Equibles

8-K

MID AMERICA APARTMENT COMMUNITIES INC. (MAA)

8-K 2024-07-31 For: 2024-07-31
View Original
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 31, 2024

MID-AMERICA APARTMENT COMMUNITIES, INC.

(Exact name of registrant as specified in its charter)

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

MID-AMERICA APARTMENTS, L.P.

(Exact name of registrant as specified in its charter)

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

(901) 682-6600

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

Emerging growth company ☐

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

ITEM 2.02. Results of Operations and Financial Condition.

On July 31, 2024, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of June 30, 2024 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 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by MAA or Mid-America Apartments, L.P. (“MAALP”), under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”).

ITEM 7.01 Regulation FD Disclosure.

In the Press Release, MAA provided information with respect to lease pricing for the month of July 2024 (through July 29, 2024), as well as certain development financing activities in July 2024. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report.

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

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description
99.1 Press Release dated July 31, 2024
99.2 Supplemental Data Schedules dated July 31, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MID-AMERICA APARTMENT COMMUNITIES, INC.
Date: July 31, 2024 /s/ A. Clay Holder
A. Clay Holder
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
MID-AMERICA APARTMENTS, L.P.
--- --- ---
By: Mid-America Apartment Communities, Inc., its general partner
Date: July 31, 2024 /s/ A. Clay Holder
A. Clay Holder
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-99.1

img267427320_0.jpg

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/2024 Acquisition Activity S-8
Debt and Debt Covenants as of June 30, 2024 S-9
2024 Guidance/Reconciliation of Earnings per Diluted Common Share to Core FFO and Core AFFO per Diluted Share for Full Year 2024 Guidance S-11
Credit Ratings/Common Stock/Investor Relations Data S-12
EARNINGS RELEASE
---

MAA REPORTS SECOND QUARTER 2024 RESULTS

GERMANTOWN, TN, July 31, 2024/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended June 30, 2024.

Second Quarter 2024 Operating Results Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
Earnings per common share - diluted $ 0.86 $ 1.24 $ 2.09 $ 2.40
Funds from operations (FFO) per Share - diluted $ 2.06 $ 2.39 $ 4.47 $ 4.70
Core FFO per Share - diluted $ 2.22 $ 2.28 $ 4.44 $ 4.56

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

Eric Bolton, Chairman and Chief Executive Officer, said, “Results for the second quarter were ahead of expectations. New supply delivering into several of our markets continues to be absorbed in a steady manner as the demand for apartment housing remains strong. We continue to believe that we will begin to see a decline in new apartment deliveries over the back half of this year and into 2025. MAA’s uniquely diversified portfolio, supported by a strong operating and resident service platform, offering an appealing apartment product at an affordable price point, continues to provide higher performance and lower volatility through the full apartment cycle.”

Highlights

  • During the second quarter of 2024, MAA’s Same Store Portfolio produced growth in revenues of 0.7%, as compared to the same period in the prior year, with Average Effective Rent per Unit up 0.5%. During the second quarter of 2024, MAA’s Same Store Portfolio also captured strong Average Physical Occupancy of 95.5%, matching the performance in the same period in the prior year.
  • During the second quarter of 2024, MAA’s Same Store Portfolio property operating expense increased by 3.7% and MAA's Same Store Portfolio Net Operating Income (NOI) decreased by 1.0%, in each case as compared to the same period in the prior year.
  • As of June 30, 2024, resident turnover remained historically low at 43.5% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
  • During the second quarter of 2024, MAA acquired a newly built 306-unit multifamily apartment community in initial lease-up located in Raleigh, North Carolina.
  • As of the end of the second quarter of 2024, MAA had seven communities under development, representing 2,617 units once complete, with a projected total cost of $866.3 million and an estimated $328.3 million remaining to be funded. During the second quarter of 2024, MAA started construction on a 302-unit multifamily apartment community located in Charlotte, North Carolina and a 345-unit multifamily apartment community located in Phoenix, Arizona through its pre-purchase development program.
  • As of the end of the second quarter of 2024, MAA had one recently completed development community and three recently acquired communities in lease-up. One community is expected to stabilize in the third quarter of 2024, one is expected to stabilize in the fourth quarter of 2024, one is expected to stabilize in the first quarter of 2025 and one is expected to stabilize in the second quarter of 2025.
  • In May 2024, MAA’s operating partnership, Mid-America Apartments, L.P. (referred to as MAALP or the Operating Partnership), issued $400.0 million of 7-year unsecured senior notes at a coupon of 5.300% and an issue price of 99.496%.
  • MAA’s balance sheet remains strong with a Net Debt/Adjusted EBITDAre ratio of 3.7x and $1.0 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of June 30, 2024.

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, 2024 as compared to the same period in the prior year are summarized below:

Three months ended June 30, 2024 vs. 2023 Six months ended June 30, 2024 vs. 2023
Revenues Expenses NOI Average Effective Rent per Unit Revenues Expenses NOI Average Effective Rent per Unit
Same Store Operating Growth 0.7% 3.7% (1.0 )% 0.5% 1.0% 4.5% (0.8 )% 1.0%

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

Same Store Portfolio operating statistics for the three and six months ended June 30, 2024, which were in line with prior guidance expectations, are summarized below:

Three months ended June 30, 2024 Six months ended June 30, 2024 June 30, 2024
Average Effective Rent per Unit Average Physical Occupancy Average Effective Rent per Unit Average Physical Occupancy Resident Turnover
Same Store Operating Statistics $ 1,690 95.5% $ 1,690 95.4% 43.5%

Same Store Portfolio lease pricing for new leases that were effective during the second quarter of 2024 declined 5.1%, representing a 110-basis point improvement from the first quarter of 2024. Renewal lease pricing increased 4.6%, which in turn produced an increase of 0.1% for both new and renewing lease pricing on a blended basis in the second quarter of 2024, representing a 70-basis point improvement from the first quarter of 2024.

Same Store Portfolio lease pricing for both new and renewing leases effective during the six months ended June 30, 2024, on a blended basis, declined 0.2% as compared to the prior lease, driven by a 5.5% decrease for leases to new move-in residents, partially offset by a 4.8% increase for renewing leases.

Brad Hill, President and Chief Investment Officer, said, “We continued to capture positive momentum in July with blended pricing on both new and renewal leasing improving 20-basis points as compared to the preceding second quarter. Through July 29, 2024, new lease pricing for leases effective during July improved 90-basis points as compared to the second quarter of 2024, declining 4.2%, with renewal leases increasing by 4.0%. We are encouraged by continued strong demand across our portfolio as exemplified by our stable July occupancy, lower 60-day exposure and strong traffic and lead volumes.”

Acquisition Activity

In May 2024, MAA acquired a 306-unit multifamily community currently in lease-up and located in Raleigh, North Carolina for approximately $81 million.

In April 2024, MAA also closed on the acquisition of a land parcel located in Phoenix, Arizona through its pre-purchase development program. Construction on a 345-unit multifamily apartment community on that land parcel began in June 2024.

Development and Lease-up Activity

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

Units as of Development Costs as of Expected Project
Total June 30, 2024 June 30, 2024 Completions By Year
Development Expected Spend Expected
Projects (1) Total Delivered Leased Total to Date Remaining 2024 2025 2026
7 2,617 737 462 $ 866,250 $ 537,948 $ 328,302 3 2 2
  • Three of the development projects are currently leasing.

During the second quarter of 2024, MAA funded $79.4 million of costs for current and planned projects, including predevelopment activities.

In April 2024, MAA started construction on a 302-unit multifamily apartment community located in Charlotte, North Carolina on land previously acquired through its pre-purchase development program. The development is expected to be completed in the fourth quarter of 2026 with an expected stabilization in the fourth quarter of 2027 and expected total cost of approximately $102 million.

In June 2024, MAA also started construction on the 345-unit multifamily apartment community located in Phoenix, Arizona on the land acquired through its pre-purchase development program discussed above. The development is expected to be completed in the fourth quarter of 2026 with an expected stabilization in the fourth quarter of 2027 and expected total cost of approximately $118 million.

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

MAA expects to begin four to six multifamily development projects over the next 18 to 24 months.

A summary of the total units, physical occupancy and cost of MAA’s lease-up communities as of the end of the second quarter of 2024 is set forth below (dollars in thousands):

Total As of June 30, 2024
Lease-Up Total Physical Spend
Projects (1) Units Occupancy to Date
4 1,321 75.8 % $ 380,877
  • One of the lease-up projects is expected to stabilize in the third quarter of 2024, one in the fourth quarter of 2024, one in the first quarter of 2025 and one in the second quarter of 2025.

The current expected average stabilized NOI yield on the three in progress development communities and one recently completed development community that are currently leasing is 6.5%.

Property Redevelopment and Repositioning Activity

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

As of June 30, 2024
Units Average Cost Increase in Average
Completed per Unit Effective Rent per Unit
YTD YTD YTD
Redevelopment 2,796 $ 6,213 $ 107

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

During the second quarter of 2024, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities for higher and above market rent growth after projects are completed and units are fully repriced. For the six months ended June 30, 2024, MAA spent $1.0 million on this program. MAA expects to begin six projects under this program in the second half of 2024.

Capital Expenditures

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

Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
Core FFO attributable to common shareholders and unitholders $ 266.6 $ 273.3 $ 532.8 $ 545.5
Recurring capital expenditures (36.3 ) (32.7 ) (55.3 ) (49.0 )
Core Adjusted FFO (Core AFFO) attributable to common shareholders and unitholders 230.3 240.6 477.5 496.5
Redevelopment, revenue enhancing, commercial and other capital expenditures (52.9 ) (57.4 ) (85.6 ) (108.8 )
FAD attributable to common shareholders and unitholders $ 177.4 $ 183.2 $ 391.9 $ 387.7
Core FFO per Share - diluted $ 2.22 $ 2.28 $ 4.44 $ 4.56
Core AFFO per Share - diluted $ 1.92 $ 2.01 $ 3.98 $ 4.15

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

Balance Sheet and Financing Activities

As of June 30, 2024, MAA had $1.0 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the second quarter of 2024 were $176.3 million, as compared to $167.7 million for the same period in the prior year.

In May 2024, MAALP publicly issued $400 million of unsecured senior notes due February 2032 with a coupon rate of 5.300% per annum, and at an issue price of 99.496%. Interest is payable semi-annually in arrears on February 15 and August 15 of each year, commencing August 15, 2024. The proceeds from the sale of the notes were used to repay borrowings on MAALP’s commercial paper program. The notes have an effective interest rate of 5.382%.

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

Total debt to adjusted total assets (1) Net Debt/Adjusted EBITDAre (2) Total debt outstanding Average effective interest rate Fixed rate debt as a % of total debt Total debt average years to maturity
28.1% 3.7x $ 4.7 3.8% 93.3% 7.4
  • As defined in the covenants for the bonds issued by MAALP.
  • Adjusted EBITDAre is calculated for the trailing twelve month period ended June 30, 2024.

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

122nd Consecutive Quarterly Common Dividend Declared

MAA declared its 122nd consecutive quarterly common dividend, which was paid on July 31, 2024 to holders of record on July 15, 2024. The current annual dividend rate is $5.88 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA’s financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify the dividend policy from time to time.

2024 Earnings and Same Store Portfolio Guidance

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

FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA’s definition of FFO is in accordance with the National Association of Real Estate Investment Trusts’, or NAREIT’s, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

2024 Guidance Previous Range Previous Midpoint Revised Range Revised Midpoint
Earnings: Full Year 2024 Full Year 2024 Full Year 2024 Full Year 2024
Earnings per common share - diluted $4.66 to $5.02 $4.84 $4.37 to $4.65 $4.51
Core FFO per Share - diluted $8.70 to $9.06 $8.88 $8.74 to $9.02 $8.88
Core AFFO per Share - diluted $7.74 to $8.10 $7.92 $7.78 to $8.06 $7.92
MAA Same Store Portfolio:
Property revenue growth 0.15% to 1.65% 0.90% 0.15% to 1.15% 0.65%
Property operating expense growth 4.10% to 5.60% 4.85% 3.75% to 4.75% 4.25%
NOI growth -2.80% to 0.20% -1.30% -2.50% to -0.10% -1.30%

MAA expects Core FFO for the third quarter of 2024 to be in the range of $2.08 to $2.24 per diluted Share, or $2.16 per diluted Share at the midpoint. The projected difference between Core FFO per diluted Share for the second quarter of 2024 to the midpoint of MAA's guidance for the third quarter of 2024 is summarized below:

Core FFO per diluted Share
Q2 2024 reported results $ 2.22
Same Store Revenues 0.01
Same Store Expenses (0.05 )
Non-Same Store NOI, excluding Storm Costs 0.03
Storm Costs included in NOI (1) (0.03 )
General and administrative expenses (0.01 )
Interest expense and Other non-operating (expense) income (0.01 )
Q3 2024 guidance midpoint $ 2.16
  • Projected storm costs related to Hurricane Beryl.

MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.

Our property and casualty insurance programs renewed on July 1, 2024 with a total premium decrease of approximately 1%. Our prior guidance had assumed an increase of approximately 15%.

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 August 1, 2024, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. You may also join the live webcast of the conference call by accessing the “For Investors” page of the MAA website at www.maac.com. MAA’s filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA

MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of June 30, 2024, MAA had ownership interest in 103,614 apartment units, including communities currently in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.

Forward-Looking Statements

Sections of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “proforma,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

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

  • inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
  • exposure to risks inherent in investments in a single industry and sector;
  • adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
  • failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;
  • unexpected capital needs;
  • material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors;
  • inability to obtain appropriate insurance coverage at reasonable rates, or at all, losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits;
  • ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
  • level and volatility of interest or capitalization rates or capital market conditions;
  • the effect of any rating agency actions on the cost and availability of new debt financing;
  • the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, which could cause continued or worsening economic and market volatility, and regulatory responses thereto;
  • significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;
  • ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of MAALP to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
  • inability to attract and retain qualified personnel;
  • cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
  • potential liability for environmental contamination;
  • changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;
  • extreme weather and natural disasters;
  • disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
  • impact of climate change on our properties or operations;
  • legal proceedings or class action lawsuits;
  • impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;
  • compliance costs associated with numerous federal, state and local laws and regulations; and
  • other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.

New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.

FINANCIAL HIGHLIGHTS
Dollars in thousands, except per share data Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Rental and other property revenues $ 546,435 $ 535,146 $ 1,090,057 $ 1,064,179
Net income available for MAA common shareholders $ 101,031 $ 144,766 $ 243,858 $ 279,754
Total NOI (1) $ 340,639 $ 340,813 $ 686,459 $ 687,043
Earnings per common share: (2)
Basic $ 0.86 $ 1.24 $ 2.09 $ 2.40
Diluted $ 0.86 $ 1.24 $ 2.09 $ 2.40
Funds from operations per Share - diluted: (2)
FFO (1) $ 2.06 $ 2.39 $ 4.47 $ 4.70
Core FFO (1) $ 2.22 $ 2.28 $ 4.44 $ 4.56
Core AFFO (1) $ 1.92 $ 2.01 $ 3.98 $ 4.15
Dividends declared per common share $ 1.47 $ 1.40 $ 2.94 $ 2.80
Dividends/Core FFO (diluted) payout ratio 66.2 % 61.4 % 66.2 % 61.4 %
Dividends/Core AFFO (diluted) payout ratio 76.6 % 69.7 % 73.9 % 67.5 %
Consolidated interest expense $ 41,265 $ 36,723 $ 81,626 $ 74,004
Mark-to-market debt adjustment — 12 — 25
Debt discount and debt issuance cost amortization (1,213 ) (1,530 ) (3,055 ) (3,061 )
Capitalized interest 3,724 3,137 7,140 5,883
Total interest incurred $ 43,776 $ 38,342 $ 85,711 $ 76,851
Amortization of principal on notes payable $ — $ 368 $ — $ 730
  • A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
  • See the “Share and Unit Data” section for additional information.
Dollars in thousands, except share price
June 30, 2024 December 31, 2023
Gross Assets (1) $ 16,712,648 $ 16,349,193
Gross Real Estate Assets (1) $ 16,467,005 $ 16,089,909
Total debt $ 4,700,864 $ 4,540,225
Common shares and units outstanding 119,951,751 119,838,096
Share price $ 142.61 $ 134.46
Book equity value $ 6,206,019 $ 6,299,122
Market equity value $ 17,106,319 $ 16,113,430
Net Debt/Adjusted EBITDAre (2) 3.7x 3.6x
  • A reconciliation of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets, along with discussion of their components, can be found later in this release.
  • Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Unsecured notes payable and Secured notes payable to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.
CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data (Unaudited) Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Revenues:
Rental and other property revenues $ 546,435 $ 535,146 $ 1,090,057 $ 1,064,179
Expenses:
Operating expenses, excluding real estate taxes and insurance 126,213 116,604 244,412 225,208
Real estate taxes and insurance 79,583 77,729 159,186 151,928
Depreciation and amortization 145,022 138,972 288,042 277,473
Total property operating expenses 350,818 333,305 691,640 654,609
Property management expenses 17,201 16,091 37,196 34,019
General and administrative expenses 12,671 13,882 29,716 29,805
Interest expense 41,265 36,723 81,626 74,004
Loss (gain) on sale of depreciable real estate assets 23 1 25 (14 )
Gain on sale of non-depreciable real estate assets — — — (54 )
Other non-operating expense (income) 19,244 (16,992 ) (4,282 ) (20,459 )
Income before income tax expense 105,213 152,136 254,136 292,269
Income tax expense (1,020 ) (2,861 ) (2,815 ) (3,805 )
Income from continuing operations before real estate joint venture activity 104,193 149,275 251,321 288,464
Income from real estate joint venture 469 382 951 767
Net income 104,662 149,657 252,272 289,231
Net income attributable to noncontrolling interests 2,709 3,969 6,570 7,633
Net income available for shareholders 101,953 145,688 245,702 281,598
Dividends to MAA Series I preferred shareholders 922 922 1,844 1,844
Net income available for MAA common shareholders $ 101,031 $ 144,766 $ 243,858 $ 279,754
Earnings per common share - basic:
Net income available for common shareholders $ 0.86 $ 1.24 $ 2.09 $ 2.40
Earnings per common share - diluted:
Net income available for common shareholders $ 0.86 $ 1.24 $ 2.09 $ 2.40
SHARE AND UNIT DATA
---
Shares and units in thousands Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Net Income Shares (1)
Weighted average common shares - basic 116,783 116,621 116,727 116,401
Effect of dilutive securities — 104 — 157
Weighted average common shares - diluted 116,783 116,725 116,727 116,558
Funds From Operations Shares And Units
Weighted average common shares and units - basic 119,888 119,776 119,848 119,558
Weighted average common shares and units - diluted 119,944 119,823 119,901 119,607
Period End Shares And Units
Common shares at June 30, 116,858 116,677 116,858 116,677
Operating Partnership units at June 30, 3,094 3,155 3,094 3,155
Total common shares and units at June 30, 119,952 119,832 119,952 119,832
  • For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated Financial Statements in MAA’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, expected to be filed with the SEC on or about August 1, 2024.
CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
--- --- --- --- --- --- ---
June 30, 2024 December 31, 2023
Assets
Real estate assets:
Land $ 2,050,760 $ 2,031,403
Buildings and improvements and other 13,846,434 13,515,949
Development and capital improvements in progress 391,366 385,405
16,288,560 15,932,757
Less: Accumulated depreciation (5,149,781 ) (4,864,690 )
11,138,779 11,068,067
Undeveloped land 73,861 73,861
Investment in real estate joint venture 41,753 41,977
Real estate assets, net 11,254,393 11,183,905
Cash and cash equivalents 62,831 41,314
Restricted cash 13,669 13,777
Other assets 231,974 245,507
Total assets $ 11,562,867 $ 11,484,503
Liabilities and equity
Liabilities:
Unsecured notes payable $ 4,340,660 $ 4,180,084
Secured notes payable 360,204 360,141
Accrued expenses and other liabilities 655,984 645,156
Total liabilities 5,356,848 5,185,381
Redeemable common stock 19,787 19,167
Shareholders’ equity:
Preferred stock 9 9
Common stock 1,166 1,168
Additional paid-in capital 7,409,258 7,399,921
Accumulated distributions in excess of net income (1,398,993 ) (1,298,263 )
Accumulated other comprehensive loss (7,775 ) (8,764 )
Total MAA shareholders’ equity 6,003,665 6,094,071
Noncontrolling interests - Operating Partnership units 157,905 163,128
Total shareholders’ equity 6,161,570 6,257,199
Noncontrolling interests - consolidated real estate entities 24,662 22,756
Total equity 6,186,232 6,279,955
Total liabilities and equity $ 11,562,867 $ 11,484,503
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD
---
Amounts in thousands, except per share and unit data Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Net income available for MAA common shareholders $ 101,031 $ 144,766 $ 243,858 $ 279,754
Depreciation and amortization of real estate assets 143,623 137,456 285,214 274,254
Loss (gain) on sale of depreciable real estate assets 23 1 25 (14 )
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 154 152 309 303
Net income attributable to noncontrolling interests 2,709 3,969 6,570 7,633
FFO attributable to common shareholders and unitholders 247,540 286,344 535,976 561,930
Loss (gain) on embedded derivative in preferred shares (1) 9,286 (4,952 ) (3,806 ) (9,387 )
Gain on sale of non-depreciable real estate assets — — — (54 )
Loss (gain) on investments, net of tax (1)(2) 685 (6,575 ) (3,405 ) (5,769 )
Casualty related charges (recoveries), net (1) 1,135 75 (3,950 ) 371
Legal costs, settlements and (recoveries), net (1)(3) 8,000 (1,600 ) 8,000 (1,600 )
Mark-to-market debt adjustment (4) — (12 ) — (25 )
Core FFO attributable to common shareholders and unitholders 266,646 273,280 532,815 545,466
Recurring capital expenditures (36,341 ) (32,669 ) (55,275 ) (48,999 )
Core AFFO attributable to common shareholders and unitholders 230,305 240,611 477,540 496,467
Redevelopment capital expenditures (11,624 ) (26,310 ) (20,998 ) (57,719 )
Revenue enhancing capital expenditures (25,629 ) (20,388 ) (38,642 ) (32,045 )
Commercial capital expenditures (1,867 ) (1,129 ) (3,070 ) (2,436 )
Other capital expenditures (13,772 ) (9,567 ) (22,975 ) (16,555 )
FAD attributable to common shareholders and unitholders $ 177,413 $ 183,217 $ 391,855 $ 387,712
Dividends and distributions paid $ 176,304 $ 167,742 $ 352,495 $ 333,854
Weighted average common shares - diluted 116,783 116,725 116,727 116,558
FFO weighted average common shares and units - diluted 119,944 119,823 119,901 119,607
Earnings per common share - diluted:
Net income available for common shareholders $ 0.86 $ 1.24 $ 2.09 $ 2.40
FFO per Share - diluted $ 2.06 $ 2.39 $ 4.47 $ 4.70
Core FFO per Share - diluted $ 2.22 $ 2.28 $ 4.44 $ 4.56
Core AFFO per Share - diluted $ 1.92 $ 2.01 $ 3.98 $ 4.15
  • Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
  • For the three months ended June 30, 2024, loss on investments is presented net of tax benefit of $0.2 million. For the three months ended June 30, 2023 and the six months ended June 30, 2024 and 2023, gain on investments is presented net of tax expense of $1.7 million, $0.9 million and $1.5 million, respectively.
  • For the three and six months ended June 30, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
  • Included in Interest expense in the Consolidated Statements of Operations.
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME
Dollars in thousands Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
June 30,<br>2024 March 31,<br>2024 June 30,<br>2023 June 30,<br>2024 June 30,<br>2023
Net income available for MAA common shareholders $ 101,031 $ 142,827 $ 144,766 $ 243,858 $ 279,754
Depreciation and amortization 145,022 143,020 138,972 288,042 277,473
Property management expenses 17,201 19,995 16,091 37,196 34,019
General and administrative expenses 12,671 17,045 13,882 29,716 29,805
Interest expense 41,265 40,361 36,723 81,626 74,004
Loss (gain) on sale of depreciable real estate assets 23 2 1 25 (14 )
Gain on sale of non-depreciable real estate assets — — — — (54 )
Other non-operating expense (income) 19,244 (23,526 ) (16,992 ) (4,282 ) (20,459 )
Income tax expense 1,020 1,795 2,861 2,815 3,805
Income from real estate joint venture (469 ) (482 ) (382 ) (951 ) (767 )
Net income attributable to noncontrolling interests 2,709 3,861 3,969 6,570 7,633
Dividends to MAA Series I preferred shareholders 922 922 922 1,844 1,844
Total NOI $ 340,639 $ 345,820 $ 340,813 $ 686,459 $ 687,043
Same Store NOI $ 328,280 $ 334,583 $ 331,611 $ 662,863 $ 668,540
Non-Same Store and Other NOI 12,359 11,237 9,202 23,596 18,503
Total NOI $ 340,639 $ 345,820 $ 340,813 $ 686,459 $ 687,043
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
---
Dollars in thousands Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- ---
June 30, 2024 June 30, 2023 June 30, 2024 December 31, 2023
Net income $ 104,662 $ 149,657 $ 530,872 $ 567,831
Depreciation and amortization 145,022 138,972 575,632 565,063
Interest expense 41,265 36,723 156,856 149,234
Income tax expense 1,020 2,861 3,754 4,744
EBITDA 291,969 328,213 1,267,114 1,286,872
Loss on sale of depreciable real estate assets 23 1 101 62
Adjustments to reflect MAA’s share of EBITDAre of an unconsolidated affiliate 339 336 1,356 1,350
EBITDAre 292,331 328,550 1,268,571 1,288,284
Loss (gain) on embedded derivative in preferred shares (1) 9,286 (4,952 ) (12,947 ) (18,528 )
Gain on sale of non-depreciable real estate assets — — — (54 )
Loss (gain) on investments (1) 859 (8,317 ) (1,470 ) (4,449 )
Casualty related charges (recoveries), net (1) 1,135 75 (3,341 ) 980
Gain on debt extinguishment (1) — — (57 ) (57 )
Legal costs, settlements and (recoveries), net (1)(2) 8,000 (1,600 ) 5,146 (4,454 )
Adjusted EBITDAre $ 311,611 $ 313,756 $ 1,255,902 $ 1,261,722
  • Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
  • During the three and twelve months ended June 30, 2024, in accordance with its accounting policies, MAA recognized $8.0 million and $8.5 million, respectively, of accrued legal defense costs that are expected to be incurred through July 2027.
RECONCILIATION OF UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE TO NET DEBT
Dollars in thousands
--- --- --- --- --- --- ---
June 30, 2024 December 31, 2023
Unsecured notes payable $ 4,340,660 $ 4,180,084
Secured notes payable 360,204 360,141
Total debt 4,700,864 4,540,225
Cash and cash equivalents (62,831 ) (41,314 )
Net Debt $ 4,638,033 $ 4,498,911
RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS
---
Dollars in thousands
--- --- --- --- ---
June 30, 2024 December 31, 2023
Total assets $ 11,562,867 $ 11,484,503
Accumulated depreciation 5,149,781 4,864,690
Gross Assets $ 16,712,648 $ 16,349,193
RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS
---
Dollars in thousands
--- --- --- --- ---
June 30, 2024 December 31, 2023
Real estate assets, net $ 11,254,393 $ 11,183,905
Accumulated depreciation 5,149,781 4,864,690
Cash and cash equivalents 62,831 41,314
Gross Real Estate Assets $ 16,467,005 $ 16,089,909
NON-GAAP FINANCIAL MEASURES
---

Adjusted EBITDAre

For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA’s core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA’s computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Core Adjusted Funds from Operations (Core AFFO)

Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds from Operations (Core FFO)

Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, net of tax, casualty related charges (recoveries), net, gain or loss on debt extinguishment, legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA’s methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

EBITDA

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

EBITDAre

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

Funds Available for Distribution (FAD)

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

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties 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 storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Same Store NOI

Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

OTHER KEY DEFINITIONS

Average Effective Rent per Unit

Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.

Average Physical Occupancy

Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.

Development Communities

Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.

Lease-up Communities

New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.

Non-Same Store and Other Portfolio

Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.

Resident Turnover

Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.

Same Store Portfolio

MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA’s Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.

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

EX-99.2

Exhibit 99.2

PORTFOLIO STATISTICS

TOTAL MULTIFAMILY PORTFOLIO AT JUNE 30, 2024 (1)

In apartment units

Same<br>Store Non-Same<br>Store Lease-up Total<br>Completed<br>Communities Development<br>Units<br>Delivered Total
Atlanta, GA 11,434 — 340 11,774 — 11,774
Dallas, TX 10,116 — — 10,116 — 10,116
Austin, TX 6,829 350 — 7,179 — 7,179
Charlotte, NC 5,651 560 352 6,563 — 6,563
Orlando, FL 5,643 264 — 5,907 — 5,907
Raleigh/Durham, NC 5,350 — 306 5,656 — 5,656
Tampa, FL 5,416 — — 5,416 — 5,416
Houston, TX 5,175 — — 5,175 — 5,175
Nashville, TN 4,375 — — 4,375 — 4,375
Fort Worth, TX 3,687 — — 3,687 — 3,687
Jacksonville, FL 3,496 — — 3,496 — 3,496
Phoenix, AZ 2,968 — 323 3,291 191 3,482
Charleston, SC 3,168 — — 3,168 — 3,168
Greenville, SC 2,354 — — 2,354 — 2,354
Richmond, VA 1,732 272 — 2,004 — 2,004
Northern Virginia 1,888 — — 1,888 — 1,888
Savannah, GA 1,837 — — 1,837 — 1,837
Memphis, TN 1,811 — — 1,811 — 1,811
San Antonio, TX 1,504 — — 1,504 — 1,504
Birmingham, AL 1,462 — — 1,462 — 1,462
Fredericksburg, VA 1,435 — — 1,435 — 1,435
Denver, CO 1,118 — — 1,118 174 1,292
Huntsville, AL 1,228 — — 1,228 — 1,228
Kansas City, MO-KS 1,110 — — 1,110 — 1,110
Other 6,502 672 — 7,174 372 7,546
Total Multifamily Units 97,289 2,118 1,321 100,728 737 101,465
  • 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, 2024 Average<br>Effective As of June 30, 2024
Gross Real <br>Assets Percent to<br>Total of<br>Gross Real <br>Assets Physical<br>Occupancy Rent per<br>Unit for <br>the Three<br>Months Ended <br>June 30, 2024 Completed<br>Units Total Units,<br>Including<br>Development
Atlanta, GA $ 2,111,692 13.1 % 94.7 % $ 1,827 11,434
Dallas, TX 1,599,217 10.0 % 95.8 % 1,664 10,116
Charlotte, NC 1,162,201 7.3 % 96.2 % 1,649 6,211
Orlando, FL 1,036,760 6.5 % 96.1 % 2,002 5,907
Tampa, FL 1,018,398 6.4 % 96.4 % 2,097 5,416
Austin, TX 965,600 6.1 % 95.7 % 1,603 7,179
Raleigh/Durham, NC 739,046 4.6 % 96.2 % 1,540 5,350
Houston, TX 712,338 4.5 % 95.7 % 1,431 5,175
Northern Virginia 576,644 3.6 % 96.9 % 2,421 1,888
Nashville, TN 566,790 3.6 % 96.0 % 1,697 4,375
Phoenix, AZ 490,279 3.1 % 96.2 % 1,741 2,968
Charleston, SC 434,667 2.7 % 96.1 % 1,792 3,168
Fort Worth, TX 397,335 2.5 % 95.3 % 1,579 3,687
Jacksonville, FL 319,081 2.0 % 96.3 % 1,519 3,496
Denver, CO 296,894 1.9 % 95.4 % 1,979 1,118
Richmond, VA 281,730 1.8 % 96.7 % 1,609 2,004
Fredericksburg, VA 257,630 1.6 % 97.5 % 1,832 1,435
Greenville, SC 244,163 1.5 % 96.7 % 1,328 2,354
Savannah, GA 227,797 1.4 % 96.1 % 1,706 1,837
Kansas City, MO-KS 194,091 1.2 % 96.5 % 1,598 1,110
Birmingham, AL 174,137 1.1 % 95.8 % 1,402 1,462
San Antonio, TX 172,383 1.1 % 95.9 % 1,375 1,504
All Other Markets by State (individual markets <1% gross real assets)
Tennessee 208,601 1.3 % 95.1 % 1,343 2,754
Florida 195,022 1.2 % 96.1 % 1,831 1,806
Alabama 179,690 1.1 % 96.4 % 1,394 1,648
Virginia 167,963 1.1 % 97.6 % 1,764 1,039
Kentucky 104,165 0.7 % 96.4 % 1,241 1,308
Maryland 84,066 0.5 % 95.8 % 2,241 361
Nevada 75,991 0.5 % 96.0 % 1,576 721
South Carolina 39,494 0.2 % 91.8 % 1,241 576
Stabilized Communities $ 15,033,865 94.2 % 95.9 % $ 1,689 99,407
Phoenix, AZ 196,807 1.2 % 55.6 % 1,893 514 985
Raleigh/Durham, NC 173,071 1.1 % 62.1 % 1,792 306 712
Tampa, FL 127,015 0.8 % — — — 495
Charlotte, NC 124,105 0.8 % 88.4 % 1,921 352 654
Denver, CO 111,561 0.7 % 25.0 % 2,326 174 352
Salt Lake City, UT 94,964 0.6 % 49.0 % 1,766 372 400
Atlanta, GA 91,302 0.6 % 61.2 % 2,133 340 340
Lease-up / Development Communities $ 918,825 5.8 % 56.4 % $ 1,936 2,058 3,938
Total Multifamily Communities $ 15,952,690 100.0 % 95.0 % $ 1,694 101,465 103,345
  • Schedule excludes MAA's 35% ownership in a 269-unit joint venture property in Washington, D.C. As of June 30, 2024, the gross investment in real estate for this community was $82.1 million and includes a mortgage note payable of $51.9 million. For the six months ended June 30, 2024, this apartment community achieved NOI of $4.1 million.

Supplemental Data S-2

COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

Three Months Ended As of June 30, 2024
June 30, 2024 June 30, 2023 Percent<br>Change Apartment Units Gross Real Assets
Operating Revenues
Same Store Communities $ 521,540 $ 517,986 0.7 % 97,289 $ 14,663,256
Non-Same Store Communities 11,462 10,699 2,118 370,609
Lease-up/Development Communities 6,913 193 2,058 918,825
Total Multifamily Portfolio $ 539,915 $ 528,878 101,465 $ 15,952,690
Commercial Property/Land 6,520 6,268 — 367,242
Total Operating Revenues $ 546,435 $ 535,146 101,465 $ 16,319,932
Property Operating Expenses
Same Store Communities $ 193,260 $ 186,375 3.7 %
Non-Same Store Communities 4,710 4,479
Lease-up/Development Communities 3,462 849
Storm Costs 1,485 —
Total Multifamily Portfolio $ 202,917 $ 191,703
Commercial Property/Land 2,879 2,630
Total Property Operating Expenses $ 205,796 $ 194,333
Net Operating Income
Same Store Communities $ 328,280 $ 331,611 -1.0 %
Non-Same Store Communities 6,752 6,220
Lease-up/Development Communities 3,451 (656 )
Storm Costs (1,485 ) —
Total Multifamily Portfolio $ 336,998 $ 337,175
Commercial Property/Land 3,641 3,638
Total Net Operating Income $ 340,639 $ 340,813 -0.1 %
COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES
---

Dollars in thousands

Three Months Ended Six Months Ended
June 30, 2024 June 30, 2023 Percent Change June 30, 2024 June 30, 2023 Percent<br>Change
Property Taxes $ 68,306 $ 67,862 0.7 % $ 136,367 $ 132,479 2.9 %
Personnel 41,566 39,483 5.3 % 81,332 77,464 5.0 %
Utilities 32,562 31,595 3.1 % 65,173 63,226 3.1 %
Building Repair and Maintenance 26,170 25,718 1.8 % 47,954 46,840 2.4 %
Office Operations 8,500 7,526 12.9 % 17,033 14,597 16.7 %
Insurance 8,195 7,059 16.1 % 16,432 14,171 16.0 %
Marketing 7,961 7,132 11.6 % 14,015 13,100 7.0 %
Total Property Operating Expenses $ 193,260 $ 186,375 3.7 % $ 378,306 $ 361,877 4.5 %

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, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Atlanta, GA 11,434 11.8 % 94.0 % 94.1 % 94.1 % 94.5 %
Dallas, TX 10,116 9.4 % 95.4 % 95.5 % 95.2 % 95.6 %
Tampa, FL 5,416 7.1 % 96.0 % 95.7 % 95.9 % 95.6 %
Orlando, FL 5,643 6.8 % 96.0 % 95.9 % 96.0 % 96.0 %
Charlotte, NC 5,651 6.2 % 95.6 % 95.4 % 95.3 % 95.5 %
Austin, TX 6,829 5.9 % 94.9 % 95.2 % 94.6 % 95.3 %
Raleigh/Durham, NC 5,350 5.4 % 96.2 % 95.8 % 95.8 % 95.5 %
Nashville, TN 4,375 4.8 % 95.9 % 95.7 % 95.9 % 95.5 %
Houston, TX 5,175 4.4 % 95.3 % 95.1 % 95.3 % 95.5 %
Charleston, SC 3,168 3.7 % 96.2 % 95.8 % 96.1 % 95.7 %
Phoenix, AZ 2,968 3.5 % 94.5 % 95.6 % 94.8 % 95.7 %
Fort Worth, TX 3,687 3.4 % 95.5 % 95.8 % 95.3 % 95.6 %
Jacksonville, FL 3,496 3.1 % 95.8 % 95.8 % 95.5 % 95.9 %
Northern Virginia 1,888 3.0 % 97.1 % 96.1 % 96.8 % 96.0 %
Greenville, SC 2,354 1.9 % 95.9 % 96.3 % 95.9 % 96.2 %
Savannah, GA 1,837 1.9 % 96.1 % 96.3 % 95.8 % 96.1 %
Richmond, VA 1,732 1.9 % 96.9 % 95.8 % 96.5 % 95.8 %
Fredericksburg, VA 1,435 1.9 % 97.1 % 96.3 % 97.0 % 96.2 %
Memphis, TN 1,811 1.5 % 95.5 % 94.6 % 95.4 % 94.8 %
Denver, CO 1,118 1.5 % 95.4 % 95.4 % 95.7 % 95.3 %
Birmingham, AL 1,462 1.2 % 95.5 % 96.3 % 95.3 % 96.0 %
Kansas City, MO-KS 1,110 1.1 % 96.1 % 96.2 % 95.9 % 95.7 %
San Antonio, TX 1,504 1.1 % 95.6 % 95.5 % 95.4 % 95.4 %
Huntsville, AL 1,228 1.1 % 95.1 % 95.2 % 94.9 % 95.4 %
Other 6,502 6.4 % 96.0 % 96.0 % 95.8 % 95.7 %
Total Same Store 97,289 100.0 % 95.5 % 95.5 % 95.4 % 95.5 %

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 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg
Atlanta, GA 11,434 $ 64,917 $ 65,018 (0.2 )% $ 26,298 $ 24,351 8.0 % $ 38,619 $ 40,667 (5.0 )% $ 1,827 $ 1,849 (1.2 )%
Dallas, TX 10,116 53,009 52,880 0.2 % 22,172 21,794 1.7 % 30,837 31,086 (0.8 )% 1,664 1,654 0.6 %
Tampa, FL 5,416 35,792 35,462 0.9 % 12,541 12,091 3.7 % 23,251 23,371 (0.5 )% 2,097 2,092 0.2 %
Orlando, FL 5,643 35,335 35,418 (0.2 )% 12,898 12,312 4.8 % 22,437 23,106 (2.9 )% 1,982 1,980 0.1 %
Charlotte, NC 5,651 29,368 28,812 1.9 % 9,126 8,990 1.5 % 20,242 19,822 2.1 % 1,638 1,619 1.1 %
Austin, TX 6,829 34,860 35,565 (2.0 )% 15,558 16,197 (3.9 )% 19,302 19,368 (0.3 )% 1,601 1,632 (1.9 )%
Raleigh/Durham, NC 5,350 26,727 26,329 1.5 % 9,005 8,350 7.8 % 17,722 17,979 (1.4 )% 1,540 1,528 0.8 %
Nashville, TN 4,375 23,588 23,486 0.4 % 7,930 7,412 7.0 % 15,658 16,074 (2.6 )% 1,697 1,693 0.2 %
Houston, TX 5,175 23,584 23,429 0.7 % 9,185 9,381 (2.1 )% 14,399 14,048 2.5 % 1,431 1,414 1.2 %
Charleston, SC 3,168 18,015 17,247 4.5 % 5,968 5,450 9.5 % 12,047 11,797 2.1 % 1,792 1,718 4.3 %
Phoenix, AZ 2,968 16,142 16,493 (2.1 )% 4,553 4,253 7.1 % 11,589 12,240 (5.3 )% 1,741 1,758 (1.0 )%
Fort Worth, TX 3,687 19,230 19,149 0.4 % 7,876 7,735 1.8 % 11,354 11,414 (0.5 )% 1,579 1,566 0.8 %
Jacksonville, FL 3,496 16,319 16,740 (2.5 )% 6,188 5,783 7.0 % 10,131 10,957 (7.5 )% 1,519 1,555 (2.3 )%
Northern Virginia 1,888 14,388 13,597 5.8 % 4,357 4,345 0.3 % 10,031 9,252 8.4 % 2,421 2,304 5.1 %
Greenville, SC 2,354 10,331 10,367 (0.3 )% 3,911 3,777 3.5 % 6,420 6,590 (2.6 )% 1,328 1,313 1.2 %
Savannah, GA 1,837 10,157 9,862 3.0 % 3,904 3,201 22.0 % 6,253 6,661 (6.1 )% 1,706 1,654 3.2 %
Richmond, VA 1,732 9,053 8,861 2.2 % 2,805 2,742 2.3 % 6,248 6,119 2.1 % 1,650 1,619 1.9 %
Fredericksburg, VA 1,435 8,522 8,287 2.8 % 2,386 2,311 3.2 % 6,136 5,976 2.7 % 1,832 1,797 2.0 %
Memphis, TN 1,811 7,972 7,876 1.2 % 3,056 2,919 4.7 % 4,916 4,957 (0.8 )% 1,368 1,352 1.2 %
Denver, CO 1,118 7,052 6,999 0.8 % 2,222 2,144 3.6 % 4,830 4,855 (0.5 )% 1,979 1,959 1.0 %
Birmingham, AL 1,462 6,759 6,649 1.7 % 2,739 2,572 6.5 % 4,020 4,077 (1.4 )% 1,402 1,371 2.3 %
Kansas City, MO-KS 1,110 5,654 5,432 4.1 % 2,042 2,059 (0.8 )% 3,612 3,373 7.1 % 1,598 1,554 2.9 %
San Antonio, TX 1,504 6,605 6,655 (0.8 )% 3,001 2,884 4.1 % 3,604 3,771 (4.4 )% 1,375 1,392 (1.2 )%
Huntsville, AL 1,228 5,374 5,368 0.1 % 1,821 2,052 (11.3 )% 3,553 3,316 7.1 % 1,313 1,311 0.1 %
Other 6,502 32,787 32,005 2.4 % 11,718 11,270 4.0 % 21,069 20,735 1.6 % 1,598 1,559 2.5 %
Total Same Store 97,289 $ 521,540 $ 517,986 0.7 % $ 193,260 $ 186,375 3.7 % $ 328,280 $ 331,611 (1.0 )% $ 1,690 $ 1,681 0.5 %

Supplemental Data S-5

MULTIFAMILY SAME STORE PORTFOLIO SEQUENTIAL QUARTER COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2024 Q1 2024 % Chg Q2 2024 Q1 2024 % Chg Q2 2024 Q1 2024 % Chg Q2 2024 Q1 2024 % Chg
Atlanta, GA 11,434 $ 64,917 $ 65,121 (0.3 )% $ 26,298 $ 24,890 5.7 % $ 38,619 $ 40,231 (4.0 )% $ 1,827 $ 1,839 (0.7 )%
Dallas, TX 10,116 53,009 52,950 0.1 % 22,172 20,959 5.8 % 30,837 31,991 (3.6 )% 1,664 1,668 (0.2 )%
Tampa, FL 5,416 35,792 35,723 0.2 % 12,541 12,384 1.3 % 23,251 23,339 (0.4 )% 2,097 2,094 0.1 %
Orlando, FL 5,643 35,335 35,420 (0.2 )% 12,898 12,324 4.7 % 22,437 23,096 (2.9 )% 1,982 1,987 (0.3 )%
Charlotte, NC 5,651 29,368 29,082 1.0 % 9,126 8,425 8.3 % 20,242 20,657 (2.0 )% 1,638 1,638 (0.0 )%
Austin, TX 6,829 34,860 34,813 0.1 % 15,558 15,044 3.4 % 19,302 19,769 (2.4 )% 1,601 1,607 (0.4 )%
Raleigh/Durham, NC 5,350 26,727 26,498 0.9 % 9,005 8,260 9.0 % 17,722 18,238 (2.8 )% 1,540 1,543 (0.2 )%
Nashville, TN 4,375 23,588 23,594 (0.0 )% 7,930 7,533 5.3 % 15,658 16,061 (2.5 )% 1,697 1,698 (0.0 )%
Houston, TX 5,175 23,584 23,585 (0.0 )% 9,185 10,456 (12.2 )% 14,399 13,129 9.7 % 1,431 1,428 0.2 %
Charleston, SC 3,168 18,015 17,815 1.1 % 5,968 5,621 6.2 % 12,047 12,194 (1.2 )% 1,792 1,780 0.6 %
Phoenix, AZ 2,968 16,142 16,209 (0.4 )% 4,553 4,306 5.7 % 11,589 11,903 (2.6 )% 1,741 1,744 (0.2 )%
Fort Worth, TX 3,687 19,230 18,959 1.4 % 7,876 6,510 21.0 % 11,354 12,449 (8.8 )% 1,579 1,575 0.2 %
Jacksonville, FL 3,496 16,319 16,393 (0.5 )% 6,188 5,837 6.0 % 10,131 10,556 (4.0 )% 1,519 1,534 (1.0 )%
Northern Virginia 1,888 14,388 14,006 2.7 % 4,357 4,349 0.2 % 10,031 9,657 3.9 % 2,421 2,376 1.9 %
Greenville, SC 2,354 10,331 10,356 (0.2 )% 3,911 3,633 7.7 % 6,420 6,723 (4.5 )% 1,328 1,325 0.2 %
Savannah, GA 1,837 10,157 10,013 1.4 % 3,904 3,557 9.8 % 6,253 6,456 (3.1 )% 1,706 1,695 0.7 %
Richmond, VA 1,732 9,053 9,022 0.3 % 2,805 2,784 0.8 % 6,248 6,238 0.2 % 1,650 1,644 0.3 %
Fredericksburg, VA 1,435 8,522 8,424 1.2 % 2,386 2,440 (2.2 )% 6,136 5,984 2.5 % 1,832 1,805 1.5 %
Memphis, TN 1,811 7,972 7,923 0.6 % 3,056 2,886 5.9 % 4,916 5,037 (2.4 )% 1,368 1,360 0.6 %
Denver, CO 1,118 7,052 7,122 (1.0 )% 2,222 2,120 4.8 % 4,830 5,002 (3.4 )% 1,979 1,972 0.4 %
Birmingham, AL 1,462 6,759 6,670 1.3 % 2,739 2,646 3.5 % 4,020 4,024 (0.1 )% 1,402 1,393 0.6 %
Kansas City, MO-KS 1,110 5,654 5,564 1.6 % 2,042 1,941 5.2 % 3,612 3,623 (0.3 )% 1,598 1,579 1.2 %
San Antonio, TX 1,504 6,605 6,593 0.2 % 3,001 2,788 7.6 % 3,604 3,805 (5.3 )% 1,375 1,385 (0.8 )%
Huntsville, AL 1,228 5,374 5,304 1.3 % 1,821 2,009 (9.4 )% 3,553 3,295 7.8 % 1,313 1,317 (0.3 )%
Other 6,502 32,787 32,470 1.0 % 11,718 11,344 3.3 % 21,069 21,126 (0.3 )% 1,598 1,586 0.7 %
Total Same Store 97,289 $ 521,540 $ 519,629 0.4 % $ 193,260 $ 185,046 4.4 % $ 328,280 $ 334,583 (1.9 )% $ 1,690 $ 1,690 0.0 %

Supplemental Data S-6

MULTIFAMILY SAME STORE PORTFOLIO YEAR TO DATE COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

Revenues Expenses NOI Average Effective Rent per Unit
Units Q2 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg Q2 2024 Q2 2023 % Chg
Atlanta, GA 11,434 $ 130,038 $ 129,742 0.2 % $ 51,188 $ 47,558 7.6 % $ 78,850 $ 82,184 (4.1 )% $ 1,833 $ 1,840 (0.4 )%
Dallas, TX 10,116 105,959 105,170 0.8 % 43,131 42,328 1.9 % 62,828 62,842 (0.0 )% 1,666 1,648 1.1 %
Tampa, FL 5,416 71,515 70,578 1.3 % 24,925 23,720 5.1 % 46,590 46,858 (0.6 )% 2,096 2,082 0.6 %
Orlando, FL 5,643 70,755 70,316 0.6 % 25,222 24,141 4.5 % 45,533 46,175 (1.4 )% 1,985 1,970 0.7 %
Charlotte, NC 5,651 58,450 57,265 2.1 % 17,551 16,897 3.9 % 40,899 40,368 1.3 % 1,638 1,606 2.0 %
Austin, TX 6,829 69,673 70,900 (1.7 )% 30,602 30,577 0.1 % 39,071 40,323 (3.1 )% 1,604 1,627 (1.4 )%
Raleigh/Durham, NC 5,350 53,225 52,316 1.7 % 17,265 15,930 8.4 % 35,960 36,386 (1.2 )% 1,541 1,521 1.3 %
Nashville, TN 4,375 47,182 46,741 0.9 % 15,463 14,757 4.8 % 31,719 31,984 (0.8 )% 1,698 1,686 0.7 %
Houston, TX 5,175 47,169 46,649 1.1 % 19,641 19,565 0.4 % 27,528 27,084 1.6 % 1,430 1,405 1.8 %
Charleston, SC 3,168 35,830 34,210 4.7 % 11,589 10,571 9.6 % 24,241 23,639 2.5 % 1,786 1,702 4.9 %
Phoenix, AZ 2,968 32,351 32,961 (1.9 )% 8,859 8,254 7.3 % 23,492 24,707 (4.9 )% 1,743 1,759 (0.9 )%
Fort Worth, TX 3,687 38,189 38,048 0.4 % 14,386 14,385 0.0 % 23,803 23,663 0.6 % 1,577 1,561 1.0 %
Jacksonville, FL 3,496 32,712 33,303 (1.8 )% 12,025 11,312 6.3 % 20,687 21,991 (5.9 )% 1,526 1,551 (1.6 )%
Northern Virginia 1,888 28,394 26,941 5.4 % 8,706 8,394 3.7 % 19,688 18,547 6.2 % 2,398 2,286 4.9 %
Greenville, SC 2,354 20,687 20,522 0.8 % 7,544 6,498 16.1 % 13,143 14,024 (6.3 )% 1,327 1,305 1.7 %
Savannah, GA 1,837 20,170 19,534 3.3 % 7,461 6,239 19.6 % 12,709 13,295 (4.4 )% 1,701 1,639 3.8 %
Richmond, VA 1,732 18,075 17,666 2.3 % 5,589 5,531 1.0 % 12,486 12,135 2.9 % 1,647 1,608 2.5 %
Fredericksburg, VA 1,435 16,946 16,483 2.8 % 4,826 4,656 3.7 % 12,120 11,827 2.5 % 1,818 1,787 1.8 %
Memphis, TN 1,811 15,895 15,703 1.2 % 5,942 5,671 4.8 % 9,953 10,032 (0.8 )% 1,364 1,349 1.1 %
Denver, CO 1,118 14,174 13,955 1.6 % 4,342 4,200 3.4 % 9,832 9,755 0.8 % 1,975 1,951 1.3 %
Birmingham, AL 1,462 13,429 13,242 1.4 % 5,385 5,115 5.3 % 8,044 8,127 (1.0 )% 1,398 1,363 2.5 %
Kansas City, MO-KS 1,110 11,218 10,762 4.2 % 3,983 3,946 0.9 % 7,235 6,816 6.1 % 1,589 1,538 3.3 %
San Antonio, TX 1,504 13,198 13,192 0.0 % 5,789 5,712 1.3 % 7,409 7,480 (0.9 )% 1,380 1,386 (0.4 )%
Huntsville, AL 1,228 10,678 10,684 (0.1 )% 3,830 3,785 1.2 % 6,848 6,899 (0.7 )% 1,315 1,304 0.8 %
Other 6,502 65,257 63,534 2.7 % 23,062 22,135 4.2 % 42,195 41,399 1.9 % 1,592 1,551 2.6 %
Total Same Store 97,289 $ 1,041,169 $ 1,030,417 1.0 % $ 378,306 $ 361,877 4.5 % $ 662,863 $ 668,540 (0.8 )% $ 1,690 $ 1,672 1.0 %

Supplemental Data S-7

MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

Units as of Development Costs as of
June 30, 2024 June 30, 2024 Expected
Expected Spend Expected Start Initial
Location Total Delivered Leased Total to Date Remaining Date Occupancy Completion Stabilization (1)
Novel Daybreak (2) Salt Lake City, UT 400 372 235 $ 99,450 $ 94,964 $ 4,486 2Q21 2Q23 3Q24 1Q25
Novel Val Vista (2) Phoenix, AZ 317 191 106 79,800 74,987 4,813 4Q20 4Q23 4Q24 3Q25
MAA Milepost 35 Denver, CO 352 174 121 125,000 111,561 13,439 1Q22 4Q23 4Q24 3Q25
MAA Nixie Raleigh/Durham, NC 406 — — 145,500 92,377 53,123 4Q22 4Q24 3Q25 3Q26
MAA Breakwater Tampa, FL 495 — — 197,500 127,015 70,485 4Q22 1Q25 4Q25 1Q27
Alta 10th (3) Charlotte, NC 302 — — 101,500 17,410 84,090 2Q24 2Q26 4Q26 4Q27
Modera Chandler (3) Phoenix, AZ 345 — — 117,500 19,634 97,866 2Q24 2Q26 4Q26 4Q27
Total Active 2,617 737 462 $ 866,250 $ 537,948 $ 328,302
  • Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
  • MAA owns 80% of the joint venture that owns this property.
  • MAA owns 95% of the joint venture that owns this property.
MULTIFAMILY LEASE-UP COMMUNITIES

Dollars in thousands

As of June 30, 2024
Location Total Units Physical Occupancy Spend to Date Construction Completed Expected Stabilization (1)
MAA Central Avenue Phoenix, AZ 323 90.4% $ 102,186 (3) 3Q24
MAA Optimist Park Charlotte, NC 352 88.4% 106,695 (3) 4Q24
Novel West Midtown (2) Atlanta, GA 340 61.2% 91,302 3Q23 1Q25
MAA Vale Raleigh/Durham, NC 306 62.1% 80,694 (3) 2Q25
Total 1,321 75.8% $ 380,877
  • Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
  • MAA owns 80% of the joint venture that owns this property.
  • Property was acquired while in lease-up; construction was complete prior to acquisition by MAA.
MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Six months ended June 30, 2024
Units Completed Redevelopment Spend Average Cost per Unit Increase in Average Effective Rent per Unit Increase in Average Effective Rent per Unit Estimated Units Remaining in Pipeline
2,796 $ 17,370 $ 6,213 $ 107 7.6% 7,000 - 11,000
2024 ACQUISITION ACTIVITY (THROUGH JUNE 30, 2024)
---
Multifamily Acquisitions Market Apartment Units Closing Date
--- --- --- ---
MAA Vale Raleigh, NC 306 May-24
Modera Chandler (1) Phoenix, AZ 345 Apr-24
  • Represents a pre-purchase multifamily development. MAA owns 95% of the joint venture that owns this property. Construction of this development commenced in the second quarter of 2024. See “Multifamily Development Pipeline” above for additional information.

Supplemental Data S-8

DEBT AND DEBT COVENANTS AS OF JUNE 30, 2024

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Rate Debt Balance Percent of Total Effective Interest Rate Average Years to Rate Maturity
Fixed rate debt $ 4,384,864 93.3 % 3.6 % 8.0
Floating rate debt 316,000 6.7 % 5.5 % 0.1
Total $ 4,700,864 100.0 % 3.8 % 7.4
Unsecured Versus Secured Debt Balance Percent of Total Effective Interest Rate Average Years to Contract Maturity
Unsecured debt $ 4,340,660 92.3 % 3.7 % 6.0
Secured debt 360,204 7.7 % 4.4 % 24.6
Total $ 4,700,864 100.0 % 3.8 % 7.4
Unencumbered Versus Encumbered Assets Total Cost Percent of Total Q2 2024 NOI Percent of Total
Unencumbered gross assets $ 15,948,218 95.4 % $ 326,693 95.9 %
Encumbered gross assets 764,430 4.6 % 13,946 4.1 %
Total $ 16,712,648 100.0 % $ 340,639 100.0 %

FIXED INTEREST RATE MATURITIES

Maturity Fixed Rate Debt Effective Interest Rate
2024 $ — —
2025 398,944 4.2 %
2026 298,359 1.2 %
2027 597,727 3.7 %
2028 397,607 4.2 %
2029 557,076 3.7 %
2030 298,059 3.1 %
2031 445,973 1.8 %
2032 394,346 5.4 %
2033 — —
Thereafter 996,773 4.2 %
Total $ 4,384,864 3.6 %

Supplemental Data S-9

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

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity Commercial Paper (1) & Revolving Credit Facility (2) Public Bonds Secured Total
2024 $ 316,000 $ — $ — $ 316,000
2025 — 398,944 — 398,944
2026 — 298,359 — 298,359
2027 — 597,727 — 597,727
2028 — 397,607 — 397,607
2029 — 557,076 — 557,076
2030 — 298,059 — 298,059
2031 — 445,973 — 445,973
2032 — 394,346 — 394,346
2033 — — — —
Thereafter — 636,569 360,204 996,773
Total $ 316,000 $ 4,024,660 $ 360,204 $ 4,700,864
  • The $316.0 million maturing in 2024 reflects the principal outstanding under MAALP’s unsecured commercial paper program as of June 30, 2024. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $625.0 million. For the three months ended June 30, 2024, average daily borrowings outstanding under the commercial paper program were $195.5 million.
  • There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of June 30, 2024. The unsecured revolving credit facility has a maturity date of October 2026 with two six-month extension options.

DEBT COVENANT ANALYSIS (1)

Bond Covenants Required Actual Compliance
Total debt to adjusted total assets 60% or less 28.1% Yes
Total secured debt to adjusted total assets 40% or less 2.2% Yes
Consolidated income available for debt service to total annual debt service charge 1.5x or greater for trailing 4 quarters 7.4x Yes
Total unencumbered assets to total unsecured debt Greater than 150% 358.6% Yes
Bank Covenants Required Actual Compliance
Total debt to total capitalized asset value 60% or less 20.4% Yes
Total secured debt to total capitalized asset value 40% or less 1.6% Yes
Total adjusted EBITDA to fixed charges 1.5x or greater for trailing 4 quarters 7.7x Yes
Total unsecured debt to total unsecured capitalized asset value 60% or less 19.5% Yes
  • The calculations of the Bond Covenants and Bank Covenants are specifically defined in MAALP’s debt agreements.

Supplemental Data S-10

2024 GUIDANCE

MAA provides guidance on expected Core FFO per diluted Share and Core AFFO per diluted Share, which are non-GAAP financial measures, along with guidance for expected Earnings per diluted common share. A reconciliation of expected Earnings per diluted common share to expected Core FFO per diluted Share and Core AFFO per diluted Share is provided below.
Earnings: Current Midpoint
Earnings per common share - diluted $4.51
Core FFO per Share - diluted $8.88
Core AFFO per Share - diluted $7.92
MAA Same Store Portfolio:
Number of units 97,290
Average physical occupancy 95.5%
Property revenue growth 0.65%
Effective rent growth 0.50%
Property operating expense growth 4.25%
NOI growth -1.30%
Real estate tax expense growth 4.0%
Corporate Expenses: ( in millions)
Property management expenses $73.0
General and administrative expenses $57.5
Total overhead $130.5
Transaction/Investment Volume: ( in millions)
Multifamily acquisition volume $400.0
Multifamily disposition volume $100.0
Development investment $350.0
Debt:
Average effective interest rate 3.6%
Capitalized interest ( in millions) $17.0
Diluted FFO Shares Outstanding:
Diluted common shares and units 120.0 million

All values are in US Dollars.

RECONCILIATION OF EARNINGS PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER DILUTED SHARE FOR FULL YEAR 2024 GUIDANCE
Full Year 2024 Guidance Range
--- --- --- --- --- --- ---
Low High
Earnings per common share - diluted $ 4.37 $ 4.65
Real estate depreciation and amortization 4.83 4.83
Gains on sale of depreciable assets (0.44 ) (0.44 )
FFO per Share - diluted 8.76 9.04
Non-Core FFO items (1) (0.02 ) (0.02 )
Core FFO per Share - diluted 8.74 9.02
Recurring capital expenditures (0.96 ) (0.96 )
Core AFFO per Share - diluted $ 7.78 $ 8.06
  • 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, settlements and (recoveries), net, and mark-to-market debt adjustments.

Supplemental Data S-11

CREDIT RATINGS
Commercial Long-Term
--- --- --- ---
Paper Rating Debt Rating Outlook
Fitch Ratings (1) F1 A- Stable
Moody’s Investors Service (2) P-2 A3 Stable
Standard & Poor’s Ratings Services (1) A-2 A- Stable
  • Corporate credit rating assigned to MAA and MAALP
  • Corporate credit rating assigned to MAALP
COMMON STOCK
Stock Symbol: MAA
--- --- --- --- --- --- --- --- --- --- ---
Exchange Traded: NYSE
Estimated Future Dates: Q3 2024 Q4 2024 Q1 2025 Q2 2025
Earnings release & conference call Late<br>October Early<br>February Early<br>May Late<br>July
Dividend Information - Common Shares: Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Declaration date 5/16/2023 9/29/2023 12/12/2023 3/19/2024 5/21/2024
Record date 7/14/2023 10/13/2023 1/12/2024 4/15/2024 7/15/2024
Payment date 7/31/2023 10/31/2023 1/31/2024 4/30/2024 7/31/2024
Distributions per share $ 1.4000 $ 1.4000 $ 1.4700 $ 1.4700 $ 1.4700
INVESTOR RELATIONS DATA
---

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

Report a Problem

Category
Description
Email (optional, for follow-up)