Robust Redevelopment Program 276 40% 52% 8% A+, A A-, B+ B, B- Trend lines reflect top three MAA markets capturing migration from each of the following states: CA, NY, IL, NJ, MA and WA. Capital Markets Update May 2023 www.maac.com 2 The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements: inability to generate sufficient cash flows due to unfavorable economic and market conditions ...

Mid-America Apartment Communities, Inc. (NYSE:MAA) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Andrew Schaeffer - Senior Vice President, Treasurer & Director, Capital Markets Eric Bolton - Chairman & Chief Executive Officer Tim Argo - Executive Vice President, Chief Strategy & Analysis Officer Brad Hill - Executive Vice President & Chief Investment Officer Al Campbell - Executive Vice President, Chief Financial Officer Conference Call Participants John Kim - BMO Capital ...

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 March 31, 2023 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-AME ...

Part I [Business](index=6&type=section&id=Item%201.%20Business%2E) MAA is a REIT focused on owning, operating, acquiring, and developing apartment communities in the Southeast, Southwest, and Mid-Atlantic US regions - MAA's primary business objectives are to generate **sustainable and increasing cash flow** to fund dividends through intense property management, technology utilization, opportunistic portfolio management, market diversification, and active capital structure management[26](index=26&type=chunk)[29](index=29&type=chunk) - In 2022, the company disposed of **four multifamily communities** totaling **1,414 units** and two land parcels, redeploying proceeds into other strategic investments[34](index=34&type=chunk) - During 2022, MAA renovated **6,574 apartment units** at an average cost of **$6,109 per unit**, achieving average rental rate increases of **10.0%** above non-renovated units, and installed smart home technology in **24,029 units**[35](index=35&type=chunk)[36](index=36&type=chunk) - As of December 31, 2022, ethnic/cultural minorities represented approximately **50% of the workforce** and **40% of leadership positions**, while females represented approximately **46% of the workforce** and **56% of leadership positions**[42](index=42&type=chunk) - The company targets total debt, net of cash, to be in a range of **30% to 36%** of adjusted total assets, with actual total debt at **28.4%** as of December 31, 2022, well below the **60%** covenant limit[46](index=46&type=chunk) Portfolio Overview as of December 31, 2022 | Multifamily Portfolio | Communities | Units | | :--- | :--- | :--- | | Consolidated | 296 | 99,407 | | Unconsolidated | 1 | 269 | | **Total** | **297** | **99,676** | 2022 Multifamily Acquisitions | Property | Market | Units | Date Acquired | | :--- | :--- | :--- | :--- | | MAA Hampton Preserve II | Tampa, FL | 196 | July 2022 | | MAA LoSo | Charlotte, NC | 344 | September 2022 | Multifamily Projects Under Development as of December 31, 2022 | Project | Market | Total Units | Budgeted Cost (thousands) | Expected Completion | | :--- | :--- | :--- | :--- | :--- | | Novel West Midtown | Atlanta, GA | 340 | $89,500 | 3rd Quarter 2023 | | Novel Daybreak | Salt Lake City, UT | 400 | $94,000 | 4th Quarter 2023 | | Novel Val Vista | Phoenix, AZ | 317 | $77,200 | 1st Quarter 2024 | | MAA Milepost 35 | Denver, CO | 352 | $125,000 | 4th Quarter 2024 | | MAA Nixie | Raleigh, NC | 406 | $145,500 | 3rd Quarter 2025 | | MAA Breakwater | Tampa, FL | 495 | $197,500 | 4th Quarter 2025 | | **Total** | | **2,310** | **$728,700** | | [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors%2E) The company faces significant operational, financial, and regulatory risks, including economic downturns, geographic concentration, substantial indebtedness, and the potential loss of REIT status - Operational risks include potential impacts from public health events like COVID-19 on rent collection, leasing, and construction schedules[57](index=57&type=chunk) - Unfavorable economic conditions, such as inflation and unemployment, could adversely affect occupancy, rental revenues, and property values[61](index=61&type=chunk) - **41.1%** of the portfolio is concentrated in five markets (Atlanta, Dallas, Austin, Orlando, Charlotte), increasing vulnerability to regional economic downturns[65](index=65&type=chunk) - The company faces climate change risks, including physical risks from extreme weather events and transition risks from new regulations that could increase operating and development costs[72](index=72&type=chunk)[73](index=73&type=chunk) - Cybersecurity breaches pose a key risk, potentially compromising confidential information, causing operational disruptions, liability claims, and reputational damage[80](index=80&type=chunk)[82](index=82&type=chunk) - Financial risks stem from substantial indebtedness of **$4.4 billion** as of December 31, 2022, which could limit financial flexibility and increase borrowing costs due to rising interest rates[90](index=90&type=chunk)[92](index=92&type=chunk) - Tax-related risks include the potential failure to maintain **REIT** qualification, which would result in corporate income tax and reduced funds for shareholder distribution[116](index=116&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments%2E) The company reports that there are no unresolved staff comments from the SEC - None[124](index=124&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties%2E) As of December 31, 2022, MAA's portfolio comprised 296 consolidated communities with 99,407 units, concentrated in the Southeast, Southwest, and Mid-Atlantic, with a 95.3% average occupancy - The total portfolio of **296 consolidated communities** (**99,407 units**) had an average physical occupancy of **95.3%** for the year ended December 31, 2022[127](index=127&type=chunk) - As of December 31, 2022, the company had **$367.2 million** of outstanding mortgage indebtedness collateralized by its properties[129](index=129&type=chunk) Top 5 Markets by Number of Units (as of Dec 31, 2022) | Market | Number of Communities | Number of Units | Average Physical Occupancy | | :--- | :--- | :--- | :--- | | Atlanta, GA | 29 | 11,434 | 95.4% | | Dallas, TX | 27 | 9,767 | 95.6% | | Austin, TX | 20 | 6,829 | 95.2% | | Charlotte, NC | 20 | 5,867 | 95.8% | | Raleigh/Durham, NC | 15 | 5,350 | 95.6% | [Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings%2E) The company is engaged in certain legal proceedings, with further details incorporated by reference from Note 11 to the consolidated financial statements - The company is a defendant in a **class-action lawsuit** alleging conspiracy to artificially inflate multifamily residential real estate prices, which it believes is without merit[85](index=85&type=chunk)[130](index=130&type=chunk)[402](index=402&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures%2E) This item is not applicable to the company - Not applicable[131](index=131&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities%2E) MAA's common stock trades on the NYSE, supported by dividend programs, an ATM offering program with **4.0 million** shares available, and a stock repurchase plan for up to **4.0 million** shares - MAA's common stock has been listed on the **NYSE** under the symbol "**MAA**" since February 1994[133](index=133&type=chunk) - The company has an ATM program with authority to issue up to **4.0 million shares**, with no sales in 2022 and **4.0 million shares** remaining available as of December 31, 2022[137](index=137&type=chunk)[138](index=138&type=chunk) - A stock repurchase plan authorized in December 2015 allows for the repurchase of up to **4.0 million shares**, with no shares repurchased as of December 31, 2022[139](index=139&type=chunk)[140](index=140&type=chunk) Comparison of Five-Year Cumulative Total Returns | Year Ended Dec 31 | Mid-America Apartment Communities, Inc. | S&P 500 Index | DJ US REIT Apartment Index | | :--- | :--- | :--- | :--- | | 2017 | $100.00 | $100.00 | $100.00 | | 2018 | $98.94 | $95.62 | $102.19 | | 2019 | $141.00 | $125.72 | $130.92 | | 2020 | $140.10 | $148.85 | $115.30 | | 2021 | $260.40 | $191.58 | $186.51 | | 2022 | $182.93 | $156.88 | $126.67 | [[Reserved]](index=30&type=section&id=Item%206.%20%5BReserved%5D%2E) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) In 2022, MAA's net income increased by **19.6%** to **$633.7 million**, driven by **13.6%** property revenue growth, with Core FFO reaching **$1.0 billion**, supported by **$1.3 billion** in liquidity and **$4.4 billion** in total debt - Key performance drivers for the Same Store segment in 2022 included a **14.6% increase** in average effective rent per unit, while average physical occupancy slightly decreased to **95.7%** from **96.1%**[148](index=148&type=chunk)[149](index=149&type=chunk) - As of December 31, 2022, the company maintained a strong liquidity position with **$1.3 billion** of combined unrestricted cash and available revolving credit facility capacity[170](index=170&type=chunk) - As of December 31, 2022, the company had obligations for future capital contributions up to **$45.2 million** to **five** technology-focused limited partnerships[186](index=186&type=chunk) - The company expects to pay quarterly dividends at an annual rate of **$5.60 per share** of common stock for the year ending December 31, 2023[190](index=190&type=chunk) Financial Highlights (Year Ended Dec 31) | Metric | 2022 (Millions) | 2021 (Millions) | % Change | | :--- | :--- | :--- | :--- | | Net Income available for MAA common shareholders | $633.7 | $530.1 | 19.6% | | Total Property Revenues | $2,019.9 | $1,778.1 | 13.6% | | Total Property Operating Expenses | $723.7 | $671.2 | 7.8% | Reconciliation of Net Income to Core FFO (in thousands) | | Year ended December 31, 2022 (thousands) | Year ended December 31, 2021 (thousands) | | :--- | :--- | :--- | | Net income available for MAA common shareholders | $633,748 | $530,103 | | Adjustments (Depreciation, Gain on sale, etc.) | $339,034 | $323,319 | | **FFO attributable to the Company** | **$972,782** | **$853,422** | | Core Adjustments (Loss on derivative, etc.) | $35,424 | ($22,807) | | **Core FFO** | **$1,008,206** | **$830,615** | Outstanding Debt as of December 31, 2022 (in thousands) | Debt Type | Principal Balance (thousands) | Average Years to Maturity | Effective Rate | | :--- | :--- | :--- | :--- | | Unsecured Debt | $4,050,910 | 6.3 | 3.4% | | Secured Debt | $363,993 | 25.8 | 4.4% | | **Total Debt** | **$4,414,903** | **7.9** | **3.4%** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2E) The company's primary market risk is interest rate exposure on borrowings, mitigated by a focus on fixed-rate debt, with **99.5%** of outstanding debt fixed as of December 31, 2022 - The company's main market risk is **interest rate fluctuation**, managed by utilizing **fixed-rate debt** and staggering maturity dates[202](index=202&type=chunk) - As of December 31, 2022, **99.5%** of the company's outstanding debt carried a fixed interest rate, significantly limiting exposure to short-term rate volatility[202](index=202&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%2E) This section indicates that the consolidated financial statements and related financial information are provided, starting on page F-1 of the Annual Report on Form 10-K - The consolidated financial statements and supplementary data are located in the financial section of the report, beginning on page **F-1**[203](index=203&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=41&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure%2E) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[204](index=204&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%209A.%20Controls%20and%20Procedures%2E) Management, including the CEO and CFO, concluded that both disclosure controls and internal control over financial reporting were effective for MAA and its Operating Partnership as of December 31, 2022, with no material changes during Q4 2022 - MAA's management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[206](index=206&type=chunk) - Based on the COSO framework, MAA's management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2022, attested to by Ernst & Young LLP[207](index=207&type=chunk)[208](index=208&type=chunk) - For the Operating Partnership (MAALP), management similarly concluded that both disclosure controls and internal controls over financial reporting were **effective** as of December 31, 2022[211](index=211&type=chunk)[212](index=212&type=chunk) - **No changes** occurred during the quarter ended December 31, 2022, that materially affected internal control over financial reporting for either MAA or the Operating Partnership[210](index=210&type=chunk)[214](index=214&type=chunk) [Other Information](index=43&type=section&id=Item%209B.%20Other%20Information%2E) The company reports no other information for this item - None[215](index=215&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=43&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections%2E) This item is not applicable to the company - Not applicable[216](index=216&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=43&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance%2E) The information required for this item, including details on directors, executive officers, and corporate governance, is incorporated by reference from MAA's 2023 Proxy Statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the company's 2023 Proxy Statement[218](index=218&type=chunk) [Executive Compensation](index=43&type=section&id=Item%2011.%20Executive%20Compensation%2E) The information required for this item, including the Compensation Discussion and Analysis and executive compensation tables, is incorporated by reference from MAA's 2023 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the company's 2023 Proxy Statement[220](index=220&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=43&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters%2E) The information required for this item, including security ownership of management and certain beneficial owners, is incorporated by reference from MAA's 2023 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the company's 2023 Proxy Statement[221](index=221&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=43&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence%2E) The information required for this item, including details on related party transactions and director independence, is incorporated by reference from MAA's 2023 Proxy Statement - Information regarding certain relationships, related transactions, and director independence is **incorporated by reference** from the company's 2023 Proxy Statement[222](index=222&type=chunk) [Principal Accountant Fees and Services](index=43&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services%2E) The information required for this item, including details on principal accountant fees and services, is incorporated by reference from MAA's 2023 Proxy Statement - Information regarding principal accountant fees and services is **incorporated by reference** from the company's 2023 Proxy Statement[223](index=223&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=44&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules%2E) This section lists all financial statements, schedules, and exhibits filed with the Annual Report, including auditor's reports, consolidated financial statements, and required Regulation S-K exhibits - This item lists **all financial statements, schedules, and exhibits** filed with the Annual Report, including the auditor's report, consolidated balance sheets, statements of operations, and Schedule III for Real Estate and Accumulated Depreciation[226](index=226&type=chunk) [Form 10-K Summary](index=48&type=section&id=Item%2016.%20Form%2010-K%20Summary%2E) The company indicates that there is no Form 10-K summary provided - None[233](index=233&type=chunk)

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 ...