Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2022-10-26 For: 2022-10-26
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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): October 26, 2022

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 26, 2022, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of September 30, 2022 and for the three and nine months then ended. Copies of the press release and supplemental data schedules are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

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

ITEM 7.01. Regulation FD Disclosure.

On October 26, 2022, MAA issued a press release announcing its consolidated results of operations and financial condition as of September 30, 2022 and for the three and nine months then ended. In that press release, MAA also provided certain information with respect to its disposition and development activities in October 2022. 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 26, 2022
99.2 Supplemental Data Schedules dated October 26, 2022
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 26, 2022 /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 26, 2022 /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
2022 Acquisition Activity (Through September 30, 2022)/2022 Disposition Activity (Through September 30, 2022) S-9
Debt and Debt Covenants as of September 30, 2022 S-9
2022 Guidance/Reconciliation of Net Income per Diluted Common Share to Core FFO and Core AFFO per Share for 2022 Guidance S-11
Credit Ratings/Common Stock/Investor Relations Data S-12
EARNINGS RELEASE
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MAA REPORTS THIRD QUARTER 2022 RESULTS

GERMANTOWN, TN, October 26, 2022/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended September 30, 2022.

Third Quarter 2022 Operating Results Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
Earnings per common share - diluted $ 1.05 $ 0.73 $ 3.82 $ 3.01
Funds from operations (FFO) per Share - diluted $ 2.19 $ 1.85 $ 6.08 $ 5.19
Core FFO per Share - diluted $ 2.19 $ 1.78 $ 6.18 $ 5.11

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, “We continue to see strong demand for apartment housing across our Sunbelt markets as steady growth in jobs and wages, along with positive new household formations and migration trends across our markets, fuels a growing need for housing. Our new development pipeline continues to expand as we work to respond to this growing demand. As evidenced by affordable rent-to-income ratios, strong rent payment performance, low resident turnover and strong occupancy, MAA is well-positioned as we head into the new calendar year.”

Highlights

• During the third quarter of 2022, MAA’s Same Store Portfolio produced increases in property revenues, operating expenses and Net Operating Income (NOI) of 14.6%, 10.1% and 17.4%, respectively, as compared to the same period in the prior year.

• During the third quarter of 2022, MAA acquired two recently completed communities, a 196-unit multifamily community located in the Tampa, Florida market and a 344-unit multifamily community located in the Charlotte, North Carolina market, as well as a six acre land parcel in the Denver, Colorado market for future development expected to begin in late 2023.

• Subsequent to the end of the third quarter of 2022, MAA closed on the disposition of a 396-unit multifamily community in Maryland for gross proceeds of $103.5 million.

• As of the end of the third quarter of 2022, MAA had five communities under development, representing 1,759 units once complete, with a projected total cost of $444.0 million and an estimated $177.9 million remaining to be funded. Subsequent to the end of the third quarter of 2022, MAA began construction of a 495-unit multifamily community in the Tampa, Florida market with projected total costs of $197 million.

• As of the end of the third quarter of 2022, MAA had three recently completed development communities and the recently acquired Charlotte, North Carolina community in initial lease-up. Two communities are expected to stabilize in the fourth quarter of 2022 and two in the first quarter of 2023.

• During the third quarter of 2022, MAA completed the initial lease-up of Sand Lake, located in the Orlando, Florida market.

• MAA completed the redevelopment of 2,305 apartment homes during the third quarter of 2022, capturing average rental rate increases of approximately 10% above non-renovated units.

• During the third quarter of 2022, Mid-America Apartments, L.P. (MAALP), MAA’s operating partnership, amended its unsecured revolving credit facility increasing borrowing capacity to $1.25 billion with an option to expand to $2.0 billion and amended its commercial paper program to increase the maximum aggregate principal amount of notes that may be outstanding under the program to $625.0 million.

• During the third quarter of 2022, Standard & Poor’s Ratings Services upgraded MAA’s long-term debt rating to A- with a Stable outlook.

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, 2022 as compared to the same periods in the prior year are summarized below:

Three months ended September 30, 2022 vs. 2021 Nine months ended September 30, 2022 vs. 2021
Revenues Expenses (1) NOI Average Effective Rent per Unit Revenues Expenses (1) NOI Average Effective Rent per Unit
Same Store Operating Growth 14.6% 10.1% 17.4% 16.7% 13.5% 7.6% 17.2% 14.5%

(1) Excludes $1.6 million in storm-related expenses related to Hurricane Ian that are recorded in Non-Same Store operating expenses.

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, 2022 are summarized below:

Three months ended September 30, 2022 Nine months ended September 30, 2022 September 30, 2022
Average Effective Rent per Unit Average Physical Occupancy Average Effective Rent per Unit Average Physical Occupancy Resident Turnover
Same Store Operating Statistics $ 1,614 95.8% $ 1,537 95.8% 45.6%

Same Store Portfolio lease pricing for leases effective during the third quarter of 2022, as compared to the prior lease, increased 13.7% for leases to new move-in residents and increased 14.0% for renewing leases, which produced an increase of 13.9% for both new and renewing leases on a blended basis. The rent-to-resident-income relationship for new leases signed during the third quarter of 2022 remained consistent with recent trends in the range of 22%.

Same Store Portfolio lease pricing for leases effective during the nine months ended September 30, 2022, as compared to the prior lease, increased 15.7% for both leases to new move-in residents and renewing leases.

Acquisition and Disposition Activity

In July 2022, MAA acquired a stabilized 196-unit multifamily community located in the Tampa, Florida market for $73.0 million. In September 2022, MAA acquired a 344-unit multifamily community located in the Charlotte, North Carolina market for $140.0 million and expects the property to stabilize during the first quarter of 2023.

During the third quarter of 2022, MAA also acquired a six acre land parcel in the Denver, Colorado market for approximately $23 million. 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 third quarter of 2022, MAA closed on the disposition of a three acre land parcel located in the Huntsville, Alabama market.

In October 2022, MAA closed on the disposition of a 396-unit multifamily community in Maryland. MAA received gross proceeds of $103.5 million.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the third quarter of 2022 is set forth below (dollars in thousands):

Units as of Development Costs as of Expected Project
Total September 30, 2022 September 30, 2022 Completions By Year
Development Expected Spend Expected
Projects Total Delivered Leased Total to Date Remaining 2022 2023 2024
5 1,759 323 213 $ 444,000 $ 266,127 $ 177,873 1 3 1

The expected average stabilized NOI yield on these communities is 5.7%. During the third quarter of 2022, MAA funded $62.6 million of costs for current and planned projects, including predevelopment activities related to land parcels located in the Denver, Colorado market, the Tampa, Florida market and the Orlando, Florida market.

A summary of the total units, cost and the average physical occupancy of MAA’s lease-up communities as of the end of the third quarter of 2022 is set forth below (dollars in thousands):

Total As of September 30, 2022 Expected Project Stabilizations By Year
Lease-Up Total Physical Spend
Projects Units Occupancy to Date 2022 2023
4 1,327 89.5 % $ 372,930 2 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 third quarter of 2022 is set forth below:

As of September 30, 2022
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, 2022
Redevelopment 2,305 5,247 $ 5,700 $ 138 800 - 1,100
Smart Home 652 21,108 $ 1,358 $ 25 (1) 1,900 - 3,000

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

As of September 30, 2022, MAA had completed installation of the Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 68,000 units across its apartment community portfolio since the initiative began during the first quarter of 2019.

During the third quarter of 2022, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities. The program includes targeted plans to move all units at the properties to higher rents that are expected to deliver yields on cost averaging 8%. During the nine months ended September 30, 2022, work continued on properties selected for this program in 2021. For the nine months ended September 30, 2022, MAA spent $13.1 million on this program.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and nine months ended September 30, 2022 and 2021 is set forth below (dollars in millions, except per Share data):

Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
Core FFO $ 259.5 $ 211.3 $ 733.5 $ 605.5
Recurring capital expenditures (38.7 ) (26.4 ) (84.3 ) (61.8 )
Core adjusted FFO (Core AFFO) 220.8 184.9 649.2 543.7
Redevelopment, revenue enhancing, commercial and other capital expenditures (47.7 ) (39.3 ) (134.9 ) (118.5 )
FAD $ 173.1 $ 145.6 $ 514.3 $ 425.2
Core FFO per Share - diluted $ 2.19 $ 1.78 $ 6.18 $ 5.11
Core AFFO per Share - diluted $ 1.86 $ 1.56 $ 5.47 $ 4.59

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, 2022, MAA had $1.2 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

In July 2022, MAALP amended its unsecured revolving credit facility, increasing borrowing capacity to $1.25 billion with an option to expand to $2.0 billion. The amended facility has a maturity date of October 2026 with two six-month extension options, and bears interest at an adjusted Secured Overnight Financing Rate plus a spread based on an investment ratings grid, currently at 0.725%.

In September 2022, MAALP amended its unsecured commercial paper program, increasing the maximum aggregate principal amount of notes that may be outstanding from time to time under the program from $500.0 million to $625.0 million.

In September 2022, MAALP retired the remaining $125.0 million portion of the $250.0 million in aggregate principal amount of publicly issued unsecured senior notes due in December 2022.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2022 were $148.3 million, as compared to $121.5 million for the same period in the prior year.

Balance sheet highlights as of September 30, 2022 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
29.1% 3.97x $ 4.5 3.4% 97.2% 8.0

(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, 2022.

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.

115th Consecutive Quarterly Common Dividend Declared

MAA declared its 115th consecutive quarterly common dividend, which will be paid on October 31, 2022 to holders of record on October 14, 2022. The current annual dividend rate is $5.00 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.

2022 Earnings and Same Store Portfolio Guidance

MAA is updating its prior 2022 guidance for Net income per diluted common share, Core FFO per Share and Core AFFO per Share, along with its expectations for growth of Property revenue, Property operating expense and NOI for the Same Store Portfolio in 2022.

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.

2022 Guidance Previous Range Previous Midpoint Revised Range Revised Midpoint
Earnings: Full Year 2022 Full Year 2022 Full Year 2022 Full Year 2022
Earnings per common share - diluted $5.65 to $5.89 $5.77 $5.59 to $5.75 $5.67
Core FFO per Share - diluted $8.13 to $8.37 $8.25 $8.37 to $8.53 $8.45
Core AFFO per Share - diluted $7.34 to $7.58 $7.46 $7.59 to $7.75 $7.67
MAA Same Store Portfolio:
Property revenue growth 11.5% to 12.5% 12.0% 13.0% to 14.0% 13.5%
Property operating expense growth 6.5% to 7.5% 7.0% 7.0% to 7.5% 7.25%
NOI growth 14.0% to 16.0% 15.0% 16.0% to 18.0% 17.0%

MAA expects Core FFO for the fourth quarter of 2022 to be in the range of $2.19 to $2.35 per Share, or $2.27 per Share at the midpoint. MAA does not forecast Net income per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.

Supplemental Material and Conference Call

Supplemental data to this release can be found on the “For Investors” page of the MAA website at www.maac.com. MAA will host a conference call to further discuss third quarter results on October 27, 2022, at 9:00 AM Central Time. The conference call-in number is 877-830-2598. You may also join the live webcast of the conference call by accessing the “For Investors” page of the MAA website at www.maac.com. MAA’s filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA

MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of September 30, 2022, MAA had ownership interest in 101,769 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;

• 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, such as the COVID-19 pandemic, 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,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2022 2021 2022 2021
Rental and other property revenues $ 520,783 $ 452,575 $ 1,491,901 $ 1,314,507
Net income available for MAA common shareholders $ 121,389 $ 83,557 $ 441,049 $ 345,384
Total NOI (1) $ 329,360 $ 279,737 $ 949,381 $ 810,440
Earnings per common share: (2)
Basic $ 1.05 $ 0.73 $ 3.82 $ 3.01
Diluted $ 1.05 $ 0.73 $ 3.82 $ 3.01
Funds from operations per Share - diluted: (2)
FFO (1) $ 2.19 $ 1.85 $ 6.08 $ 5.19
Core FFO (1) $ 2.19 $ 1.78 $ 6.18 $ 5.11
Core AFFO (1) $ 1.86 $ 1.56 $ 5.47 $ 4.59
Dividends declared per common share $ 1.2500 $ 1.0250 $ 3.5875 $ 3.0750
Dividends/Core FFO (diluted) payout ratio 57.1 % 57.6 % 58.1 % 60.2 %
Dividends/Core AFFO (diluted) payout ratio 67.2 % 65.7 % 65.6 % 67.0 %
Consolidated interest expense $ 38,637 $ 39,234 $ 116,663 $ 117,773
Mark-to-market debt adjustment (19 ) (67 ) (90 ) (234 )
Debt discount and debt issuance cost amortization (1,510 ) (1,401 ) (4,457 ) (3,909 )
Capitalized interest 2,253 2,448 6,146 7,781
Total interest incurred $ 39,361 $ 40,214 $ 118,262 $ 121,411
Amortization of principal on notes payable $ 352 $ 334 $ 1,043 $ 1,180

(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, 2022 December 31, 2021
Gross Assets (1) $ 15,543,024 $ 15,133,343
Gross Real Estate Assets (1) $ 15,314,297 $ 14,865,818
Total debt $ 4,519,151 $ 4,516,690
Common shares and units outstanding 118,643,681 118,542,994
Share price $ 155.07 $ 229.44
Book equity value $ 6,171,900 $ 6,184,092
Market equity value $ 18,398,076 $ 27,198,505
Net Debt/Adjusted EBITDAre (2) 3.97x 4.39x

(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,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2022 2021 2022 2021
Revenues:
Rental and other property revenues $ 520,783 $ 452,575 $ 1,491,901 $ 1,314,507
Expenses:
Operating expenses, excluding real estate taxes and insurance 117,390 106,412 328,514 304,124
Real estate taxes and insurance 74,033 66,426 214,006 199,943
Depreciation and amortization 136,879 134,611 404,761 397,938
Total property operating expenses 328,302 307,449 947,281 902,005
Property management expenses 16,262 13,831 48,429 40,522
General and administrative expenses 12,188 12,670 44,091 38,763
Interest expense 38,637 39,234 116,663 117,773
Loss (gain) on sale of depreciable real estate assets 1 313 (131,963 ) (134,515 )
Gain on sale of non-depreciable real estate assets (431 ) (170 ) (809 ) (202 )
Other non-operating expense (income) 1,718 (10,344 ) 19,248 (14,557 )
Income before income tax expense 124,106 89,592 448,961 364,718
Income tax benefit (expense) 1,256 (2,803 ) 5,750 (5,847 )
Income from continuing operations before real estate joint venture activity 125,362 86,789 454,711 358,871
Income from real estate joint venture 341 258 1,129 915
Net income 125,703 87,047 455,840 359,786
Net income attributable to noncontrolling interests 3,392 2,568 12,025 11,636
Net income available for shareholders 122,311 84,479 443,815 348,150
Dividends to MAA Series I preferred shareholders 922 922 2,766 2,766
Net income available for MAA common shareholders $ 121,389 $ 83,557 $ 441,049 $ 345,384
Earnings per common share - basic:
Net income available for common shareholders $ 1.05 $ 0.73 $ 3.82 $ 3.01
Earnings per common share - diluted:
Net income available for common shareholders $ 1.05 $ 0.73 $ 3.82 $ 3.01
SHARE AND UNIT DATA
---
Shares and units in thousands Three months ended September 30, Nine months ended September 30,
--- --- --- --- --- --- --- --- ---
2022 2021 2022 2021
Net Income Shares (1)
Weighted average common shares - basic 115,363 114,933 115,325 114,568
Effect of dilutive securities 205 296 267 305
Weighted average common shares - diluted 115,568 115,229 115,592 114,873
Funds From Operations Shares And Units
Weighted average common shares and units - basic 118,564 118,430 118,528 118,389
Weighted average common shares and units - diluted 118,643 118,540 118,626 118,511
Period End Shares And Units
Common shares at September 30, 115,448 115,138 115,448 115,138
Operating Partnership units at September 30, 3,196 3,403 3,196 3,403
Total common shares and units at September 30, 118,644 118,541 118,644 118,541

(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, 2022, expected to be filed with the SEC on or about October 27, 2022.

CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
--- --- --- --- --- --- ---
September 30, 2022 December 31, 2021
Assets
Real estate assets:
Land $ 1,991,472 $ 1,977,813
Buildings and improvements and other 12,787,864 12,454,439
Development and capital improvements in progress 297,416 247,970
15,076,752 14,680,222
Less: Accumulated depreciation (4,180,694 ) (3,848,161 )
10,896,058 10,832,061
Undeveloped land 64,312 24,015
Investment in real estate joint venture 42,442 42,827
Real estate assets, net 11,002,812 10,898,903
Cash and cash equivalents 38,996 54,302
Restricted cash 14,558 76,296
Other assets 215,347 255,681
Assets held for sale 66,514 —
Total assets $ 11,338,227 $ 11,285,182
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,154,820 $ 4,151,375
Secured notes payable 364,331 365,315
Accrued expenses and other liabilities 647,176 584,400
Total liabilities 5,166,327 5,101,090
Redeemable common stock 20,145 30,185
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,152 1,151
Additional paid-in capital 7,196,504 7,230,956
Accumulated distributions in excess of net income (1,219,599 ) (1,255,807 )
Accumulated other comprehensive loss (10,321 ) (11,132 )
Total MAA shareholders’ equity 5,967,745 5,965,177
Noncontrolling interests - Operating Partnership units 164,230 165,116
Total Company’s shareholders’ equity 6,131,975 6,130,293
Noncontrolling interests - consolidated real estate entities 19,780 23,614
Total equity 6,151,755 6,153,907
Total liabilities and equity $ 11,338,227 $ 11,285,182
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,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2022 2021 2022 2021
Net income available for MAA common shareholders $ 121,389 $ 83,557 $ 441,049 $ 345,384
Depreciation and amortization of real estate assets 135,023 132,803 399,366 392,586
Loss (gain) on sale of depreciable real estate assets 1 313 (131,963 ) (134,515 )
Depreciation and amortization of real estate assets of real estate joint venture 156 154 466 463
Net income attributable to noncontrolling interests 3,392 2,568 12,025 11,636
FFO attributable to the Company 259,961 219,395 720,943 615,554
Loss (gain) on embedded derivative in preferred shares (1) 425 (13,432 ) 10,364 (11,492 )
Gain on sale of non-depreciable real estate assets (431 ) (170 ) (809 ) (202 )
Loss (gain) on investments, net of tax (1)(2) 6,470 (7,985 ) 31,036 (14,231 )
Net casualty (gain) loss and other settlement proceeds (3) (7,046 ) 244 (29,171 ) 2,004
Loss on debt extinguishment (1) 47 13,354 47 13,391
Legal costs and settlements, net (1) — (700 ) 535 (716 )
COVID-19 related costs (1) 60 492 502 911
Mark-to-market debt adjustment (4) 19 67 90 234
Core FFO 259,505 211,265 733,537 605,453
Recurring capital expenditures (38,669 ) (26,377 ) (84,343 ) (61,809 )
Core AFFO 220,836 184,888 649,194 543,644
Redevelopment capital expenditures (23,773 ) (20,752 ) (77,280 ) (69,632 )
Revenue enhancing capital expenditures (16,172 ) (11,402 ) (39,100 ) (29,488 )
Commercial capital expenditures (727 ) (877 ) (2,754 ) (2,303 )
Other capital expenditures (5) (7,031 ) (6,272 ) (15,744 ) (17,020 )
FAD $ 173,133 $ 145,585 $ 514,316 $ 425,201
Dividends and distributions paid $ 148,301 $ 121,500 $ 406,226 $ 364,393
Weighted average common shares - diluted 115,568 115,229 115,592 114,873
FFO weighted average common shares and units - diluted 118,643 118,540 118,626 118,511
Earnings per common share - diluted:
Net income available for common shareholders $ 1.05 $ 0.73 $ 3.82 $ 3.01
FFO per Share - diluted $ 2.19 $ 1.85 $ 6.08 $ 5.19
Core FFO per Share - diluted $ 2.19 $ 1.78 $ 6.18 $ 5.11
Core AFFO per Share - diluted $ 1.86 $ 1.56 $ 5.47 $ 4.59

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

(2) For the three and nine months ended September 30, 2022, loss (gain) on investments are presented net of tax benefit of $1.7 million and $8.3 million, respectively. For the three and nine months ended September 30, 2021, loss (gain) on investments are presented net of tax expense of $2.1 million and $3.8 million, respectively.

(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. The gain is reflected in Other non-operating expense (income) in the Consolidated Statements of Operations. During the three and nine months ended September 30, 2021, MAA incurred casualty losses related to winter storm Uri. The majority of the casualty losses have been reimbursed through insurance coverage. A receivable was recognized in Other non-operating expense (income) for the recorded losses that MAA expected to recover. Additional costs related to the storm that were not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are also reflected in this adjustment. The adjustment is primarily included in Other non-operating expense (income).

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

(5) For the three and nine months ended September 30, 2021, $15.0 million and $28.3 million, respectively, of reconstruction-related capital expenditures relating to winter storm Uri are excluded from other capital expenditures. The majority of the storm costs have been reimbursed through insurance coverage.

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>2022 June 30,<br>2022 September 30,<br>2021 September 30,<br>2022 September 30,<br>2021
Net Operating Income
Same Store NOI $ 315,616 $ 300,238 $ 268,882 $ 910,496 $ 777,147
Non-Same Store and Other NOI 13,744 13,125 10,855 38,885 33,293
Total NOI 329,360 313,363 279,737 949,381 810,440
Depreciation and amortization (136,879 ) (134,144 ) (134,611 ) (404,761 ) (397,938 )
Property management expenses (16,262 ) (15,630 ) (13,831 ) (48,429 ) (40,522 )
General and administrative expenses (12,188 ) (15,580 ) (12,670 ) (44,091 ) (38,763 )
Interest expense (38,637 ) (38,905 ) (39,234 ) (116,663 ) (117,773 )
(Loss) gain on sale of depreciable real estate assets (1 ) 131,965 (313 ) 131,963 134,515
Gain on sale of non-depreciable real estate assets 431 355 170 809 202
Other non-operating (expense) income (1,718 ) (28,325 ) 10,344 (19,248 ) 14,557
Income tax benefit (expense) 1,256 3,052 (2,803 ) 5,750 (5,847 )
Income from real estate joint venture 341 409 258 1,129 915
Net income attributable to noncontrolling interests (3,392 ) (5,858 ) (2,568 ) (12,025 ) (11,636 )
Dividends to MAA Series I preferred shareholders (922 ) (922 ) (922 ) (2,766 ) (2,766 )
Net income available for MAA common shareholders $ 121,389 $ 209,780 $ 83,557 $ 441,049 $ 345,384
RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- ---
September 30, 2022 September 30, 2021 September 30, 2022 December 31, 2021
Net income $ 125,703 $ 87,047 $ 646,756 $ 550,702
Depreciation and amortization 136,879 134,611 540,256 533,433
Interest expense 38,637 39,234 155,771 156,881
Income tax (benefit) expense (1,256 ) 2,803 2,040 13,637
EBITDA 299,963 263,695 1,344,823 1,254,653
Loss (gain) on sale of depreciable real estate assets 1 313 (217,876 ) (220,428 )
Adjustments to reflect the Company’s share of EBITDAre of unconsolidated affiliates 341 337 1,357 1,352
EBITDAre 300,305 264,345 1,128,304 1,035,577
Loss (gain) on embedded derivative in preferred shares (1) 425 (13,432 ) 26,416 4,560
Gain on sale of non-depreciable real estate assets (431 ) (170 ) (1,418 ) (811 )
Loss (gain) on investments (1) 8,197 (10,099 ) 5,576 (51,714 )
Net casualty (gain) loss and other settlement proceeds (2) (7,046 ) 244 (29,651 ) 1,524
Loss on debt extinguishment (1) 47 13,354 47 13,391
Legal costs and settlements, net (1) — (700 ) (916 ) (2,167 )
COVID-19 related costs (1) 60 492 892 1,301
Adjusted EBITDAre $ 301,557 $ 254,034 $ 1,129,250 $ 1,001,661

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

(2) For the three and twelve months ended September 30, 2022, MAA recognized a gain of $7.2 million and $27.6 million from the receipt of insurance proceeds that exceeded its casualty losses related to winter storm Uri. The gain is reflected in Other non-operating expense (income) in the Consolidated Statements of Operations. During the three months ended September 30, 2021 and the twelve months ended December 31, 2021, MAA incurred casualty losses related to winter storm Uri. The majority of the casualty losses have been reimbursed through insurance coverage. A receivable was recognized in Other non-operating expense (income) for the recorded losses that MAA expected to recover. Additional costs related to the storm that were not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are also reflected in this adjustment. The adjustment is primarily included in Other non-operating expense (income).

RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE
Dollars in thousands
--- --- --- --- --- --- ---
September 30, 2022 December 31, 2021
Unsecured notes payable $ 4,154,820 $ 4,151,375
Secured notes payable 364,331 365,315
Total debt 4,519,151 4,516,690
Cash and cash equivalents (38,996 ) (54,302 )
1031(b) exchange proceeds included in Restricted cash (1) (1,178 ) (64,452 )
Net Debt $ 4,478,977 $ 4,397,936

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

RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS
Dollars in thousands
--- --- --- --- ---
September 30, 2022 December 31, 2021
Total assets $ 11,338,227 $ 11,285,182
Accumulated depreciation 4,180,694 3,848,161
Accumulated depreciation for Assets held for sale (1) 24,103 —
Gross Assets $ 15,543,024 $ 15,133,343

(1) Included in Assets held for sale on the Consolidated Balance Sheets.

RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET
Dollars in thousands
--- --- --- --- ---
September 30, 2022 December 31, 2021
Real estate assets, net $ 11,002,812 $ 10,898,903
Accumulated depreciation 4,180,694 3,848,161
Assets held for sale, net 66,514 —
Accumulated depreciation for Assets held for sale (1) 24,103 —
Cash and cash equivalents 38,996 54,302
1031(b) exchange proceeds included in Restricted cash (2) 1,178 64,452
Gross Real Estate Assets $ 15,314,297 $ 14,865,818

(1) Included in Assets held for sale on the Consolidated Balance Sheets.

(2) 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, net casualty gain or loss, 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. 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 casualty gain or loss, gain or loss on debt extinguishment, legal costs and settlements, net, COVID-19 related costs and mark-to-market debt adjustments. While MAA's definition of Core FFO may be similar to others in the industry, MAA’s methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

EBITDA

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA does not include various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.

EBITDAre

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable asset sales and adjustments to reflect MAA’s share of EBITDAre of unconsolidated affiliates. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre does not include various expense items that are not indicative of operating performance. While MAA’s definition of EBITDAre is in accordance with NAREIT’s definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Funds Available for Distribution (FAD)

FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions and capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and total capital expenditures.

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 document, represents FFO attributable to the Company. While MAA’s definition of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Assets

Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

NON-GAAP FINANCIAL MEASURES (Continued)

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net plus Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Net Debt

Net Debt represents Unsecured notes payable and Secured notes payable less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.

Net Operating Income (NOI)

Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Non-Same Store and Other NOI

Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes all storm-related expenses related to Hurricane Ian. 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 Hurricane Ian. 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, 2022 (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 — 11,434
Dallas, TX 9,767 348 — 10,115 — 10,115
Tampa, FL 5,220 196 — 5,416 — 5,416
Orlando, FL 5,274 264 369 5,907 — 5,907
Charlotte, NC 5,867 — 344 6,211 — 6,211
Austin, TX 6,829 288 — 7,117 323 7,440
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
Jacksonville, FL 3,496 — — 3,496 — 3,496
Charleston, SC 3,168 — — 3,168 — 3,168
Phoenix, AZ 2,623 345 — 2,968 — 2,968
Fort Worth, TX 3,519 168 — 3,687 — 3,687
Northern Virginia 1,888 — — 1,888 — 1,888
Richmond, VA 2,004 — — 2,004 — 2,004
Savannah, GA 1,837 — — 1,837 — 1,837
Fredericksburg, VA 1,435 — — 1,435 — 1,435
Greenville, SC 2,355 — — 2,355 — 2,355
Memphis, TN 1,811 — — 1,811 — 1,811
Birmingham, AL 1,462 — — 1,462 — 1,462
Denver, CO 812 — 306 1,118 — 1,118
San Antonio, TX 1,504 — — 1,504 — 1,504
Huntsville, AL 1,228 — — 1,228 — 1,228
Kansas City, MO-KS 1,110 — — 1,110 — 1,110
Other 7,078 492 — 7,570 — 7,570
Total Multifamily Units 96,313 2,101 1,327 99,741 323 100,064

(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, 2022 Average<br>Effective As of September 30, 2022
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, 2022 Completed<br>Units Total Units,<br>Including<br>Development
Atlanta, GA $ 2,058,201 14.0 % 95.9 % $ 1,793 11,434
Dallas, TX 1,530,476 10.3 % 95.9 % 1,595 10,115
Tampa, FL 982,215 6.6 % 95.5 % 2,015 5,416
Charlotte, NC 977,952 6.6 % 95.8 % 1,543 5,867
Orlando, FL 912,513 6.2 % 96.2 % 1,881 5,538
Austin, TX 888,441 6.0 % 95.2 % 1,587 7,117
Raleigh/Durham, NC 716,513 4.8 % 95.6 % 1,474 5,350
Houston, TX 624,165 4.2 % 95.7 % 1,363 4,867
Northern Virginia 566,836 3.8 % 95.9 % 2,211 1,888
Nashville, TN 547,556 3.7 % 96.1 % 1,634 4,375
Phoenix, AZ 471,487 3.2 % 95.9 % 1,728 2,968
Charleston, SC 417,605 2.8 % 96.4 % 1,625 3,168
Fort Worth, TX 378,646 2.6 % 95.6 % 1,515 3,687
Jacksonville, FL 299,626 2.0 % 96.7 % 1,510 3,496
Richmond, VA 272,830 1.8 % 96.3 % 1,525 2,004
Fredericksburg, VA 250,094 1.7 % 96.6 % 1,763 1,435
Greenville, SC 231,124 1.6 % 96.7 % 1,256 2,355
Savannah, GA 220,793 1.5 % 96.7 % 1,570 1,837
Denver, CO 212,386 1.4 % 96.4 % 1,898 812
Kansas City, MO-KS 189,830 1.3 % 95.7 % 1,486 1,110
San Antonio, TX 168,221 1.1 % 95.7 % 1,361 1,504
Birmingham, AL 165,371 1.1 % 95.1 % 1,342 1,462
All Other Markets by State (individual markets <1% gross real assets)
Tennessee 193,239 1.3 % 95.5 % 1,295 2,754
Florida 182,531 1.2 % 96.0 % 1,751 1,806
Maryland 171,446 1.2 % 95.2 % 1,940 757
Alabama 168,103 1.1 % 95.3 % 1,357 1,648
Virginia 157,063 1.1 % 95.9 % 1,694 1,039
Kentucky 96,194 0.6 % 96.4 % 1,127 1,308
Nevada 72,736 0.5 % 95.8 % 1,548 721
South Carolina 37,971 0.3 % 95.3 % 1,127 576
Stabilized Communities $ 14,162,164 95.6 % 95.9 % $ 1,619 98,414
Charlotte, NC 139,071 0.9 % 91.6 % 2,084 344 344
Denver, CO 112,255 0.8 % 90.2 % 1,906 306 658
Orlando, FL 97,380 0.7 % 89.7 % 2,205 369 369
Salt Lake City, UT 65,399 0.4 % — — — 400
Atlanta, GA 58,366 0.4 % — — — 340
Austin, TX 57,737 0.4 % 56.6 % 1,635 323 350
Houston, TX 54,792 0.4 % 86.4 % 1,560 308 308
Phoenix, AZ 54,057 0.4 % — — — 317
Lease-up / Development Communities $ 639,057 4.4 % 82.6 % $ 1,892 1,650 3,086
Total Multifamily Communities $ 14,801,221 100.0 % 95.7 % $ 1,624 100,064 101,500

(1) Schedule excludes MAA's 35% ownership in a 269 unit joint venture property in Washington, D.C. As of September 30, 2022, the gross investment in real estate for this community was $80.4 million and includes a mortgage note payable of $51.8 million. For the nine months ended September 30, 2022, this apartment community achieved NOI of $5.5 million.

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

As of September 30, 2022 Three Months Ended
Apartment Units Gross Real Assets September 30, 2022 September 30, 2021 Percent<br>Change
Operating Revenues
Same Store Communities 96,313 $ 13,726,445 $ 495,377 $ 432,206 14.6 %
Non-Same Store Communities 2,101 435,719 12,876 13,323
Lease-up/Development Communities 1,650 639,057 6,313 1,094
Total Multifamily Portfolio 100,064 $ 14,801,221 $ 514,566 $ 446,623
Commercial Property/Land — 357,028 6,217 5,952
Total Operating Revenues 100,064 $ 15,158,249 $ 520,783 $ 452,575
Property Operating Expenses
Same Store Communities $ 179,761 $ 163,324 10.1 %
Non-Same Store Communities 4,569 6,209
Lease-up/Development Communities 2,839 709
Hurricane Expenses 1,602 —
Total Multifamily Portfolio $ 188,771 $ 170,242
Commercial Property/Land 2,652 2,596
Total Property Operating Expenses $ 191,423 $ 172,838
Net Operating Income
Same Store Communities $ 315,616 $ 268,882 17.4 %
Non-Same Store Communities 8,307 7,114
Lease-up/Development Communities 3,474 385
Hurricane Expenses (1,602 ) —
Total Multifamily Portfolio $ 325,795 $ 276,381
Commercial Property/Land 3,565 3,356
Total Net Operating Income $ 329,360 $ 279,737 17.7 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Nine Months Ended
September 30, 2022 September 30, 2021 Percent Change September 30, 2022 September 30, 2021 Percent<br>Change
Property Taxes $ 62,924 $ 57,296 9.8 % $ 182,668 $ 173,452 5.3 %
Personnel 39,281 35,953 9.3 % 111,829 104,097 7.4 %
Utilities 33,594 31,154 7.8 % 92,970 88,113 5.5 %
Building Repair and Maintenance 24,011 21,360 12.4 % 65,910 58,777 12.1 %
Office Operations 7,276 5,817 25.1 % 20,764 17,044 21.8 %
Insurance 7,011 6,233 12.5 % 19,523 17,197 13.5 %
Marketing 5,664 5,511 2.8 % 17,854 16,928 5.5 %
Total Property Operating Expenses (1) $ 179,761 $ 163,324 10.1 % $ 511,518 $ 475,608 7.6 %

(1) Excludes $1.6 million in storm-related expenses related to Hurricane Ian.

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, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Atlanta, GA 11,434 12.8 % 95.3 % 95.6 % 95.4 % 95.4 %
Dallas, TX 9,767 9.2 % 95.8 % 96.2 % 95.6 % 95.7 %
Tampa, FL 5,220 6.9 % 95.8 % 97.1 % 96.1 % 97.2 %
Charlotte, NC 5,867 6.5 % 96.0 % 96.5 % 95.8 % 96.3 %
Orlando, FL 5,274 6.3 % 96.2 % 96.3 % 96.3 % 95.9 %
Austin, TX 6,829 6.2 % 95.5 % 96.1 % 95.3 % 95.8 %
Raleigh/Durham, NC 5,350 5.5 % 95.8 % 96.2 % 95.5 % 96.0 %
Nashville, TN 4,375 4.7 % 96.1 % 96.2 % 95.9 % 95.5 %
Houston, TX 4,867 3.8 % 95.5 % 96.0 % 95.5 % 95.0 %
Charleston, SC 3,168 3.6 % 96.1 % 96.7 % 95.9 % 96.4 %
Phoenix, AZ 2,623 3.4 % 95.7 % 97.0 % 95.9 % 97.0 %
Jacksonville, FL 3,496 3.4 % 96.4 % 97.3 % 96.6 % 97.5 %
Fort Worth, TX 3,519 3.2 % 95.5 % 96.4 % 95.6 % 96.3 %
Northern Virginia 1,888 2.7 % 95.6 % 95.3 % 95.6 % 95.7 %
Richmond, VA 2,004 2.1 % 96.1 % 96.5 % 96.1 % 96.8 %
Greenville, SC 2,355 2.0 % 96.6 % 96.4 % 96.4 % 96.4 %
Savannah, GA 1,837 2.0 % 96.9 % 97.4 % 96.8 % 97.3 %
Fredericksburg, VA 1,435 1.8 % 95.8 % 96.6 % 96.4 % 97.1 %
Memphis, TN 1,811 1.5 % 94.4 % 96.7 % 95.0 % 97.3 %
Birmingham, AL 1,462 1.3 % 95.8 % 96.6 % 95.7 % 96.7 %
San Antonio, TX 1,504 1.2 % 96.0 % 97.0 % 95.9 % 96.3 %
Denver, CO 812 1.1 % 95.1 % 95.7 % 95.8 % 94.8 %
Huntsville, AL 1,228 1.1 % 95.1 % 96.6 % 95.7 % 97.0 %
Kansas City, MO-KS 1,110 1.0 % 95.8 % 96.1 % 95.6 % 95.1 %
Other 7,078 6.7 % 95.9 % 96.9 % 96.0 % 96.8 %
Total Same Store 96,313 100.0 % 95.8 % 96.4 % 95.8 % 96.2 %

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 2022 Q3 2021 % Chg Q3 2022 (1) Q3 2021 % Chg Q3 2022 Q3 2021 % Chg Q3 2022 Q3 2021 % Chg
Atlanta, GA 11,434 $ 64,073 $ 56,687 13.0 % $ 23,756 $ 21,800 9.0 % $ 40,317 $ 34,887 15.6 % $ 1,793 $ 1,553 15.4 %
Dallas, TX 9,767 49,111 42,357 15.9 % 20,199 18,985 6.4 % 28,912 23,372 23.7 % 1,585 1,352 17.2 %
Tampa, FL 5,220 32,897 27,887 18.0 % 11,001 9,841 11.8 % 21,896 18,046 21.3 % 2,015 1,651 22.0 %
Charlotte, NC 5,867 28,955 25,338 14.3 % 8,513 7,878 8.1 % 20,442 17,460 17.1 % 1,543 1,325 16.4 %
Orlando, FL 5,274 31,271 25,969 20.4 % 11,406 9,136 24.8 % 19,865 16,833 18.0 % 1,864 1,530 21.9 %
Austin, TX 6,829 34,889 30,219 15.5 % 15,303 13,689 11.8 % 19,586 16,530 18.5 % 1,598 1,361 17.4 %
Raleigh/Durham, NC 5,350 25,425 21,894 16.1 % 8,018 7,540 6.3 % 17,407 14,354 21.3 % 1,474 1,253 17.6 %
Nashville, TN 4,375 22,781 19,729 15.5 % 7,818 7,280 7.4 % 14,963 12,449 20.2 % 1,634 1,391 17.5 %
Houston, TX 4,867 21,283 19,428 9.5 % 9,420 8,356 12.7 % 11,863 11,072 7.1 % 1,363 1,236 10.3 %
Charleston, SC 3,168 16,577 14,113 17.5 % 5,286 5,364 (1.5 )% 11,291 8,749 29.1 % 1,625 1,361 19.4 %
Phoenix, AZ 2,623 14,291 12,222 16.9 % 3,632 3,470 4.7 % 10,659 8,752 21.8 % 1,713 1,437 19.2 %
Jacksonville, FL 3,496 16,394 14,161 15.8 % 5,754 4,971 15.8 % 10,640 9,190 15.8 % 1,510 1,262 19.7 %
Fort Worth, TX 3,519 17,633 15,509 13.7 % 7,538 6,321 19.3 % 10,095 9,188 9.9 % 1,509 1,306 15.5 %
Northern Virginia 1,888 13,002 11,821 10.0 % 4,358 4,025 8.3 % 8,644 7,796 10.9 % 2,211 1,999 10.6 %
Richmond, VA 2,004 9,911 8,685 14.1 % 3,257 2,955 10.2 % 6,654 5,730 16.1 % 1,525 1,314 16.1 %
Greenville, SC 2,355 9,936 8,707 14.1 % 3,602 3,406 5.8 % 6,334 5,301 19.5 % 1,256 1,083 15.9 %
Savannah, GA 1,837 9,457 7,876 20.1 % 3,242 2,980 8.8 % 6,215 4,896 26.9 % 1,570 1,284 22.3 %
Fredericksburg, VA 1,435 8,078 7,578 6.6 % 2,326 2,152 8.1 % 5,752 5,426 6.0 % 1,763 1,618 9.0 %
Memphis, TN 1,811 7,721 6,901 11.9 % 2,887 2,682 7.6 % 4,834 4,219 14.6 % 1,339 1,171 14.4 %
Birmingham, AL 1,462 6,483 5,874 10.4 % 2,502 2,264 10.5 % 3,981 3,610 10.3 % 1,342 1,183 13.4 %
San Antonio, TX 1,504 6,515 5,775 12.8 % 2,855 2,718 5.0 % 3,660 3,057 19.7 % 1,361 1,186 14.8 %
Denver, CO 812 4,916 4,506 9.1 % 1,467 1,393 5.3 % 3,449 3,113 10.8 % 1,898 1,712 10.9 %
Huntsville, AL 1,228 5,197 4,718 10.2 % 1,773 1,585 11.9 % 3,424 3,133 9.3 % 1,281 1,132 13.1 %
Kansas City, MO-KS 1,110 5,256 4,769 10.2 % 2,037 1,811 12.5 % 3,219 2,958 8.8 % 1,486 1,343 10.6 %
Other 7,078 33,325 29,483 13.0 % 11,811 10,722 10.2 % 21,514 18,761 14.7 % 1,481 1,279 15.8 %
Total Same Store 96,313 $ 495,377 $ 432,206 14.6 % $ 179,761 $ 163,324 10.1 % $ 315,616 $ 268,882 17.4 % $ 1,614 $ 1,383 16.7 %

(1) Excludes $1.6 million in storm-related expenses related to Hurricane Ian.

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 2022 Q2 2022 % Chg Q3 2022 (1) Q2 2022 % Chg Q3 2022 Q2 2022 % Chg Q3 2022 Q2 2022 % Chg
Atlanta, GA 11,434 $ 64,073 $ 61,641 3.9 % $ 23,756 $ 22,386 6.1 % $ 40,317 $ 39,255 2.7 % $ 1,793 $ 1,706 5.1 %
Dallas, TX 9,767 49,111 46,530 5.5 % 20,199 18,676 8.2 % 28,912 27,854 3.8 % 1,585 1,501 5.6 %
Tampa, FL 5,220 32,897 31,285 5.2 % 11,001 10,460 5.2 % 21,896 20,825 5.1 % 2,015 1,895 6.3 %
Charlotte, NC 5,867 28,955 27,294 6.1 % 8,513 8,470 0.5 % 20,442 18,824 8.6 % 1,543 1,452 6.3 %
Orlando, FL 5,274 31,271 29,367 6.5 % 11,406 10,124 12.7 % 19,865 19,243 3.2 % 1,864 1,736 7.4 %
Austin, TX 6,829 34,889 33,167 5.2 % 15,303 15,407 (0.7 )% 19,586 17,760 10.3 % 1,598 1,515 5.5 %
Raleigh/Durham, NC 5,350 25,425 23,952 6.1 % 8,018 8,002 0.2 % 17,407 15,950 9.1 % 1,474 1,376 7.1 %
Nashville, TN 4,375 22,781 21,528 5.8 % 7,818 7,460 4.8 % 14,963 14,068 6.4 % 1,634 1,532 6.7 %
Houston, TX 4,867 21,283 20,725 2.7 % 9,420 9,490 (0.7 )% 11,863 11,235 5.6 % 1,363 1,320 3.3 %
Charleston, SC 3,168 16,577 15,463 7.2 % 5,286 5,305 (0.4 )% 11,291 10,158 11.2 % 1,625 1,521 6.9 %
Phoenix, AZ 2,623 14,291 13,602 5.1 % 3,632 3,514 3.4 % 10,659 10,088 5.7 % 1,713 1,620 5.7 %
Jacksonville, FL 3,496 16,394 15,680 4.6 % 5,754 5,361 7.3 % 10,640 10,319 3.1 % 1,510 1,431 5.5 %
Fort Worth, TX 3,519 17,633 16,838 4.7 % 7,538 7,020 7.4 % 10,095 9,818 2.8 % 1,509 1,438 4.9 %
Northern Virginia 1,888 13,002 12,493 4.1 % 4,358 3,814 14.3 % 8,644 8,679 (0.4 )% 2,211 2,122 4.2 %
Richmond, VA 2,004 9,911 9,459 4.8 % 3,257 3,101 5.0 % 6,654 6,358 4.7 % 1,525 1,448 5.3 %
Greenville, SC 2,355 9,936 9,486 4.7 % 3,602 3,701 (2.7 )% 6,334 5,785 9.5 % 1,256 1,192 5.3 %
Savannah, GA 1,837 9,457 8,989 5.2 % 3,242 3,110 4.2 % 6,215 5,879 5.7 % 1,570 1,463 7.3 %
Fredericksburg, VA 1,435 8,078 8,040 0.5 % 2,326 2,186 6.4 % 5,752 5,854 (1.7 )% 1,763 1,714 2.8 %
Memphis, TN 1,811 7,721 7,404 4.3 % 2,887 2,714 6.4 % 4,834 4,690 3.1 % 1,339 1,293 3.6 %
Birmingham, AL 1,462 6,483 6,281 3.2 % 2,502 2,333 7.2 % 3,981 3,948 0.8 % 1,342 1,280 4.8 %
San Antonio, TX 1,504 6,515 6,235 4.5 % 2,855 2,839 0.6 % 3,660 3,396 7.8 % 1,361 1,288 5.7 %
Denver, CO 812 4,916 4,727 4.0 % 1,467 1,323 10.9 % 3,449 3,404 1.3 % 1,898 1,829 3.8 %
Huntsville, AL 1,228 5,197 5,071 2.5 % 1,773 1,783 (0.6 )% 3,424 3,288 4.1 % 1,281 1,222 4.9 %
Kansas City, MO-KS 1,110 5,256 5,013 4.8 % 2,037 1,834 11.1 % 3,219 3,179 1.3 % 1,486 1,423 4.4 %
Other 7,078 33,325 31,890 4.5 % 11,811 11,509 2.6 % 21,514 20,381 5.6 % 1,481 1,406 5.3 %
Total Same Store 96,313 $ 495,377 $ 472,160 4.9 % $ 179,761 $ 171,922 4.6 % $ 315,616 $ 300,238 5.1 % $ 1,614 $ 1,529 5.6 %

(1) Excludes $1.6 million in storm-related expenses related to Hurricane Ian.

Supplemental Data S-6

MULTIFAMILY SAME STORE PORTFOLIO YEAR TO DATE COMPARISONS AS OF SEPTEMBER 30, 2022 AND 2021

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q3 2022 Q3 2021 % Chg Q3 2022 (1) Q3 2021 % Chg Q3 2022 Q3 2021 % Chg Q3 2022 Q3 2021 % Chg
Atlanta, GA 11,434 $ 185,311 $ 164,074 12.9 % $ 67,188 $ 62,249 7.9 % $ 118,123 $ 101,825 16.0 % $ 1,715 $ 1,511 13.6 %
Dallas, TX 9,767 140,401 123,020 14.1 % 57,454 55,557 3.4 % 82,947 67,463 23.0 % 1,508 1,319 14.3 %
Tampa, FL 5,220 94,112 80,359 17.1 % 31,516 28,147 12.0 % 62,596 52,212 19.9 % 1,903 1,589 19.7 %
Charlotte, NC 5,867 82,729 73,441 12.6 % 24,675 23,069 7.0 % 58,054 50,372 15.3 % 1,464 1,287 13.7 %
Orlando, FL 5,274 88,528 75,651 17.0 % 31,168 27,913 11.7 % 57,360 47,738 20.2 % 1,750 1,489 17.6 %
Austin, TX 6,829 99,837 86,828 15.0 % 43,337 40,560 6.8 % 56,500 46,268 22.1 % 1,521 1,319 15.3 %
Raleigh/Durham, NC 5,350 72,284 63,795 13.3 % 23,161 21,589 7.3 % 49,123 42,206 16.4 % 1,392 1,214 14.6 %
Nashville, TN 4,375 64,889 56,962 13.9 % 22,263 20,984 6.1 % 42,626 35,978 18.5 % 1,546 1,349 14.5 %
Houston, TX 4,867 62,228 56,935 9.3 % 27,365 25,656 6.7 % 34,863 31,279 11.5 % 1,323 1,219 8.5 %
Charleston, SC 3,168 46,897 40,639 15.4 % 15,541 15,013 3.5 % 31,356 25,626 22.4 % 1,533 1,313 16.7 %
Phoenix, AZ 2,623 41,005 35,111 16.8 % 10,439 9,818 6.3 % 30,566 25,293 20.8 % 1,631 1,378 18.3 %
Jacksonville, FL 3,496 47,280 40,775 16.0 % 16,059 14,288 12.4 % 31,221 26,487 17.9 % 1,437 1,218 18.0 %
Fort Worth, TX 3,519 50,716 45,027 12.6 % 20,604 18,861 9.2 % 30,112 26,166 15.1 % 1,443 1,269 13.7 %
Northern Virginia 1,888 37,666 35,708 5.5 % 12,058 11,746 2.7 % 25,608 23,962 6.9 % 2,134 2,012 6.0 %
Richmond, VA 2,004 28,377 25,453 11.5 % 9,449 8,480 11.4 % 18,928 16,973 11.5 % 1,459 1,286 13.5 %
Greenville, SC 2,355 28,528 25,359 12.5 % 10,605 10,057 5.4 % 17,923 15,302 17.1 % 1,201 1,051 14.2 %
Savannah, GA 1,837 26,880 22,503 19.5 % 9,249 8,600 7.5 % 17,631 13,903 26.8 % 1,472 1,224 20.2 %
Fredericksburg, VA 1,435 23,808 21,729 9.6 % 6,806 6,244 9.0 % 17,002 15,485 9.8 % 1,716 1,547 10.9 %
Memphis, TN 1,811 22,439 20,031 12.0 % 8,237 7,767 6.1 % 14,202 12,264 15.8 % 1,294 1,121 15.4 %
Birmingham, AL 1,462 18,774 17,013 10.4 % 7,173 6,657 7.8 % 11,601 10,356 12.0 % 1,286 1,145 12.3 %
San Antonio, TX 1,504 18,690 16,799 11.3 % 8,192 7,752 5.7 % 10,498 9,047 16.0 % 1,295 1,154 12.2 %
Denver, CO 812 14,303 12,910 10.8 % 4,128 3,912 5.5 % 10,175 8,998 13.1 % 1,834 1,665 10.2 %
Huntsville, AL 1,228 15,196 13,734 10.6 % 5,164 4,479 15.3 % 10,032 9,255 8.4 % 1,229 1,092 12.6 %
Kansas City, MO-KS 1,110 15,139 13,879 9.1 % 5,636 5,235 7.7 % 9,503 8,644 9.9 % 1,432 1,316 8.8 %
Other 7,078 95,997 85,020 12.9 % 34,051 30,975 9.9 % 61,946 54,045 14.6 % 1,358 1,184 14.7 %
Total Same Store 96,313 $ 1,422,014 $ 1,252,755 13.5 % $ 511,518 $ 475,608 7.6 % $ 910,496 $ 777,147 17.2 % $ 1,537 $ 1,343 14.5 %

(1) Excludes $1.6 million in storm-related expenses related to Hurricane Ian.

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of Development Costs as of
September 30, 2022 September 30, 2022 Expected
Expected Spend Expected Start Initial
Location Total Delivered Leased Total to Date Remaining Date Occupancy Completion Stabilization (1)
MAA Windmill Hill Austin, TX 350 323 213 $ 63,000 $ 57,737 $ 5,263 4Q20 1Q22 4Q22 4Q23
Novel Val Vista (2) Phoenix, AZ 317 — — 72,500 54,057 18,443 4Q20 2Q23 4Q23 4Q24
Novel West Midtown (2) Atlanta, GA 340 — — 89,500 58,366 31,134 2Q21 1Q23 3Q23 3Q24
Novel Daybreak (2) Salt Lake City, UT 400 — — 94,000 65,399 28,601 2Q21 4Q22 3Q23 4Q24
MAA Milepost 35 (3) Denver, CO 352 — — 125,000 30,568 94,432 1Q22 4Q23 4Q24 3Q25
Total Active 1,759 323 213 $ 444,000 $ 266,127 $ 177,873

(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.

(3) Previously reported as MAA Central Park I.

MULTIFAMILY LEASE-UP COMMUNITIES

Dollars in thousands

As of September 30, 2022
Location Total Units Physical Occupancy Spend to Date Construction Completed Expected Stabilization (1)
MAA Westglenn Denver, CO 306 90.2% 81,686 1Q22 4Q22
MAA Park Point Houston, TX 308 86.4% 54,792 1Q22 4Q22
MAA LoSo Charlotte, NC 344 91.6% 139,072 (2) 1Q23
MAA Robinson Orlando, FL 369 89.7% 97,380 4Q21 1Q23
Total 1,327 89.5% $ 372,930

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

(2) Property was acquired while in lease-up; construction was completed prior to acquisition by MAA.

MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Nine months ended September 30, 2022
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
5,247 $ 29,907 $ 5,700 $ 138 10.4% 12,000 - 15,000

Supplemental Data S-8

2022 ACQUISITION ACTIVITY (THROUGH SEPTEMBER 30, 2022)
Multifamily Acquisitions Market Apartment Units Closing Date
--- --- --- ---
MAA Hampton Preserve II Tampa, FL 196 July 2022
MAA LoSo Charlotte, NC 344 September 2022
Land Acquisition Market Acreage Closing Date
--- --- --- ---
MAA Florida Street Station Denver, CO 4 March 2022
MAA Packing District Orlando, FL 4 May 2022
MAA Panorama Denver, CO 6 July 2022
2022 DISPOSITION ACTIVITY (THROUGH SEPTEMBER 30, 2022)
---
Multifamily Dispositions Market Apartment Units Closing Date
--- --- --- ---
MAA Deer Run Fort Worth, TX 304 June 2022
MAA Oakbend Fort Worth, TX 426 June 2022
Land Dispositions Market Acreage Closing Date
--- --- --- ---
Colonial Promenade Huntsville, AL 2 April 2022
Colonial Promenade Huntsville, AL 3 August 2022
DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2022
---

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 $ 4,394,151 97.2 % 3.4 % 8.2
Floating rate debt 125,000 2.8 % 3.4 % 0.1
Total $ 4,519,151 100.0 % 3.4 % 8.0
Unsecured Versus Secured Debt Balance Percent of Total Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,154,820 91.9 % 3.4 % 6.4
Secured debt 364,331 8.1 % 4.4 % 26.1
Total $ 4,519,151 100.0 % 3.4 % 8.0
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q3 2022 NOI Percent of Total
Unencumbered gross assets $ 14,515,719 93.4 % $ 313,408 95.2 %
Encumbered gross assets 1,027,305 6.6 % 15,952 4.8 %
Total $ 15,543,024 100.0 % $ 329,360 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Effective Interest Rate
2022 $ — —
2023 349,340 4.2 %
2024 398,637 4.0 %
2025 401,927 4.2 %
2026 297,009 1.2 %
2027 596,351 3.7 %
2028 396,543 4.2 %
2029 559,415 3.7 %
2030 297,456 3.1 %
2031 444,819 1.8 %
Thereafter 652,654 3.8 %
Total $ 4,394,151 3.4 %

Supplemental Data S-9

DEBT AND DEBT COVENANTS AS OF SEPTEMBER 30, 2022 (CONTINUED)

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾ Public Bonds Secured Total
2022 $ 125,000 $ — $ — $ 125,000
2023 — 349,340 — 349,340
2024 — 398,637 — 398,637
2025 — 397,580 4,347 401,927
2026 — 297,009 — 297,009
2027 — 596,351 — 596,351
2028 — 396,543 — 396,543
2029 — 559,415 — 559,415
2030 — 297,456 — 297,456
2031 — 444,819 — 444,819
Thereafter — 292,670 359,984 652,654
Total $ 125,000 $ 4,029,820 $ 364,331 $ 4,519,151

(1) As of September 30, 2022, borrowings of $125.0 million were outstanding under MAALP’s unsecured commercial paper program. 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, 2022, average daily borrowings outstanding under the commercial paper program were $29.8 million.

(2) There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of September 30, 2022. 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 29.1% 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 6.9x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 346.4% Yes
Bank Covenants Required Actual Compliance
Total debt to total capitalized asset value 60% or less 21.1% Yes
Total secured debt to total capitalized asset value 40% or Less 1.8% Yes
Total adjusted EBITDA to fixed charges 1.5x or greater for trailing 4 quarters 6.9x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 20.2% Yes

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

Supplemental Data S-10

2022 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 Net income per diluted common share. A reconciliation of expected Net income per diluted common share to expected Core FFO per Share and Core AFFO per Share is provided below.

Revised Midpoint
Earnings:
Earnings per common share - diluted $5.67
Core FFO per Share - diluted $8.45
Core AFFO per Share - diluted $7.67
MAA Same Store Portfolio:
Number of units 96,313
Average physical occupancy 95.8%
Property revenue growth 13.5%
Effective rent growth 14.5%
Property operating expense growth 7.25%
NOI growth 17.0%
Real estate tax expense growth 5.75%
Corporate Expenses: ( in millions)
Property management expenses $65.0
General and administrative expenses $59.5
Total overhead $124.5
Transaction/Investment Volume: ( in millions)
Multifamily acquisition volume $213.0
Multifamily disposition volume $325.0
Development investment $225.0
Debt:
Average effective interest rate 3.5%
Capitalized interest ( in millions) $8.0
Diluted FFO Shares Outstanding:
Diluted common shares and units 118.75 million

All values are in US Dollars.

RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2022 GUIDANCE
Full Year 2022 Guidance Range
--- --- --- --- --- --- ---
Low High
Earnings per common share - diluted $ 5.59 $ 5.75
Real estate depreciation and amortization 4.59 4.59
Gains on sale of depreciable assets (1.92 ) (1.92 )
FFO per Share - diluted 8.26 8.42
Non-Core FFO items (1) 0.11 0.11
Core FFO per Share - diluted 8.37 8.53
Recurring capital expenditures (0.78 ) (0.78 )
Core AFFO per Share - diluted $ 7.59 $ 7.75

(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, net casualty gain or loss, 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
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Paper Rating Debt Rating Outlook
Fitch Ratings (1) F1 A- Stable
Moody’s Investors Service (2) P-2 Baa1 Positive
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
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Exchange Traded: NYSE
Estimated Future Dates: Q4 2022 Q1 2023 Q2 2023 Q3 2023
Earnings release & conference call Early<br>February Late<br>April Late<br>July Late<br>October
Dividend Information - Common Shares: Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Declaration date 9/28/2021 12/7/2021 3/22/2022 5/17/2022 9/27/2022
Record date 10/15/2021 1/14/2022 4/14/2022 7/15/2022 10/14/2022
Payment date 10/29/2021 1/31/2022 4/29/2022 7/29/2022 10/31/2022
Distributions per share $ 1.0250 $ 1.0875 $ 1.0875 $ 1.2500 $ 1.2500
INVESTOR RELATIONS DATA
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MAA does not send quarterly reports, earnings releases and supplemental data to shareholders, but provides them upon request.

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

Supplemental Data S-12

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