MAA REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

GERMANTOWN, Tenn., Feb. 4, 2026 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three and twelve months ended December 31, 2025.

Three months ended December 31,

Year ended December 31,

2025

2024

2025

2024

Earnings per common share - diluted

0.48

1.42

3.78

4.49

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

1.79

2.21

8.32

8.77

Core FFO per Share - diluted (1)

2.23

8.74

8.88

(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, "With fourth quarter Core FFO results in line with our expectations, we are encouraged by the improving occupancy and blended pricing trends we continue to see, reflecting the resilience of our platform and supporting a constructive outlook for leasing fundamentals heading into 2026. While new supply deliveries are still elevated by historical standards, we are optimistic that the current deceleration in new deliveries, combined with solid demand fundamentals and strong resident retention will lead to strengthening revenue performance throughout the year as tightening market conditions provide increased support for new lease price recovery. While economic uncertainty persists, the long-term outlook for rental housing in our high-demand region remains solid and our growing investments position MAA to deliver meaningful earnings growth as the recovery gains momentum."

Same Store Operating Results

Same Store results for the three and twelve months ended December 31, 2025 as compared to the same periods in the prior year are summarized below:

Three months ended December 31, 2025 vs. 2024

Twelve months ended December 31, 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

-0.1 %

0.7 %

-0.5 %

-0.3 %

-0.1 %

2.0 %

-1.4 %

-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 twelve months ended December 31, 2025 are summarized below:

Three months ended December 31, 2025

Twelve months ended December 31, 2025

Average Effective

Rent per Unit

Average Physical

Occupancy

Average Effective

Rent per Unit

Average Physical

Occupancy

Resident

Turnover

Same Store Operating Statistics

1,687

95.7 %

1,690

95.6 %

40.2 %

Same Store net effective lease pricing statistics for the three and twelve months ended December 31, 2025 are summarized below:

Same Store Net Effective Lease Pricing Statistics

Three Months Ended

December 31, 2025

Twelve Months Ended

December 31, 2025

Effective Blended Lease Rate Growth

-1.7 %

-0.1 %

Effective New Lease Rate Growth

-8.1 %

-5.8 %

Effective Renewal Lease Rate Growth

4.7 %

4.6 %

Acquisition Activity

In October 2025, MAA acquired a land parcel in the Kansas City market adjacent to a recently acquired community and plans future development of additional multifamily apartment units at the property. MAA also closed on the acquisition of a land parcel located in the Phoenix, Arizona market during October 2025 and began construction on a 280-unit multifamily apartment community.

In January 2026, MAA closed on the acquisition of a land parcel located in the Northern Virginia market through its pre-purchase development program and plans future development of a 287-unit multifamily apartment community at the property starting in the second half of 2026.

Development and Lease-up Activity

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

Units as of

Development Costs as of

Expected Project

Total

December 31, 2025

Completions By Year

Development

Expected

Costs

Expected

Projects (1)

Total

Delivered

Leased

Total

to Date

Remaining

2026

2027

2028

2,522

660

374

932,000

625,612

306,388

(1) Three of the development projects were leasing as of December 31, 2025.

MAA funded approximately $81 million of costs for current and planned development projects, including predevelopment activities, during the fourth 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 fourth quarter of 2025 is set forth below (dollars in thousands):

Total

As of December 31, 2025

Lease-Up

Total

Physical

Costs

Projects (1)

Units

Occupancy

to Date

1,109

65.7

326,461

(1) Two of the lease-up projects are expected to stabilize in the second quarter of 2026 and one in the third quarter of 2026.

During the fourth quarter of 2025, MAA completed the lease-up of MAA Vale located in Raleigh, North Carolina.

Balance Sheet and Financing Activities

As of December 31, 2025, MAA had $879.2 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 its 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.

In November 2025, MAALP publicly issued $400.0 million of unsecured senior notes due January 2033 with a coupon rate of 4.650% per annum and at an issue price of 99.354%. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2026. The notes have an effective interest rate of 4.755%. The proceeds from the sale of the notes were used to repay borrowings under MAALP's commercial paper program, which were used to repay MAALP's 2015 publicly issued notes that matured in November 2025.

During the fourth quarter of 2025, MAA repurchased 0.2 million shares of its common stock at a weighted average share price of $131.61 for total consideration of approximately $27 million.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the fourth 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 December 31, 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

30.2 %

4.3x

5.4

3.8 %

87.5 %

6.4

(1)

As defined in the covenants for the unsecured senior notes issued by MAALP.

(2)

Adjusted EBITDAre is calculated for the trailing twelve month period ended December 31, 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.

Corporate Sustainability

As of December 31, 2025, MAA's corporate initiatives have led to significant progress in MAA's key sustainability performance areas: People Engagement, Portfolio Resiliency, and Stakeholder Commitment. Documented within MAA's 6th annual Corporate Sustainability Report, published in September 2025, and using performance data through December 31, 2024, MAA achieved a 29% reduction in energy use intensity (EUI) and a 44% reduction in greenhouse gas emission intensity (GEI) from its 2018 baseline, establishing a rapid pace toward its goal to reduce EUI and GEI by 35% and 45% by 2028, respectively.

MAA believes its resource-efficiency initiatives advance an integrated pathway for sustainability while strengthening operational efficiency and resiliency. Through 2025, MAA expanded smart irrigation systems to 55 properties, completed a building automation system pilot across nine properties to improve common-area energy performance, and initiated solar installations at three properties. These efforts were in parallel to continued portfolio enhancements, including 15,700+ ENERGY STAR appliance installations and EV charging ports now totaling 545 across MAA's portfolio.

In 2025, MAA also reported strong resident and community outcomes, including a 4.7/5 average Google Star rating, and hosted a second annual MAAke a Difference Day, building on MAA's inaugural MAAke a Difference Day in 2024. Most recent third-party benchmarking results provide additional validation of performance, including a CDP Climate Change score of B and a GRESB Standing Investments score of 80, exceeding the GRESB global average and earning Green Star status.

128th Consecutive Quarterly Common Dividend Declared

MAA declared its 128th consecutive quarterly common dividend, which was paid on January 30, 2026 to holders of record on January 15, 2026. The current annual dividend rate is $6.12 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.

2026 Earnings and Same Store Guidance

MAA is providing its initial 2026 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 2026 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.

2026 Guidance

Full Year 2026

Earnings:

Range

Midpoint

Earnings per common share - diluted

$4.11 to $4.47

$4.29

Core FFO per Share - diluted

$8.35 to $8.71

$8.53

Core AFFO per Share - diluted

$7.32 to $7.68

$7.50

MAA Same Store Portfolio:

Property revenue growth

-0.20% to 1.30%

0.55 %

Property operating expense growth

1.90% to 3.40%

2.65 %

NOI growth

-1.70% to 0.30%

-0.70 %

The projected difference between Core FFO per diluted Share for the full year of 2025 to the midpoint of MAA's guidance for the full year of 2026 is summarized below:

Core FFO per diluted Share

2025 per diluted Share reported results

8.74

Same Store NOI

(0.08)

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

0.19

2026 forecasted acquisitions and dispositions

(0.01)

Total overhead

(0.05)

Interest expense (1)

(0.25)

Other non-operating expense (income)

(0.01)

2026 per diluted Share guidance midpoint

8.53

(1)

The projected year-over-year change in Interest expense is driven by higher interest expense as a result of completion of development projects in 2025 and 2026, incremental borrowings related to our acquisition activities in 2025, redevelopment activities and debt refinancing.

MAA expects Core FFO for the first quarter of 2026 to be in the range of $2.05 to $2.17 per diluted Share, or $2.11 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the fourth quarter of 2025 to the midpoint of MAA's guidance for the first quarter of 2026 is summarized below:

Core FFO per diluted Share

Q4 2025 per diluted Share reported results

2.23

Same Store NOI (1)

(0.03)

Total overhead

(0.06)

Interest expense

(0.02)

Other non-operating expense (income)

(0.01)

Q1 2026 per diluted Share guidance midpoint

2.11

(1)

The sequential quarter-over-quarter change is calculated with projected Same Store Portfolio NOI for the first quarter of 2026 compared to Same Store NOI from the fourth quarter of 2025, which is recast for the 2026 Same Store Portfolio as provided in the Supplemental Data to this release.

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 fourth quarter results on February 5, 2026, 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 December 31, 2025, MAA had ownership interest in 104,945 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 [email protected], 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. 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 2026 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, 2025, expected to be filed with the SEC on or about February 6, 2026, 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 December 31,

Year ended December 31,

2025

2024

2025

2024

Rental and other property revenues

555,556

549,832

2,209,126

2,191,015

Net income available for MAA common shareholders

56,649

165,724

443,221

523,855

Total NOI (1)

349,820

344,899

1,371,319

1,370,923

Earnings per common share: (2)

Basic

0.48

1.42

3.79

4.49

Diluted

0.48

1.42

3.78

4.49

Funds from operations per Share - diluted: (2)

FFO (1)

1.79

2.21

8.32

8.77

Core FFO (1)

2.23

8.74

8.88

Core AFFO (1)

1.91

2.03

7.61

7.94

Dividends declared per common share

1.530

1.515

6.075

5.925

Dividends/Core FFO (diluted) payout ratio

68.6

67.9

69.5

66.7

Dividends/Core AFFO (diluted) payout ratio

80.1

74.6

79.8

74.6

Consolidated interest expense

48,708

44,192

185,257

168,544

Debt discount and debt issuance cost amortization

(1,697)

(1,464)

(6,563)

(6,033)

Capitalized interest

4,172

5,247

18,863

17,435

Total interest incurred

51,183

47,975

197,557

179,946

(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

December 31, 2025

December 31, 2024

Gross Assets (1)

17,921,913

17,170,171

Gross Real Estate Assets (1)

17,662,513

16,924,002

Total debt

5,405,372

4,980,957

Common shares and units outstanding

119,819,916

119,958,973

Share price

138.91

154.57

Book equity value

5,839,645

6,147,664

Market equity value

16,644,185

18,542,058

Net Debt/Adjusted EBITDAre (2)

4.3x

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

December 31,

Year ended December 31,

2025

2024

2025

2024

Revenues:

Rental and other property revenues

555,556

549,832

2,209,126

2,191,015

Expenses:

Operating expenses, excluding real estate taxes and insurance

124,205

123,848

518,860

502,735

Real estate taxes and insurance

81,531

81,085

318,947

317,357

Depreciation and amortization

159,774

150,852

622,295

585,616

Total property operating expenses

365,510

355,785

1,460,102

1,405,708

Property management expenses

18,507

17,579

74,779

72,040

General and administrative expenses

13,850

14,072

54,807

56,516

Interest expense

48,708

44,192

185,257

168,544

Gain on sale of depreciable real estate assets

(224)

(55,028)

(72,066)

(55,003)

Other non-operating expense (income)

51,464

949

47,161

(1,655)

Income before income tax expense

57,741

172,283

459,086

544,865

Income tax expense

(1,191)

(1,755)

(4,595)

(5,240)

Income from continuing operations before real estate joint venture activity

56,550

170,528

454,491

539,625

Income from real estate joint venture

691

546

2,075

1,951

Net income

57,241

171,074

456,566

541,576

Net income attributable to noncontrolling interests

(330)

4,428

9,657

14,033

Net income available for shareholders

57,571

166,646

446,909

527,543

Dividends to MAA Series I preferred shareholders

922

3,688

Net income available for MAA common shareholders

56,649

165,724

443,221

523,855

Earnings per common share - basic:

Net income available for common shareholders

0.48

1.42

3.79

4.49

Earnings per common share - diluted:

Net income available for common shareholders

0.48

1.42

3.78

4.49

SHARE AND UNIT DATA

Shares and units in thousands

Three months ended

December 31,

Year ended December 31,

2025

2024

2025

2024

Net Income Shares (1)

Weighted average common shares - basic

116,985

116,828

116,954

116,776

Effect of dilutive securities

129

195

—

Weighted average common shares - diluted

117,114

116,892

117,149

116,776

Funds From Operations Shares And Units

Weighted average common shares and units - basic

119,926

119,904

119,938

119,875

Weighted average common shares and units - diluted

119,987

119,958

120,000

119,929

Period End Shares And Units

Common shares at December 31,

116,878

116,883

116,878

116,883

Operating Partnership units at December 31,

2,942

3,076

2,942

3,076

Total common shares and units at December 31,

119,820

119,959

119,820

119,959

(1)

For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Consolidated Financial Statements in MAA's Annual Report on Form 10-K for the year ended December 31, 2025, expected to be filed with the SEC on or about February 6, 2026.

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited)

December 31, 2025

December 31, 2024

Assets

Real estate assets:

Land

2,129,401

2,096,912

Buildings and improvements and other

14,852,509

14,160,799

Development and capital improvements in progress

426,759

470,282

17,408,669

16,727,993

Less: Accumulated depreciation

(5,914,017)

(5,327,584)

11,494,652

11,400,409

Undeveloped land

73,359

Investment in real estate joint venture

41,313

41,650

Real estate assets, net

11,609,324

11,515,418

Cash and cash equivalents

60,258

43,018

Restricted cash

13,717

13,743

Other assets

245,683

232,426

Assets held for sale

46,401

7,764

Total assets

11,975,383

11,812,369

Liabilities and equity

Liabilities:

Unsecured notes payable, net

5,044,979

4,620,690

Secured notes payable, net

360,393

360,267

Accrued expenses and other liabilities

730,366

683,748

Total liabilities

6,135,738

5,664,705

Redeemable common stock

20,402

22,230

Shareholders' equity:

Preferred stock

Common stock

1,166

Additional paid-in capital

7,401,962

7,417,453

Accumulated distributions in excess of net income

(1,734,986)

(1,469,557)

Accumulated other comprehensive loss

(5,300)

(6,940)

Total MAA shareholders' equity

5,662,851

5,942,131

Noncontrolling interests - Operating Partnership units

141,503

155,409

Total shareholders' equity

5,804,354

6,097,540

Noncontrolling interests - consolidated real estate entities

14,889

27,894

Total equity

5,819,243

6,125,434

Total liabilities and equity

11,975,383

11,812,369

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 December 31,

Year ended December 31,

2025

2024

2025

2024

Net income available for MAA common shareholders

56,649

165,724

443,221

523,855

Depreciation and amortization of real estate assets

158,367

149,457

616,774

579,927

Gain on sale of depreciable real estate assets

(224)

(55,028)

(72,066)

(55,003)

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

168

162

667

628

Gain on consolidation of third-party development (1)

—

(206)

(11,239)

Net income attributable to noncontrolling interests

(330)

4,428

9,657

14,033

FFO attributable to common shareholders and unitholders

214,630

264,537

998,253

1,052,201

Loss (gain) on embedded derivative in preferred shares (1)

2,181

4,300

(1,111)

18,751

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

(1,336)

(3,205)

(6,069)

(6,078)

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

(903)

338

(4,598)

(9,326)

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

53,000

1,437

61,908

9,437

Core FFO attributable to common shareholders and unitholders

267,572

267,407

1,048,383

1,064,985

Recurring capital expenditures

(38,260)

(23,418)

(135,375)

(112,228)

Core AFFO attributable to common shareholders and unitholders

229,312

243,989

913,008

952,757

Redevelopment capital expenditures

(17,400)

(17,903)

(66,575)

(51,670)

Revenue enhancing capital expenditures

(20,647)

(15,394)

(76,759)

(75,960)

Commercial capital expenditures

(9,375)

(3,542)

(19,212)

(7,823)

Other capital expenditures (4)

(14,823)

(27,193)

(54,382)

(71,820)

FAD attributable to common shareholders and unitholders

167,067

179,957

696,080

745,484

Dividends and distributions paid

181,835

176,336

727,246

705,160

Weighted average common shares - diluted

117,114

116,892

117,149

116,776

FFO weighted average common shares and units - diluted

119,987

119,958

120,000

119,929

Earnings per common share - diluted:

Net income available for common shareholders

0.48

1.42

3.78

4.49

FFO per Share - diluted

1.79

2.21

8.32

8.77

Core FFO per Share - diluted

2.23

8.74

8.88

Core AFFO per Share - diluted

1.91

2.03

7.61

7.94

(1)

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

(2)

For the three months ended December 31, 2025 and 2024, gain on investments is presented net of tax expense of $0.4 million and $0.9 million, respectively. For the twelve months ended December 31, 2025 and 2024, gain on investments is presented net of tax expense of $1.4 million and $1.7 million, respectively.

(3)

During the three and twelve months ended December 31, 2025 and the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $53.0 million, $61.9 million and $8.0 million, respectively, of accrued legal settlements and legal defense costs.

(4)

For the three and twelve months ended December 31, 2024, $2.4 million and $4.9 million, respectively, of reconstruction-related capital expenditures relating to storm and fire 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

Year Ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net income available for MAA common shareholders

56,649

165,724

443,221

523,855

Depreciation and amortization

159,774

150,852

622,295

585,616

Property management expenses

18,507

17,579

74,779

72,040

General and administrative expenses

13,850

14,072

54,807

56,516

Interest expense

48,708

44,192

185,257

168,544

Gain on sale of depreciable real estate assets

(224)

(55,028)

(72,066)

(55,003)

Other non-operating expense (income)

51,464

949

47,161

(1,655)

Income tax expense

1,191

1,755

4,595

5,240

Income from real estate joint venture

(691)

(546)

(2,075)

(1,951)

Net income attributable to noncontrolling interests

(330)

4,428

9,657

14,033

Dividends to MAA Series I preferred shareholders

922

3,688

Total NOI

349,820

344,899

1,371,319

1,370,923

Same Store NOI

329,829

331,326

1,304,264

1,322,186

Non-Same Store and Other NOI

19,991

13,573

67,055

48,737

Total NOI

349,820

344,899

1,371,319

1,370,923

RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

Dollars in thousands

Three Months Ended

Year Ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net income

57,241

171,074

456,566

541,576

Depreciation and amortization

159,774

150,852

622,295

585,616

Interest expense

48,708

44,192

185,257

168,544

Income tax expense

1,191

1,755

4,595

5,240

EBITDA

266,914

367,873

1,268,713

1,300,976

Gain on sale of depreciable real estate assets

(224)

(55,028)

(72,066)

(55,003)

Gain on consolidation of third-party development (1)

—

(206)

—

(11,239)

Adjustments to reflect MAA's share of EBITDAre of

unconsolidated affiliates

374

345

1,424

1,363

EBITDAre

267,064

312,984

1,198,071

1,236,097

Loss (gain) on embedded derivative in preferred shares

(1)

2,181

4,300

(1,111)

18,751

Gain on investments (1)

(1,687)

(4,143)

(7,457)

(7,809)

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

(903)

338

(4,598)

(9,326)

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

53,000

1,437

61,908

9,437

Adjusted EBITDAre

319,655

314,916

1,246,813

1,247,150

(1)

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

(2)

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

Dollars in thousands

December 31, 2025

December 31, 2024

Unsecured notes payable, net

5,044,979

4,620,690

Secured notes payable, net

360,393

360,267

Total debt

5,405,372

4,980,957

Cash and cash equivalents

(60,258)

(43,018)

Net Debt

5,345,114

4,937,939

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands

December 31, 2025

December 31, 2024

Total assets

11,975,383

11,812,369

Accumulated depreciation

5,914,017

5,327,584

Accumulated depreciation for Assets held for sale (1)

32,513

30,218

Gross Assets

17,921,913

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

December 31, 2025

December 31, 2024

Real estate assets, net

11,609,324

11,515,418

Accumulated depreciation

5,914,017

5,327,584

Assets held for sale, net

46,401

7,764

Accumulated depreciation for Assets held for sale (1)

32,513

30,218

Cash and cash equivalents

60,258

43,018

Gross Real Estate Assets

17,662,513

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