Core Insights - Mid-America Apartment Communities, Inc. (NYSE:MAA) is recognized as one of the 14 best real estate stocks to buy according to hedge funds [1] - Citi has reduced its price target for MAA from $155 to $148 while maintaining a Neutral rating, reflecting concerns in the multifamily sector [2] - Cantor Fitzgerald slightly raised its price target for MAA from $137 to $141, also maintaining a Neutral rating, emphasizing the importance of new lease rate growth as the leasing season approaches [2] Financial Performance - During the Q4 2025 earnings call, CEO Brad Hill reported that core FFO met expectations despite high supply levels, with occupancy increasing by 10 basis points and same-store blended lease performance improving by 40 basis points year-over-year [3] - The company anticipates blended lease rates to improve by 110 to 160 basis points and effective rent growth to increase by approximately 85 basis points compared to 2025 [3] Investment and Development - The company is focusing on technology and property enhancements, including digital initiatives and community-wide WiFi, with capital spending on redevelopment expected to rise by over 10% in 2026 [4] - MAA has an active development pipeline valued at $932 million, including a recently acquired project in Scottsdale, Arizona, and plans for a 287-unit apartment community in Arlington, Virginia, with expected stabilized NOI yields of 6% to 6.5% [5] Company Overview - Mid-America Apartment Communities, Inc. is a multifamily REIT that owns, operates, acquires, and selectively develops apartment communities, primarily in the Southeast, Southwest, and Mid-Atlantic regions of the United States [6]

Valued at a market cap of $15.8 billion, Mid-America Apartment Communities, Inc. (MAA) is a real estate investment trust (REIT) that owns, acquires, develops, manages and redevelops multifamily apartment communities. Headquartered in Germantown, Tennessee, the company focuses on high-growth metropolitan areas in the Southeast, Southwest, and Mid-Atlantic, targeting middle- to upper-income renters. This residential REIT has considerably underperformed the broader market over the past 52 weeks. Shares of M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ Commission File Number 001-12762 (Mid-America Apartment Communities, Inc.) Commission File Number 333-190028-01 (Mid-America Apartments, ...

Financial Data and Key Metrics Changes - The company reported Core FFO for Q4 2025 at $2.23 per diluted share, aligning with the midpoint of guidance, contributing to a full-year Core FFO of $8.74 per share [18] - Same-store NOI for Q4 was in line with guidance, with same-store revenues slightly unfavorable by one cent, offset by favorable expenses [18] - The net debt-to-EBITDA ratio was 4.3 times, with 87% of outstanding debt fixed at an average maturity of 6.4 years and an effective rate of 3.8% [20] Business Line Data and Key Metrics Changes - Average physical occupancy improved to 95.7%, a 10 basis point increase from Q4 2024 and Q3 2025 [12] - Renewal lease rates improved by 50 basis points, while new lease rates remained flat [12] - The company completed 1,227 interior unit upgrades in Q4, totaling 5,995 units for the year, achieving rent increases of $95 above non-upgraded units [15] Market Data and Key Metrics Changes - The company noted strong pricing power in mid-tier markets, particularly in Virginia and South Carolina, with Charleston, Greenville, Richmond, and the DC area showing strong occupancy [13] - Austin was identified as the weakest market in terms of pricing, still working through a significant inventory delivered over the past four years [14] - The company expects to see a job growth of approximately 340,000-350,000 jobs in its markets for 2026, supporting demand [79] Company Strategy and Development Direction - The company plans to expand its capital investments in technology initiatives by over 10% in 2026 to enhance resident experience and operational efficiency [7] - The development pipeline is currently valued at $932 million, with plans to start construction on 5-7 new projects in 2026 [9] - The company aims to leverage its strong balance sheet to invest in growth opportunities, particularly in a market with limited access to capital for others [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with stronger fundamentals, expecting a 110-160 basis point improvement in blended lease rates and an 85 basis point improvement in effective rent growth compared to 2025 [5] - The company anticipates that demand will remain solid, supported by stable job growth, immigration, and healthy wage gains [6] - Management acknowledged that while uncertainty remains in the broader economy, it appears lower than in 2025, with expectations for sustained GDP growth [5] Other Important Information - The company repurchased 207,000 shares at a weighted average price of $131.61, marking its first repurchase since 2001 [20] - Initial earnings guidance for 2026 projects Core FFO between $8.35 and $8.71 per share, with a midpoint of $8.53 [21] - The company expects same-store operating expenses to grow at a midpoint of 2.65% for the year [22] Q&A Session Summary Question: Can you run through the new renewal and blended outlook numbers again? - Management provided guidance of about 1%-1.5% for blended rates in 2026, with renewals expected to be in the 5.25% range [30] Question: Can you comment on the transaction market and your decision to focus on development? - Management noted that the transaction market remains aggressive for core assets, with a 50-75 basis point spread between core and value-add assets [34] Question: What gives you confidence in new lease growth despite macro challenges? - Management highlighted improving fundamentals and a significant decline in new deliveries, which should support stronger demand and pricing [51] Question: How do you expect turnover to impact your leasing strategy? - Management expects consistent turnover, with no significant increases anticipated, supporting renewal performance [58] Question: What is your outlook on job growth and its impact on demand? - Management projected job growth in their markets to be slightly up compared to last year, supporting positive demand metrics [79]

Financial Data and Key Metrics Changes - The company reported Core FFO for Q4 2025 at $2.23 per diluted share, aligning with the midpoint of guidance, contributing to a full-year Core FFO of $8.74 per share [18] - Same-store NOI for Q4 was in line with guidance, with revenues slightly unfavorable by one cent but offset by favorable expenses [18] - The net debt-to-EBITDA ratio was reported at 4.3x, with 87% of outstanding debt fixed at an average maturity of 6.4 years and an effective rate of 3.8% [20] Business Line Data and Key Metrics Changes - Average physical occupancy improved to 95.7%, a 10 basis point increase from both Q4 2024 and Q3 2025 [12] - Renewal lease rates improved by 50 basis points, while new lease rates remained flat [12] - The company completed 1,227 interior unit upgrades in Q4, totaling 5,995 for the year, achieving rent increases of $95 above non-upgraded units [15] Market Data and Key Metrics Changes - The company noted strong performance in mid-tier markets, particularly in Virginia and South Carolina, with Charleston, Greenville, Richmond, and the DC area showing strong pricing power [13] - Austin was identified as the weakest market due to a high inventory delivered over the past four years [14] - The company expects to see a decline in new deliveries by over 60% in 2026 from peak levels, supporting demand across markets [6] Company Strategy and Development Direction - The company is focusing on strategic investments in technology initiatives to enhance resident experience and operational efficiency, with a capital investment increase of over 10% in 2026 [7] - The development pipeline was reported at $932 million, with plans to start construction on five to seven new projects in 2026 [9] - The company aims to leverage its strong balance sheet to pursue growth opportunities, particularly in a market with limited access to capital for others [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with stronger fundamentals and anticipated improvements in blended lease rates and effective rent growth [5] - The company highlighted easing headwinds from the previous year, supported by expectations for sustained GDP growth and improving consumer sentiment [6] - Management noted that the demand for rentals remains solid, supported by job growth, immigration, and wage gains [6] Other Important Information - The company repurchased 207,000 shares at a weighted average price of $131.61, marking its first repurchase since 2001 [20] - Initial earnings guidance for 2026 projects Core FFO between $8.35 and $8.71 per share, with expectations for rental pricing growth [21] - The company plans to refinance $300 million in bonds maturing in September 2026, which will result in incremental interest expense [24] Q&A Session Summary Question: Can you run through the new renewal and blended outlook numbers again? - Management provided guidance of about 1%-1.5% for blended rates in 2026, with renewals expected to be in the 5.25% range, anticipating strength into summer and less moderation in late summer and fall [28][30] Question: Can you comment on the transaction market and your decision to focus on development? - Management noted aggressive cap rates for core assets and a 50-75 basis point spread between core and value-add properties, emphasizing a focus on development to drive long-term earnings growth [33][36] Question: What gives you confidence in new lease growth despite macro challenges? - Management highlighted improving operating fundamentals, declining new deliveries, and strong demand metrics such as job growth and migration trends as key factors supporting confidence in new lease growth [51][78] Question: How do you expect turnover to impact your leasing strategy? - Management expects consistent turnover rates, with no significant increases anticipated, which supports renewal performance and pricing strategies [58] Question: What is the outlook for concessions in various markets? - Management indicated that concessions have been consistent, with some markets seeing increases while others stabilize, particularly in urban areas like Dallas and Atlanta [82]

Financial Data and Key Metrics Changes - The fourth quarter Core FFO was reported at $2.23 per diluted share, aligning with the midpoint of guidance, contributing to a full-year Core FFO of $8.74 per share [18] - Same-store NOI for the fourth quarter was in line with guidance, with revenues slightly unfavorable by one cent but offset by favorable expenses [18] - The net debt-to-EBITDA ratio stood at 4.3 times, with 87% of outstanding debt fixed at an average maturity of 6.4 years and an effective rate of 3.8% [19] Business Line Data and Key Metrics Changes - Average physical occupancy improved to 95.7%, a 10 basis point increase from both Q4 2024 and Q3 2025 [11] - Renewal rates improved by 50 basis points, while new lease rates remained flat, leading to a blended rate improvement of 40 basis points year-over-year [11] - Strong collections were maintained, with net delinquency at just 0.3% of billings [12] Market Data and Key Metrics Changes - The company noted strong performance in mid-tier markets, particularly in Virginia and South Carolina, with Charleston, Greenville, Richmond, and the DC area showing strong pricing power [12] - Austin was identified as the weakest market due to a high inventory delivered over the past four years [13] - The company anticipates demand to remain solid across its markets, supported by stable job growth and healthy wage gains [5] Company Strategy and Development Direction - The company is focusing on strategic investments in technology initiatives to enhance resident experience and operational efficiency, with a capital investment increase of over 10% in 2026 [7] - The development pipeline was expanded to $932 million, with plans to start construction on 5-7 new projects in 2026 [9] - The company aims to leverage its strong balance sheet to pursue growth opportunities, particularly in a market with limited capital access for others [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with stronger fundamentals and anticipated improvements in blended lease rates and effective rent growth [4] - The economic environment is expected to benefit from tax cuts, easing inflation, and improving consumer sentiment, which supports demand for rental properties [5] - Management acknowledged that while uncertainty remains, it is lower than in 2025, with expectations for sustained GDP growth [4] Other Important Information - The company repurchased 207,000 shares at a weighted average price of $131.61, marking its first repurchase since 2001 [19] - Initial earnings guidance for 2026 projects Core FFO between $8.35 and $8.71 per share, with expectations for rental pricing growth and improved earnings performance [20] Q&A Session Summary Question: Can you run through the new renewal and blended outlook numbers again? - Management provided guidance of about 1%-1.5% for blended rates in 2026, with renewals expected to be in the 5.25% range, anticipating strength into summer and less moderation in late Q3 and Q4 [28] Question: Can you comment on the transaction market and your decision to focus on development? - Management noted aggressive cap rates for core assets and a consistent spread between core and value-add properties, emphasizing the focus on development to drive long-term earnings growth [32][34] Question: What gives you confidence in new lease growth despite macro challenges? - Management highlighted improving fundamentals, declining new supply, and strong demand metrics, projecting a more pronounced impact on new lease rates as the year progresses [51][54] Question: How do you expect turnover to impact your leasing strategy? - Management expects consistent turnover rates, with no significant increases anticipated, which supports renewal performance and overall leasing strategy [57] Question: What is the outlook for concessions in various markets? - Management indicated that concessions have been consistent, with some markets seeing increases while others stabilize, particularly in urban areas [79]

Core Insights - Mid-America Apartment Communities (MAA) reported Q4 2025 core funds from operations (FFO) per share of $2.23, exceeding the Zacks Consensus Estimate of $2.22, with no change from the previous year [2][10] - Rental and other property revenues for Q4 were $555.6 million, slightly below the Zacks Consensus Estimate of $557.8 million, but up 1% year-over-year [3][10] - For the full year 2025, core FFO per share was $8.74, surpassing the consensus estimate of $8.72 but lower than the prior year's $8.88 [3] Financial Performance - The same-store portfolio's revenues decreased by 0.1% year-over-year, while property operating expenses rose by 0.7%, leading to a 0.5% decline in net operating income (NOI) [4] - Average effective rent per unit fell by 0.3%, with average physical occupancy improving to 95.7%, a 10 basis point increase from the prior year [5][10] - The same-store effective blended lease rate growth was negative 1.7%, although this represented an improvement of 40 basis points from the previous year [6] Portfolio Activity - MAA acquired a land parcel in Northern Virginia for a 287-unit multifamily apartment community, with development expected to start in the second half of 2026 [7] - In October 2025, MAA acquired land in Kansas City for a phase II expansion and began construction on a 280-unit community in Phoenix, AZ [8] - As of December 31, 2025, MAA had eight communities under development with total expected costs of $306.4 million [8] Balance Sheet Position - MAA ended Q4 2025 with cash and cash equivalents of $60.3 million, up from $32.2 million at the end of Q3 2025 [11] - The company had a strong balance sheet with $879.2 million in cash and available capacity under its unsecured revolving credit facility, and increased borrowing capacity to $1.5 billion [11][12] - MAA's net debt/adjusted EBITDAre ratio was 4.3 times, with total debt outstanding at $5.41 billion and an average maturity of 6.4 years [12] 2026 Guidance - MAA projects Q1 2026 core FFO per share between $2.05 and $2.17, with a midpoint of $2.11, aligning with the Zacks Consensus Estimate of $2.16 [13] - For 2026, the company anticipates same-store property revenue growth of negative 0.20% to 1.30% and NOI growth between negative 1.70% and 0.30% [14] - Average physical occupancy for the same-store portfolio is expected to range from 95.3% to 95.9%, with a midpoint of 95.60% [14]

Core Insights - Apartment supply in the Sun Belt negatively impacted MAA in Q4 2025, with same-store revenues declining by 0.1% year over year and net operating income decreasing by 0.5% during the period [1] Market Conditions - Approximately two-thirds of MAA's competitors are providing concessions, averaging around five weeks, which increases to eight to ten weeks for lease-ups [2] - Despite broader economic concerns, MAA executives anticipate a recovery in demand for their region, indicating optimism for the upcoming year [3] Financial Performance - Rent-to-income ratios have improved, making rents more affordable, with new apartment deliveries sharply declining by over 60% in 2026 compared to peak levels [4] - MAA expects the creation of 340,000 to 350,000 jobs in its markets this year, while apartment completions are projected to be about half that number, indicating an improving job-to-completion ratio [4] Regional Performance - Richmond, Virginia; Kansas City, Missouri; and Greenville, South Carolina showed strong performance in Q4, with same-store revenue rates increasing by 4.2%, 3%, and 2.9% year over year, respectively [6] - MAA's mid-tier markets, particularly in Virginia and South Carolina, are outperforming the overall portfolio, with strong pricing power and occupancy rates [6] - Atlanta and Dallas, MAA's two largest markets, are also showing steady progress in pricing and occupancy, with significant year-over-year improvements in Q4 [6]

Core Viewpoint - Mid-America Apartment Communities (MAA) has experienced a total return of -9% over the past year, significantly underperforming both the REIT index (VNQ) and the broader equity market [1] Group 1 - MAA's stock performance has been poor, indicating potential challenges within the company or the market environment [1]

Core Viewpoint - Mid-America Apartment Communities (MAA) has experienced a total return of -9% over the past year, significantly underperforming both the REIT index (VNQ) and the broader equity market [1] Group 1 - MAA's stock performance has been poor, indicating potential challenges in its operational or market environment [1]