Mid-America Apartment Communities, Inc. (NYSE:MAA) Q4 2022 Earnings Conference Call February 2, 2023 10:00 AM ET Company Participants Eric Bolton - Chairman and CEO Albert Campbell - Executive VP, CFO Rob DelPriore - Executive VP, CAO and General Counsel Brad Hill - Executive VP, Chief Investment Officer Tim Argo - Executive VP, Chief Strategy and Analysis Officer Andrew Schaeffer - Senior VP, Treasurer and Director of Capital Markets Conference Call Participants Nick Yulico - Scotiabank Alexander Goldfarb ...

Capital Markets Update November 2022 www.maac.com Forward-Looking Statements 2 This presentation 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such ...

Capital Markets Update November 2022 www.maac.com Forward-Looking Statements 2 This presentation 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such ...

Financial Data and Key Metrics Changes - MAA reported core FFO per share of $2.19, exceeding the midpoint of guidance by $0.12, driven by stronger-than-expected rental pricing trends and 14.6% same-store revenue growth [41][49] - Same-store operating expense growth was impacted by inflationary pressures, with real estate taxes being the largest contributor to variance from expectations [42][44] - The company increased its full-year core FFO guidance by $0.20 per share to a range of $8.37 to $8.53, representing a 21% growth over the prior year [49][52] Business Line Data and Key Metrics Changes - Same-store performance showed strong pricing, with blended lease-over-lease pricing up 13.9% and effective rent growth at 16.7% year-over-year [18][19] - Average daily occupancy remained strong at 95.8% for the quarter, with expectations for continued strong performance into the fourth quarter [19][20] - The company completed 2,305 interior unit upgrades and installed 652 smart home packages during the quarter, with plans to complete over 6,000 upgrades and approximately 23,000 smart home packages by year-end [24][25] Market Data and Key Metrics Changes - Leasing traffic volume increased by 16% compared to the same quarter last year, indicating strong demand for apartment housing [8] - 15% of new residents relocated to the Sunbelt from coastal markets, consistent with previous trends [11][120] - Rent-to-income ratios remained stable at around 22%, with over 99% of rent being collected, indicating no signs of affordability stress [12][121] Company Strategy and Development Direction - MAA is focusing on development projects, with a total of $444 million in under-construction projects and plans for new developments in Tampa and Raleigh [32][33] - The company is actively monitoring the transaction market, which has slowed due to rising interest rates and economic uncertainty, but remains open to future acquisition opportunities [14][31] - MAA's strategy includes enhancing property value through amenity upgrades and repositioning programs, which are expected to drive additional revenue [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand for apartment housing continuing to be strong, barring a severe recession [10][71] - The company anticipates a 6% range for earned rent growth in 2023, with expectations for additional market rent growth on top of that [19][70] - Management is preparing for potential economic downturns by maintaining a strong balance sheet and keeping capital available for opportunities [72][80] Other Important Information - The company acknowledged the planned retirement of Tom Grimes, a long-term executive, and emphasized the strength of its leadership team [15][16] - MAA's balance sheet remains strong, with a net debt adjusted EBITDA ratio of 3.97 times and over $1.2 billion in cash and borrowing capacity available [47][48] Q&A Session Summary Question: Trends in transaction market and cap rates - Management noted that cap rates have increased due to rising interest rates, with current cap rates around 4.5% but expected to rise further [56][58][60] Question: Outlook for rent growth in 2023 - Management remains optimistic about rent growth, projecting a 6% earn-in for 2023, with additional growth expected from strong demand dynamics [70][72] Question: Supply pressures in specific markets - Management indicated that while some markets like Austin and Charlotte may see higher supply, overall supply levels are not expected to significantly impact demand [124][125] Question: Impact of potential rent control in Orlando - Management believes that even if rent control measures pass, they would have a minimal impact on revenue, estimating only an 18 basis point effect on same-store revenue [133]

[Explanatory Note](index=4&type=section&id=Explanatory%20Note) This section clarifies the combined Form 10-Q filing for MAA and its UPREIT subsidiary MAALP, detailing their relationship and reporting benefits - The report combines filings for Mid-America Apartment Communities, Inc. (MAA) and Mid-America Apartments, L.P. (MAALP), an UPREIT structure where MAA is the sole general partner[13](index=13&type=chunk)[15](index=15&type=chunk) - As of September 30, 2022, MAA owned **115,447,252 OP Units**, representing **97.3%** of the total OP Units in MAALP[14](index=14&type=chunk) - Combining reports enhances investor understanding, eliminates duplicative disclosure, and creates time and cost efficiencies[16](index=16&type=chunk) [PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [Item 1. Financial Statements.](index=6&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited condensed consolidated financial statements for MAA and MAALP, including balance sheets, income, cash flows, and detailed notes [Mid-America Apartment Communities, Inc. Condensed Consolidated Balance Sheets](index=6&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20Condensed%20Consolidated%20Balance%20Sheets) This table presents the condensed consolidated balance sheets for MAA as of September 30, 2022, and December 31, 2021 | Metric | Sep 30, 2022 ($ thousands) | Dec 31, 2021 ($ thousands) | | :--------------------------------- | :------------------------- | :------------------------- | | Total Assets | 11,338,227 | 11,285,182 | | Real estate assets, net | 11,002,812 | 10,898,903 | | Total Liabilities | 5,166,327 | 5,101,090 | | Total Equity | 6,151,755 | 6,153,907 | [Mid-America Apartment Communities, Inc. Condensed Consolidated Statements of Operations](index=7&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Operations) This table presents MAA's condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Rental and other property revenues | 520,783 | 452,575 | 1,491,901 | 1,314,507 | | Net income available for MAA common shareholders | 121,389 | 83,557 | 441,049 | 345,384 | | Earnings per common share - basic | 1.05 | 0.73 | 3.82 | 3.01 | | Earnings per common share - diluted | 1.05 | 0.73 | 3.82 | 3.01 | [Mid-America Apartment Communities, Inc. Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This table presents MAA's condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2022 and 2021 | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income | 125,703 | 87,047 | 455,840 | 359,786 | | Comprehensive income attributable to MAA | 122,581 | 84,727 | 444,626 | 348,894 | [Mid-America Apartment Communities, Inc. Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table presents MAA's condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 | Cash Flow Activity | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | 807,315 | 678,250 | | Net cash used in investing activities | (414,613) | (269,655) | | Net cash used in financing activities | (469,746) | (402,689) | | Net (decrease) increase in cash, cash equivalents and restricted cash | (77,044) | 5,906 | | Cash, cash equivalents and restricted cash, end of period | 53,554 | 41,521 | [Mid-America Apartments, L.P. Condensed Consolidated Balance Sheets](index=10&type=section&id=Mid-America%20Apartments%2C%20L.P.%20Condensed%20Consolidated%20Balance%20Sheets) This table presents the condensed consolidated balance sheets for MAALP as of September 30, 2022, and December 31, 2021 | Metric | Sep 30, 2022 ($ thousands) | Dec 31, 2021 ($ thousands) | | :--------------------------------- | :------------------------- | :------------------------- | | Total Assets | 11,338,227 | 11,285,182 | | Real estate assets, net | 11,002,812 | 10,898,903 | | Total Liabilities | 5,166,346 | 5,101,109 | | Total Equity | 6,151,736 | 6,153,888 | [Mid-America Apartments, L.P. Condensed Consolidated Statements of Operations](index=11&type=section&id=Mid-America%20Apartments%2C%20L.P.%20Condensed%20Consolidated%20Statements%20of%20Operations) This table presents MAALP's condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Rental and other property revenues | 520,783 | 452,575 | 1,491,901 | 1,314,507 | | Net income available for MAALP unitholders | 124,781 | 86,125 | 453,367 | 357,020 | | Earnings per common unit - basic | 1.05 | 0.73 | 3.82 | 3.01 | | Earnings per common unit - diluted | 1.05 | 0.73 | 3.82 | 3.01 | [Mid-America Apartments, L.P. Condensed Consolidated Statements of Comprehensive Income](index=12&type=section&id=Mid-America%20Apartments%2C%20L.P.%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This table presents MAALP's condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2022 and 2021 | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income | 125,703 | 87,047 | 455,840 | 359,786 | | Comprehensive income attributable to MAALP | 125,982 | 87,325 | 456,968 | 360,621 | [Mid-America Apartments, L.P. Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Mid-America%20Apartments%2C%20L.P.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table presents MAALP's condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 | Cash Flow Activity | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | 807,315 | 678,250 | | Net cash used in investing activities | (414,613) | (269,655) | | Net cash used in financing activities | (469,746) | (402,689) | | Net (decrease) increase in cash, cash equivalents and restricted cash | (77,044) | 5,906 | | Cash, cash equivalents and restricted cash, end of period | 53,554 | 41,521 | [Notes to Condensed Consolidated Financial Statements.](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements.) This section provides detailed notes to the condensed consolidated financial statements, explaining accounting policies and financial details [1. Organization and Summary of Significant Accounting Policies](index=14&type=section&id=1.%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note details the Company's UPREIT structure, business operations, and significant accounting policies, including consolidation and revenue recognition - MAA owns **97.3%** of the total OP Units in MAALP as of September 30, 2022, and controls its day-to-day operations as the sole general partner[40](index=40&type=chunk) - The Company owned and operated **292 apartment communities** and had **five development communities** under construction as of September 30, 2022, with total expected costs of **$444.0 million** for these projects[43](index=43&type=chunk)[44](index=44&type=chunk) - Investments in technology-focused limited partnerships decreased from **$79.4 million** at December 31, 2021, to **$41.8 million** at September 30, 2022, primarily due to unrealized losses[50](index=50&type=chunk) - Rental revenues constitute approximately **94%** of the Company's total revenues, recognized on a straight-line basis over the lease term[53](index=53&type=chunk) [2. Earnings per Common Share of MAA](index=17&type=section&id=2.%20Earnings%20per%20Common%20Share%20of%20MAA) This note details the calculation of MAA's basic and diluted earnings per common share, including adjustments for noncontrolling interests | Metric | 3 months ended Sep 30, 2022 | 3 months ended Sep 30, 2021 | 9 months ended Sep 30, 2022 | 9 months ended Sep 30, 2021 | | :--------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income available for MAA common shareholders, adjusted | $121,307 | $83,477 | $440,741 | $345,025 | | Weighted average common shares - basic | 115,363 | 114,933 | 115,325 | 114,568 | | Earnings per common share - basic | $1.05 | $0.73 | $3.82 | $3.01 | | Weighted average common shares - diluted | 115,568 | 115,229 | 115,592 | 114,873 | | Earnings per common share - diluted | $1.05 | $0.73 | $3.82 | $3.01 | [3. Earnings per OP Unit of MAALP](index=18&type=section&id=3.%20Earnings%20per%20OP%20Unit%20of%20MAALP) This note explains the computation of MAALP's basic and diluted earnings per common unit, mirroring MAA's methodology | Metric | 3 months ended Sep 30, 2022 | 3 months ended Sep 30, 2021 | 9 months ended Sep 30, 2022 | 9 months ended Sep 30, 2021 | | :--------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income available for MAALP common unitholders, adjusted | $124,699 | $86,045 | $453,059 | $356,661 | | Weighted average common units - basic | 118,564 | 118,430 | 118,528 | 118,389 | | Earnings per common unit - basic | $1.05 | $0.73 | $3.82 | $3.01 | | Weighted average common units - diluted | 118,769 | 118,726 | 118,795 | 118,694 | | Earnings per common unit - diluted | $1.05 | $0.73 | $3.82 | $3.01 | [4. MAA Equity](index=19&type=section&id=4.%20MAA%20Equity) This note reconciles changes in MAA's total shareholders' equity for the three and nine months ended September 30, 2022 and 2021 | Metric | Equity Balance June 30, 2022 ($ thousands) | Equity Balance Sep 30, 2022 ($ thousands) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Equity | 6,168,116 | 6,151,755 | | Net income | 125,703 | | | Dividends on common stock | (144,309) | | | Metric | Equity Balance Dec 31, 2021 ($ thousands) | Equity Balance Sep 30, 2022 ($ thousands) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Equity | 6,153,907 | 6,151,755 | | Net income (loss) | 455,840 | | | Dividends on common stock | (414,138) | | | Acquisition of noncontrolling interest | (43,070) | | [5. MAALP Capital](index=21&type=section&id=5.%20MAALP%20Capital) This note presents changes in MAALP's total capital for the three and nine months ended September 30, 2022 and 2021 | Metric | Capital Balance June 30, 2022 ($ thousands) | Capital Balance Sep 30, 2022 ($ thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total Partnership Capital | 6,168,097 | 6,151,736 | | Net income | 125,703 | | | Distributions to common unitholders | (148,305) | | | Metric | Capital Balance Dec 31, 2021 ($ thousands) | Capital Balance Sep 30, 2022 ($ thousands) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Partnership Capital | 6,153,888 | 6,151,736 | | Net income (loss) | 455,840 | | | Distributions to common unitholders | (425,615) | | | Acquisition of noncontrolling interest | (43,070) | | [6. Borrowings](index=22&type=section&id=6.%20Borrowings) This note summarizes the Company's outstanding debt, including unsecured and secured borrowings, and recent credit facility amendments | Debt Type | Balance ($ thousands) | Weighted Average Effective Rate | Weighted Average Contract Maturity | | :--------------------------------------- | :-------------------------- | :------------------------------ | :------------------------------- | | Unsecured debt | 4,154,820 | 3.3% | 5/14/2029 | | Secured debt | 364,331 | 4.4% | 10/19/2048 | | Total outstanding debt | 4,519,151 | 3.4% | | - MAALP amended its unsecured revolving credit facility in July 2022, increasing borrowing capacity to **$1.25 billion** (with an option to expand to **$2.0 billion**), maturing in October 2026, with no outstanding balance as of September 30, 2022[72](index=72&type=chunk) - The unsecured commercial paper program's maximum aggregate principal amount was increased to **$625.0 million** in September 2022, with **$125.0 million** outstanding as of September 30, 2022[73](index=73&type=chunk) - MAALP retired the remaining **$125.0 million** portion of its publicly issued unsecured senior notes due in December 2022 during September 2022[74](index=74&type=chunk) [7. Financial Instruments and Derivatives](index=23&type=section&id=7.%20Financial%20Instruments%20and%20Derivatives) This note discusses the Company's financial instruments, fair value measurements, and the impact of terminated cash flow hedges - The fair value of fixed rate notes payable was **$3.9 billion** as of September 30, 2022, compared to **$4.8 billion** as of December 31, 2021[77](index=77&type=chunk) - The fair value of the embedded derivative in the MAA Series I preferred stock was **$24.1 million** as of September 30, 2022, down from **$34.5 million** at December 31, 2021[79](index=79&type=chunk) - The Company recognized a **$10.4 million non-cash loss** related to the fair value adjustment of the embedded derivative for the nine months ended September 30, 2022, compared to an **$11.5 million gain** in the prior year[83](index=83&type=chunk) - As of September 30, 2022, **$10.5 million** in realized losses from terminated interest rate swaps are recorded in Accumulated Other Comprehensive Loss (AOCL) and will be reclassified to interest expense over time[82](index=82&type=chunk) [8. Shareholders' Equity of MAA](index=24&type=section&id=8.%20Shareholders%27%20Equity%20of%20MAA) This note details MAA's common and preferred stock, equity forward sale agreements, and the at-the-market share offering program - As of September 30, 2022, MAA had **115,447,252 common shares** and **867,846 shares of 8.50% Series I Cumulative Redeemable Preferred Stock** outstanding[84](index=84&type=chunk)[85](index=85&type=chunk) - MAA entered into two 18-month forward sale agreements in August 2021 for a total of **1.1 million common shares** at an initial forward sale price of **$190.56 per share**; no shares had been settled as of September 30, 2022[86](index=86&type=chunk) - A new ATM share offering program was established in November 2021, authorizing the issuance of up to **4.0 million shares**; no shares were sold under this program during the three and nine months ended September 30, 2022[88](index=88&type=chunk) [9. Partners' Capital of MAALP](index=25&type=section&id=9.%20Partners%27%20Capital%20of%20MAALP) This note details MAALP's partners' capital, including OP Units, general partner authority, and redemption rights - As of September 30, 2022, there were **118,643,681 total OP Units** outstanding, with MAA owning **97.3% (115,447,252 Class B OP Units)** and limited partners holding **3,196,429 Class A OP Units**[89](index=89&type=chunk) - Class A OP Units are redeemable for MAA common stock, with an approximate value of **$495.7 million** as of September 30, 2022, based on MAA's closing stock price[93](index=93&type=chunk) - MAALP has **867,846 outstanding MAALP Series I preferred units**, which have the same characteristics as MAA Series I preferred stock[94](index=94&type=chunk) [10. Commitments and Contingencies](index=26&type=section&id=10.%20Commitments%20and%20Contingencies) This note outlines the Company's operating lease commitments, legal proceedings, and loss contingencies - The Company's operating leases have a weighted average remaining lease term of approximately **33 years** and a weighted average discount rate of approximately **4.4%** as of September 30, 2022[95](index=95&type=chunk) Operating Leases (Undiscounted Cash Flows) | Year | Operating Leases (Undiscounted Cash Flows, $ thousands) | | :--------- | :------------------------------------------------------ | | 2022 | 730 | | 2023 | 2,885 | | 2024 | 2,862 | | 2025 | 2,872 | | 2026 | 2,920 | | Thereafter | 59,993 | | Total minimum lease payments | 72,262 | | Right-of-use lease liabilities | 29,152 | - The accrual for loss contingencies related to unresolved legal matters decreased from **$5.2 million** at December 31, 2021, to **$2.0 million** at September 30, 2022[98](index=98&type=chunk) [11. Segment Information](index=26&type=section&id=11.%20Segment%20Information) This note details the Company's Same Store and Non-Same Store segments, providing revenue, NOI, and asset breakdowns - The Company operates **292 multifamily apartment communities** across 15 states, categorized into Same Store and Non-Same Store and Other segments[99](index=99&type=chunk) Segment Revenues and Net Operating Income | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total rental and other property revenues | 520,783 | 452,575 | 1,491,901 | 1,314,507 | | Same Store revenues | 495,377 | 432,206 | 1,422,014 | 1,252,755 | | Total NOI | 329,360 | 279,737 | 949,381 | 810,440 | | Same Store NOI | 315,616 | 268,882 | 910,496 | 777,147 | Segment Assets | Segment Assets | Sep 30, 2022 ($ thousands) | Dec 31, 2021 ($ thousands) | | :----------------------- | :------------------------- | :------------------------- | | Same Store | 9,767,996 | 9,907,740 | | Non-Same Store and Other | 1,390,173 | 1,106,039 | | Corporate assets | 180,058 | 271,403 | | Total assets | 11,338,227 | 11,285,182 | [12. Real Estate Acquisitions and Dispositions](index=28&type=section&id=12.%20Real%20Estate%20Acquisitions%20and%20Dispositions) This note details the Company's real estate acquisition and disposition activities during the nine months ended September 30, 2022 - Acquired two multifamily apartment communities in Tampa, FL and Charlotte, NC for approximately **$213 million** during the nine months ended September 30, 2022[104](index=104&type=chunk) - Disposed of two multifamily apartment communities in Fort Worth, TX for combined gross proceeds of approximately **$167 million**, recognizing a **$132 million gain** on sale of depreciable real estate assets[104](index=104&type=chunk) - Subsequent to September 30, 2022, the Company closed on the disposition of a 396-unit multifamily community in Maryland for approximately **$104 million**, expecting a **$37 million gain** in Q4 2022[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's discussion and analysis of the Company's financial condition and results of operations, including performance, trends, and liquidity [Overview of the Three Months Ended September 30, 2022](index=30&type=section&id=Overview%20of%20the%20Three%20Months%20Ended%20September%2030%2C%202022) This overview highlights MAA's strong Q3 2022 financial performance, driven by increased net income and total revenues from the Same Store segment - Net income available for MAA common shareholders increased by **45.3%** to **$121.4 million** for the three months ended September 30, 2022, compared to **$83.6 million** in the prior year[111](index=111&type=chunk) - Total revenues grew by **15.1%** for the three months ended September 30, 2022, primarily due to a **14.6% increase** in the Same Store segment[111](index=111&type=chunk) - Property operating expenses (excluding depreciation and amortization) increased by **10.8%**, driven by a **10.1% rise** in the Same Store segment[111](index=111&type=chunk) [Trends](index=30&type=section&id=Trends) This section discusses key operational and market trends, including rent growth, occupancy, portfolio strategy, and external economic pressures - Average effective rent per unit in the Same Store segment increased by **16.7%** for the three months ended September 30, 2022, compared to the prior year[112](index=112&type=chunk) - Average physical occupancy for the Same Store segment was **95.8%** for the three months ended September 30, 2022, a slight decrease from **96.4%** in the prior year[113](index=113&type=chunk) - The Company maintains a diversified portfolio across **39 defined markets** in the Southeast, Southwest, and Mid-Atlantic regions to mitigate economic exposure[114](index=114&type=chunk) - Inflationary and supply chain pressures have led to higher operating expenses, particularly in personnel, repairs and maintenance, and real estate taxes, a trend expected to continue[115](index=115&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of the Company's financial performance for the three and nine months ended September 30, 2022 and 2021 [Comparison of the three months ended September 30, 2022 to the three months ended September 30, 2021](index=31&type=section&id=Comparison%20of%20the%20three%20months%20ended%20September%2030%2C%202022%20to%20the%20three%20months%20ended%20September%2030%2C%202021) This section compares MAA's financial performance for Q3 2022 versus Q3 2021, highlighting revenue growth and increased operating expenses | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | Increase ($ thousands) | % Increase | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------- | :--------- | | Total property revenues | 520,783 | 452,575 | 68,208 | 15.1% | | Same Store revenues | 495,377 | 432,206 | 63,171 | 14.6% | | Total property operating expenses | 191,423 | 172,838 | 18,585 | 10.8% | | Same Store operating expenses | 179,761 | 163,324 | 16,437 | 10.1% | - Depreciation and amortization expense increased by **$2.3 million** to **$136.9 million**, primarily due to development and capital spend activities[120](index=120&type=chunk) - Other non-operating expense (income) shifted from **$10.3 million income** in 2021 to **$1.7 million expense** in 2022, a **$12.1 million decrease**, driven by non-cash losses on embedded derivatives and investments[123](index=123&type=chunk) [Comparison of the nine months ended September 30, 2022 to the nine months ended September 30, 2021](index=32&type=section&id=Comparison%20of%20the%20nine%20months%20ended%20September%2030%2C%202022%20to%20the%20nine%20months%20ended%20September%2030%2C%202021) This section compares MAA's financial performance for the nine months ended September 30, 2022, versus 2021, showing revenue and expense changes | Metric | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | Increase ($ thousands) | % Increase | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------- | :--------- | | Total property revenues | 1,491,901 | 1,314,507 | 177,394 | 13.5% | | Same Store revenues | 1,422,014 | 1,252,755 | 169,259 | 13.5% | | Total property operating expenses | 542,520 | 504,067 | 38,453 | 7.6% | | Same Store operating expenses | 511,518 | 475,608 | 35,910 | 7.6% | - Depreciation and amortization expense increased by **$6.8 million** to **$404.8 million**, driven by development and capital spend activities[128](index=128&type=chunk) - Other non-operating expense (income) decreased by **$33.8 million**, shifting from **$14.6 million income** in 2021 to **$19.2 million expense** in 2022, primarily due to non-cash losses on embedded derivatives and investments[132](index=132&type=chunk) [Funds from Operations and Core Funds from Operations](index=33&type=section&id=Funds%20from%20Operations%20and%20Core%20Funds%20from%20Operations) This section defines FFO and Core FFO, non-GAAP measures, and reconciles them from net income, highlighting significant increases - FFO attributable to the Company increased by **18.5%** to **$259.96 million** for the three months ended September 30, 2022, and by **17.1%** to **$720.94 million** for the nine months ended September 30, 2022[136](index=136&type=chunk)[137](index=137&type=chunk) - Core FFO increased by **22.8%** to **$259.51 million** for the three months ended September 30, 2022, and by **21.2%** to **$733.54 million** for the nine months ended September 30, 2022[136](index=136&type=chunk)[137](index=137&type=chunk) FFO and Core FFO Reconciliation | Metric | 3 months ended Sep 30, 2022 ($ thousands) | 3 months ended Sep 30, 2021 ($ thousands) | 9 months ended Sep 30, 2022 ($ thousands) | 9 months ended Sep 30, 2021 ($ thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income available for MAA common shareholders | 121,389 | 83,557 | 441,049 | 345,384 | | FFO attributable to the Company | 259,961 | 219,395 | 720,943 | 615,554 | | Core FFO | 259,505 | 211,265 | 733,537 | 605,453 | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the Company's liquidity and capital resources, emphasizing strong operating cash flows and access to funding for obligations and growth - The Company expects to fund its operations, capital spending, debt repayment, acquisitions, and dividends through operating cash flows, existing cash, commercial paper, revolving credit facility, and future debt/equity issuances[139](index=139&type=chunk) - As of September 30, 2022, the Company had **$1.2 billion** in combined unrestricted cash and available capacity under its revolving credit facility[141](index=141&type=chunk) - Net cash provided by operating activities increased by **19.0%** to **$807.3 million** for the nine months ended September 30, 2022, compared to **$678.3 million** in the prior year[142](index=142&type=chunk) Debt Profile | Debt Type | Principal Balance ($ thousands) | Average Years to Maturity | Effective Rate | | :--------------------------------------- | :-------------------------- | :------------------------ | :------------- | | Unsecured debt | 4,154,820 | 6.4 | 3.4% | | Secured debt | 364,331 | 26.1 | 4.4% | | Total debt | 4,519,151 | 8.0 | 3.4% | [Material Cash Requirements](index=38&type=section&id=Material%20Cash%20Requirements) This section outlines the Company's significant cash obligations, including debt maturities, interest, capital contributions, and expenditures - As of September 30, 2022, the Company had **$125.4 million** in debt obligations maturing by December 31, 2022, and **$46.3 million** in additional interest payments due[156](index=156&type=chunk) - The Company is committed to making up to **$32.9 million** in additional capital contributions to technology-focused limited partnerships[156](index=156&type=chunk) - Five development communities are under construction with total expected costs of **$444.0 million**, of which **$266.1 million** had been incurred through September 30, 2022[158](index=158&type=chunk) - The current annual dividend rate on MAA's common stock is **$5.00 per share**[160](index=160&type=chunk) [Inflation](index=38&type=section&id=Inflation) This section explains how short-term apartment leases allow for rental rate adjustments, mitigating inflation's impact on revenues - The short-term nature of apartment leases (one year or less) allows for rental rate adjustments at renewal, reducing the risk of inflation on revenues[162](index=162&type=chunk) [Legal Matter](index=39&type=section&id=Legal%20Matter) This section discloses a class-action lawsuit alleging price inflation, which the Company believes lacks merit and will vigorously defend - A class-action lawsuit was filed in October 2022 alleging a conspiracy to artificially inflate multifamily residential real estate prices[163](index=163&type=chunk) - The Company believes the lawsuit is without merit and will vigorously defend the action[163](index=163&type=chunk) [Critical Accounting Estimates](index=39&type=section&id=Critical%20Accounting%20Estimates) This section refers to the Annual Report for critical accounting estimates, noting no material changes during the quarter - No material changes to critical accounting estimates occurred during the three months ended September 30, 2022[164](index=164&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section discusses the Company's primary market risk from interest rate changes and its strategy to manage it with fixed-rate debt - The Company's primary market risk exposure is to changes in interest rates on its borrowings[165](index=165&type=chunk) - As of September 30, 2022, **19.7%** of total market capitalization consisted of debt borrowings, and **97.2%** of outstanding debt was subject to fixed rates[165](index=165&type=chunk) - The Company manages interest rate risk by using fixed-rate debt, interest rate swaps, and diversifying debt maturities[165](index=165&type=chunk) [Item 4. Controls and Procedures.](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures.) This section confirms the effectiveness of disclosure controls and procedures for MAA and MAALP, with no material changes to internal controls [Mid-America Apartment Communities, Inc.](index=39&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.) This section confirms the effectiveness of MAA's disclosure controls and procedures, with no material changes to internal controls - MAA's disclosure controls and procedures were effective as of September 30, 2022[166](index=166&type=chunk) - No material changes to MAA's internal control over financial reporting occurred during the quarter ended September 30, 2022[167](index=167&type=chunk) [Mid-America Apartments, L.P.](index=40&type=section&id=Mid-America%20Apartments%2C%20L.P.) This section confirms the effectiveness of MAALP's disclosure controls and procedures, with no material changes to internal controls - MAALP's disclosure controls and procedures were effective as of September 30, 2022[168](index=168&type=chunk) - No material changes to MAALP's internal control over financial reporting occurred during the quarter ended September 30, 2022[169](index=169&type=chunk) [PART II – OTHER INFORMATION](index=40&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, and other required information [Item 1. Legal Proceedings.](index=40&type=section&id=Item%201.%20Legal%20Proceedings.) This section states the Company is involved in ordinary course legal proceedings, not expected to materially impact financial condition - The Company is subject to various legal proceedings and claims arising in the ordinary course of business[171](index=171&type=chunk) - Management does not believe these matters will have a material adverse effect on the Company's financial condition, results of operations, or cash flows[171](index=171&type=chunk) [Item 1A. Risk Factors.](index=40&type=section&id=Item%201A.%20Risk%20Factors.) This section indicates no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[172](index=172&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details MAA's common stock repurchases, primarily for tax obligations, and the remaining share repurchase program authorization Common Stock Repurchases | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--------------------------------- | :----------------------------- | :--------------------------- | | August 1, 2022 - August 31, 2022 | 13 | $179.54 | | September 1, 2022 - September 30, 2022 | 54 | $165.95 | | Total | 67 | | - Shares were repurchased primarily to satisfy employees' statutory minimum federal and state tax obligations associated with the vesting of restricted shares[173](index=173&type=chunk) - As of September 30, 2022, **4,000,000 shares** remained available for purchase under the publicly announced share repurchase program[173](index=173&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This item is marked as 'Not applicable,' indicating no defaults upon senior securities during the reporting period [Item 4. Mine Safety Disclosures.](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is marked as 'Not applicable,' indicating no mine safety disclosures are required for the Company [Item 5. Other Information.](index=41&type=section&id=Item%205.%20Other%20Information.) This item is marked as 'Not applicable,' indicating no other information requiring disclosure under this item [Item 6. Exhibits.](index=41&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed as part of the Form 10-Q report, including organizational documents and certifications - Exhibits include Composite Charter and Bylaws for MAA, Agreement of Limited Partnership for MAALP, Fourth Amended and Restated Credit Agreement, and various certifications (e.g., Sarbanes-Oxley Act)[178](index=178&type=chunk) [SIGNATURES](index=42&type=section&id=SIGNATURES) This section contains the official signatures for MAA and MAALP, certifying the filing of the Quarterly Report on Form 10-Q - The Quarterly Report on Form 10-Q is signed by A. Clay Holder, Senior Vice President and Chief Accounting Officer, for both Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.[182](index=182&type=chunk)[185](index=185&type=chunk)

Mid-America Apartment Communities, Inc. (NYSE:MAA) Q2 2022 Results Conference Call July 28, 2022 10:00 AM ET Company Participants Eric Bolton - Chairman and CEO Al Campbell - Executive VP, CFO Rob DelPriore - Executive VP, CAO and General Counsel Tom Grimes - Executive VP, COO Brad Hill - Executive VP, Chief Investment Officer Tim Argo - Executive VP, Chief Strategy and Analysis Officer Joe Fracchia - Executive VP, Chief Technology and Innovation Officer Andrew Schaeffer - Senior VP, Treasurer and Director ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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, L.P.) MID-AMER ...

Nareit REITweek 2022 Investor Conference June 7-9, 2022 www.maac.com Forward-Looking Statements 2 This presentation 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related ...

8 STILLESS'S FAI BMO | 2022 Real Estate Summit May 12, 2022 Forward-Looking Statements 2 This presentation 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the fu ...

Financial Data and Key Metrics Changes - The reported core FFO per share for Q1 2022 was $1.97, exceeding the midpoint of guidance by $0.06, primarily driven by revenue growth from rental pricing, occupancy, and collections [30] - Same-store rents increased by an average of 12.4% year-over-year, with new leases in Q1 2022 being 16.8% higher than expiring leases [10][25] - The company updated its full-year core FFO guidance to a range of $7.92 to $8.24 per share, reflecting a 13% growth over the prior year [36] Business Line Data and Key Metrics Changes - The company experienced strong pricing performance across its portfolio, with blended lease-over-lease pricing up 16.8% in Q1 2022 [25] - Average daily occupancy for Q1 was 95.9%, indicating robust demand [25] - The development pipeline was valued at $444 million under construction, with an expected stabilized NOI yield of 5.9% [16] Market Data and Key Metrics Changes - Approximately 14% of new leases in Q1 came from residents relocating to Sunbelt markets, an increase of 190 basis points from the previous year [10] - The company noted that resident turnover remained low, with move-outs declining by nearly 6% compared to Q1 of the previous year [10] - The average effective rent growth is projected to continue strengthening, with expectations for the year set at 12% at the midpoint [36] Company Strategy and Development Direction - The company plans to break ground on three new projects in Raleigh, Tampa, and Denver later in the year, alongside ongoing developments [13][18] - The strategy focuses on leveraging technology and redevelopment initiatives to enhance margins and earnings growth [13] - The company aims to maintain a strong balance sheet to support growth plans, with a debt to EBITDA ratio at a record low of 4.27x [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing strong rent growth due to favorable leasing conditions and high demand in Sunbelt markets [9] - The company anticipates continued inflationary pressures on operating expenses, particularly in personnel and maintenance costs [32][38] - Management remains optimistic about the leasing environment, expecting stable occupancy and strong rent growth throughout the year [31] Other Important Information - The company is actively evaluating acquisition opportunities and expects more compelling options to arise later in the year [23] - Moody's affirmed the company's debt rating of Baa1 and revised the outlook to positive, reflecting the strength of the balance sheet [35] Q&A Session Summary Question: Update on immigration trends and their impact - Management noted that move-ins from outside the footprint increased to 14%, with higher average incomes among these new residents [45] Question: Insights on acquisition strategy amid changing market conditions - Management indicated that while pricing has been high, they expect opportunities to increase as the market adjusts to rising interest rates [46][48] Question: Current rent income ratios and renewal offers - Rent income ratios are currently about 23%, with renewal offers running at 16.7% for April and expected to remain robust [52][53] Question: Understanding market rent growth and loss to lease - The blended rents imply about an 8% loss to lease, with new lease prices running higher than renewals [62] Question: Impact of rising gas prices on residents - Management stated that gas prices have not significantly impacted renters, as wage growth has offset potential concerns [100][101]