real estate assets 134,828 — 2 134,828 (27 )
Gain (loss) on sale of non-depreciable real estate assets 32 — 5 32 (371 )
Other non-operating income (expense) 20,126 (15,913 ) 14,643 4,213 (13,889 )
Income tax expense (2,045 ) (999 ) (1,200 ) (3,044 ) (1,867 )
Income from real estate joint venture 325 332 318 657 725
Net income attributable to noncontrolling interests (7,397 ) (1,671 ) (2,666 ) (9,068 ) (3,970 )
Dividends to MAA Series I preferred shareholders (922 ) (922 ) (922 ) (1,844 ) (1,844 )
Net income available for MAA common shareholders $ 215,556 $ 46,271 $ 74,140 $ 261,827 $ 109,866
RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- ---
June 30, 2021 June 30, 2020 June 30, 2021 December 31, 2020
Net income $ 223,875 $ 77,728 $ 421,075 $ 264,015
Depreciation and amortization 131,824 127,190 520,591 510,842
Interest expense 38,867 42,118 160,501 167,562
Income tax expense 2,045 1,200 4,504 3,327
EBITDA 396,611 248,236 1,106,671 945,746
Gain on sale of depreciable real estate assets (134,828 ) (2 ) (134,863 ) (9 )
Adjustments to reflect the Company’s share of EBITDAre of unconsolidated affiliates 338 336 1,353 1,349
EBITDAre 262,121 248,570 973,161 947,086
Gain on embedded derivative in preferred shares ^(1)^ (13,168 ) (11,693 ) (16,567 ) (2,562 )
Gain on sale of non-depreciable real estate assets (32 ) (5 ) (1,427 ) (1,024 )
Gain from unconsolidated limited partnerships, net of tax ^(1)(2)^ (4,962 ) (4,262 ) (6,817 ) (4,757 )
Net casualty (gain) loss and other settlement proceeds ^(3)^ (595 ) (151 ) 1,548 484
Loss on debt extinguishment ^(1)^ — — 381 344
Non-routine legal costs and settlements ^(1)^ — — (94 ) (38 )
COVID-19 related costs ^(1)^ 109 2,411 1,349 3,536
Mark-to-market debt adjustment ^(4)^ 83 (58 ) 333 75
Adjusted EBITDAre $ 243,556 $ 234,812 $ 951,867 $ 943,144
^(1)^ Included in Other non-operating (income) expense in the Consolidated Statements of Operations.
--- ---
^(2)^ For the three and twelve months ended June 30, 2021, $6.3 million and $8.6 million, respectively, of gains from unconsolidated limited partnerships are offset by $1.3 million and $1.8 million, respectively, of income tax expense.  For the three months ended June 30, 2020, $5.0 million of gains from unconsolidated limited partnerships are offset by $0.7 million of income tax expense.  For the twelve months ended December 31, 2020, $5.6 million of gains from unconsolidated limited partnerships are offset by $0.8 million of income tax expense.
--- ---
^(3)^ During the twelve months ended June 30, 2021, MAA incurred $37.3 million in casualty losses related to winter storm Uri (primarily building repairs, landscaping and asset write-offs).  The majority of the storm costs are expected to be reimbursed through insurance coverage.  A receivable has been recognized in Other non-operating (income) expense for the amount of the recorded losses that MAA expects to be recovered.  Additional costs related to the storm that are not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are reflected in this adjustment.  The adjustment is primarily included in Other non-operating (income) expense in the Consolidated Statements of Operations.
--- ---
^(4)^ Included in Interest expense in the Consolidated Statements of Operations.
--- ---
RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE
---
Dollars in thousands
--- --- --- --- --- --- ---
June 30, 2021 December 31, 2020
Unsecured notes payable $ 4,187,292 $ 4,077,373
Secured notes payable 365,945 485,339
Total debt 4,553,237 4,562,712
Cash and cash equivalents (31,881 ) (25,198 )
Net Debt $ 4,521,356 $ 4,537,514
RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS
---
Dollars in thousands
--- --- --- --- ---
June 30, 2021 December 31, 2020
Total assets $ 11,242,120 $ 11,194,791
Accumulated depreciation 3,625,627 3,415,105
Gross Assets $ 14,867,747 $ 14,609,896
RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
---
Dollars in thousands
--- --- --- --- ---
June 30, 2021 December 31, 2020
Real estate assets, net $ 10,982,401 $ 10,967,115
Accumulated depreciation 3,625,627 3,415,105
Cash and cash equivalents 31,881 25,198
Gross Real Estate Assets $ 14,639,909 $ 14,407,418
NON-GAAP FINANCIAL MEASURES
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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, adjustments for gains or losses from unconsolidated limited partnerships, net casualty gain or loss, gain or loss on debt extinguishment, non-routine legal costs and settlements, COVID-19 related costs and mark-to-market debt adjustments.  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 does not include 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. 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, adjustments for gains or losses from unconsolidated limited partnerships, net casualty gain or loss, gain or loss on debt extinguishment, non-routine legal costs and settlements, COVID-19 related costs and mark-to-market debt adjustments. 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 does not include 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 asset sales and plus adjustments to reflect MAA’s share of EBITDAre of unconsolidated affiliates.  As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre does not include 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 and property acquisitions.  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 total capital expenditures.

NON-GAAP FINANCIAL MEASURES (Continued)

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gains or losses on disposition of operating properties and asset impairment, 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 document, represents FFO attributable to the Company.  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.  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 and Cash and cash equivalents.  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.  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 by market is a helpful tool in evaluating the operating performance within MAA’s markets 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 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 the operating performance within MAA's markets 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 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 the operating performance within MAA’s markets 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.

OTHER KEY DEFINITIONS (Continued)

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 after achieving at least 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 identified for disposition, communities that have undergone a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.

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 after achieving at least 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 undergone a significant casualty loss are also excluded from the Same Store Portfolio.

Unencumbered NOI

Unencumbered NOI represents NOI generated by unencumbered assets (as defined in MAALP’s bond covenants).

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

15

maa-ex992_7.htm

Exhibit 99.2

PORTFOLIO STATISTICS

TOTAL MULTIFAMILY PORTFOLIO AT JUNE 30, 2021 (In apartment units) ^(1)^

Same<br><br><br>Store Non-Same<br><br><br>Store Lease-up Total<br><br><br>Completed<br><br><br>Communities Development<br><br><br>Units<br><br><br>Delivered Total
Atlanta, GA 11,434 — — 11,434 — 11,434
Dallas, TX 9,767 — 348 10,115 — 10,115
Austin, TX 7,117 — — 7,117 — 7,117
Charlotte, NC 5,867 282 — 6,149 — 6,149
Orlando, FL 5,274 — — 5,274 299 5,573
Raleigh/Durham, NC 5,350 — — 5,350 — 5,350
Tampa, FL 5,220 — — 5,220 — 5,220
Houston, TX 4,867 — — 4,867 21 4,888
Fort Worth, TX 4,249 168 — 4,417 — 4,417
Nashville, TN 4,375 — — 4,375 — 4,375
Washington, DC 4,080 — — 4,080 — 4,080
Jacksonville, FL 3,496 — — 3,496 — 3,496
Charleston, SC 3,168 — — 3,168 — 3,168
Phoenix, AZ 2,623 — 345 2,968 — 2,968
Greenville, SC 2,084 271 — 2,355 — 2,355
Savannah, GA 1,837 382 — 2,219 — 2,219
Richmond, VA 2,004 — — 2,004 — 2,004
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
Huntsville, AL 1,228 — — 1,228 — 1,228
Kansas City, MO-KS 1,110 — — 1,110 — 1,110
Other 7,076 549 — 7,625 46 7,671
Total Multifamily Units 97,003 1,652 693 99,348 366 99,714
^(1)^ Schedule excludes a 269 unit joint venture property in Washington, D.C.
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Supplemental Data S-1

PORTFOLIO STATISTICS (CONTINUED)

TOTAL MULTIFAMILY COMMUNITY STATISTICS ^(1)^

Dollars in thousands, except Average Effective Rent per Unit

As of June 30, 2021 Average<br><br><br>Effective As of June 30, 2021
Gross Real<br><br><br>Assets Percent to<br><br><br>Total of<br><br><br>Gross Real<br><br><br>Assets Physical<br><br><br>Occupancy Rent per<br><br><br>Unit for<br><br><br>the Three<br><br><br>Months Ended<br><br><br>June 30, 2021 Completed<br><br><br>Units Total Units,<br><br><br>Including<br><br><br>Development
Atlanta, GA $ 2,017,324 14.2 % 95.2 % $ 1,505 11,434
Dallas, TX 1,429,262 10.1 % 95.6 % 1,314 9,767
Charlotte, NC 977,038 6.9 % 96.4 % 1,271 6,149
Washington, DC 972,514 6.9 % 95.4 % 1,808 4,080
Tampa, FL 887,261 6.3 % 97.0 % 1,583 5,220
Austin, TX 854,206 6.0 % 95.4 % 1,305 7,117
Orlando, FL 835,465 5.9 % 96.0 % 1,484 5,274
Raleigh/Durham, NC 704,914 5.0 % 95.6 % 1,206 5,350
Houston, TX 611,631 4.3 % 95.7 % 1,217 4,867
Nashville, TN 537,741 3.8 % 95.5 % 1,345 4,375
Fort Worth, TX 427,190 3.0 % 96.5 % 1,231 4,417
Charleston, SC 406,918 2.9 % 96.7 % 1,308 3,168
Phoenix, AZ 381,168 2.7 % 96.6 % 1,370 2,623
Jacksonville, FL 293,967 2.1 % 97.3 % 1,211 3,496
Richmond, VA 268,346 1.9 % 96.6 % 1,288 2,004
Savannah, GA 245,982 1.7 % 96.8 % 1,180 2,219
Greenville, SC 229,345 1.6 % 97.0 % 1,045 2,355
Denver, CO 211,666 1.5 % 95.2 % 1,658 812
Kansas City, MO-KS 187,125 1.3 % 96.0 % 1,313 1,110
San Antonio, TX 164,091 1.2 % 96.7 % 1,148 1,504
Birmingham, AL 160,903 1.1 % 96.4 % 1,143 1,462
All Other Markets by State (individual markets <1% gross real assets)
Tennessee $ 186,700 1.3 % 97.3 % $ 1,071 2,754
Florida 178,803 1.3 % 97.1 % 1,422 1,806
Alabama 162,649 1.1 % 97.1 % 1,133 1,648
Virginia 153,990 1.1 % 97.9 % 1,420 1,039
Kentucky 94,499 0.7 % 97.0 % 950 1,308
Nevada 71,551 0.5 % 96.1 % 1,247 721
South Carolina 36,513 0.3 % 93.2 % 972 576
Stabilized Communities $ 13,688,762 96.7 % 96.1 % $ 1,335 98,655
Orlando, FL $ 148,845 1.1 % 12.5 % 2,005 299 633
Phoenix, AZ 102,399 0.7 % 46.7 % 1,715 345 662
Denver, CO 67,748 0.5 % 10.8 % 1,750 46 306
Dallas, TX 65,483 0.5 % 92.5 % 1,566 348 348
Houston, TX 43,711 0.3 % 3.6 % 1,621 21 308
Austin, TX 17,930 0.1 % 350
Atlanta, GA 14,233 0.1 % 340
Salt Lake City, UT 13,015 0.1 % 400
Lease-up / Development Communities $ 473,364 3.3 % 31.3 % $ 1,748 1,059 3,347
Total Multifamily Communities $ 14,162,126 100.0 % 94.7 % $ 1,339 99,714 102,002
^(1)^ Schedule excludes one joint venture property in Washington, D.C.
--- ---

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

As of June 30, 2021 Three Months Ended
Apartment Units Gross Real Assets June 30, 2021 June 30, 2020 Percent<br><br><br>Change
Operating Revenues
Same Store Communities 97,003 $ 13,391,101 $ 417,322 $ 398,722 4.7 %
Non-Same Store Communities 1,652 297,661 11,662 10,106
Lease-up/Development Communities 1,059 473,364 2,039 48
Total Multifamily Portfolio 99,714 $ 14,162,126 $ 431,023 $ 408,876
Commercial Property/Land — 274,747 5,904 4,150
Total Operating Revenues 99,714 $ 14,436,873 $ 436,927 $ 413,026
Property Operating Expenses
Same Store Communities $ 160,251 $ 150,688 6.3 %
Non-Same Store Communities 4,607 4,416
Lease-up/Development Communities 1,481 144
Total Multifamily Portfolio $ 166,339 $ 155,248
Commercial Property/Land 2,422 2,223
Total Property Operating Expenses $ 168,761 $ 157,471
Net Operating Income
Same Store Communities $ 257,071 $ 248,034 3.6 %
Non-Same Store Communities 7,055 5,690
Lease-up/Development Communities 558 (96 )
Total Multifamily Portfolio $ 264,684 $ 253,628
Commercial Property/Land 3,482 1,927
Total Net Operating Income $ 268,166 $ 255,555 4.9 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Six Months Ended
June 30, 2021 June 30, 2020 Percent Change June 30, 2021 June 30, 2020 Percent<br><br><br>Change
Personnel $ 34,834 $ 33,427 4.2 % $ 68,643 $ 66,555 3.1 %
Building Repair and Maintenance 20,735 18,634 11.3 % 37,869 35,299 7.3 %
Utilities 28,619 28,034 2.1 % 57,380 54,725 4.9 %
Marketing 6,068 5,959 1.8 % 11,366 10,632 6.9 %
Office Operations 5,701 4,790 19.0 % 11,290 10,203 10.7 %
Property Taxes 58,751 56,531 3.9 % 116,965 113,051 3.5 %
Insurance 5,543 3,313 67.3 % 11,045 6,559 68.4 %
Total Property Operating Expenses $ 160,251 $ 150,688 6.3 % $ 314,558 $ 297,024 5.9 %

Supplemental Data S-3

NOI CONTRIBUTION PERCENTAGE BY MARKET

Same Store Portfolio

Average Physical Occupancy
Percent of Three Months Ended Six Months Ended
Apartment Units Same Store NOI June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Atlanta, GA 11,434 13.1 % 95.8 % 94.8 % 95.3 % 94.8 %
Dallas, TX 9,767 8.7 % 95.9 % 95.0 % 95.5 % 95.3 %
Tampa, FL 5,220 6.8 % 97.5 % 95.5 % 97.3 % 95.5 %
Charlotte, NC 5,867 6.4 % 96.6 % 95.7 % 96.3 % 96.0 %
Washington, DC 4,080 6.2 % 96.5 % 96.3 % 96.3 % 96.3 %
Orlando, FL 5,274 6.0 % 96.0 % 94.6 % 95.7 % 94.9 %
Austin, TX 7,117 6.0 % 95.9 % 95.3 % 95.6 % 95.6 %
Raleigh/Durham, NC 5,350 5.4 % 96.1 % 96.0 % 95.9 % 96.2 %
Nashville, TN 4,375 4.6 % 95.9 % 95.1 % 95.2 % 95.4 %
Houston, TX 4,867 3.9 % 95.1 % 94.5 % 94.5 % 94.8 %
Fort Worth, TX 4,249 3.9 % 96.6 % 95.6 % 96.1 % 95.3 %
Jacksonville, FL 3,496 3.4 % 97.8 % 96.2 % 97.7 % 96.1 %
Charleston, SC 3,168 3.3 % 96.7 % 95.7 % 96.2 % 95.6 %
Phoenix, AZ 2,623 3.3 % 97.2 % 95.4 % 97.1 % 96.2 %
Richmond, VA 2,004 2.2 % 97.0 % 96.6 % 96.9 % 96.4 %
Savannah, GA 1,837 1.8 % 97.4 % 95.0 % 97.3 % 95.4 %
Greenville, SC 2,084 1.6 % 96.9 % 95.9 % 96.5 % 95.2 %
Memphis, TN 1,811 1.6 % 97.7 % 96.7 % 97.7 % 96.2 %
Birmingham, AL 1,462 1.3 % 96.8 % 96.4 % 96.7 % 96.2 %
Huntsville, AL 1,228 1.2 % 97.6 % 97.2 % 97.2 % 97.2 %
San Antonio, TX 1,504 1.2 % 97.0 % 96.3 % 95.9 % 96.3 %
Kansas City, MO-KS 1,110 1.1 % 95.3 % 95.1 % 94.6 % 95.4 %
Other 7,076 7.0 % 97.1 % 95.2 % 96.7 % 95.3 %
Total Same Store 97,003 100.0 % 96.4 % 95.4 % 96.0 % 95.5 %

Supplemental Data S-4

MULTIFAMILY SAME STORE PORTFOLIO QUARTER OVER QUARTER COMPARISONS

Dollars in thousands, except unit and per unit data

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg
Atlanta, GA 11,434 $ 54,281 $ 52,261 3.9 % $ 20,642 $ 19,782 4.3 % $ 33,639 $ 32,479 3.6 % $ 1,505 $ 1,462 2.9 %
Dallas, TX 9,767 40,743 39,941 2.0 % 18,432 17,592 4.8 % 22,311 22,349 (0.2 )% 1,314 1,302 0.9 %
Tampa, FL 5,220 26,600 24,504 8.6 % 9,191 8,607 6.8 % 17,409 15,897 9.5 % 1,583 1,493 6.0 %
Charlotte, NC 5,867 24,333 23,715 2.6 % 7,887 7,542 4.6 % 16,446 16,173 1.7 % 1,281 1,261 1.6 %
Washington, DC 4,080 23,260 23,170 0.4 % 7,202 6,861 5.0 % 16,058 16,309 (1.5 )% 1,808 1,809 (0.0 )%
Orlando, FL 5,274 25,084 24,040 4.3 % 9,584 9,099 5.3 % 15,500 14,941 3.7 % 1,484 1,468 1.1 %
Austin, TX 7,117 29,701 29,204 1.7 % 14,390 12,901 11.5 % 15,311 16,303 (6.1 )% 1,305 1,277 2.2 %
Raleigh/Durham, NC 5,350 21,056 20,457 2.9 % 7,279 7,257 0.3 % 13,777 13,200 4.4 % 1,206 1,166 3.5 %
Nashville, TN 4,375 18,931 18,089 4.7 % 7,007 6,825 2.7 % 11,924 11,264 5.9 % 1,345 1,311 2.6 %
Houston, TX 4,867 18,984 18,656 1.8 % 8,941 7,682 16.4 % 10,043 10,974 (8.5 )% 1,217 1,223 (0.5 )%
Fort Worth, TX 4,249 17,545 16,656 5.3 % 7,520 7,041 6.8 % 10,025 9,615 4.3 % 1,227 1,179 4.0 %
Jacksonville, FL 3,496 13,480 12,532 7.6 % 4,743 4,443 6.8 % 8,737 8,089 8.0 % 1,211 1,151 5.2 %
Charleston, SC 3,168 13,469 12,587 7.0 % 4,941 4,768 3.6 % 8,528 7,819 9.1 % 1,308 1,238 5.7 %
Phoenix, AZ 2,623 11,627 10,755 8.1 % 3,222 3,055 5.5 % 8,405 7,700 9.2 % 1,370 1,283 6.7 %
Richmond, VA 2,004 8,486 7,966 6.5 % 2,755 2,611 5.5 % 5,731 5,355 7.0 % 1,288 1,219 5.7 %
Savannah, GA 1,837 7,472 6,732 11.0 % 2,905 2,368 22.7 % 4,567 4,364 4.7 % 1,217 1,142 6.6 %
Greenville, SC 2,084 7,013 6,523 7.5 % 2,784 2,712 2.7 % 4,229 3,811 11.0 % 979 938 4.4 %
Memphis, TN 1,811 6,688 6,007 11.3 % 2,510 2,373 5.8 % 4,178 3,634 15.0 % 1,116 1,032 8.2 %
Birmingham, AL 1,462 5,610 5,273 6.4 % 2,229 2,137 4.3 % 3,381 3,136 7.8 % 1,143 1,071 6.7 %
Huntsville, AL 1,228 4,581 4,043 13.3 % 1,395 1,379 1.2 % 3,186 2,664 19.6 % 1,089 984 10.7 %
San Antonio, TX 1,504 5,647 5,444 3.7 % 2,663 2,423 9.9 % 2,984 3,021 (1.2 )% 1,148 1,117 2.8 %
Kansas City, MO-KS 1,110 4,609 4,493 2.6 % 1,736 1,594 8.9 % 2,873 2,899 (0.9 )% 1,313 1,286 2.1 %
Other 7,076 28,122 25,674 9.5 % 10,293 9,636 6.8 % 17,829 16,038 11.2 % 1,222 1,160 5.4 %
Total Same Store 97,003 $ 417,322 $ 398,722 4.7 % $ 160,251 $ 150,688 6.3 % $ 257,071 $ 248,034 3.6 % $ 1,335 $ 1,294 3.1 %

Supplemental Data S-5

MULTIFAMILY SAME STORE PORTFOLIO SEQUENTIAL QUARTER COMPARISONS

Dollars in thousands, except unit and per unit data

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2021 Q1 2021 % Chg Q2 2021 Q1 2021 % Chg Q2 2021 Q1 2021 % Chg Q2 2021 Q1 2021 % Chg
Atlanta, GA 11,434 $ 54,281 $ 53,106 2.2 % $ 20,642 $ 19,807 4.2 % $ 33,639 $ 33,299 1.0 % $ 1,505 $ 1,473 2.1 %
Dallas, TX 9,767 40,743 39,920 2.1 % 18,432 18,140 1.6 % 22,311 21,780 2.4 % 1,314 1,292 1.7 %
Tampa, FL 5,220 26,600 25,872 2.8 % 9,191 9,115 0.8 % 17,409 16,757 3.9 % 1,583 1,534 3.2 %
Charlotte, NC 5,867 24,333 23,770 2.4 % 7,887 7,304 8.0 % 16,446 16,466 (0.1 )% 1,281 1,254 2.1 %
Washington, DC 4,080 23,260 22,977 1.2 % 7,202 7,300 (1.3 )% 16,058 15,677 2.4 % 1,808 1,789 1.1 %
Orlando, FL 5,274 25,084 24,598 2.0 % 9,584 9,193 4.3 % 15,500 15,405 0.6 % 1,484 1,454 2.1 %
Austin, TX 7,117 29,701 28,955 2.6 % 14,390 13,530 6.4 % 15,311 15,425 (0.7 )% 1,305 1,272 2.6 %
Raleigh/Durham, NC 5,350 21,056 20,845 1.0 % 7,279 6,770 7.5 % 13,777 14,075 (2.1 )% 1,206 1,183 2.0 %
Nashville, TN 4,375 18,931 18,302 3.4 % 7,007 6,697 4.6 % 11,924 11,605 2.7 % 1,345 1,313 2.5 %
Houston, TX 4,867 18,984 18,523 2.5 % 8,941 8,359 7.0 % 10,043 10,164 (1.2 )% 1,217 1,206 0.9 %
Fort Worth, TX 4,249 17,545 17,016 3.1 % 7,520 7,307 2.9 % 10,025 9,709 3.3 % 1,227 1,198 2.4 %
Jacksonville, FL 3,496 13,480 13,134 2.6 % 4,743 4,574 3.7 % 8,737 8,560 2.1 % 1,211 1,180 2.6 %
Charleston, SC 3,168 13,469 13,057 3.2 % 4,941 4,708 4.9 % 8,528 8,349 2.1 % 1,308 1,271 2.9 %
Phoenix, AZ 2,623 11,627 11,262 3.2 % 3,222 3,126 3.1 % 8,405 8,136 3.3 % 1,370 1,328 3.1 %
Richmond, VA 2,004 8,486 8,282 2.5 % 2,755 2,770 (0.5 )% 5,731 5,512 4.0 % 1,288 1,256 2.5 %
Savannah, GA 1,837 7,472 7,155 4.4 % 2,905 2,715 7.0 % 4,567 4,440 2.9 % 1,217 1,172 3.9 %
Greenville, SC 2,084 7,013 6,846 2.4 % 2,784 2,615 6.5 % 4,229 4,231 (0.0 )% 979 961 1.9 %
Memphis, TN 1,811 6,688 6,442 3.8 % 2,510 2,575 (2.5 )% 4,178 3,867 8.0 % 1,116 1,077 3.6 %
Birmingham, AL 1,462 5,610 5,529 1.5 % 2,229 2,164 3.0 % 3,381 3,365 0.5 % 1,143 1,109 3.1 %
Huntsville, AL 1,228 4,581 4,435 3.3 % 1,395 1,499 (6.9 )% 3,186 2,936 8.5 % 1,089 1,054 3.3 %
San Antonio, TX 1,504 5,647 5,377 5.0 % 2,663 2,371 12.3 % 2,984 3,006 (0.7 )% 1,148 1,128 1.8 %
Kansas City, MO-KS 1,110 4,609 4,501 2.4 % 1,736 1,688 2.8 % 2,873 2,813 2.1 % 1,313 1,291 1.7 %
Other 7,076 28,122 27,133 3.6 % 10,293 9,980 3.1 % 17,829 17,153 3.9 % 1,222 1,187 2.9 %
Total Same Store 97,003 $ 417,322 $ 407,037 2.5 % $ 160,251 $ 154,307 3.9 % $ 257,071 $ 252,730 1.7 % $ 1,335 $ 1,305 2.3 %

Supplemental Data S-6

MULTIFAMILY SAME STORE PORTFOLIO YEAR TO DATE COMPARISONS AS OF JUNE 30, 2021 AND 2020

Dollars in thousands, except unit and per unit data

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg Q2 2021 Q2 2020 % Chg
Atlanta, GA 11,434 $ 107,387 $ 105,005 2.3 % $ 40,449 $ 39,114 3.4 % $ 66,938 $ 65,891 1.6 % $ 1,489 $ 1,463 1.7 %
Dallas, TX 9,767 80,663 80,144 0.6 % 36,572 34,541 5.9 % 44,091 45,603 (3.3 )% 1,303 1,301 0.2 %
Tampa, FL 5,220 52,472 49,289 6.5 % 18,306 17,213 6.3 % 34,166 32,076 6.5 % 1,558 1,489 4.6 %
Charlotte, NC 5,867 48,103 47,605 1.0 % 15,191 14,537 4.5 % 32,912 33,068 (0.5 )% 1,268 1,258 0.7 %
Washington, DC 7,117 46,237 46,398 (0.3 )% 14,502 13,929 4.1 % 31,735 32,469 (2.3 )% 1,799 1,805 (0.3 )%
Orlando, FL 5,274 49,682 48,675 2.1 % 18,777 17,965 4.5 % 30,905 30,710 0.6 % 1,469 1,467 0.1 %
Austin, TX 4,080 58,656 58,658 (0.0 )% 27,920 25,580 9.1 % 30,736 33,078 (7.1 )% 1,288 1,271 1.3 %
Raleigh/Durham, NC 4,375 41,901 40,858 2.6 % 14,049 13,771 2.0 % 27,852 27,087 2.8 % 1,195 1,160 3.0 %
Nashville, TN 5,350 37,233 36,329 2.5 % 13,704 12,860 6.6 % 23,529 23,469 0.3 % 1,329 1,306 1.8 %
Houston, TX 4,867 37,507 37,476 0.1 % 17,300 16,007 8.1 % 20,207 21,469 (5.9 )% 1,211 1,222 (0.8 )%
Fort Worth, TX 4,249 34,561 33,259 3.9 % 14,827 13,717 8.1 % 19,734 19,542 1.0 % 1,212 1,175 3.2 %
Jacksonville, FL 3,496 26,614 25,153 5.8 % 9,317 8,725 6.8 % 17,297 16,428 5.3 % 1,196 1,147 4.2 %
Charleston, SC 2,623 26,526 25,123 5.6 % 9,649 9,342 3.3 % 16,877 15,781 6.9 % 1,289 1,232 4.6 %
Phoenix, AZ 3,168 22,889 21,519 6.4 % 6,348 5,996 5.9 % 16,541 15,523 6.6 % 1,349 1,278 5.5 %
Richmond, VA 2,004 16,768 15,832 5.9 % 5,525 5,142 7.4 % 11,243 10,690 5.2 % 1,272 1,216 4.6 %
Savannah, GA 1,837 14,627 13,578 7.7 % 5,620 4,888 15.0 % 9,007 8,690 3.6 % 1,195 1,140 4.8 %
Greenville, SC 2,084 13,859 12,989 6.7 % 5,399 5,196 3.9 % 8,460 7,793 8.6 % 970 934 3.8 %
Memphis, TN 1,811 13,130 11,968 9.7 % 5,085 4,739 7.3 % 8,045 7,229 11.3 % 1,096 1,025 7.0 %
Birmingham, AL 1,462 11,139 10,562 5.5 % 4,393 4,168 5.4 % 6,746 6,394 5.5 % 1,126 1,071 5.1 %
Huntsville, AL 1,110 9,016 8,023 12.4 % 2,894 2,691 7.5 % 6,122 5,332 14.8 % 1,072 974 10.1 %
San Antonio, TX 1,504 11,024 10,935 0.8 % 5,034 4,804 4.8 % 5,990 6,131 (2.3 )% 1,138 1,118 1.8 %
Kansas City, MO-KS 1,228 9,110 8,992 1.3 % 3,424 3,221 6.3 % 5,686 5,771 (1.5 )% 1,302 1,282 1.6 %
Other 7,076 55,255 51,722 6.8 % 20,273 18,878 7.4 % 34,982 32,844 6.5 % 1,205 1,155 4.3 %
Total Same Store 97,003 $ 824,359 $ 800,092 3.0 % $ 314,558 $ 297,024 5.9 % $ 509,801 $ 503,068 1.3 % $ 1,320 $ 1,291 2.2 %

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of
June 30, 2021 Projected Development Costs
Initial
Start Occupancy Completion Stabilization Total Thru
Location Total Delivered Leased Date Date Date Date ^(1)^ Cost Q2 2021 After
MAA Westglenn Denver, CO 306 46 73 3Q19 2Q21 4Q21 4Q22 84,500 67,748 16,752
MAA Robinson Orlando, FL 369 158 84 3Q19 2Q21 4Q21 1Q23 99,000 88,713 10,287
Sand Lake ^(2)^ Orlando, FL 264 141 99 4Q19 2Q21 4Q21 1Q23 68,000 60,132 7,868
MAA Park Point Houston, TX 308 21 27 4Q19 2Q21 1Q22 1Q23 57,000 43,711 13,289
MAA Windmill Hill Austin, TX 350 — — 4Q20 1Q22 3Q22 4Q23 63,000 17,930 45,070
Novel Val Vista ^(3)^ Phoenix, AZ 317 — — 4Q20 3Q22 1Q23 2Q24 72,500 20,700 51,800
Novel West Midtown ^(3)^ Atlanta, GA 340 — — 2Q21 4Q22 3Q23 3Q24 89,500 14,233 75,267
Novel Daybreak ^(3)^ Salt Lake City, UT 400 — — 2Q21 4Q22 3Q23 4Q24 94,000 13,015 80,985
Total Active 2,654 366 283 $ 627,500 $ 326,182 $ 301,318

^(1)^Communities are considered stabilized after achieving 90% average physical occupancy for 90 days.

^(2)^MAA owns 95% of the joint venture that owns this property.

^(3^^)^MAA owns 80% of the joint venture that owns this property.

MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Six months ended June 30, 2021
Units Redeveloped Redevelopment Spend Spend per Unit Increase in Average Effective Rent per Unit Increase in Average Effective Rent per Unit Estimated Units Remaining in Pipeline
2,800 $ 15,775 $ 5,634 $ 132 11.3% 8,000  -  11,000
MULTIFAMILY LEASE-UP COMMUNITIES
---

Dollars in thousands

As of June 30, 2021
Location Total Units Percent Occupied Construction Finished Expected Stabilization ^(1)^ Total Cost
MAA Frisco Bridges II Dallas, TX 348 92.5% 1Q21 3Q21 $ 65,483
Novel Midtown ^(2)^ Phoenix, AZ 345 46.7% 2Q21 2Q22 $ 81,699
Total 693 69.7% $ 147,182

^(1)^Communities are considered stabilized after achieving 90% average physical occupancy for 90 days.

^(^^2^^)^MAA owns 80% of the joint venture that owns this property.

2021 ACQUISITION ACTIVITY (THROUGH JUNE 30, 2021)
Multifamily Development Acquisition ^(1)^ Market Apartment Units Projected Completion Date Closing Date
--- --- --- --- --- ---
Novel Daybreak Salt Lake City, UT 400 3Q23 April 2021
Novel West Midtown Atlanta, GA 340 3Q23 April 2021

^(1)^MAA owns 80% of the joint ventures that own these properties.

Land Acquisition Market Acreage Closing Date
MAA Westshore Tampa, FL 19 June 2021
2021 DISPOSITION ACTIVITY (THROUGH JUNE 30, 2021)
---
Multifamily Disposition Market Apartment Units Closing Date
--- --- --- --- ---
Crosswinds Jackson, MS 360 June 2021
Pear Orchard Jackson, MS 389 June 2021
Reflection Pointe Jackson, MS 296 June 2021
Lakeshore Landing Jackson, MS 196 June 2021

Supplemental Data S-8

DEBT AND DEBT COVENANTS AS OF JUNE 30, 2021

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Debt Balance Percent of Total Effective Interest Rate Average Years to Rate Maturity
Fixed rate debt $ 4,273,237 93.9 % 3.7 % 7.4
Floating rate debt 280,000 6.1 % 0.2 % 0.1
Total $ 4,553,237 100.0 % 3.5 % 7.0
Unsecured Versus Secured Debt Balance Percent of Total Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,187,292 92.0 % 3.4 % 5.2
Secured debt 365,945 8.0 % 4.4 % 27.2
Total $ 4,553,237 100.0 % 3.5 % 7.0
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q2 2021 NOI Percent of Total
Unencumbered gross assets $ 13,713,470 92.2 % $ 253,672 94.6 %
Encumbered gross assets 1,154,277 7.8 % 14,494 5.4 %
Total $ 14,867,747 100.0 % $ 268,166 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Effective Rate
2021 $ 72,750 5.4 %
2022 366,368 3.6 %
2023 360,733 4.2 %
2024 417,581 4.0 %
2025 402,730 4.2 %
2026 — —
2027 595,369 3.7 %
2028 395,782 4.2 %
2029 561,082 3.7 %
2030 297,023 3.1 %
Thereafter 803,819 3.0 %
Total $ 4,273,237 3.7 %

Supplemental Data S-9

DEBT AND DEBT COVENANTS AS OF JUNE 30, 2021 (CONTINUED)

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾ Public Bonds Other<br><br><br>Unsecured Secured Total
2021 $ 280,000 $ — $ 72,750 $ — $ 352,750
2022 — 249,465 116,903 — 366,368
2023 — 348,497 12,236 — 360,733
2024 — 397,615 19,966 — 417,581
2025 — 396,611 — 6,119 402,730
2026 — — — — —
2027 — 595,369 — — 595,369
2028 — 395,782 — — 395,782
2029 — 561,082 — — 561,082
2030 — 297,023 — — 297,023
Thereafter — 443,993 — 359,826 803,819
Total $ 280,000 $ 3,685,437 $ 221,855 $ 365,945 $ 4,553,237
^(1)^ The $280.0 million maturing in 2021 reflects the principal outstanding on MAALP’s unsecured commercial paper program as of June 30, 2021. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $500.0 million.  For the three months ended June 30, 2021, average daily borrowings outstanding under the commercial paper program were $401.8 million.
--- ---
^(2)^ There were no borrowings outstanding under MAALP’s $1.0 billion unsecured revolving credit facility as of June 30, 2021. The unsecured revolving credit facility has a maturity date of May 2023 with two six-month extensions.
--- ---

DEBT COVENANT ANALYSIS ^(1)^

Bond Covenants Required Actual Compliance
Total debt to adjusted total assets 60% or less 30.6% Yes
Total secured debt to adjusted total assets 40% or less 2.5% Yes
Consolidated income available for debt service to total annual debt service charge 1.5x or greater for trailing 4 quarters 5.6x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 327% Yes
Bank Covenants Required Actual Compliance
Total debt to total capitalized asset value 60% or less 27.1% Yes
Total secured debt to total capitalized asset value 40% or Less 2.3% Yes
Total adjusted EBITDA to fixed charges 1.5x or greater for trailing 4 quarters 5.6x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 26.0% Yes

^(^^1)^The calculations of the Bond Covenants and Bank Covenants are specifically defined in MAALP’s debt agreements.

Supplemental Data S-10

2021 GUIDANCE

MAA provides guidance on expected Core FFO per Share and Core AFFO per Share, which are non-GAAP measures, along with guidance for expected Net income per diluted common share.  A reconciliation of expected Net income per diluted common share to expected Core FFO per Share and Core AFFO per Share is provided below.

Full Year 2021
Earnings:
Earnings per common share - diluted 3.79 to 3.99
Midpoint 3.89
Core FFO per Share - diluted 6.65 to 6.85
Midpoint 6.75
Core AFFO per Share - diluted 5.97 to 6.17
Midpoint 6.07
MAA Same Store Portfolio:
Number of units
Average physical occupancy 95.70% to 96.10%
Property revenue growth 3.75% to 4.25%
Full year effective blended lease-over-lease pricing 6.50% to 7.50%
Property operating expense growth 4.25% to 4.75%
NOI growth 3.25% to 4.25%
Real estate tax expense growth 3.25% to 4.25%
Corporate Expenses:
General and administrative expenses 51.0 to 53.0 million
Property management expenses 55.0 to 57.0 million
Total overhead 106.0 to 110.0 million
Transaction/Investment Volume:
Multifamily acquisition volume
Multifamily disposition volume 225.0 to 275.0 million
Development investment 250.0 to 350.0 million
Debt:
Average effective interest rate 3.4% to 3.6%
Capitalized interest 8.5 to 9.5 million
Diluted FFO Shares Outstanding:
Diluted common shares and units 118.5 million to 119.0 million

All values are in US Dollars.

RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2021 GUIDANCE
Full Year 2021 Guidance Range
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Low High
Earnings per common share - diluted $ 3.79 $ 3.99
Real estate depreciation and amortization 4.39 4.39
Gains on sale of depreciable assets (1.66 ) (1.66 )
FFO per Share - diluted 6.52 6.72
Non-Core FFO items ^(1)^ 0.13 0.13
Core FFO per Share - diluted 6.65 6.85
Recurring capital expenditures (0.68 ) (0.68 )
Core AFFO per Share - diluted $ 5.97 $ 6.17
^(1)^ 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, adjustments for gains or losses from unconsolidated limited partnerships, net casualty gain or loss, gain or loss on debt extinguishment, non-routine legal costs and settlements, COVID-19 related costs, and mark-to-market debt adjustments.
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CREDIT RATINGS
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Commercial Long-Term
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Paper Rating Debt Rating Outlook
Fitch Ratings ^(1)^ F2 BBB+ Positive
Moody’s Investors Service ^(2)^ P-2 Baa1 Stable
Standard & Poor’s Ratings Services ^(1)^ A-2 BBB+ Stable
^(1)^ Corporate credit rating assigned to MAA and MAALP
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^(2)^ Corporate credit rating assigned to MAALP
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COMMON STOCK
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Stock Symbol: MAA
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Exchange Traded: NYSE
Estimated Future Dates: Q3 2021 Q4 2021 Q1 2022 Q2 2022
Earnings release & conference call Late<br><br><br>October Late<br><br><br>January Late<br><br><br>April Late<br><br><br>July
Dividend Information - Common Shares: Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Declaration date 5/19/2020 9/24/2020 12/8/2020 3/23/2021 5/18/2021
Record date 7/15/2020 10/15/2020 1/15/2021 4/15/2021 7/15/2021
Payment date 7/31/2020 10/30/2020 1/29/2021 4/30/2021 7/30/2021
Distributions per share $ 1.0000 $ 1.0000 $ 1.0250 $ 1.0250 $ 1.0250
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:
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Name Title
Tim Argo Senior Vice President, Director of Finance
Jennifer Patrick Director of Investor Relations
Phone: 866-576-9689 (toll free)
Email: investor.relations@maac.com

Supplemental Data S-11

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