Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2023-10-25 For: 2023-10-25
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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 25, 2023

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 25, 2023, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of September 30, 2023 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 certain information with respect to its acquisition activities in October 2023. 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 25, 2023
99.2 Supplemental Data Schedules dated October 25, 2023
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 25, 2023 /s/Albert M. Campbell, III
Albert M. Campbell, III
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 25, 2023 /s/Albert M. Campbell, III
Albert M. Campbell, III
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
2023 Acquisition Activity (Through September 30, 2023)/2023 Disposition Activity (Through September 30, 2023) S-9
Debt and Debt Covenants as of September 30, 2023 S-9
2023 Guidance/Reconciliation of Earnings per Common Share to Core FFO and Core AFFO per Share for 2023 Guidance S-11
Credit Ratings/Common Stock/Investor Relations Data S-12
EARNINGS RELEASE
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MAA REPORTS THIRD QUARTER 2023 RESULTS

GERMANTOWN, TN, October 25, 2023/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended September 30, 2023.

Third Quarter 2023 Operating Results Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
Earnings per common share - diluted $ 0.94 $ 1.05 $ 3.34 $ 3.82
Funds from operations (FFO) per Share - diluted $ 2.16 $ 2.19 $ 6.85 $ 6.08
Core FFO per Share - diluted $ 2.29 $ 2.19 $ 6.85 $ 6.18

A reconciliation of FFO and Core FFO to Net income available for MAA common shareholders, 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, “Third quarter results were ahead of our expectations supported by the continued solid demand for apartment housing. Stable employment conditions along with continued positive migration trends to our markets and historically low resident move-outs are combining to drive solid demand. The delivery of new apartment supply is currently impacting rent growth performance associated with new move-in residents, and we expect this pressure to persist for another few quarters. The volume of new apartment starts has begun to decline, and we expect that leasing conditions will be supportive of higher rent growth in late 2024 as markets absorb the current development pipeline. MAA’s uniquely diversified portfolio, along with a strong operating platform and balance sheet, is well positioned to work through the current new supply pipeline, as well as pursue new growth opportunities that are emerging.”

Highlights

• During the third quarter of 2023, MAA’s Same Store Portfolio produced growth in revenues of 4.1%, as compared to the same period in the prior year, with Average Effective Rent per Unit up 4.5% while capturing strong Average Physical Occupancy of 95.7%.

• During the third quarter of 2023, MAA’s Same Store Portfolio property operating expense and Net Operating Income (NOI) increased by 4.7% and 3.7%, respectively, as compared to the same period in the prior year.

• As of September 30, 2023, resident turnover remained low at 45.2% on a trailing 12 month basis driven by historically low levels of move-outs associated with buying single family-homes.

• As of the end of the third quarter of 2023, MAA had five communities under development, representing 1,970 units once complete, with a projected total cost of $642.7 million and an estimated $296.4 million remaining to be funded.

• As of the end of the third quarter of 2023, MAA had two recently completed development communities in lease-up. One community is expected to stabilize in the fourth quarter of 2023 and one in the third quarter of 2024.

• MAA completed the redevelopment of 2,258 apartment homes during the third quarter of 2023, capturing average rental rate increases of approximately 7% above non-renovated units.

• Subsequent to the end of the third quarter of 2023, MAA acquired a 323-unit multifamily community located in the Phoenix, Arizona market.

• MAA’s balance sheet remains strong with a historically low Net Debt/Adjusted EBITDAre ratio of 3.4x and $1.4 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of September 30, 2023.

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, 2023 as compared to the same period in the prior year are summarized below:

Three months ended September 30, 2023 vs. 2022 Nine months ended September 30, 2023 vs. 2022
Revenues Expenses NOI Average Effective Rent per Unit Revenues Expenses NOI Average Effective Rent per Unit
Same Store Operating Growth 4.1% 4.7% 3.7% 4.5% 7.6% 6.7% 8.2% 8.7%

A reconciliation of NOI, including Same Store NOI, to Net income available for MAA common shareholders, 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, 2023 are summarized below:

Three months ended September 30, 2023 Nine months ended September 30, 2023 September 30, 2023
Average Effective Rent per Unit Average Physical Occupancy Average Effective Rent per Unit Average Physical Occupancy Resident Turnover
Same Store Operating Statistics $ 1,690 95.7% $ 1,673 95.6% 45.2%

Same Store Portfolio lease pricing for both new and renewing leases effective during the third quarter of 2023, on a blended basis, increased 1.6% as compared to the prior lease, driven by a 5.0% increase for renewing leases and a 2.2% decrease for leases to new move-in residents.

Same Store Portfolio lease pricing for both new and renewing leases effective during the nine months ended September 30, 2023, on a blended basis, increased 2.9% as compared to the prior lease, driven by a 6.4% increase for renewing leases and a 0.8% decrease for leases to new move-in residents.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the third quarter of 2023 is set forth below (dollars in thousands):

Units as of Development Costs as of Expected Project
Total September 30, 2023 September 30, 2023 Completions By Year
Development Expected Spend Expected
Projects (1) Total Delivered Leased Total to Date Remaining 2023 2024 2025
5 1,970 182 130 $ 642,700 $ 346,264 $ 296,436 — 3 2

(1) Three of the development projects are currently leasing or are expected to begin leasing during the fourth quarter of 2023.

During the third quarter of 2023, MAA funded $47.0 million of costs for current and planned projects, including predevelopment activities. MAA expects to begin multifamily development projects on four to six land parcels currently owned or under contract over the next 18 to 24 months.

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 2023 is set forth below (dollars in thousands):

Total As of September 30, 2023
Lease-Up Total Physical Spend
Projects (1) Units Occupancy to Date
2 690 60.1% $ 150,071

(1) One of the lease-up projects is expected to stabilize in the fourth quarter of 2023.

The current expected average stabilized NOI yield on the five communities either currently leasing or expected to begin leasing during the fourth quarter of 2023 is 6.7%.

Acquisition Activity

In October 2023, MAA acquired a 323-unit multifamily community currently in lease-up and located in the Phoenix, Arizona market for approximately $102 million.

Property Redevelopment and Repositioning Activity

A summary of MAA’s interior redevelopment program and Smart Home technology initiative as of the end of the third quarter of 2023 is set forth below:

As of September 30, 2023
Units Units Average Cost Increase in Average Remaining Units
Completed Completed per Unit Effective Rent per Unit Expected to be Completed
QTD YTD YTD YTD Through December 31, 2023
Redevelopment 2,258 5,464 $ 6,190 $ 101 900 - 1,500
Smart Home 413 20,943 $ 1,425 $ 20 (1) 500 - 1,000

(1) Projected increase upon lease renewal, opt in or unit turnover.

As of September 30, 2023, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 92,000 units across its apartment community portfolio since the initiative began during the first quarter of 2019.

During the third quarter of 2023, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities resulting in higher and above market rent growth. The five active projects during the nine months ended September 30, 2023 are expected to deliver yields on cost averaging 8%. Two of the five projects are complete with the remainder expected to be completed in the fourth quarter of 2023. An additional six projects are expected to start in the fourth quarter of 2023. For the nine months ended September 30, 2023, MAA spent $9.7 million on this program. As of September 30, 2023, for all projects completed and either fully or partially repriced, MAA has captured yields on cost averaging approximately 15%.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and nine months ended September 30, 2023 and 2022 is set forth below (dollars in millions, except per Share data):

Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
Core FFO $ 274.9 $ 259.5 $ 820.4 $ 733.5
Recurring capital expenditures (36.4 ) (38.7 ) (85.4 ) (84.3 )
Core adjusted FFO (Core AFFO) 238.5 220.8 735.0 649.2
Redevelopment, revenue enhancing, commercial and other capital expenditures (47.5 ) (47.0 ) (156.3 ) (132.9 )
FAD $ 191.0 $ 173.8 $ 578.7 $ 516.3
Core FFO per Share - diluted $ 2.29 $ 2.19 $ 6.85 $ 6.18
Core AFFO per Share - diluted $ 1.99 $ 1.86 $ 6.14 $ 5.47

A reconciliation of FFO, Core FFO, Core AFFO and FAD to Net income available for MAA common shareholders, 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, 2023, MAA had $1.4 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility. MAALP refers to Mid-America Apartments, L.P., which is MAA's operating partnership.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2023 were $167.8 million, as compared to $148.3 million for the same period in the prior year.

Balance sheet highlights as of September 30, 2023 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
27.3% 3.4x $ 4.4 3.4% 100.0% 7.2

(1) As defined in the covenants for the bonds issued by MAALP.

(2) Adjusted EBITDAre is calculated for the trailing twelve month period ended September 30, 2023.

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

119th Consecutive Quarterly Common Dividend Declared

MAA declared its 119th consecutive quarterly common dividend, which will be paid on October 31, 2023 to holders of record on October 13, 2023. The current annual dividend rate is $5.60 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.

2023 Earnings and Same Store Portfolio Guidance

MAA is updating its prior 2023 guidance for Earnings per common share, Core FFO per Share and Core AFFO per Share, along with its expectations for growth in Property revenue, Property operating expense and NOI for the Same Store Portfolio in 2023.

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.

2023 Guidance Previous Range Previous Midpoint Revised Range Revised Midpoint
Earnings: Full Year 2023 Full Year 2023 Full Year 2023 Full Year 2023
Earnings per common share - diluted $5.04 to $5.32 $5.18 $4.36 to $4.52 $4.44
Core FFO per Share - diluted $9.00 to $9.28 $9.14 $9.06 to $9.22 $9.14
Core AFFO per Share - diluted $8.08 to $8.36 $8.22 $8.14 to $8.30 $8.22
MAA Same Store Portfolio:
Property revenue growth 5.50% to 7.00% 6.25% 5.75% to 6.75% 6.25%
Property operating expense growth 5.30% to 6.80% 6.05% 6.00% to 7.00% 6.50%
NOI growth 5.60% to 7.10% 6.35% 5.50% to 6.50% 6.00%

MAA expects Core FFO for the fourth quarter of 2023 to be in the range of $2.21 to $2.37 per Share, or $2.29 per Share at the midpoint. MAA does not forecast Earnings per 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 26, 2023, at 9:00 AM Central Time. The conference call-in number is 877-830-2597. 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, 2023, MAA had ownership interest in 101,987 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, or losses from catastrophes in excess of our insurance coverage;

• 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,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Rental and other property revenues $ 542,042 $ 520,783 $ 1,606,221 $ 1,491,901
Net income available for MAA common shareholders $ 109,810 $ 121,389 $ 389,564 $ 441,049
Total NOI (1) $ 342,819 $ 329,360 $ 1,029,862 $ 949,381
Earnings per common share: (2)
Basic $ 0.94 $ 1.05 $ 3.34 $ 3.82
Diluted $ 0.94 $ 1.05 $ 3.34 $ 3.82
Funds from operations per Share - diluted: (2)
FFO (1) $ 2.16 $ 2.19 $ 6.85 $ 6.08
Core FFO (1) $ 2.29 $ 2.19 $ 6.85 $ 6.18
Core AFFO (1) $ 1.99 $ 1.86 $ 6.14 $ 5.47
Dividends declared per common share $ 1.4000 $ 1.2500 $ 4.2000 $ 3.5875
Dividends/Core FFO (diluted) payout ratio 61.1 % 57.1 % 61.3 % 58.1 %
Dividends/Core AFFO (diluted) payout ratio 70.4 % 67.2 % 68.4 % 65.6 %
Consolidated interest expense $ 36,651 $ 38,637 $ 110,655 $ 116,663
Mark-to-market debt adjustment — (19 ) 25 (90 )
Debt discount and debt issuance cost amortization (1,501 ) (1,510 ) (4,562 ) (4,457 )
Capitalized interest 3,182 2,253 9,065 6,146
Total interest incurred $ 38,332 $ 39,361 $ 115,183 $ 118,262
Amortization of principal on notes payable $ 124 $ 352 $ 854 $ 1,043

(1) A reconciliation of the following items and 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.

(2) See the “Share and Unit Data” section for additional information.

Dollars in thousands, except share price
September 30, 2023 December 31, 2022
Gross Assets (1) $ 16,107,421 $ 15,543,912
Gross Real Estate Assets (1) $ 15,878,181 $ 15,336,793
Total debt $ 4,394,263 $ 4,414,903
Common shares and units outstanding 119,834,510 118,645,269
Share price $ 128.65 $ 156.99
Book equity value $ 6,321,622 $ 6,210,419
Market equity value $ 15,416,710 $ 18,626,121
Net Debt/Adjusted EBITDAre (2) 3.4x 3.7x

(1) A reconciliation of Gross Assets to Total assets and Gross Real Estate Assets to Real estate assets, net, along with discussion of their components, can be found later in this release.

(2) 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) Net Debt to Unsecured notes payable and Secured notes payable; and (ii) EBITDA, EBITDAre and Adjusted EBITDAre to Net income.

CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data (Unaudited) Three months ended September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Revenues:
Rental and other property revenues $ 542,042 $ 520,783 $ 1,606,221 $ 1,491,901
Expenses:
Operating expenses, excluding real estate taxes and insurance 122,660 117,390 347,868 328,514
Real estate taxes and insurance 76,563 74,033 228,491 214,006
Depreciation and amortization 146,702 136,879 424,175 404,761
Total property operating expenses 345,925 328,302 1,000,534 947,281
Property management expenses 16,298 16,262 50,317 48,429
General and administrative expenses 13,524 12,188 43,329 44,091
Interest expense 36,651 38,637 110,655 116,663
Loss (gain) on sale of depreciable real estate assets 75 1 61 (131,963 )
Gain on sale of non-depreciable real estate assets — (431 ) (54 ) (809 )
Other non-operating expense (income) 16,493 1,718 (3,966 ) 19,248
Income before income tax benefit (expense) 113,076 124,106 405,345 448,961
Income tax benefit (expense) 209 1,256 (3,596 ) 5,750
Income from continuing operations before real estate joint venture activity 113,285 125,362 401,749 454,711
Income from real estate joint venture 447 341 1,214 1,129
Net income 113,732 125,703 402,963 455,840
Net income attributable to noncontrolling interests 3,000 3,392 10,633 12,025
Net income available for shareholders 110,732 122,311 392,330 443,815
Dividends to MAA Series I preferred shareholders 922 922 2,766 2,766
Net income available for MAA common shareholders $ 109,810 $ 121,389 $ 389,564 $ 441,049
Earnings per common share - basic:
Net income available for common shareholders $ 0.94 $ 1.05 $ 3.34 $ 3.82
Earnings per common share - diluted:
Net income available for common shareholders $ 0.94 $ 1.05 $ 3.34 $ 3.82
SHARE AND UNIT DATA
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Shares and units in thousands Three months ended September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Net Income Shares (1)
Weighted average common shares - basic 116,633 115,363 116,479 115,325
Effect of dilutive securities 78 205 134 267
Weighted average common shares - diluted 116,711 115,568 116,613 115,592
Funds From Operations Shares And Units
Weighted average common shares and units - basic 119,787 118,564 119,635 118,528
Weighted average common shares and units - diluted 119,833 118,643 119,683 118,626
Period End Shares And Units
Common shares at September 30, 116,687 115,448 116,687 115,448
Operating Partnership units at September 30, 3,148 3,196 3,148 3,196
Total common shares and units at September 30, 119,835 118,644 119,835 118,644

(1) For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to Condensed Consolidated Financial Statements in MAA’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023, expected to be filed with the SEC on or about October 26, 2023.

CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
--- --- --- --- --- --- ---
September 30, 2023 December 31, 2022
Assets
Real estate assets:
Land $ 2,008,523 $ 2,008,364
Buildings and improvements and other 13,252,746 12,841,947
Development and capital improvements in progress 338,864 332,035
15,600,133 15,182,346
Less: Accumulated depreciation (4,725,099 ) (4,302,747 )
10,875,034 10,879,599
Undeveloped land 73,861 64,312
Investment in real estate joint venture 42,290 42,290
Real estate assets, net 10,991,185 10,986,201
Cash and cash equivalents 161,897 38,659
Restricted cash 13,440 22,412
Other assets 215,800 193,893
Total assets $ 11,382,322 $ 11,241,165
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,034,153 $ 4,050,910
Secured notes payable 360,110 363,993
Accrued expenses and other liabilities 666,437 615,843
Total liabilities 5,060,700 5,030,746
Redeemable common stock 18,033 20,671
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,168 1,152
Additional paid-in capital 7,410,109 7,202,834
Accumulated distributions in excess of net income (1,285,428 ) (1,188,854 )
Accumulated other comprehensive loss (9,244 ) (10,052 )
Total MAA shareholders’ equity 6,116,614 6,005,089
Noncontrolling interests - Operating Partnership units 163,950 163,595
Total Company’s shareholders’ equity 6,280,564 6,168,684
Noncontrolling interests - consolidated real estate entities 23,025 21,064
Total equity 6,303,589 6,189,748
Total liabilities and equity $ 11,382,322 $ 11,241,165
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 September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Net income available for MAA common shareholders $ 109,810 $ 121,389 $ 389,564 $ 441,049
Depreciation and amortization of real estate assets 145,278 135,023 419,532 399,366
Loss (gain) on sale of depreciable real estate assets 75 1 61 (131,963 )
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 153 156 456 466
Net income attributable to noncontrolling interests 3,000 3,392 10,633 12,025
FFO attributable to common shareholders and unitholders 258,316 259,961 820,246 720,943
Loss on embedded derivative in preferred shares (1) 11,250 425 1,863 10,364
Gain on sale of non-depreciable real estate assets — (431 ) (54 ) (809 )
Loss (gain) on investments, net of tax (1) (2) 5,166 6,470 (603 ) 31,036
Casualty related charges (recoveries), net (1) (3) 217 (7,046 ) 588 (29,171 )
(Gain) loss on debt extinguishment (1) (57 ) 47 (57 ) 47
Legal costs and settlements, net (1) — — (1,600 ) 535
COVID-19 related costs (1) — 60 — 502
Mark-to-market debt adjustment (4) — 19 (25 ) 90
Core FFO attributable to common shareholders and unitholders 274,892 259,505 820,358 733,537
Recurring capital expenditures (36,368 ) (38,669 ) (85,367 ) (84,343 )
Core AFFO attributable to common shareholders and unitholders 238,524 220,836 734,991 649,194
Redevelopment capital expenditures (19,723 ) (23,773 ) (77,442 ) (77,280 )
Revenue enhancing capital expenditures (19,123 ) (16,172 ) (51,168 ) (39,100 )
Commercial capital expenditures (2,104 ) (727 ) (4,540 ) (2,754 )
Other capital expenditures (5) (6,554 ) (6,363 ) (23,109 ) (13,773 )
FAD attributable to common shareholders and unitholders $ 191,020 $ 173,801 $ 578,732 $ 516,287
Dividends and distributions paid $ 167,766 $ 148,301 $ 501,620 $ 406,226
Weighted average common shares - diluted 116,711 115,568 116,613 115,592
FFO weighted average common shares and units - diluted 119,833 118,643 119,683 118,626
Earnings per common share - diluted:
Net income available for common shareholders $ 0.94 $ 1.05 $ 3.34 $ 3.82
FFO per Share - diluted $ 2.16 $ 2.19 $ 6.85 $ 6.08
Core FFO per Share - diluted $ 2.29 $ 2.19 $ 6.85 $ 6.18
Core AFFO per Share - diluted $ 1.99 $ 1.86 $ 6.14 $ 5.47

(1) Included in Other non-operating expense (income) in the Consolidated Statements of Operations.

(2) For the three months ended September 30, 2023 and 2022 and the nine months ended September 30, 2022, loss on investments is presented net of tax benefit of $1.4 million, $1.7 million and $8.3 million, respectively. For the nine months ended September 30, 2023, gain on investments is presented net of tax expense of $0.1 million.

(3) For the three and nine months ended September 30, 2022, MAA recognized a gain of $7.2 million and $27.6 million, respectively, from the receipt of insurance proceeds that exceeded its casualty losses related to winter storm Uri.

(4) Included in Interest expense in the Consolidated Statements of Operations.

(5) For the three and nine months ended September 30, 2022, $0.7 million and $2.0 million, respectively, of corporate related capital expenditures are excluded from other capital expenditures.

RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS
Dollars in thousands Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
September 30,<br>2023 June 30,<br>2023 September 30,<br>2022 September 30,<br>2023 September 30,<br>2022
Net Operating Income
Same Store NOI $ 324,745 $ 323,435 $ 313,111 $ 977,120 $ 903,435
Non-Same Store and Other NOI 18,074 17,378 16,249 52,742 45,946
Total NOI 342,819 340,813 329,360 1,029,862 949,381
Depreciation and amortization (146,702 ) (138,972 ) (136,879 ) (424,175 ) (404,761 )
Property management expenses (16,298 ) (16,091 ) (16,262 ) (50,317 ) (48,429 )
General and administrative expenses (13,524 ) (13,882 ) (12,188 ) (43,329 ) (44,091 )
Interest expense (36,651 ) (36,723 ) (38,637 ) (110,655 ) (116,663 )
(Loss) gain on sale of depreciable real estate assets (75 ) (1 ) (1 ) (61 ) 131,963
Gain on sale of non-depreciable real estate assets — — 431 54 809
Other non-operating (expense) income (16,493 ) 16,992 (1,718 ) 3,966 (19,248 )
Income tax benefit (expense) 209 (2,861 ) 1,256 (3,596 ) 5,750
Income from real estate joint venture 447 382 341 1,214 1,129
Net income attributable to noncontrolling interests (3,000 ) (3,969 ) (3,392 ) (10,633 ) (12,025 )
Dividends to MAA Series I preferred shareholders (922 ) (922 ) (922 ) (2,766 ) (2,766 )
Net income available for MAA common shareholders $ 109,810 $ 144,766 $ 121,389 $ 389,564 $ 441,049
RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- ---
September 30, 2023 September 30, 2022 September 30, 2023 December 31, 2022
Net income $ 113,732 $ 125,703 $ 601,899 $ 654,776
Depreciation and amortization 146,702 136,879 562,412 542,998
Interest expense 36,651 38,637 148,739 154,747
Income tax (benefit) expense (209 ) (1,256 ) 3,138 (6,208 )
EBITDA 296,876 299,963 1,316,188 1,346,313
Loss (gain) on sale of depreciable real estate assets 75 1 (82,738 ) (214,762 )
Adjustments to reflect the Company’s share of EBITDAre of an unconsolidated affiliate 340 341 1,349 1,357
EBITDAre 297,291 300,305 1,234,799 1,132,908
Loss on embedded derivative in preferred shares (1) 11,250 425 12,606 21,107
Gain on sale of non-depreciable real estate assets — (431 ) (54 ) (809 )
Loss on investments (1) 6,547 8,197 5,322 45,357
Casualty related charges (recoveries), net (1) (2) 217 (7,046 ) (171 ) (29,930 )
(Gain) loss on debt extinguishment (1) (57 ) 47 (57 ) 47
Legal costs and settlements, net (1) — — 6,400 8,535
COVID-19 related costs (1) — 60 73 575
Adjusted EBITDAre $ 315,248 $ 301,557 $ 1,258,918 $ 1,177,790

(1) Included in Other non-operating expense (income) in the Consolidated Statements of Operations.

(2) For the three months ended September 30, 2022 and twelve months ended September 30, 2023 and December 31, 2022, MAA recognized a gain of $7.2 million, $1.4 million and $29.0 million, respectively, from the receipt of insurance proceeds that exceeded its casualty losses related to winter storm Uri.

RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE
Dollars in thousands
--- --- --- --- --- --- ---
September 30, 2023 December 31, 2022
Unsecured notes payable $ 4,034,153 $ 4,050,910
Secured notes payable 360,110 363,993
Total debt 4,394,263 4,414,903
Cash and cash equivalents (161,897 ) (38,659 )
1031(b) exchange proceeds included in Restricted cash (1) — (9,186 )
Net Debt $ 4,232,366 $ 4,367,058

(1) Included in Restricted cash in the Consolidated Balance Sheets.

RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS
Dollars in thousands
--- --- --- --- ---
September 30, 2023 December 31, 2022
Total assets $ 11,382,322 $ 11,241,165
Accumulated depreciation 4,725,099 4,302,747
Gross Assets $ 16,107,421 $ 15,543,912
RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
---
Dollars in thousands
--- --- --- --- ---
September 30, 2023 December 31, 2022
Real estate assets, net $ 10,991,185 $ 10,986,201
Accumulated depreciation 4,725,099 4,302,747
Cash and cash equivalents 161,897 38,659
1031(b) exchange proceeds included in Restricted cash (1) — 9,186
Gross Real Estate Assets $ 15,878,181 $ 15,336,793

(1) Included in Restricted cash 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 (recoveries) charges, net, gain or loss on debt extinguishment, legal costs and settlements, net and COVID-19 related costs. 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. 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 (recoveries) charges, net, gain or loss on debt extinguishment, legal costs and settlements, net, COVID-19 related costs, mark-to-market debt adjustments and other non-core items. 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 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 assets 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 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, 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 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 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. 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, 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 all storm-related expenses related to hurricanes. 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 hurricanes. 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 rolling 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, 2023 (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
Tampa, FL 5,220 196 — 5,416 — 5,416
Orlando, FL 5,274 633 — 5,907 — 5,907
Charlotte, NC 5,651 560 — 6,211 — 6,211
Austin, TX 6,829 — 350 7,179 — 7,179
Raleigh/Durham, NC 5,350 — — 5,350 — 5,350
Nashville, TN 4,375 — — 4,375 — 4,375
Charleston, SC 3,168 — — 3,168 — 3,168
Houston, TX 4,867 308 — 5,175 — 5,175
Fort Worth, TX 3,687 — — 3,687 — 3,687
Phoenix, AZ 2,623 345 — 2,968 — 2,968
Jacksonville, FL 3,496 — — 3,496 — 3,496
Northern Virginia 1,888 — — 1,888 — 1,888
Greenville, SC 2,355 — — 2,355 — 2,355
Savannah, GA 1,837 — — 1,837 — 1,837
Richmond, VA 1,732 272 — 2,004 — 2,004
Fredericksburg, VA 1,435 — — 1,435 — 1,435
Memphis, TN 1,811 — — 1,811 — 1,811
Birmingham, AL 1,462 — — 1,462 — 1,462
San Antonio, TX 1,504 — — 1,504 — 1,504
Denver, CO 812 306 — 1,118 — 1,118
Kansas City, MO-KS 1,110 — — 1,110 — 1,110
Huntsville, AL 1,228 — — 1,228 — 1,228
Other 6,022 1,152 — 7,174 182 7,356
Total Multifamily Units 95,286 3,772 690 99,748 182 99,930

(1) 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, 2023 Average<br>Effective As of September 30, 2023
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, 2023 Completed<br>Units Total Units,<br>Including<br>Development
Atlanta, GA $ 2,089,773 13.7 % 94.9 % $ 1,861 11,434
Dallas, TX 1,568,538 10.3 % 96.4 % 1,671 10,116
Charlotte, NC 1,143,349 7.5 % 95.5 % 1,663 6,211
Orlando, FL 1,025,944 6.7 % 96.5 % 2,019 5,907
Tampa, FL 1,003,505 6.6 % 96.0 % 2,108 5,416
Austin, TX 891,132 5.8 % 95.4 % 1,635 6,829
Raleigh/Durham, NC 730,943 4.8 % 96.4 % 1,549 5,350
Houston, TX 695,625 4.6 % 95.7 % 1,427 5,175
Northern Virginia 572,749 3.8 % 96.9 % 2,345 1,888
Nashville, TN 559,175 3.7 % 96.7 % 1,705 4,375
Phoenix, AZ 481,791 3.2 % 95.4 % 1,756 2,968
Charleston, SC 427,783 2.8 % 96.4 % 1,756 3,168
Fort Worth, TX 390,227 2.6 % 96.4 % 1,579 3,687
Jacksonville, FL 310,576 2.0 % 95.9 % 1,559 3,496
Denver, CO 295,620 1.9 % 95.8 % 1,983 1,118
Richmond, VA 278,393 1.8 % 96.2 % 1,601 2,004
Fredericksburg, VA 254,773 1.7 % 96.7 % 1,801 1,435
Greenville, SC 238,304 1.6 % 96.0 % 1,329 2,355
Savannah, GA 224,406 1.5 % 96.6 % 1,684 1,837
Kansas City, MO-KS 192,132 1.3 % 96.1 % 1,569 1,110
Birmingham, AL 171,132 1.1 % 96.9 % 1,386 1,462
San Antonio, TX 170,341 1.1 % 97.3 % 1,393 1,504
All Other Markets by State (individual markets <1% gross real assets)
Tennessee 203,496 1.3 % 95.9 % 1,340 2,754
Florida 188,905 1.2 % 96.0 % 1,822 1,806
Alabama 174,435 1.1 % 95.0 % 1,403 1,648
Virginia 161,221 1.1 % 95.9 % 1,731 1,039
Kentucky 101,114 0.7 % 97.5 % 1,201 1,308
Maryland 83,404 0.5 % 95.8 % 2,145 361
Nevada 75,032 0.5 % 95.0 % 1,585 721
South Carolina 38,947 0.3 % 95.5 % 1,203 576
Stabilized Communities $ 14,742,765 96.8 % 96.0 % $ 1,696 99,058
Atlanta, GA 90,356 0.6 % 28.2 % 2,241 340 340
Salt Lake City, UT 87,516 0.6 % 25.5 % 1,806 182 400
Denver, CO 80,826 0.5 % — — — 352
Tampa, FL 76,165 0.5 % — — — 495
Phoenix, AZ 68,643 0.4 % — — — 317
Austin, TX 59,715 0.4 % 91.1 % 1,687 350 350
Raleigh/Durham, NC 33,114 0.2 % — — — 406
Lease-up / Development Communities $ 496,335 3.2 % 47.4 % $ 1,928 872 2,660
Total Multifamily Communities $ 15,239,100 100.0 % 95.4 % $ 1,698 99,930 101,718

(1) Schedule excludes MAA's 35% ownership in a 269 unit joint venture property in Washington, D.C. As of September 30, 2023, the gross investment in real estate for this community was $81.6 million and includes a mortgage note payable of $51.9 million. For the nine months ended September 30, 2023, this apartment community achieved NOI of $6.0 million.

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

Three Months Ended As of September 30, 2023
September 30, 2023 September 30, 2022 Percent<br>Change Apartment Units Gross Real Assets
Operating Revenues
Same Store Communities $ 510,879 $ 490,851 4.1 % 95,286 $ 13,975,986
Non-Same Store Communities 22,024 22,865 3,772 766,779
Lease-up/Development Communities 2,678 850 872 496,335
Total Multifamily Portfolio $ 535,581 $ 514,566 99,930 $ 15,239,100
Commercial Property/Land 6,461 6,217 — 367,913
Total Operating Revenues $ 542,042 $ 520,783 99,930 $ 15,607,013
Property Operating Expenses
Same Store Communities $ 186,134 $ 177,740 4.7 %
Non-Same Store Communities 8,295 8,693
Lease-up/Development Communities 2,045 736
Hurricane Expenses — 1,602
Total Multifamily Portfolio $ 196,474 $ 188,771
Commercial Property/Land 2,749 2,652
Total Property Operating Expenses $ 199,223 $ 191,423
Net Operating Income
Same Store Communities $ 324,745 $ 313,111 3.7 %
Non-Same Store Communities 13,729 14,172
Lease-up/Development Communities 633 114
Hurricane Expenses — (1,602 )
Total Multifamily Portfolio $ 339,107 $ 325,795
Commercial Property/Land 3,712 3,565
Total Net Operating Income $ 342,819 $ 329,360 4.1 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Nine Months Ended
September 30, 2023 September 30, 2022 Percent Change September 30, 2023 September 30, 2022 Percent<br>Change
Property Taxes $ 63,834 $ 62,480 2.2 % $ 192,484 $ 181,266 6.2 %
Personnel 40,679 38,739 5.0 % 116,513 110,250 5.7 %
Utilities 34,330 33,186 3.4 % 96,329 91,735 5.0 %
Building Repair and Maintenance 25,774 23,639 9.0 % 71,527 64,935 10.2 %
Office Operations 7,609 7,162 6.2 % 21,981 20,468 7.4 %
Insurance 8,052 6,889 16.9 % 21,814 19,182 13.7 %
Marketing 5,856 5,645 3.7 % 18,626 17,708 5.2 %
Total Property Operating Expenses $ 186,134 $ 177,740 4.7 % $ 539,274 $ 505,544 6.7 %

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, 2023 September 30, 2022 September 30, 2023 September 30, 2022
Atlanta, GA 11,434 12.7 % 94.5 % 95.3 % 94.5 % 95.4 %
Dallas, TX 10,116 10.0 % 96.0 % 95.8 % 95.7 % 95.6 %
Tampa, FL 5,220 6.9 % 95.9 % 95.8 % 95.8 % 96.1 %
Orlando, FL 5,274 6.7 % 96.1 % 96.2 % 96.0 % 96.3 %
Charlotte, NC 5,651 6.4 % 95.8 % 96.0 % 95.6 % 95.8 %
Austin, TX 6,829 6.1 % 95.3 % 95.5 % 95.3 % 95.3 %
Raleigh/Durham, NC 5,350 5.6 % 96.4 % 95.8 % 95.8 % 95.5 %
Nashville, TN 4,375 4.9 % 96.1 % 96.1 % 95.7 % 95.9 %
Charleston, SC 3,168 3.7 % 96.6 % 96.1 % 96.0 % 95.9 %
Houston, TX 4,867 3.5 % 95.3 % 95.5 % 95.5 % 95.5 %
Fort Worth, TX 3,687 3.4 % 95.9 % 95.5 % 95.7 % 95.6 %
Phoenix, AZ 2,623 3.2 % 95.4 % 95.7 % 95.6 % 95.9 %
Jacksonville, FL 3,496 3.2 % 95.6 % 96.4 % 95.8 % 96.6 %
Northern Virginia 1,888 2.9 % 96.6 % 95.6 % 96.2 % 95.6 %
Greenville, SC 2,355 2.1 % 96.0 % 96.6 % 96.1 % 96.4 %
Savannah, GA 1,837 2.0 % 96.5 % 96.9 % 96.2 % 96.8 %
Richmond, VA 1,732 1.9 % 96.2 % 96.1 % 95.9 % 96.3 %
Fredericksburg, VA 1,435 1.8 % 96.2 % 95.8 % 96.2 % 96.4 %
Memphis, TN 1,811 1.4 % 94.0 % 94.4 % 94.5 % 95.0 %
Birmingham, AL 1,462 1.3 % 96.4 % 95.8 % 96.2 % 95.7 %
San Antonio, TX 1,504 1.3 % 96.3 % 96.0 % 95.7 % 95.9 %
Denver, CO 812 1.1 % 95.4 % 95.1 % 95.4 % 95.8 %
Kansas City, MO-KS 1,110 1.0 % 96.2 % 95.8 % 95.9 % 95.6 %
Huntsville, AL 1,228 1.0 % 94.7 % 95.1 % 95.2 % 95.7 %
Other 6,022 5.9 % 96.4 % 96.1 % 95.9 % 96.2 %
Total Same Store 95,286 100.0 % 95.7 % 95.8 % 95.6 % 95.8 %

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 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg
Atlanta, GA 11,434 $ 66,153 $ 64,070 3.3 % $ 24,773 $ 23,751 4.3 % $ 41,380 $ 40,319 2.6 % $ 1,861 $ 1,793 3.8 %
Dallas, TX 10,116 53,563 51,172 4.7 % 21,068 20,813 1.2 % 32,495 30,359 7.0 % 1,671 1,595 4.8 %
Tampa, FL 5,220 34,566 32,897 5.1 % 12,164 11,001 10.6 % 22,402 21,896 2.3 % 2,112 2,015 4.8 %
Orlando, FL 5,274 32,970 31,271 5.4 % 11,348 11,406 (0.5 )% 21,622 19,865 8.8 % 1,981 1,864 6.3 %
Charlotte, NC 5,651 29,542 27,982 5.6 % 8,766 8,195 7.0 % 20,776 19,787 5.0 % 1,651 1,549 6.6 %
Austin, TX 6,829 35,635 34,888 2.1 % 15,824 15,302 3.4 % 19,811 19,586 1.1 % 1,635 1,598 2.3 %
Raleigh/Durham, NC 5,350 26,769 25,425 5.3 % 8,686 8,018 8.3 % 18,083 17,407 3.9 % 1,549 1,474 5.1 %
Nashville, TN 4,375 23,766 22,781 4.3 % 7,979 7,818 2.1 % 15,787 14,963 5.5 % 1,705 1,634 4.4 %
Charleston, SC 3,168 17,736 16,576 7.0 % 5,642 5,287 6.7 % 12,094 11,289 7.1 % 1,756 1,625 8.1 %
Houston, TX 4,867 22,049 21,283 3.6 % 10,626 9,420 12.8 % 11,423 11,863 (3.7 )% 1,418 1,363 4.1 %
Fort Worth, TX 3,687 19,181 18,571 3.3 % 8,135 7,833 3.9 % 11,046 10,738 2.9 % 1,579 1,515 4.2 %
Phoenix, AZ 2,623 14,431 14,291 1.0 % 3,925 3,633 8.0 % 10,506 10,658 (1.4 )% 1,746 1,713 1.9 %
Jacksonville, FL 3,496 16,754 16,394 2.2 % 6,407 5,754 11.3 % 10,347 10,640 (2.8 )% 1,559 1,510 3.2 %
Northern Virginia 1,888 13,783 13,002 6.0 % 4,344 4,359 (0.3 )% 9,439 8,643 9.2 % 2,345 2,211 6.1 %
Greenville, SC 2,355 10,297 9,936 3.6 % 3,637 3,602 1.0 % 6,660 6,334 5.1 % 1,329 1,256 5.8 %
Savannah, GA 1,837 10,031 9,456 6.1 % 3,399 3,242 4.8 % 6,632 6,214 6.7 % 1,684 1,570 7.2 %
Richmond, VA 1,732 9,119 8,760 4.1 % 2,891 2,829 2.2 % 6,228 5,931 5.0 % 1,644 1,565 5.0 %
Fredericksburg, VA 1,435 8,296 8,078 2.7 % 2,473 2,326 6.3 % 5,823 5,752 1.2 % 1,801 1,763 2.1 %
Memphis, TN 1,811 7,795 7,721 1.0 % 3,098 2,887 7.3 % 4,697 4,834 (2.8 )% 1,362 1,339 1.7 %
Birmingham, AL 1,462 6,714 6,483 3.6 % 2,513 2,502 0.4 % 4,201 3,981 5.5 % 1,386 1,342 3.2 %
San Antonio, TX 1,504 6,716 6,515 3.1 % 2,567 2,855 (10.1 )% 4,149 3,660 13.4 % 1,393 1,361 2.4 %
Denver, CO 812 5,111 4,917 3.9 % 1,520 1,467 3.6 % 3,591 3,450 4.1 % 1,975 1,898 4.0 %
Kansas City, MO-KS 1,110 5,537 5,256 5.3 % 2,164 2,037 6.2 % 3,373 3,219 4.8 % 1,569 1,486 5.5 %
Huntsville, AL 1,228 5,358 5,198 3.1 % 2,014 1,773 13.6 % 3,344 3,425 (2.4 )% 1,325 1,281 3.5 %
Other 6,022 29,007 27,928 3.9 % 10,171 9,630 5.6 % 18,836 18,298 2.9 % 1,516 1,457 4.0 %
Total Same Store 95,286 $ 510,879 $ 490,851 4.1 % $ 186,134 $ 177,740 4.7 % $ 324,745 $ 313,111 3.7 % $ 1,690 $ 1,617 4.5 %

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 2023 Q2 2023 % Chg Q3 2023 Q2 2023 % Chg Q3 2023 Q2 2023 % Chg Q3 2023 Q2 2023 % Chg
Atlanta, GA 11,434 $ 66,153 $ 65,018 1.7 % $ 24,773 $ 24,350 1.7 % $ 41,380 $ 40,668 1.8 % $ 1,861 $ 1,849 0.7 %
Dallas, TX 10,116 53,563 52,880 1.3 % 21,068 21,794 (3.3 )% 32,495 31,086 4.5 % 1,671 1,654 1.0 %
Tampa, FL 5,220 34,566 34,250 0.9 % 12,164 11,580 5.0 % 22,402 22,670 (1.2 )% 2,112 2,095 0.8 %
Orlando, FL 5,274 32,970 32,869 0.3 % 11,348 11,534 (1.6 )% 21,622 21,335 1.3 % 1,981 1,962 1.0 %
Charlotte, NC 5,651 29,542 28,812 2.5 % 8,766 8,990 (2.5 )% 20,776 19,822 4.8 % 1,651 1,619 2.0 %
Austin, TX 6,829 35,635 35,565 0.2 % 15,824 16,197 (2.3 )% 19,811 19,368 2.3 % 1,635 1,632 0.2 %
Raleigh/Durham, NC 5,350 26,769 26,329 1.7 % 8,686 8,350 4.0 % 18,083 17,979 0.6 % 1,549 1,528 1.4 %
Nashville, TN 4,375 23,766 23,486 1.2 % 7,979 7,412 7.6 % 15,787 16,074 (1.8 )% 1,705 1,693 0.7 %
Charleston, SC 3,168 17,736 17,247 2.8 % 5,642 5,450 3.5 % 12,094 11,797 2.5 % 1,756 1,718 2.2 %
Houston, TX 4,867 22,049 21,992 0.3 % 10,626 8,685 22.3 % 11,423 13,307 (14.2 )% 1,418 1,405 0.9 %
Fort Worth, TX 3,687 19,181 19,149 0.2 % 8,135 7,735 5.2 % 11,046 11,414 (3.2 )% 1,579 1,566 0.8 %
Phoenix, AZ 2,623 14,431 14,513 (0.6 )% 3,925 3,713 5.7 % 10,506 10,800 (2.7 )% 1,746 1,747 (0.1 )%
Jacksonville, FL 3,496 16,754 16,740 0.1 % 6,407 5,783 10.8 % 10,347 10,957 (5.6 )% 1,559 1,555 0.3 %
Northern Virginia 1,888 13,783 13,597 1.4 % 4,344 4,345 (0.0 )% 9,439 9,252 2.0 % 2,345 2,304 1.8 %
Greenville, SC 2,355 10,297 10,367 (0.7 )% 3,637 3,777 (3.7 )% 6,660 6,590 1.1 % 1,329 1,313 1.2 %
Savannah, GA 1,837 10,031 9,862 1.7 % 3,399 3,201 6.2 % 6,632 6,661 (0.4 )% 1,684 1,654 1.8 %
Richmond, VA 1,732 9,119 8,861 2.9 % 2,891 2,742 5.4 % 6,228 6,119 1.8 % 1,644 1,619 1.5 %
Fredericksburg, VA 1,435 8,296 8,287 0.1 % 2,473 2,311 7.0 % 5,823 5,976 (2.6 )% 1,801 1,797 0.2 %
Memphis, TN 1,811 7,795 7,876 (1.0 )% 3,098 2,919 6.1 % 4,697 4,957 (5.2 )% 1,362 1,352 0.7 %
Birmingham, AL 1,462 6,714 6,649 1.0 % 2,513 2,572 (2.3 )% 4,201 4,077 3.0 % 1,386 1,371 1.1 %
San Antonio, TX 1,504 6,716 6,655 0.9 % 2,567 2,884 (11.0 )% 4,149 3,771 10.0 % 1,393 1,392 0.1 %
Denver, CO 812 5,111 5,087 0.5 % 1,520 1,631 (6.8 )% 3,591 3,456 3.9 % 1,975 1,956 1.0 %
Kansas City, MO-KS 1,110 5,537 5,432 1.9 % 2,164 2,059 5.1 % 3,373 3,373 0.0 % 1,569 1,554 1.0 %
Huntsville, AL 1,228 5,358 5,368 (0.2 )% 2,014 2,052 (1.9 )% 3,344 3,316 0.8 % 1,325 1,311 1.1 %
Other 6,022 29,007 28,614 1.4 % 10,171 10,004 1.7 % 18,836 18,610 1.2 % 1,516 1,497 1.2 %
Total Same Store 95,286 $ 510,879 $ 505,505 1.1 % $ 186,134 $ 182,070 2.2 % $ 324,745 $ 323,435 0.4 % $ 1,690 $ 1,673 1.0 %

Supplemental Data S-6

MULTIFAMILY SAME STORE PORTFOLIO YEAR TO DATE COMPARISONS AS OF SEPTEMBER 30, 2023 AND 2022

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q3 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg Q3 2023 Q3 2022 % Chg
Atlanta, GA 11,434 $ 195,896 $ 185,307 5.7 % $ 72,331 $ 67,183 7.7 % $ 123,565 $ 118,124 4.6 % $ 1,847 $ 1,715 7.7 %
Dallas, TX 10,116 158,733 146,195 8.6 % 63,396 59,146 7.2 % 95,337 87,049 9.5 % 1,656 1,518 9.1 %
Tampa, FL 5,220 102,724 94,112 9.2 % 34,885 31,516 10.7 % 67,839 62,596 8.4 % 2,094 1,903 10.1 %
Orlando, FL 5,274 98,205 88,528 10.9 % 33,737 31,168 8.2 % 64,468 57,360 12.4 % 1,961 1,750 12.1 %
Charlotte, NC 5,651 86,807 79,935 8.6 % 25,663 23,760 8.0 % 61,144 56,175 8.8 % 1,621 1,469 10.3 %
Austin, TX 6,829 106,535 99,837 6.7 % 46,401 43,337 7.1 % 60,134 56,500 6.4 % 1,630 1,521 7.2 %
Raleigh/Durham, NC 5,350 79,085 72,284 9.4 % 24,616 23,161 6.3 % 54,469 49,123 10.9 % 1,530 1,392 9.9 %
Nashville, TN 4,375 70,507 64,889 8.7 % 22,736 22,263 2.1 % 47,771 42,626 12.1 % 1,692 1,546 9.5 %
Charleston, SC 3,168 51,946 46,897 10.8 % 16,213 15,542 4.3 % 35,733 31,355 14.0 % 1,720 1,533 12.2 %
Houston, TX 4,867 65,805 62,228 5.7 % 28,887 27,365 5.6 % 36,918 34,863 5.9 % 1,403 1,323 6.1 %
Fort Worth, TX 3,687 57,229 53,357 7.3 % 22,520 21,458 4.9 % 34,709 31,899 8.8 % 1,567 1,448 8.2 %
Phoenix, AZ 2,623 43,427 41,005 5.9 % 11,108 10,440 6.4 % 32,319 30,565 5.7 % 1,747 1,631 7.1 %
Jacksonville, FL 3,496 50,057 47,280 5.9 % 17,719 16,059 10.3 % 32,338 31,221 3.6 % 1,554 1,437 8.1 %
Northern Virginia 1,888 40,724 37,666 8.1 % 12,738 12,059 5.6 % 27,986 25,607 9.3 % 2,306 2,134 8.1 %
Greenville, SC 2,355 30,819 28,528 8.0 % 10,135 10,605 (4.4 )% 20,684 17,923 15.4 % 1,313 1,201 9.3 %
Savannah, GA 1,837 29,565 26,880 10.0 % 9,638 9,249 4.2 % 19,927 17,631 13.0 % 1,654 1,472 12.3 %
Richmond, VA 1,732 26,785 25,143 6.5 % 8,422 8,143 3.4 % 18,363 17,000 8.0 % 1,620 1,499 8.0 %
Fredericksburg, VA 1,435 24,779 23,808 4.1 % 7,129 6,806 4.7 % 17,650 17,002 3.8 % 1,792 1,716 4.4 %
Memphis, TN 1,811 23,498 22,439 4.7 % 8,769 8,237 6.5 % 14,729 14,202 3.7 % 1,353 1,294 4.6 %
Birmingham, AL 1,462 19,956 18,774 6.3 % 7,628 7,173 6.3 % 12,328 11,601 6.3 % 1,371 1,286 6.6 %
San Antonio, TX 1,504 19,908 18,690 6.5 % 8,279 8,192 1.1 % 11,629 10,498 10.8 % 1,388 1,295 7.2 %
Denver, CO 812 15,234 14,303 6.5 % 4,596 4,128 11.3 % 10,638 10,175 4.6 % 1,959 1,834 6.8 %
Kansas City, MO-KS 1,110 16,299 15,139 7.7 % 6,110 5,636 8.4 % 10,189 9,503 7.2 % 1,548 1,432 8.1 %
Huntsville, AL 1,228 16,042 15,197 5.6 % 5,799 5,164 12.3 % 10,243 10,033 2.1 % 1,311 1,229 6.7 %
Other 6,022 85,829 80,558 6.5 % 29,819 27,754 7.4 % 56,010 52,804 6.1 % 1,499 1,392 7.7 %
Total Same Store 95,286 $ 1,516,394 $ 1,408,979 7.6 % $ 539,274 $ 505,544 6.7 % $ 977,120 $ 903,435 8.2 % $ 1,673 $ 1,540 8.7 %

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of Development Costs as of
September 30, 2023 September 30, 2023 Expected
Expected Spend Expected Start Initial
Location Total Delivered Leased Total to Date Remaining Date Occupancy Completion Stabilization (1)
Novel Daybreak (2) Salt Lake City, UT 400 182 130 $ 97,500 $ 87,516 $ 9,984 2Q21 2Q23 2Q24 4Q24
Novel Val Vista (2) Phoenix, AZ 317 — — 77,200 68,643 8,557 4Q20 4Q23 2Q24 2Q25
MAA Milepost 35 Denver, CO 352 — — 125,000 80,826 44,174 1Q22 4Q23 4Q24 3Q25
MAA Nixie Raleigh, NC 406 — — 145,500 33,114 112,386 4Q22 4Q24 3Q25 3Q26
MAA Breakwater Tampa, FL 495 — — 197,500 76,165 121,335 4Q22 1Q25 4Q25 4Q26
Total Active 1,970 182 130 $ 642,700 $ 346,264 $ 296,436

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

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

MULTIFAMILY LEASE-UP COMMUNITIES

Dollars in thousands

As of September 30, 2023
Location Total Units Physical Occupancy Spend to Date Construction Completed Expected Stabilization (1)
MAA Windmill Hill Austin, TX 350 91.1% $ 59,715 4Q22 4Q23
Novel West Midtown (2) Atlanta, GA 340 28.2% 90,356 3Q23 3Q24
Total 690 60.1% $ 150,071

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

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

MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Nine months ended September 30, 2023
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
5,464 $ 33,820 $ 6,190 $ 101 7.3% 10,000 - 14,000

Supplemental Data S-8

2023 ACQUISITION ACTIVITY (THROUGH SEPTEMBER 30, 2023)
Land Acquisition Market Acreage Closing Date
--- --- --- ---
MAA Packing District II Orlando, FL 6 February 2023
2023 DISPOSITION ACTIVITY (THROUGH SEPTEMBER 30, 2023)
---
Land Dispositions Market Acreage Closing Date
--- --- --- ---
Traditions Commercial Lots Gulf Shores, AL 21 March 2023
DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2023
---

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Rate Debt Balance Percent of Total Average Effective Interest Rate Average Years to Rate Maturity
Fixed rate debt $ 4,394,263 100.0 % 3.4 % 7.2
Floating rate debt — — — —
Total $ 4,394,263 100.0 % 3.4 % 7.2
Unsecured Versus Secured Debt Balance Percent of Total Average Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,034,153 91.8 % 3.4 % 5.6
Secured debt 360,110 8.2 % 4.4 % 25.3
Total $ 4,394,263 100.0 % 3.4 % 7.2
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q3 2023 NOI Percent of Total
Unencumbered gross assets $ 15,351,655 95.3 % $ 328,336 95.8 %
Encumbered gross assets 755,766 4.7 % 14,483 4.2 %
Total $ 16,107,421 100.0 % $ 342,819 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Average Effective Interest Rate
2023 $ 349,986 4.2 %
2024 399,455 4.0 %
2025 398,355 4.2 %
2026 297,780 1.2 %
2027 597,138 3.7 %
2028 397,151 4.2 %
2029 558,082 3.7 %
2030 297,802 3.1 %
2031 445,481 1.8 %
2032 — —
Thereafter 653,033 3.8 %
Total $ 4,394,263 3.4 %

Supplemental Data S-9

DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2023 (CONTINUED)

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity Commercial Paper & Revolving Credit Facility (1) (2) Public Bonds Secured Total
2023 $ — $ 349,986 $ — $ 349,986
2024 — 399,455 — 399,455
2025 — 398,355 — 398,355
2026 — 297,780 — 297,780
2027 — 597,138 — 597,138
2028 — 397,151 — 397,151
2029 — 558,082 — 558,082
2030 — 297,802 — 297,802
2031 — 445,481 — 445,481
2032 — — — —
Thereafter — 292,923 360,110 653,033
Total $ — $ 4,034,153 $ 360,110 $ 4,394,263

(1) There were no borrowings outstanding under MAALP’s unsecured commercial paper program as of September 30, 2023. 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, 2023, there were no borrowings outstanding under the commercial paper program.

(2) There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of September 30, 2023. 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 27.3% Yes
Total secured debt to adjusted total assets 40% or less 2.2% Yes
Consolidated income available for debt service to total annual debt service charge 1.5x or greater for trailing 4 quarters 7.8x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 370.7% Yes
Bank Covenants Required Actual Compliance
Total debt to total capitalized asset value 60% or less 19.1% Yes
Total secured debt to total capitalized asset value 40% or Less 1.7% Yes
Total adjusted EBITDA to fixed charges 1.5x or greater for trailing 4 quarters 8.0x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 18.3% Yes

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

Supplemental Data S-10

2023 GUIDANCE

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

Current Midpoint
Earnings:
Earnings per common share - diluted $4.44
Core FFO per Share - diluted $9.14
Core AFFO per Share - diluted $8.22
MAA Same Store Portfolio:
Number of units 95,285
Average physical occupancy 95.60%
Property revenue growth 6.25%
Effective rent growth 7.00%
Property operating expense growth 6.50%
NOI growth 6.00%
Real estate tax expense growth 5.75%
Corporate Expenses: ( in millions)
Property management expenses $69.0
General and administrative expenses $57.5
Total overhead $126.5
Income tax expense $4.5
Transaction/Investment Volume: ( in millions)
Multifamily acquisition volume $200.0
Multifamily disposition volume —
Development investment $250.0
Debt:
Average effective interest rate 3.5%
Capitalized interest ( in millions) $12.5
Diluted FFO Shares Outstanding:
Diluted common shares and units 119.75 million

All values are in US Dollars.

RECONCILIATION OF EARNINGS PER COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2023 GUIDANCE
Full Year 2023 Guidance Range
--- --- --- --- --- --- ---
Low High
Earnings per common share - diluted $ 4.36 $ 4.52
Real estate depreciation and amortization 4.70 4.70
Gains on sale of depreciable assets — —
FFO per Share - diluted 9.06 9.22
Non-Core FFO items (1) — —
Core FFO per Share - diluted 9.06 9.22
Recurring capital expenditures (0.92 ) (0.92 )
Core AFFO per Share - diluted $ 8.14 $ 8.30

(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, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment, legal costs and settlements, net, COVID-19 related costs 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

(1) Corporate credit rating assigned to MAA and MAALP

(2) Corporate credit rating assigned to MAALP

COMMON STOCK
Stock Symbol: MAA
--- --- --- --- --- --- --- --- --- --- ---
Exchange Traded: NYSE
Estimated Future Dates: Q4 2023 Q1 2024 Q2 2024 Q3 2024
Earnings release & conference call Early <br>February Early <br>May Late <br>July Late<br>October
Dividend Information - Common Shares: Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Declaration date 9/27/2022 12/13/2022 3/21/2023 5/16/2023 9/29/2023
Record date 10/14/2022 1/13/2023 4/14/2023 7/14/2023 10/13/2023
Payment date 10/31/2022 1/31/2023 4/28/2023 7/31/2023 10/31/2023
Distributions per share $ 1.2500 $ 1.4000 $ 1.4000 $ 1.4000 $ 1.4000
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
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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