Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2023-07-26 For: 2023-07-26
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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 26, 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 July 26, 2023, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of June 30, 2023 and for the three and six 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, 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., under the Exchange Act or the Securities Act of 1933, as amended.

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description
99.1 Press Release dated July 26, 2023
99.2 Supplemental Data Schedules dated July 26, 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: July 26, 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: July 26, 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 June 30, 2023)/2023 Disposition Activity (Through June 30, 2023) S-9
Debt and Debt Covenants as of June 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 SECOND QUARTER 2023 RESULTS

GERMANTOWN, TN, July 26, 2023/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended June 30, 2023.

Second Quarter 2023 Operating Results Three months ended June 30, Six months ended June 30,
2023 2022 2023 2022
Earnings per common share - diluted $ 1.24 $ 1.82 $ 2.40 $ 2.76
Funds from operations (FFO) per Share - diluted $ 2.39 $ 1.82 $ 4.70 $ 3.89
Core FFO per Share - diluted $ 2.28 $ 2.02 $ 4.56 $ 4.00

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, “Leasing conditions across our markets continue to reflect a strong demand for apartment housing. Leasing traffic remains strong and move-outs by existing residents remain historically low. Our Sunbelt markets continue to demonstrate solid employment conditions and positive migration trends that are further supporting absorption of the new apartment supply delivering in our markets. Overall performance remains ahead of our expectations we had for calendar year 2023.”

Highlights

• During the second quarter of 2023, MAA’s Same Store Portfolio produced growth in revenues of 8.1%, as compared to the same period in the prior year, with Average Effective Rent per Unit up 9.3% while capturing strong Average Physcial Occupancy of 95.5%.

• During the second quarter of 2023, MAA’s Same Store Portfolio property operating expense and Net Operating Income (NOI) increased by 7.2% and 8.6%, respectively, as compared to the same period in the prior year.

• As of June 30, 2023, resident turnover remained low at 45.7% 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 second quarter of 2023, MAA had six communities under development, representing 2,310 units once complete, with a projected total cost of $735.0 million and an estimated $343.5 million remaining to be funded.

• As of the end of the second quarter of 2023, MAA had a recently completed development community in lease-up. That community is expected to stabilize in the fourth quarter of 2023.

• During the second quarter of 2023, MAA completed the lease-up of MAA LoSo, located in the Charlotte, North Carolina market.

• MAA completed the redevelopment of 1,878 apartment homes during the second quarter of 2023, capturing average rental rate increases of approximately 8% above non-renovated units.

• MAA’s balance sheet remains strong with a historically low Net Debt/Adjusted EBITDAre ratio of 3.41x and $1.4 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of June 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 six months ended June 30, 2023 as compared to the same period in the prior year are summarized below:

Three months ended June 30, 2023 vs. 2022 Six months ended June 30, 2023 vs. 2022
Revenues Expenses NOI Average Effective Rent per Unit Revenues Expenses NOI Average Effective Rent per Unit
Same Store Operating Growth 8.1% 7.2% 8.6% 9.3% 9.5% 7.7% 10.5% 10.9%

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 six months ended June 30, 2023 are summarized below:

Three months ended June 30, 2023 Six months ended June 30, 2023 June 30, 2023
Average Effective Rent per Unit Average Physical Occupancy Average Effective Rent per Unit Average Physical Occupancy Resident Turnover
Same Store Operating Statistics $ 1,673 95.5% $ 1,665 95.5% 45.7%

Same Store Portfolio lease pricing for both new and renewing leases effective during the second quarter of 2023, on a blended basis, increased 3.8% as compared to the prior lease, driven by a 6.8% increase for renewing leases and a 0.5% increase for leases to new move-in residents.

Same Store Portfolio lease pricing for both new and renewing leases effective during the six months ended June 30, 2023, on a blended basis, increased 3.8% as compared to the prior lease, driven by a 7.4% increase for renewing leases and a 0.1% increase 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 second quarter of 2023 is set forth below (dollars in thousands):

Units as of Development Costs as of Expected Project
Total June 30, 2023 June 30, 2023 Completions By Year
Development Expected Spend Expected
Projects (1) Total Delivered Leased Total to Date Remaining 2023 2024 2025
6 2,310 255 141 $ 735,000 $ 391,475 $ 343,525 1 3 2

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

During the second quarter of 2023, MAA funded $51.3 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.

During the second quarter of 2023, MAA completed the lease-up of MAA LoSo, located in the Charlotte, North Carolina market. A summary of the total units, physical occupancy and cost of MAA’s lease-up communities as of the end of the second quarter of 2023 is set forth below (dollars in thousands):

Total As of June 30, 2023
Lease-Up Total Physical Spend
Projects (1) Units Occupancy to Date
1 350 80.9% $ 59,726

(1) Lease-up project is expected to stabilize in the fourth quarter of 2023.

The current expected average stabilized NOI yield on the four communities either currently leasing or expected to begin leasing during the third quarter of 2023 is 7.2%.

Property Redevelopment and Repositioning Activity

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

As of June 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 1,878 3,206 $ 6,217 $ 106 3,000 - 4,000
Smart Home 2,276 20,530 $ 1,452 $ 20 (1) 3,500 - 4,500

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

As of June 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 second 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 projects started or projected to start in 2022 and 2023 are expected to deliver yields on cost averaging 8%. During the six months ended June 30, 2023, work continued on properties selected for this program in 2022. An additional six projects are expected to start in the second half of 2023. For the six months ended June 30, 2023, MAA spent $6.9 million on this program. As of June 30, 2023, for all projects completed and either fully or partially repriced, MAA has captured yields on cost averaging approximately 18%.

Capital Expenditures

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

Three months ended June 30, Six months ended June 30,
2023 2022 2023 2022
Core FFO $ 273.3 $ 239.9 $ 545.5 $ 474.0
Recurring capital expenditures (32.7 ) (31.0 ) (49.0 ) (45.6 )
Core adjusted FFO (Core AFFO) 240.6 208.9 496.5 428.4
Redevelopment, revenue enhancing, commercial and other capital expenditures (57.4 ) (62.9 ) (108.8 ) (85.9 )
FAD $ 183.2 $ 146.0 $ 387.7 $ 342.5
Core FFO per Share - diluted $ 2.28 $ 2.02 $ 4.56 $ 4.00
Core AFFO per Share - diluted $ 2.01 $ 1.76 $ 4.15 $ 3.61

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 June 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 second quarter of 2023 were $167.7 million, as compared to $129.0 million for the same period in the prior year.

Balance sheet highlights as of June 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
27.5% 3.41x $ 4.4 3.4% 100.0% 7.5

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

(2) Adjusted EBITDAre is calculated for the trailing twelve month period ended June 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.

118th Consecutive Quarterly Common Dividend Declared

MAA declared its 118th consecutive quarterly common dividend, which will be paid on July 31, 2023 to holders of record on July 14, 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. MAA expects to update its full year 2023 Earnings per common share, Core FFO per Share and Core AFFO per Share guidance on a quarterly basis.

FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA’s definition of FFO is in accordance with the National Association of Real Estate Investment Trusts’, or NAREIT’s, definition, and Core FFO represents FFO 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.

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 $6.05 to $6.41 $6.23 $5.04 to $5.32 $5.18
Core FFO per Share - diluted $8.93 to $9.29 $9.11 $9.00 to $9.28 $9.14
Core AFFO per Share - diluted $8.01 to $8.37 $8.19 $8.08 to $8.36 $8.22
MAA Same Store Portfolio:
Property revenue growth 5.25% to 7.25% 6.25% 5.50% to 7.00% 6.25%
Property operating expense growth 5.15% to 7.15% 6.15% 5.30% to 6.80% 6.05%
NOI growth 5.30% to 7.30% 6.30% 5.60% to 7.10% 6.35%

MAA expects Core FFO for the third quarter of 2023 to be in the range of $2.18 to $2.34 per Share, or $2.26 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.

Our property and casualty insurance programs renewed on July 1, 2023 with a total premium increase of approximately 20%, in line with prior guidance.

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 27, 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 June 30, 2023, MAA had ownership interest in 101,986 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 June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Rental and other property revenues $ 535,146 $ 495,040 $ 1,064,179 $ 971,118
Net income available for MAA common shareholders $ 144,766 $ 209,780 $ 279,754 $ 319,660
Total NOI (1) $ 340,813 $ 313,363 $ 687,043 $ 620,021
Earnings per common share: (2)
Basic $ 1.24 $ 1.82 $ 2.40 $ 2.77
Diluted $ 1.24 $ 1.82 $ 2.40 $ 2.76
Funds from operations per Share - diluted: (2)
FFO (1) $ 2.39 $ 1.82 $ 4.70 $ 3.89
Core FFO (1) $ 2.28 $ 2.02 $ 4.56 $ 4.00
Core AFFO (1) $ 2.01 $ 1.76 $ 4.15 $ 3.61
Dividends declared per common share $ 1.4000 $ 1.2500 $ 2.8000 $ 2.3375
Dividends/Core FFO (diluted) payout ratio 61.4 % 61.9 % 61.4 % 58.4 %
Dividends/Core AFFO (diluted) payout ratio 69.7 % 71.0 % 67.5 % 64.8 %
Consolidated interest expense $ 36,723 $ 38,905 $ 74,004 $ 78,026
Mark-to-market debt adjustment 12 (35 ) 25 (71 )
Debt discount and debt issuance cost amortization (1,530 ) (1,474 ) (3,061 ) (2,947 )
Capitalized interest 3,137 2,057 5,883 3,893
Total interest incurred $ 38,342 $ 39,453 $ 76,851 $ 78,901
Amortization of principal on notes payable $ 368 $ 348 $ 730 $ 691

(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
June 30, 2023 December 31, 2022
Gross Assets (1) $ 15,970,287 $ 15,543,912
Gross Real Estate Assets (1) $ 15,746,029 $ 15,336,793
Total debt $ 4,396,393 $ 4,414,903
Common shares and units outstanding 119,831,650 118,645,269
Share price $ 151.86 $ 156.99
Book equity value $ 6,371,063 $ 6,210,419
Market equity value $ 18,197,634 $ 18,626,121
Net Debt/Adjusted EBITDAre (2) 3.41x 3.71x

(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 June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Revenues:
Rental and other property revenues $ 535,146 $ 495,040 $ 1,064,179 $ 971,118
Expenses:
Operating expenses, excluding real estate taxes and insurance 116,604 110,007 225,208 211,124
Real estate taxes and insurance 77,729 71,670 151,928 139,973
Depreciation and amortization 138,972 134,144 277,473 267,882
Total property operating expenses 333,305 315,821 654,609 618,979
Property management expenses 16,091 15,630 34,019 32,167
General and administrative expenses 13,882 15,580 29,805 31,903
Interest expense 36,723 38,905 74,004 78,026
Loss (gain) on sale of depreciable real estate assets 1 (131,965 ) (14 ) (131,964 )
Gain on sale of non-depreciable real estate assets — (355 ) (54 ) (378 )
Other non-operating (income) expense (16,992 ) 28,325 (20,459 ) 17,530
Income before income tax (expense) benefit 152,136 213,099 292,269 324,855
Income tax (expense) benefit (2,861 ) 3,052 (3,805 ) 4,494
Income from continuing operations before real estate joint venture activity 149,275 216,151 288,464 329,349
Income from real estate joint venture 382 409 767 788
Net income 149,657 216,560 289,231 330,137
Net income attributable to noncontrolling interests 3,969 5,858 7,633 8,633
Net income available for shareholders 145,688 210,702 281,598 321,504
Dividends to MAA Series I preferred shareholders 922 922 1,844 1,844
Net income available for MAA common shareholders $ 144,766 $ 209,780 $ 279,754 $ 319,660
Earnings per common share - basic:
Net income available for common shareholders $ 1.24 $ 1.82 $ 2.40 $ 2.77
Earnings per common share - diluted:
Net income available for common shareholders $ 1.24 $ 1.82 $ 2.40 $ 2.76
SHARE AND UNIT DATA
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Shares and units in thousands Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Net Income Shares (1)
Weighted average common shares - basic 116,621 115,353 116,401 115,306
Effect of dilutive securities 104 203 157 336
Weighted average common shares - diluted 116,725 115,556 116,558 115,642
Funds From Operations Shares And Units
Weighted average common shares and units - basic 119,776 118,555 119,558 118,509
Weighted average common shares and units - diluted 119,823 118,638 119,607 118,654
Period End Shares And Units
Common shares at June 30, 116,677 115,439 116,677 115,439
Operating Partnership units at June 30, 3,155 3,202 3,155 3,202
Total common shares and units at June 30, 119,832 118,641 119,832 118,641

(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 six months ended June 30, 2023, expected to be filed with the SEC on or about July 27, 2023.

CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
--- --- --- --- --- --- ---
June 30, 2023 December 31, 2022
Assets
Real estate assets:
Land $ 2,008,523 $ 2,008,364
Buildings and improvements and other 13,076,345 12,841,947
Development and capital improvements in progress 394,798 332,035
15,479,666 15,182,346
Less: Accumulated depreciation (4,579,117 ) (4,302,747 )
10,900,549 10,879,599
Undeveloped land 73,861 64,312
Investment in real estate joint venture 42,347 42,290
Real estate assets, net 11,016,757 10,986,201
Cash and cash equivalents 150,155 38,659
Restricted cash 13,570 22,412
Other assets 210,688 193,893
Total assets $ 11,391,170 $ 11,241,165
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,033,091 $ 4,050,910
Secured notes payable 363,302 363,993
Accrued expenses and other liabilities 623,714 615,843
Total liabilities 5,020,107 5,030,746
Redeemable common stock 20,991 20,671
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,168 1,152
Additional paid-in capital 7,405,572 7,202,834
Accumulated distributions in excess of net income (1,235,118 ) (1,188,854 )
Accumulated other comprehensive loss (9,514 ) (10,052 )
Total MAA shareholders’ equity 6,162,117 6,005,089
Noncontrolling interests - Operating Partnership units 165,626 163,595
Total Company’s shareholders’ equity 6,327,743 6,168,684
Noncontrolling interests - consolidated real estate entities 22,329 21,064
Total equity 6,350,072 6,189,748
Total liabilities and equity $ 11,391,170 $ 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 June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2022 2023 2022
Net income available for MAA common shareholders $ 144,766 $ 209,780 $ 279,754 $ 319,660
Depreciation and amortization of real estate assets 137,456 132,333 274,254 264,343
Loss (gain) on sale of depreciable real estate assets 1 (131,965 ) (14 ) (131,964 )
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 152 156 303 310
Net income attributable to noncontrolling interests 3,969 5,858 7,633 8,633
FFO attributable to common shareholders and unitholders 286,344 216,162 561,930 460,982
(Gain) loss on embedded derivative in preferred shares (1) (4,952 ) 21,835 (9,387 ) 9,939
Gain on sale of non-depreciable real estate assets — (355 ) (54 ) (378 )
(Gain) loss on investments, net of tax (1) (2) (6,575 ) 16,489 (5,769 ) 24,566
Casualty related charges (recoveries), net (1) (3) 75 (14,413 ) 371 (22,125 )
Legal costs and settlements, net (1) (1,600 ) (2 ) (1,600 ) 535
COVID-19 related costs (1) — 105 — 442
Mark-to-market debt adjustment (4) (12 ) 35 (25 ) 71
Core FFO attributable to common shareholders and unitholders 273,280 239,856 545,466 474,032
Recurring capital expenditures (32,669 ) (30,957 ) (48,999 ) (45,674 )
Core AFFO attributable to common shareholders and unitholders 240,611 208,899 496,467 428,358
Redevelopment capital expenditures (26,310 ) (42,393 ) (57,719 ) (53,507 )
Revenue enhancing capital expenditures (20,388 ) (14,172 ) (32,045 ) (22,928 )
Commercial capital expenditures (1,129 ) (1,106 ) (2,436 ) (2,027 )
Other capital expenditures (5) (9,567 ) (5,214 ) (16,555 ) (7,410 )
FAD attributable to common shareholders and unitholders $ 183,217 $ 146,014 $ 387,712 $ 342,486
Dividends and distributions paid $ 167,742 $ 129,009 $ 333,854 $ 257,925
Weighted average common shares - diluted 116,725 115,556 116,558 115,642
FFO weighted average common shares and units - diluted 119,823 118,638 119,607 118,654
Earnings per common share - diluted:
Net income available for common shareholders $ 1.24 $ 1.82 $ 2.40 $ 2.76
FFO per Share - diluted $ 2.39 $ 1.82 $ 4.70 $ 3.89
Core FFO per Share - diluted $ 2.28 $ 2.02 $ 4.56 $ 4.00
Core AFFO per Share - diluted $ 2.01 $ 1.76 $ 4.15 $ 3.61

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

(2) For the three and six months ended June 30, 2023 gain on investments are presented net of tax expense of $1.7 million and $1.5 million, respectively. For the three and six months ended June 30, 2022, loss on investments are presented net of tax benefit of $4.4 million and $6.5 million, respectively.

(3) For the three and six months ended June 30, 2022, MAA recognized a gain of $12.8 million and $20.4 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 six months ended June 30, 2022, $0.8 million and $1.3 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 Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
June 30,<br>2023 March 31,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Net Operating Income
Same Store NOI $ 323,435 $ 328,940 $ 297,888 $ 652,375 $ 590,324
Non-Same Store and Other NOI 17,378 17,290 15,475 34,668 29,697
Total NOI 340,813 346,230 313,363 687,043 620,021
Depreciation and amortization (138,972 ) (138,501 ) (134,144 ) (277,473 ) (267,882 )
Property management expenses (16,091 ) (17,928 ) (15,630 ) (34,019 ) (32,167 )
General and administrative expenses (13,882 ) (15,923 ) (15,580 ) (29,805 ) (31,903 )
Interest expense (36,723 ) (37,281 ) (38,905 ) (74,004 ) (78,026 )
(Loss) gain on sale of depreciable real estate assets (1 ) 15 131,965 14 131,964
Gain on sale of non-depreciable real estate assets — 54 355 54 378
Other non-operating income (expense) 16,992 3,467 (28,325 ) 20,459 (17,530 )
Income tax (expense) benefit (2,861 ) (944 ) 3,052 (3,805 ) 4,494
Income from real estate joint venture 382 385 409 767 788
Net income attributable to noncontrolling interests (3,969 ) (3,664 ) (5,858 ) (7,633 ) (8,633 )
Dividends to MAA Series I preferred shareholders (922 ) (922 ) (922 ) (1,844 ) (1,844 )
Net income available for MAA common shareholders $ 144,766 $ 134,988 $ 209,780 $ 279,754 $ 319,660
RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- ---
June 30, 2023 June 30, 2022 June 30, 2023 December 31, 2022
Net income $ 149,657 $ 216,560 $ 613,870 $ 654,776
Depreciation and amortization 138,972 134,144 552,589 542,998
Interest expense 36,723 38,905 150,725 154,747
Income tax expense (benefit) 2,861 (3,052 ) 2,091 (6,208 )
EBITDA 328,213 386,557 1,319,275 1,346,313
Loss (gain) on sale of depreciable real estate assets 1 (131,965 ) (82,812 ) (214,762 )
Adjustments to reflect the Company’s share of EBITDAre of an unconsolidated affiliate 336 340 1,350 1,357
EBITDAre 328,550 254,932 1,237,813 1,132,908
(Gain) loss on embedded derivative in preferred shares (1) (4,952 ) 21,835 1,781 21,107
Gain on sale of non-depreciable real estate assets — (355 ) (485 ) (809 )
(Gain) loss on investments (1) (8,317 ) 20,860 6,971 45,357
Casualty related charges (recoveries), net (1) (2) 75 (14,413 ) (7,434 ) (29,930 )
Loss on debt extinguishment (1) — — 47 47
Legal costs and settlements, net (1) (1,600 ) (2 ) 6,400 8,535
COVID-19 related costs (1) — 105 133 575
Adjusted EBITDAre $ 313,756 $ 282,962 $ 1,245,226 $ 1,177,790

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

(2) For the three months ended June 30, 2022 and twelve months ended June 30, 2023 and December 31, 2022, MAA recognized a gain of $12.8 million, $8.6 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
--- --- --- --- --- --- ---
June 30, 2023 December 31, 2022
Unsecured notes payable $ 4,033,091 $ 4,050,910
Secured notes payable 363,302 363,993
Total debt 4,396,393 4,414,903
Cash and cash equivalents (150,155 ) (38,659 )
1031(b) exchange proceeds included in Restricted cash (1) — (9,186 )
Net Debt $ 4,246,238 $ 4,367,058

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

RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS
Dollars in thousands
--- --- --- --- ---
June 30, 2023 December 31, 2022
Total assets $ 11,391,170 $ 11,241,165
Accumulated depreciation 4,579,117 4,302,747
Gross Assets $ 15,970,287 $ 15,543,912
RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
---
Dollars in thousands
--- --- --- --- ---
June 30, 2023 December 31, 2022
Real estate assets, net $ 11,016,757 $ 10,986,201
Accumulated depreciation 4,579,117 4,302,747
Cash and cash equivalents 150,155 38,659
1031(b) exchange proceeds included in Restricted cash (1) — 9,186
Gross Real Estate Assets $ 15,746,029 $ 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 asset sales 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 JUNE 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 — — 11,434 141 11,575
Dallas, TX 10,115 — — 10,115 — 10,115
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
Houston, TX 4,867 308 — 5,175 — 5,175
Charleston, SC 3,168 — — 3,168 — 3,168
Fort Worth, TX 3,687 — — 3,687 — 3,687
Jacksonville, FL 3,496 — — 3,496 — 3,496
Phoenix, AZ 2,623 345 — 2,968 — 2,968
Northern Virginia 1,888 — — 1,888 — 1,888
Savannah, GA 1,837 — — 1,837 — 1,837
Greenville, SC 2,355 — — 2,355 — 2,355
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 — 7,174 114 7,288
Total Multifamily Units 95,285 3,772 350 99,407 255 99,662

(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 June 30, 2023 Average<br>Effective As of June 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>June 30, 2023 Completed<br>Units Total Units,<br>Including<br>Development
Atlanta, GA $ 2,081,746 13.7 % 94.2 % $ 1,849 11,434
Dallas, TX 1,557,312 10.2 % 95.4 % 1,654 10,115
Charlotte, NC 1,137,376 7.4 % 95.6 % 1,636 6,211
Orlando, FL 1,021,617 6.8 % 95.1 % 1,996 5,907
Tampa, FL 998,113 6.6 % 95.6 % 2,092 5,416
Austin, TX 885,487 5.9 % 94.8 % 1,632 6,829
Raleigh/Durham, NC 727,913 4.8 % 95.2 % 1,528 5,350
Houston, TX 691,125 4.6 % 95.0 % 1,414 5,175
Northern Virginia 571,010 3.8 % 96.1 % 2,304 1,888
Nashville, TN 556,112 3.7 % 95.6 % 1,693 4,375
Phoenix, AZ 479,759 3.2 % 95.4 % 1,758 2,968
Charleston, SC 423,925 2.8 % 96.1 % 1,718 3,168
Fort Worth, TX 386,914 2.6 % 95.3 % 1,566 3,687
Jacksonville, FL 307,916 2.0 % 95.6 % 1,555 3,496
Denver, CO 295,212 2.0 % 95.1 % 1,959 1,118
Richmond, VA 277,307 1.8 % 96.2 % 1,579 2,004
Fredericksburg, VA 252,922 1.7 % 95.3 % 1,797 1,435
Greenville, SC 236,880 1.6 % 96.2 % 1,313 2,355
Savannah, GA 223,204 1.5 % 96.2 % 1,654 1,837
Kansas City, MO-KS 191,508 1.3 % 96.5 % 1,554 1,110
San Antonio, TX 169,861 1.1 % 95.3 % 1,392 1,504
Birmingham, AL 169,820 1.1 % 96.0 % 1,371 1,462
All Other Markets by State (individual markets <1% gross real assets)
Tennessee 201,125 1.3 % 94.0 % 1,325 2,754
Florida 187,319 1.2 % 96.1 % 1,804 1,806
Alabama 172,529 1.1 % 95.2 % 1,388 1,648
Virginia 160,540 1.1 % 95.3 % 1,719 1,039
Kentucky 99,194 0.7 % 96.2 % 1,170 1,308
Maryland 83,121 0.6 % 96.7 % 2,104 361
Nevada 74,494 0.5 % 95.3 % 1,588 721
South Carolina 38,682 0.3 % 93.4 % 1,180 576
Stabilized Communities $ 14,660,043 97.0 % 95.3 % $ 1,680 99,057
Atlanta, GA 87,334 0.6 % 10.3 % 1,996 141 340
Salt Lake City, UT 84,681 0.6 % 13.8 % 1,783 114 400
Denver, CO 68,382 0.4 % — — — 352
Phoenix, AZ 66,466 0.4 % — — — 317
Austin, TX 59,726 0.4 % 83.7 % 1,701 350 350
Tampa, FL 58,071 0.4 % — — — 495
Raleigh/Durham, NC 26,541 0.2 % — — — 406
Lease-up / Development Communities $ 451,201 3.0 % 35.2 % $ 1,785 605 2,660
Total Multifamily Communities $ 15,111,244 100.0 % 94.6 % $ 1,681 99,662 101,717

(1) Schedule excludes MAA's 35% ownership in a 269 unit joint venture property in Washington, D.C. As of June 30, 2023, the gross investment in real estate for this community was $81.4 million and includes a mortgage note payable of $51.9 million. For the six months ended June 30, 2023, this apartment community achieved NOI of $3.9 million.

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

As of June 30, 2023 Three Months Ended
Apartment Units Gross Real Assets June 30, 2023 June 30, 2022 Percent<br>Change
Operating Revenues
Same Store Communities 95,285 $ 13,895,107 $ 505,505 $ 467,805 8.1 %
Non-Same Store Communities 3,772 764,936 21,615 20,687
Lease-up/Development Communities 605 451,201 1,759 297
Total Multifamily Portfolio 99,662 $ 15,111,244 $ 528,879 $ 488,789
Commercial Property/Land — 363,920 6,267 6,251
Total Operating Revenues 99,662 $ 15,475,164 $ 535,146 $ 495,040
Property Operating Expenses
Same Store Communities $ 182,070 $ 169,917 7.2 %
Non-Same Store Communities 7,975 8,975
Lease-up/Development Communities 1,657 302
Total Multifamily Portfolio $ 191,702 $ 179,194
Commercial Property/Land 2,631 2,483
Total Property Operating Expenses $ 194,333 $ 181,677
Net Operating Income
Same Store Communities $ 323,435 $ 297,888 8.6 %
Non-Same Store Communities 13,640 11,712
Lease-up/Development Communities 102 (5 )
Total Multifamily Portfolio $ 337,177 $ 309,595
Commercial Property/Land 3,636 3,768
Total Net Operating Income $ 340,813 $ 313,363 8.8 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Six Months Ended
June 30, 2023 June 30, 2022 Percent Change June 30, 2023 June 30, 2022 Percent<br>Change
Property Taxes $ 66,037 $ 61,085 8.1 % $ 128,650 $ 118,786 8.3 %
Personnel 38,671 36,735 5.3 % 75,834 71,511 6.0 %
Utilities 30,995 29,496 5.1 % 61,999 58,549 5.9 %
Building Repair and Maintenance 25,123 23,056 9.0 % 45,753 41,296 10.8 %
Office Operations 7,413 6,526 13.6 % 14,372 13,306 8.0 %
Insurance 6,874 6,196 10.9 % 13,762 12,293 11.9 %
Marketing 6,957 6,823 2.0 % 12,770 12,063 5.9 %
Total Property Operating Expenses $ 182,070 $ 169,917 7.2 % $ 353,140 $ 327,804 7.7 %

Supplemental Data S-3

MULTIFAMILY SAME STORE PORTFOLIO NOI CONTRIBUTION PERCENTAGE
Average Physical Occupancy
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Percent of Three Months Ended Six Months Ended
Apartment Units Same Store NOI June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Atlanta, GA 11,434 12.6 % 94.1 % 95.2 % 94.5 % 95.5 %
Dallas, TX 10,115 9.6 % 95.5 % 95.4 % 95.6 % 95.5 %
Tampa, FL 5,220 7.0 % 95.7 % 96.0 % 95.7 % 96.3 %
Orlando, FL 5,274 6.6 % 95.9 % 96.1 % 96.0 % 96.3 %
Charlotte, NC 5,651 6.1 % 95.4 % 95.7 % 95.5 % 95.7 %
Austin, TX 6,829 6.0 % 95.2 % 95.3 % 95.3 % 95.2 %
Raleigh/Durham, NC 5,350 5.6 % 95.8 % 95.4 % 95.5 % 95.4 %
Nashville, TN 4,375 5.0 % 95.7 % 95.9 % 95.5 % 95.7 %
Houston, TX 4,867 4.1 % 95.3 % 95.3 % 95.6 % 95.5 %
Charleston, SC 3,168 3.6 % 95.8 % 95.7 % 95.7 % 95.8 %
Fort Worth, TX 3,687 3.5 % 95.8 % 95.6 % 95.6 % 95.7 %
Jacksonville, FL 3,496 3.4 % 95.8 % 96.4 % 95.9 % 96.6 %
Phoenix, AZ 2,623 3.3 % 95.7 % 95.5 % 95.8 % 96.0 %
Northern Virginia 1,888 2.9 % 96.1 % 95.7 % 96.0 % 95.5 %
Savannah, GA 1,837 2.1 % 96.3 % 96.7 % 96.1 % 96.8 %
Greenville, SC 2,355 2.0 % 96.3 % 96.6 % 96.2 % 96.3 %
Richmond, VA 1,732 1.9 % 95.8 % 96.1 % 95.8 % 96.3 %
Fredericksburg, VA 1,435 1.8 % 96.3 % 97.0 % 96.2 % 96.8 %
Memphis, TN 1,811 1.5 % 94.6 % 94.9 % 94.8 % 95.3 %
Birmingham, AL 1,462 1.3 % 96.3 % 96.0 % 96.0 % 95.7 %
San Antonio, TX 1,504 1.2 % 95.5 % 96.5 % 95.4 % 95.9 %
Denver, CO 812 1.1 % 95.7 % 95.7 % 95.4 % 96.1 %
Kansas City, MO-KS 1,110 1.0 % 96.2 % 95.4 % 95.7 % 95.6 %
Huntsville, AL 1,228 1.0 % 95.2 % 95.9 % 95.4 % 96.0 %
Other 6,022 5.8 % 96.1 % 96.2 % 95.7 % 96.3 %
Total Same Store 95,285 100.0 % 95.5 % 95.7 % 95.5 % 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 Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg
Atlanta, GA 11,434 $ 65,018 $ 61,640 5.5 % $ 24,350 $ 22,386 8.8 % $ 40,668 $ 39,254 3.6 % $ 1,849 $ 1,706 8.4 %
Dallas, TX 10,115 52,880 48,456 9.1 % 21,794 19,236 13.3 % 31,086 29,220 6.4 % 1,654 1,510 9.5 %
Tampa, FL 5,220 34,250 31,285 9.5 % 11,580 10,461 10.7 % 22,670 20,824 8.9 % 2,095 1,895 10.5 %
Orlando, FL 5,274 32,869 29,367 11.9 % 11,534 10,124 13.9 % 21,335 19,243 10.9 % 1,962 1,736 13.0 %
Charlotte, NC 5,651 28,812 26,374 9.2 % 8,990 8,157 10.2 % 19,822 18,217 8.8 % 1,632 1,457 12.0 %
Austin, TX 6,829 35,565 33,168 7.2 % 16,197 15,408 5.1 % 19,368 17,760 9.1 % 1,619 1,515 6.9 %
Raleigh/Durham, NC 5,350 26,329 23,952 9.9 % 8,350 8,002 4.3 % 17,979 15,950 12.7 % 1,528 1,376 11.0 %
Nashville, TN 4,375 23,486 21,528 9.1 % 7,412 7,460 (0.6 )% 16,074 14,068 14.3 % 1,693 1,532 10.5 %
Houston, TX 4,867 21,992 20,725 6.1 % 8,685 9,490 (8.5 )% 13,307 11,235 18.4 % 1,405 1,320 6.4 %
Charleston, SC 3,168 17,247 15,464 11.5 % 5,450 5,305 2.7 % 11,797 10,159 16.1 % 1,718 1,521 13.0 %
Fort Worth, TX 3,687 19,149 17,710 8.1 % 7,735 7,324 5.6 % 11,414 10,386 9.9 % 1,566 1,443 8.5 %
Jacksonville, FL 3,496 16,740 15,680 6.8 % 5,783 5,362 7.9 % 10,957 10,318 6.2 % 1,555 1,431 8.6 %
Phoenix, AZ 2,623 14,513 13,602 6.7 % 3,713 3,514 5.7 % 10,800 10,088 7.1 % 1,747 1,620 7.9 %
Northern Virginia 1,888 13,597 12,492 8.8 % 4,345 3,814 13.9 % 9,252 8,678 6.6 % 2,304 2,122 8.6 %
Savannah, GA 1,837 9,862 8,990 9.7 % 3,201 3,110 2.9 % 6,661 5,880 13.3 % 1,654 1,463 13.0 %
Greenville, SC 2,355 10,367 9,486 9.3 % 3,777 3,701 2.1 % 6,590 5,785 13.9 % 1,313 1,192 10.1 %
Richmond, VA 1,732 8,861 8,375 5.8 % 2,742 2,664 2.9 % 6,119 5,711 7.1 % 1,619 1,488 8.8 %
Fredericksburg, VA 1,435 8,287 8,040 3.1 % 2,311 2,187 5.7 % 5,976 5,853 2.1 % 1,797 1,714 4.8 %
Memphis, TN 1,811 7,876 7,404 6.4 % 2,919 2,714 7.6 % 4,957 4,690 5.7 % 1,352 1,293 4.6 %
Birmingham, AL 1,462 6,649 6,281 5.9 % 2,572 2,333 10.2 % 4,077 3,948 3.3 % 1,371 1,280 7.0 %
San Antonio, TX 1,504 6,655 6,235 6.7 % 2,884 2,839 1.6 % 3,771 3,396 11.0 % 1,392 1,288 8.0 %
Denver, CO 812 5,087 4,726 7.6 % 1,631 1,323 23.3 % 3,456 3,403 1.6 % 1,956 1,829 7.0 %
Kansas City, MO-KS 1,110 5,432 5,013 8.4 % 2,059 1,834 12.3 % 3,373 3,179 6.1 % 1,554 1,423 9.2 %
Huntsville, AL 1,228 5,368 5,071 5.9 % 2,052 1,783 15.1 % 3,316 3,288 0.9 % 1,311 1,222 7.3 %
Other 6,022 28,614 26,741 7.0 % 10,004 9,386 6.6 % 18,610 17,355 7.2 % 1,497 1,386 8.0 %
Total Same Store 95,285 $ 505,505 $ 467,805 8.1 % $ 182,070 $ 169,917 7.2 % $ 323,435 $ 297,888 8.6 % $ 1,673 $ 1,531 9.3 %

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 Q2 2023 Q1 2023 % Chg Q2 2023 Q1 2023 % Chg Q2 2023 Q1 2023 % Chg Q2 2023 Q1 2023 % Chg
Atlanta, GA 11,434 $ 65,018 $ 64,725 0.5 % $ 24,350 $ 23,208 4.9 % $ 40,668 $ 41,517 (2.0 )% $ 1,849 $ 1,832 0.9 %
Dallas, TX 10,115 52,880 52,290 1.1 % 21,794 20,534 6.1 % 31,086 31,756 (2.1 )% 1,654 1,642 0.8 %
Tampa, FL 5,220 34,250 33,908 1.0 % 11,580 11,141 3.9 % 22,670 22,767 (0.4 )% 2,095 2,075 1.0 %
Orlando, FL 5,274 32,869 32,366 1.6 % 11,534 10,855 6.3 % 21,335 21,511 (0.8 )% 1,962 1,941 1.1 %
Charlotte, NC 5,651 28,812 28,453 1.3 % 8,990 7,907 13.7 % 19,822 20,546 (3.5 )% 1,632 1,593 2.4 %
Austin, TX 6,829 35,565 35,335 0.7 % 16,197 14,380 12.6 % 19,368 20,955 (7.6 )% 1,619 1,623 (0.2 )%
Raleigh/Durham, NC 5,350 26,329 25,987 1.3 % 8,350 7,580 10.2 % 17,979 18,407 (2.3 )% 1,528 1,514 0.9 %
Nashville, TN 4,375 23,486 23,255 1.0 % 7,412 7,345 0.9 % 16,074 15,910 1.0 % 1,693 1,678 0.9 %
Houston, TX 4,867 21,992 21,764 1.0 % 8,685 9,576 (9.3 )% 13,307 12,188 9.2 % 1,405 1,386 1.4 %
Charleston, SC 3,168 17,247 16,963 1.7 % 5,450 5,121 6.4 % 11,797 11,842 (0.4 )% 1,718 1,687 1.8 %
Fort Worth, TX 3,687 19,149 18,899 1.3 % 7,735 6,650 16.3 % 11,414 12,249 (6.8 )% 1,566 1,556 0.7 %
Jacksonville, FL 3,496 16,740 16,563 1.1 % 5,783 5,529 4.6 % 10,957 11,034 (0.7 )% 1,555 1,547 0.5 %
Phoenix, AZ 2,623 14,513 14,483 0.2 % 3,713 3,470 7.0 % 10,800 11,013 (1.9 )% 1,747 1,748 (0.0 )%
Northern Virginia 1,888 13,597 13,344 1.9 % 4,345 4,049 7.3 % 9,252 9,295 (0.5 )% 2,304 2,269 1.6 %
Savannah, GA 1,837 9,862 9,672 2.0 % 3,201 3,038 5.4 % 6,661 6,634 0.4 % 1,654 1,623 1.9 %
Greenville, SC 2,355 10,367 10,155 2.1 % 3,777 2,721 38.8 % 6,590 7,434 (11.4 )% 1,313 1,296 1.3 %
Richmond, VA 1,732 8,861 8,805 0.6 % 2,742 2,789 (1.7 )% 6,119 6,016 1.7 % 1,619 1,596 1.4 %
Fredericksburg, VA 1,435 8,287 8,196 1.1 % 2,311 2,345 (1.4 )% 5,976 5,851 2.1 % 1,797 1,777 1.1 %
Memphis, TN 1,811 7,876 7,827 0.6 % 2,919 2,752 6.1 % 4,957 5,075 (2.3 )% 1,352 1,346 0.5 %
Birmingham, AL 1,462 6,649 6,593 0.8 % 2,572 2,543 1.1 % 4,077 4,050 0.7 % 1,371 1,356 1.1 %
San Antonio, TX 1,504 6,655 6,537 1.8 % 2,884 2,828 2.0 % 3,771 3,709 1.7 % 1,392 1,379 0.9 %
Denver, CO 812 5,087 5,036 1.0 % 1,631 1,445 12.9 % 3,456 3,591 (3.8 )% 1,956 1,946 0.5 %
Kansas City, MO-KS 1,110 5,432 5,330 1.9 % 2,059 1,887 9.1 % 3,373 3,443 (2.0 )% 1,554 1,522 2.1 %
Huntsville, AL 1,228 5,368 5,316 1.0 % 2,052 1,733 18.4 % 3,316 3,583 (7.5 )% 1,311 1,297 1.1 %
Other 6,022 28,614 28,208 1.4 % 10,004 9,644 3.7 % 18,610 18,564 0.2 % 1,497 1,484 0.9 %
Total Same Store 95,285 $ 505,505 $ 500,010 1.1 % $ 182,070 $ 171,070 6.4 % $ 323,435 $ 328,940 (1.7 )% $ 1,673 $ 1,657 1.0 %

Supplemental Data S-6

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

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg Q2 2023 Q2 2022 % Chg
Atlanta, GA 11,434 $ 129,743 $ 121,237 7.0 % $ 47,558 $ 43,432 9.5 % $ 82,185 $ 77,805 5.6 % $ 1,840 $ 1,676 9.8 %
Dallas, TX 10,115 105,170 95,023 10.7 % 42,328 38,333 10.4 % 62,842 56,690 10.9 % 1,648 1,479 11.4 %
Tampa, FL 5,220 68,158 61,215 11.3 % 22,721 20,515 10.8 % 45,437 40,700 11.6 % 2,085 1,847 12.9 %
Orlando, FL 5,274 65,235 57,257 13.9 % 22,389 19,762 13.3 % 42,846 37,495 14.3 % 1,951 1,694 15.2 %
Charlotte, NC 5,651 57,265 51,953 10.2 % 16,897 15,565 8.6 % 40,368 36,388 10.9 % 1,606 1,429 12.4 %
Austin, TX 6,829 70,900 64,949 9.2 % 30,577 28,035 9.1 % 40,323 36,914 9.2 % 1,627 1,482 9.8 %
Raleigh/Durham, NC 5,350 52,316 46,859 11.6 % 15,930 15,143 5.2 % 36,386 31,716 14.7 % 1,521 1,351 12.6 %
Nashville, TN 4,375 46,741 42,108 11.0 % 14,757 14,445 2.2 % 31,984 27,663 15.6 % 1,686 1,502 12.2 %
Houston, TX 4,867 43,756 40,945 6.9 % 18,261 17,945 1.8 % 25,495 23,000 10.8 % 1,396 1,303 7.1 %
Charleston, SC 3,168 34,210 30,321 12.8 % 10,571 10,255 3.1 % 23,639 20,066 17.8 % 1,702 1,487 14.5 %
Fort Worth, TX 3,687 38,048 34,786 9.4 % 14,385 13,625 5.6 % 23,663 21,161 11.8 % 1,561 1,415 10.3 %
Jacksonville, FL 3,496 33,303 30,886 7.8 % 11,312 10,305 9.8 % 21,991 20,581 6.9 % 1,551 1,400 10.8 %
Phoenix, AZ 2,623 28,996 26,714 8.5 % 7,183 6,807 5.5 % 21,813 19,907 9.6 % 1,747 1,590 9.9 %
Northern Virginia 1,888 26,941 24,664 9.2 % 8,394 7,700 9.0 % 18,547 16,964 9.3 % 2,286 2,095 9.1 %
Savannah, GA 1,837 19,534 17,424 12.1 % 6,239 6,007 3.9 % 13,295 11,417 16.4 % 1,639 1,423 15.2 %
Greenville, SC 2,355 20,522 18,592 10.4 % 6,498 7,003 (7.2 )% 14,024 11,589 21.0 % 1,305 1,174 11.2 %
Richmond, VA 1,732 17,666 16,383 7.8 % 5,531 5,314 4.1 % 12,135 11,069 9.6 % 1,608 1,466 9.6 %
Fredericksburg, VA 1,435 16,483 15,730 4.8 % 4,656 4,480 3.9 % 11,827 11,250 5.1 % 1,787 1,693 5.5 %
Memphis, TN 1,811 15,703 14,718 6.7 % 5,671 5,350 6.0 % 10,032 9,368 7.1 % 1,349 1,271 6.1 %
Birmingham, AL 1,462 13,242 12,291 7.7 % 5,115 4,671 9.5 % 8,127 7,620 6.7 % 1,363 1,257 8.4 %
San Antonio, TX 1,504 13,192 12,175 8.4 % 5,712 5,337 7.0 % 7,480 6,838 9.4 % 1,386 1,263 9.7 %
Denver, CO 812 10,123 9,386 7.9 % 3,076 2,661 15.6 % 7,047 6,725 4.8 % 1,951 1,803 8.2 %
Kansas City, MO-KS 1,110 10,762 9,883 8.9 % 3,946 3,599 9.6 % 6,816 6,284 8.5 % 1,538 1,405 9.5 %
Huntsville, AL 1,228 10,684 9,999 6.9 % 3,785 3,391 11.6 % 6,899 6,608 4.4 % 1,304 1,204 8.4 %
Other 6,022 56,822 52,630 8.0 % 19,648 18,124 8.4 % 37,174 34,506 7.7 % 1,420 1,297 9.5 %
Total Same Store 95,285 $ 1,005,515 $ 918,128 9.5 % $ 353,140 $ 327,804 7.7 % $ 652,375 $ 590,324 10.5 % $ 1,665 $ 1,501 10.9 %

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of Development Costs as of
June 30, 2023 June 30, 2023 Expected
Expected Spend Expected Start Initial
Location Total Delivered Leased Total to Date Remaining Date Occupancy Completion Stabilization (1)
Novel West Midtown (2) Atlanta, GA 340 141 60 $ 92,300 $ 87,334 $ 4,966 2Q21 2Q23 4Q23 3Q24
Novel Daybreak (2) Salt Lake City, UT 400 114 81 97,500 84,681 12,819 2Q21 2Q23 1Q24 4Q24
Novel Val Vista (2) Phoenix, AZ 317 — — 77,200 66,466 10,734 4Q20 3Q23 1Q24 1Q25
MAA Milepost 35 Denver, CO 352 — — 125,000 68,382 56,618 1Q22 4Q23 4Q24 3Q25
MAA Nixie Raleigh, NC 406 — — 145,500 26,541 118,959 4Q22 4Q24 3Q25 3Q26
MAA Breakwater Tampa, FL 495 — — 197,500 58,071 139,429 4Q22 1Q25 4Q25 4Q26
Total Active 2,310 255 141 $ 735,000 $ 391,475 $ 343,525

(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 June 30, 2023
Location Total Units Physical Occupancy Spend to Date Construction Completed Expected Stabilization (1)
MAA Windmill Hill Austin, TX 350 80.9% 59,726 4Q22 4Q23

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

MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Six months ended June 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
3,206 $ 19,932 $ 6,217 $ 106 7.8% 7,000 - 10,000

Supplemental Data S-8

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

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Rate Debt Balance Percent of Total Effective Interest Rate Average Years to Rate Maturity
Fixed rate debt $ 4,396,393 100.0 % 3.4 % 7.5
Floating rate debt — — — —
Total $ 4,396,393 100.0 % 3.4 % 7.5
Unsecured Versus Secured Debt Balance Percent of Total Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,033,091 91.7 % 3.4 % 5.8
Secured debt 363,302 8.3 % 4.4 % 25.4
Total $ 4,396,393 100.0 % 3.4 % 7.5
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q2 2023 NOI Percent of Total
Unencumbered gross assets $ 15,141,135 94.8 % $ 324,197 95.1 %
Encumbered gross assets 829,152 5.2 % 16,616 4.9 %
Total $ 15,970,287 100.0 % $ 340,813 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Effective Interest Rate
2023 $ 349,846 4.2 %
2024 399,251 4.0 %
2025 401,384 4.2 %
2026 297,587 1.2 %
2027 596,941 3.7 %
2028 396,999 4.2 %
2029 558,415 3.7 %
2030 297,715 3.1 %
2031 445,315 1.8 %
2032 — —
Thereafter 652,940 3.8 %
Total $ 4,396,393 3.4 %

Supplemental Data S-9

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

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾ Public Bonds Secured Total
2023 $ — $ 349,846 $ — $ 349,846
2024 — 399,251 — 399,251
2025 — 398,161 3,223 401,384
2026 — 297,587 — 297,587
2027 — 596,941 — 596,941
2028 — 396,999 — 396,999
2029 — 558,415 — 558,415
2030 — 297,715 — 297,715
2031 — 445,315 — 445,315
2032 — — — —
Thereafter — 292,861 360,079 652,940
Total $ — $ 4,033,091 $ 363,302 $ 4,396,393

(1) There were no borrowings outstanding under MAALP’s unsecured commercial paper program as of June 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 June 30, 2023, average daily borrowings outstanding under the commercial paper program were $0.7 million.

(2) There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of June 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 27.5% Yes
Total secured debt to adjusted total assets 40% or less 2.3% Yes
Consolidated income available for debt service to total annual debt service charge 1.5x or greater for trailing 4 quarters 7.7x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 365.5% 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 7.8x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 18.4% 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 $5.18
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 95.5%
Property revenue growth 6.25%
Effective rent growth 7.25%
Property operating expense growth 6.05%
NOI growth 6.35%
Real estate tax expense growth 5.75%
Corporate Expenses: ( in millions)
Property management expenses $72.5
General and administrative expenses $56.0
Total overhead $128.5
Income tax expense $4.5
Transaction/Investment Volume: ( in millions)
Multifamily acquisition volume $200.0
Multifamily disposition volume $100.0
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 $ 5.04 $ 5.32
Real estate depreciation and amortization 4.64 4.64
Gains on sale of depreciable assets (0.54 ) (0.54 )
FFO per Share - diluted 9.14 9.42
Non-Core FFO items (1) (0.14 ) (0.14 )
Core FFO per Share - diluted 9.00 9.28
Recurring capital expenditures (0.92 ) (0.92 )
Core AFFO per Share - diluted $ 8.08 $ 8.36

(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: Q3 2023 Q4 2023 Q1 2024 Q2 2024
Earnings release & conference call Late<br>October Early <br>February Early <br>May Late <br>July
Dividend Information - Common Shares: Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Declaration date 5/17/2022 9/27/2022 12/13/2022 3/21/2023 5/16/2023
Record date 7/15/2022 10/14/2022 1/13/2023 4/14/2023 7/14/2023
Payment date 7/29/2022 10/31/2022 1/31/2023 4/28/2023 7/31/2023
Distributions per share $ 1.2500 $ 1.2500 $ 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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