MAA REPORTS THIRD QUARTER 2025 RESULTS

GERMANTOWN, Tenn., Oct. 29, 2025 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three months ended September 30, 2025.

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Earnings per common share - diluted (1)

0.84

0.98

3.30

3.07

Funds from operations (FFO) per Share - diluted (1)

2.14

2.10

6.53

6.57

Core FFO per Share - diluted (1)

2.16

2.21

6.51

6.65

(1) A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO is found later in this release.

Brad Hill, President and Chief Executive Officer, said, "Reflecting the resilience of our platform, we delivered Core FFO results in line with expectations for the quarter despite elevated supply, continued economic uncertainties and slower job growth, achieving new and renewal pricing for the quarter above last year's levels and sequential improvement in our blended rates exceeding last year's change. Resident retention remains strong with turnover at a record low. Solid demand coupled with meaningfully lower levels of new deliveries and our strong occupancy, position MAA well to capitalize on the coming year and what we expect will be an acceleration of the recovery cycle. With our recent acquisition in Kansas City and land acquisition in Scottsdale, Arizona, we are leveraging our strong balance sheet to accelerate growth, expand our development pipeline and build momentum that will fuel earnings growth for years to come."

Same Store Operating Results

Same Store results for the three and nine months ended September 30, 2025 as compared to the same period in the prior year are summarized below:

Three months ended September 30, 2025 vs. 2024

Nine months ended September 30, 2025 vs. 2024

Revenues

Expenses

NOI (1)

Average Effective

Rent per Unit

Revenues

Expenses

NOI (1)

Average Effective

Rent per Unit

Same Store Operating Growth

-0.3 %

2.3 %

-1.8 %

-0.4 %

-0.2 %

2.4 %

-1.7 %

-0.5 %

(1) A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, is found later in this release.

Same Store operating statistics for the three and nine months ended September 30, 2025 are summarized below:

Three months ended September 30, 2025

Nine months ended September 30, 2025

As of September 30, 2025

Average Effective

Rent per Unit

Average Physical

Occupancy

Average Effective

Rent per Unit

Average Physical

Occupancy

Resident Turnover

Same Store Operating Statistics

1,693

95.6 %

1,691

95.5 %

40.2 %

Same Store net effective lease pricing statistics for the three and nine months ended September 30, 2025 are summarized below:

Same Store Net Effective Lease Pricing Statistics

Three Months Ended

September 30, 2025

Nine Months Ended

September 30, 2025

Effective Blended Lease Rate Growth

0.3 %

0.2 %

Effective New Lease Rate Growth

-5.2 %

-5.3 %

Effective Renewal Lease Rate Growth

4.5 %

4.6 %

Acquisition Activity

In August 2025, MAA closed on the acquisition of a stabilized 318-unit multifamily apartment community built in 2024 and located in the Kansas City market. In October 2025, MAA acquired a land parcel adjacent to that acquired community and plans future development of a phase II multifamily expansion at the property. MAA also closed on the acquisition of a land parcel located in the Phoenix, Arizona market during October 2025 and plans to begin construction on a 280-unit multifamily apartment community during the fourth quarter of 2025.

Development and Lease-up Activity

A summary of MAA's development communities under construction as of the end of the third quarter of 2025 is set forth below (dollars in thousands):

Units as of

Development Costs as of

Expected Project

Total

September 30, 2025

Completions By Year

Development

Expected

Costs

Expected

Projects (1)

Total

Delivered

Leased

Total

to Date

Remaining

2025

2026

2027

2028

2,242

412

247

797,000

543,163

253,837

(1) Two of the development projects are currently leasing.

During the third quarter of 2025, MAA completed the development of MAA Nixie located in the Raleigh, North Carolina market. MAA funded approximately $78 million of costs for current and planned development projects, including predevelopment activities, during the third quarter of 2025.

A summary of the total units, physical occupancy and cost of MAA's lease-up communities as of the end of the third quarter of 2025 is set forth below (dollars in thousands):

Total

As of September 30, 2025

Lease-Up

Total

Physical

Costs

Projects (1)

Units

Occupancy

to Date

1,415

66.1

409,156

(1)

One of the lease-up projects is expected to stabilize in the fourth quarter of 2025, one in the first quarter of 2026, one in the second quarter of 2026 and one in the third quarter of 2026.

During the third quarter of 2025, MAA completed the lease-up of Novel West Midtown located in Atlanta, Georgia, Novel Daybreak located in the Salt Lake City, Utah market, and MAA Milepost 35 located in Denver, Colorado.

Balance Sheet and Financing Activities

As of September 30, 2025, MAA had $814.7 million of combined cash and available capacity under MAALP's unsecured revolving credit facility.

In October 2025, MAALP amended its unsecured revolving credit facility, increasing borrowing capacity to $1.5 billion with an option to expand to $2.0 billion. The amended facility has a maturity date of January 2030 with two six-month extension options, and bears interest at a rate based on the Secured Overnight Financing Rate plus a spread determined by a credit ratings grid, currently at 0.725%. MAALP also amended its commercial paper program in October 2025 to increase the maximum aggregate principal amount of notes that may be outstanding under the program to $750.0 million.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2025 were $181.8 million, as compared to $176.3 million for the same period in the prior year.

Balance sheet highlights as of September 30, 2025 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

29.3 %

4.2x

5.2

3.8 %

91.1 %

6.3

(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, 2025. A reconciliation of Unsecured notes payable, net and Secured notes payable, net to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.

127th Consecutive Quarterly Common Dividend Declared

MAA declared its 127th consecutive quarterly common dividend, which will be paid on October 31, 2025 to holders of record on October 15, 2025. The current annual dividend rate is $6.06 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.

2025 Earnings and Same Store Guidance

MAA is updating its prior 2025 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to provide updates to its 2025 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.

2025 Guidance

Previous Range

Previous Midpoint

Revised Range

Revised Midpoint

Earnings:

Full Year 2025

Earnings per common share - diluted

$5.25 to $5.49

$5.37

$4.18 to $4.30

$4.24

Core FFO per Share - diluted

$8.65 to $8.89

$8.77

$8.68 to $8.80

$8.74

Core AFFO per Share - diluted

$7.67 to $7.91

$7.79

$7.70 to $7.82

$7.76

MAA Same Store Portfolio:

Property revenue growth

-0.20% to 0.40%

0.10 %

-0.25% to 0.15%

-0.05 %

Property operating expense growth

1.75% to 2.75%

2.25 %

1.80% to 2.60%

2.20 %

NOI growth

-1.90% to -0.40%

-1.15 %

-1.85% to -0.85%

-1.35 %

MAA expects Core FFO for the fourth quarter of 2025 to be in the range of $2.17 to $2.29 per diluted Share, or $2.23 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the third quarter of 2025 to the midpoint of MAA's guidance for the fourth quarter of 2025 is summarized below:

Core FFO per diluted Share

Q3 2025 per diluted Share reported results

2.16

Same Store NOI

0.06

Development, Lease-up and Other Non-Same Store NOI

0.04

Interest expense and Other non-operating (expense) income

(0.03)

Q4 2025 per diluted Share guidance midpoint

2.23

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.

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 30, 2025, 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 September 30, 2025, MAA had ownership interest in 104,665 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

This release (as well as the Supplemental Data to this release) contains 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. Forward-looking statements do not discuss historical fact, but instead are statements related to expectations, projections, intentions, assumptions and beliefs regarding the future. 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 include, but are not limited to, statements regarding quarterly and full year 2025 guidance (including earnings guidance, Same Store Portfolio guidance and other related projections and assumptions), development costs for our development communities, timelines for occupancy, completion and stabilization of our development communities, and timelines for stabilization of our lease-up communities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance, achievements or outcomes to be materially different from the future results, performance, achievements or outcomes expressed or implied by such forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such statements should not be regarded as a representation by us or any other person that the results, performance, achievements or outcomes described in such statements will be achieved.

The following factors, among others, could cause our actual results, performance, achievements or outcomes to differ materially from those expressed or implied in the forward-looking statements: adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions; adverse changes in real estate markets, including changes in supply and/or demand for multifamily housing or increased competition from alternative housing options; 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; 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; 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; legal proceedings or class action lawsuits; and other risks identified in our annual report on Form 10-K for the year ended December 31, 2024, our quarterly reports on Form 10-Q and other reports we file with the SEC from time to time.

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,

2025

2024

2025

2024

Rental and other property revenues

554,373

551,126

1,653,570

1,641,183

Net income available for MAA common shareholders

98,616

114,273

386,572

358,131

Total NOI (1)

338,309

339,565

1,021,499

1,026,024

Earnings per common share: (2)

Basic

0.84

0.98

3.30

3.07

Diluted

0.84

0.98

3.30

3.07

Funds from operations per Share - diluted: (2)

FFO (1)

2.14

2.10

6.53

6.57

Core FFO (1)

2.16

2.21

6.51

6.65

Core AFFO (1)

1.81

1.93

5.70

5.91

Dividends declared per common share

1.5150

1.4700

4.5450

4.4100

Dividends/Core FFO (diluted) payout ratio

70.1

66.5

69.8

66.3

Dividends/Core AFFO (diluted) payout ratio

83.7

76.2

79.7

74.6

Consolidated interest expense

46,277

42,726

136,549

124,352

Debt discount and debt issuance cost amortization

(1,625)

(1,514)

(4,866)

(4,569)

Capitalized interest

4,538

5,048

14,691

12,188

Total interest incurred

49,190

46,260

146,374

131,971

(1)

The following reconciliations are 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.

(2)

See the "Share and Unit Data" section for additional information.

Dollars in thousands, except share price

September 30, 2025

December 31, 2024

Gross Assets (1)

17,714,181

17,170,171

Gross Real Estate Assets (1)

17,455,107

16,924,002

Total debt

5,197,359

4,980,957

Common shares and units outstanding

120,023,581

119,958,973

Share price

139.73

154.57

Book equity value

6,014,302

6,147,664

Market equity value

16,770,895

18,542,058

Net Debt/Adjusted EBITDAre (2)

4.2x

4.0x

(1)

Reconciliations of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets are found later in this release.

(2)

Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. The following reconciliations are found later in this release: (i) Unsecured notes payable, net and Secured notes payable, net 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

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Revenues:

Rental and other property revenues

554,373

551,126

1,653,570

1,641,183

Expenses:

Operating expenses, excluding real estate taxes and insurance

137,235

134,475

394,655

378,887

Real estate taxes and insurance

78,829

77,086

237,416

236,272

Depreciation and amortization

156,650

146,722

462,521

434,764

Total property operating expenses

372,714

358,283

1,094,592

1,049,923

Property management expenses

18,183

17,265

56,272

54,461

General and administrative expenses

12,525

12,728

40,957

42,444

Interest expense

46,277

42,726

136,549

124,352

(Gain) loss on sale of depreciable real estate assets

—

(71,842)

Other non-operating expense (income)

1,253

1,678

(4,303)

(2,604)

Income before income tax expense

103,421

118,446

401,345

372,582

Income tax expense

(1,766)

(670)

(3,404)

(3,485)

Income from continuing operations before real estate joint venture activity

101,655

117,776

397,941

369,097

Income from real estate joint venture

389

454

1,384

1,405

Net income

102,044

118,230

399,325

370,502

Net income attributable to noncontrolling interests

2,506

3,035

9,987

9,605

Net income available for shareholders

99,538

115,195

389,338

360,897

Dividends to MAA Series I preferred shareholders

922

2,766

Net income available for MAA common shareholders

98,616

114,273

386,572

358,131

Earnings per common share - basic:

Net income available for common shareholders

0.84

0.98

3.30

3.07

Earnings per common share - diluted:

Net income available for common shareholders

0.84

0.98

3.30

3.07

SHARE AND UNIT DATA

Shares and units in thousands

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Net Income Shares (1)

Weighted average common shares - basic

117,012

116,820

116,943

116,758

Effect of dilutive securities

143

—

218

—

Weighted average common shares - diluted

117,155

116,820

117,161

116,758

Funds From Operations Shares And Units

Weighted average common shares and units - basic

119,960

119,900

119,941

119,865

Weighted average common shares and units - diluted

120,022

119,954

120,004

119,919

Period End Shares And Units

Common shares at September 30,

117,082

116,880

117,082

116,880

Operating Partnership units at September 30,

2,942

3,076

2,942

3,076

Total common shares and units at September 30,

120,024

119,956

120,024

119,956

(1)

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 three months ended September 30, 2025, expected to be filed with the SEC on or about October 30, 2025.

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited)

September 30, 2025

December 31, 2024

Assets

Real estate assets:

Land

2,112,192

2,096,912

Buildings and improvements and other

14,746,047

14,160,799

Development and capital improvements in progress

449,390

470,282

17,307,629

16,727,993

Less: Accumulated depreciation

(5,787,596)

(5,327,584)

11,520,033

11,400,409

Undeveloped land

73,359

Investment in real estate joint venture

41,870

41,650

Real estate assets, net

11,635,262

11,515,418

Cash and cash equivalents

32,249

43,018

Restricted cash

13,683

13,743

Other assets

245,391

232,426

Assets held for sale

—

7,764

Total assets

11,926,585

11,812,369

Liabilities and equity

Liabilities:

Unsecured notes payable, net

4,836,998

4,620,690

Secured notes payable, net

360,361

360,267

Accrued expenses and other liabilities

714,924

683,748

Total liabilities

5,912,283

5,664,705

Redeemable common stock

20,223

22,230

Shareholders' equity:

Preferred stock

Common stock

1,168

1,166

Additional paid-in capital

7,435,697

7,417,453

Accumulated distributions in excess of net income

(1,612,912)

(1,469,557)

Accumulated other comprehensive loss

(5,692)

(6,940)

Total MAA shareholders' equity

5,818,270

5,942,131

Noncontrolling interests - Operating Partnership units

145,165

155,409

Total shareholders' equity

5,963,435

6,097,540

Noncontrolling interests - consolidated real estate entities

30,644

27,894

Total equity

5,994,079

6,125,434

Total liabilities and equity

11,926,585

11,812,369

Amounts in thousands, except per share and unit data

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Net income available for MAA common shareholders

98,616

114,273

386,572

358,131

Depreciation and amortization of real estate assets

155,267

145,256

458,407

430,470

(Gain) loss on sale of depreciable real estate assets

—

(71,842)

MAA's share of depreciation and amortization of real estate assets of real estate joint venture

168

157

499

466

Gain on consolidation of third-party development (1)

—

(11,033)

—

(11,033)

Net income attributable to noncontrolling interests

2,506

3,035

9,987

9,605

FFO attributable to common shareholders and unitholders

256,557

251,688

783,623

787,664

(Gain) loss on embedded derivative in preferred shares (1)

(2,009)

18,257

(3,292)

14,451

(Gain) loss on investments, net of tax (1)(2)

(4,396)

533

(4,733)

(2,873)

Casualty related (recoveries) and charges, net (1)

(127)

(5,714)

(3,695)

(9,664)

Legal costs, settlements and (recoveries), net (1)(3)

8,908

—

8,908

8,000

Core FFO attributable to common shareholders and unitholders

258,933

264,764

780,811

797,578

Recurring capital expenditures

(41,666)

(33,535)

(97,115)

(88,810)

Core AFFO attributable to common shareholders and unitholders

217,267

231,229

683,696

708,768

Redevelopment capital expenditures

(16,331)

(12,769)

(49,175)

(33,767)

Revenue enhancing capital expenditures

(20,820)

(21,924)

(56,112)

(60,566)

Commercial capital expenditures

(3,108)

(1,211)

(9,837)

(4,281)

Other capital expenditures (4)

(12,070)

(22,512)

(39,559)

(44,627)

FAD attributable to common shareholders and unitholders

164,938

172,813

529,013

565,527

Dividends and distributions paid

181,830

176,329

545,411

528,824

Weighted average common shares - diluted

117,155

116,820

117,161

116,758

FFO weighted average common shares and units - diluted

120,022

119,954

120,004

119,919

Earnings per common share - diluted:

Net income available for MAA common shareholders

0.84

0.98

3.30

3.07

FFO per Share - diluted

2.14

2.10

6.53

6.57

Core FFO per Share - diluted

2.16

2.21

6.51

6.65

Core AFFO per Share - diluted

1.81

1.93

5.70

5.91

(1)

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

(2)

For the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, gain on investments is presented net of tax expense of $1.0 million, $1.0 million and $0.8 million, respectively. For the three months ended September 30, 2024, loss on investments is presented net of tax benefit of $0.1 million.

(3)

During the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, in accordance with its accounting policies, MAA recognized $8.9 million, $8.9 million and $8.0 million, respectively, of accrued legal defense costs that are expected to be incurred through July 2027.

(4)

For the three and nine months ended September 30, 2024, $1.6 million and $2.5 million, respectively, of reconstruction-related capital expenditures relating to storm costs that have been reimbursed through insurance coverage are excluded from other capital expenditures.

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME

Dollars in thousands

Three Months Ended

Nine Months Ended

September 30,

2025

June 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Net income available for MAA common shareholders

98,616

107,205

114,273

386,572

358,131

Depreciation and amortization

156,650

153,521

146,722

462,521

434,764

Property management expenses

18,183

17,511

17,265

56,272

54,461

General and administrative expenses

12,525

12,813

12,728

40,957

42,444

Interest expense

46,277

45,111

42,726

136,549

124,352

Loss (gain) on sale of depreciable real estate assets

—

(71,842)

Other non-operating expense (income)

1,253

(4,722)

1,678

(4,303)

(2,604)

Income tax expense

1,766

600

670

3,404

3,485

Income from real estate joint venture

(389)

(530)

(454)

(1,384)

(1,405)

Net income attributable to noncontrolling interests

2,506

2,748

3,035

9,987

9,605

Dividends to MAA Series I preferred shareholders

922

2,766

Total NOI

338,309

335,248

339,565

1,021,499

1,026,024

Same Store NOI

322,028

319,612

327,906

974,435

990,860

Non-Same Store and Other NOI

16,281

15,636

11,659

47,064

35,164

Total NOI

338,309

335,248

339,565

1,021,499

1,026,024

RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

Dollars in thousands

Three Months Ended

Twelve Months Ended

September 30,

2025

September 30,

2024

September 30,

2025

December 31,

2024

Net income

102,044

118,230

570,399

541,576

Depreciation and amortization

156,650

146,722

613,373

585,616

Interest expense

46,277

42,726

180,741

168,544

Income tax expense

1,766

670

5,159

5,240

EBITDA

306,737

308,348

1,369,672

1,300,976

Gain on sale of depreciable real estate assets

—

(126,870)

(55,003)

Gain on consolidation of third-party development (1)

—

(11,033)

(206)

(11,239)

Adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates

351

340

1,395

1,363

EBITDAre

307,088

297,655

1,243,991

1,236,097

(Gain) loss on embedded derivative in preferred shares (1)

(2,009)

18,257

1,008

18,751

(Gain) loss on investments (1)

(5,357)

648

(9,913)

(7,809)

Casualty related (recoveries) and charges, net (1)

(127)

(5,714)

(3,357)

(9,326)

Legal costs, settlements and (recoveries), net (1)(2)

8,908

—

10,345

9,437

Adjusted EBITDAre

308,503

310,846

1,242,074

1,247,150

(1)

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

(2)

During the three and twelve months ended September 30, 2025 and the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.9 million, $8.9 million and $8.0 million, respectively, of accrued legal defense costs that are expected to be incurred through July 2027.

RECONCILIATION OF UNSECURED NOTES PAYABLE, NET AND SECURED NOTES PAYABLE, NET TO NET DEBT

Dollars in thousands

September 30, 2025

December 31, 2024

Unsecured notes payable, net

4,836,998

4,620,690

Secured notes payable, net

360,361

360,267

Total debt

5,197,359

4,980,957

Cash and cash equivalents

(32,249)

(43,018)

Net Debt

5,165,110

4,937,939

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands

September 30, 2025

December 31, 2024

Total assets

11,926,585

11,812,369

Accumulated depreciation

5,787,596

5,327,584

Accumulated depreciation for Assets held for sale (1)

—

30,218

Gross Assets

17,714,181

17,170,171

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

RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS

Dollars in thousands

September 30, 2025

December 31, 2024

Real estate assets, net

11,635,262

11,515,418

Accumulated depreciation

5,787,596

5,327,584

Assets held for sale, net

—

7,764

Accumulated depreciation for Assets held for sale (1)

—

30,218

Cash and cash equivalents

32,249

43,018

Gross Real Estate Assets

17,455,107

16,924,002

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

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDAre

For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA's core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges and (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 and (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, gain on consolidation of third-party development 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, asset impairment and gain on consolidation of third-party development, 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 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.

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, 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,net and Secured notes payable,net 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.

Effective Blended Lease Rate Growth

Effective Blended Lease Rate Growth represents the combined weighted average of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth from our Same Store Portfolio for the applicable period.

Effective New Lease Rate Growth

Effective New Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for new leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.

Effective Renewal Lease Rate Growth

Effective Renewal Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for renewal leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.

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 (or Same Store)

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.

SOURCE MAA