PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited condensed consolidated financial statements for Mid-America Apartment Communities, Inc. (MAA) and Mid-America Apartments, L.P. (MAALP) for the quarterly period ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, and cash flows, followed by consolidated notes explaining accounting policies and providing detailed financial information [Mid-America Apartment Communities, Inc. (MAA) Financial Statements](index=6&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20(MAA)%20Financial%20Statements) For the six months ended June 30, 2025, MAA reported net income available to common shareholders of **$288.0 million**, an increase from **$243.9 million** in the prior year period, with total assets growing slightly to **$11.84 billion** from **$11.81 billion** at year-end 2024, and net cash provided by operating activities stable at **$550.1 million** MAA Condensed Consolidated Statements of Operations (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Rental and other property revenues** | $549,902 | $546,435 | $1,099,197 | $1,090,057 | | **Net income** | $110,875 | $104,662 | $297,281 | $252,272 | | **Net income available for MAA common shareholders** | $107,205 | $101,031 | $287,956 | $243,858 | | **Earnings per common share - diluted** | $0.92 | $0.86 | $2.46 | $2.09 | MAA Condensed Consolidated Balance Sheets (in thousands) | | **June 30, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | **Real estate assets, net** | $11,542,912 | $11,515,418 | | **Total assets** | $11,835,597 | $11,812,369 | | **Total liabilities** | $5,745,197 | $5,664,705 | | **Total equity** | $6,069,265 | $6,125,434 | MAA Condensed Consolidated Statements of Cash Flows (in thousands) | Six months ended June 30, | **2025** | **2024** | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $550,067 | $549,627 | | **Net cash used in investing activities** | ($238,322) | ($329,828) | | **Net cash used in financing activities** | ($300,390) | ($198,390) | [Mid-America Apartments, L.P. (MAALP) Financial Statements](index=11&type=section&id=Mid-America%20Apartments%2C%20L.P.%20(MAALP)%20Financial%20Statements) MAALP's financial results are nearly identical to MAA's, as it holds substantially all of the company's assets and operations, reporting net income of **$297.3 million** and total assets of **$11.84 billion** for the six months ended June 30, 2025, with the primary difference being the presentation of equity as partners' capital MAALP Condensed Consolidated Statements of Operations (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Rental and other property revenues** | $549,902 | $546,435 | $1,099,197 | $1,090,057 | | **Net income** | $110,875 | $104,662 | $297,281 | $252,272 | | **Net income available for MAALP common unitholders** | $109,953 | $103,740 | $295,437 | $250,428 | | **Earnings per common unit - diluted** | $0.92 | $0.86 | $2.46 | $2.09 | MAALP Condensed Consolidated Balance Sheets (in thousands) | | **June 30, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | **Total assets** | $11,835,597 | $11,812,369 | | **Total liabilities** | $5,745,216 | $5,664,724 | | **Total equity** | $6,069,246 | $6,125,415 | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's organization, accounting policies, and financial activities, including its portfolio of 291 apartment communities, an active development pipeline of 8 communities, outstanding debt of **$5.05 billion**, ongoing legal proceedings related to the RealPage antitrust litigation, and segment reporting showing a slight revenue decrease of **0.1%** for Same Store properties and **20.2%** growth for Non-Same Store properties - As of June 30, 2025, the Company owned and operated 291 apartment communities and had eight development communities under construction, totaling 2,648 apartment units once complete[40](index=40&type=chunk) Outstanding Debt Summary (as of June 30, 2025, in thousands) | Debt Type | Balance | Weighted Average Effective Rate | Weighted Average Contract Maturity | | :--- | :--- | :--- | :--- | | **Unsecured debt** | $4,687,813 | 3.8% | N/A | | Fixed rate senior notes | $4,400,000 | 3.7% | 5/9/2031 | | Variable rate commercial paper | $315,000 | 4.7% | 7/6/2025 | | **Secured debt** | $360,330 | 4.4% | N/A | | Fixed rate property mortgages | $363,293 | 4.4% | 1/26/2049 | | **Total outstanding debt** | **$5,048,143** | **3.8%** | N/A | - The company is involved in the "RealPage Litigation," a series of class-action lawsuits alleging conspiracy to artificially inflate apartment prices, and believes the litigation is without merit, defending itself vigorously, with an accrual of **$6.7 million** for loss contingencies related to legal matters recorded as of June 30, 2025[92](index=92&type=chunk)[94](index=94&type=chunk) Segment Net Operating Income (NOI) (in thousands) | | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | **Same Store NOI** | $652,407 | $662,954 | | **Non-Same Store and Other NOI** | $30,783 | $23,505 | | **Total NOI** | $683,190 | $686,459 | - In March 2025, the company sold two multifamily communities in Columbia, SC for net proceeds of approximately **$81 million**, resulting in a gain of about **$72 million**, and in June 2025, it acquired a 19-acre land parcel in Charleston, SC for approximately **$9 million**[100](index=100&type=chunk)[102](index=102&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the financial results for the second quarter and first half of 2025, noting a 6.1% increase in net income available for common shareholders for the quarter and 18.1% for the six-month period year-over-year, a slight decrease in Same Store revenue due to a **0.5%** drop in average effective rent, rising operating expenses, and a **4.0x** Net Debt to Adjusted EBITDAre ratio, while highlighting strong apartment demand, stable occupancy, and a diverse portfolio [Overview and Trends](index=36&type=section&id=Overview%20and%20Trends) For Q2 2025, net income available to MAA common shareholders was **$107.2 million**, up from **$101.0 million** in Q2 2024, influenced by net casualty recoveries and non-cash gains, with market trends showing strong apartment demand, stable occupancy, and low resident turnover, despite new supply challenges, and average effective rent for the Same Store segment decreasing by **0.5%** YoY to **$1,690** while average physical occupancy remained stable at **95.4%** - Demand for apartments remained strong in Q2 2025, driven by robust renewal pricing, solid traffic, stable occupancy, and low resident turnover, with the company believing new apartment deliveries will decline in the second half of 2025 and into 2026[117](index=117&type=chunk) Same Store Operating Trends (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Average Effective Rent per Unit** | $1,690 | $1,699 | -0.5% | | **Average Physical Occupancy** | 95.4% | 95.4% | 0.0% | | **Resident Turnover (TTM)** | 41.0% | 43.5% | -2.5 p.p. | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) For the three months ended June 30, 2025, total property revenues increased 0.6% YoY, driven by a 19.0% increase in the Non-Same Store segment offsetting a **0.3%** decrease in the Same Store segment, while total property operating expenses rose 4.3%, with the Same Store segment seeing a 3.8% increase due to higher personnel, utilities, and property tax costs, and interest expense increased for both periods due to higher average debt balances Property Revenues by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Same Store** | $518,955 | $520,420 | (0.3)% | | **Non-Same Store and Other** | $30,947 | $26,015 | 19.0% | | **Total** | **$549,902** | **$546,435** | **0.6%** | Property Operating Expenses by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Same Store** | $199,343 | $192,110 | 3.8% | | **Non-Same Store and Other** | $15,311 | $13,686 | 11.9% | | **Total** | **$214,654** | **$205,796** | **4.3%** | - Interest expense increased by **$3.8 million** in Q2 2025 and **$8.6 million** in the first six months of 2025 compared to the same periods in 2024, due to a higher average outstanding debt balance and a rise in the effective interest rate[124](index=124&type=chunk)[131](index=131&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) Core Funds from Operations (Core FFO) for Q2 2025 was **$257.6 million**, a decrease from **$266.6 million** in Q2 2024, primarily due to higher operating and interest expenses, with the six-month period Core FFO at **$521.9 million**, down from **$532.8 million**, and the company's Net Debt to trailing twelve-month Adjusted EBITDAre ratio at **4.0x** as of June 30, 2025 Reconciliation to Core FFO (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net income available for MAA common shareholders** | $107,205 | $101,031 | $287,956 | $243,858 | | **FFO attributable to common shareholders and unitholders** | $262,338 | $247,540 | $527,066 | $535,976 | | **Core FFO attributable to common shareholders and unitholders** | $257,616 | $266,646 | $521,878 | $532,815 | Net Debt to Adjusted EBITDAre Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Net Debt (in thousands)** | $4,993,661 | $4,937,939 | | **Adjusted EBITDAre (TTM, in thousands)** | $1,244,417 | $1,247,150 | | **Net Debt to Adjusted EBITDAre Ratio** | 4.0x | 4.0x | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$1.0 billion** of combined unrestricted cash and available capacity under its revolving credit facility as of June 30, 2025, expecting to meet its cash requirements over the next 12 months through operating cash flow, existing cash, and borrowing capacity, with material cash requirements including **$806.6 million** in debt obligations and continued funding for eight development projects with **$326.2 million** remaining to be spent - As of June 30, 2025, the company had **$1.0 billion** of combined unrestricted cash and available capacity under its revolving credit facility[152](index=152&type=chunk) - Cash flow from operations was stable at **$550.1 million** for the first six months of 2025, with net cash used in investing decreasing to **$238.3 million** due to fewer acquisitions and proceeds from dispositions, and net cash used in financing increasing to **$300.4 million**, reflecting changes in commercial paper borrowings and debt issuance activity compared to the prior year[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - Material cash requirements include **$806.6 million** in debt and debt service obligations payable in the year ending Dec 31, 2025, and up to **$23.2 million** in capital contributions to technology-focused limited partnerships[164](index=164&type=chunk) - The company has eight development communities under construction with total expected costs of **$942.5 million**, of which **$326.2 million** remained to be funded after June 30, 2025[166](index=166&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's primary market risk is interest rate risk on its borrowings, which is managed by using fixed-rate debt and staggering debt maturities, with **93.8% of its outstanding debt was at fixed rates** as of June 30, 2025, and no material changes in market risk since the 2024 year-end report - The company's primary market risk exposure is to changes in interest rates To mitigate this, **93.8% of its outstanding debt was at fixed rates** as of June 30, 2025[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, evaluated the disclosure controls and procedures for both MAA and MAALP as of June 30, 2025, concluding that these controls were effective for both entities, with no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the internal controls - Management of both MAA and MAALP concluded that their respective disclosure controls and procedures were effective as of June 30, 2025[172](index=172&type=chunk)[175](index=175&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the internal control over financial reporting for either MAA or MAALP[173](index=173&type=chunk)[176](index=176&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings.) This section incorporates by reference the information on legal proceedings disclosed in Note 10 of the financial statements, which primarily discusses the ongoing RealPage antitrust litigation - The company is engaged in certain legal proceedings, with details provided in Note 10 to the condensed consolidated financial statements[178](index=178&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors from the Annual Report on Form 10-K for the year ended December 31, 2024, have occurred[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During the second quarter of 2025, the company repurchased **10,657 shares** of its common stock, which were not part of a publicly announced plan but were shares surrendered by employees to satisfy tax obligations upon the vesting of restricted shares MAA Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 10,623 | $166.03 | | May 2025 | — | $— | | June 2025 | 34 | $156.65 | | **Total** | **10,657** | **N/A** | - The repurchased shares were surrendered by employees to satisfy statutory minimum tax obligations related to vesting restricted shares and were not part of the **4.0 million share** repurchase program authorized in December 2015[180](index=180&type=chunk)[181](index=181&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information.) During the quarter ended June 30, 2025, no director or officer of the company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including charter documents, bylaws, partnership agreements, and CEO/CFO certifications required under the Sarbanes-Oxley Act [Signatures](index=53&type=section&id=Signatures) The report is duly signed and authorized by David Herring, Senior Vice President and Chief Accounting Officer, on behalf of both Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P. on July 31, 2025

Core Insights - Mid-America Apartment Communities (MAA) reported Q2 2025 core funds from operations (FFO) per share of $2.15, exceeding the Zacks Consensus Estimate of $2.14 but down 3.15% from $2.22 year over year [1][8] - The company experienced a decline in same-store revenues, with average effective rent per unit decreasing year over year, although resident turnover remained low [1][4] Financial Performance - Rental and other property revenues for Q2 totaled $549.9 million, missing the Zacks Consensus Estimate by 0.4% but up 0.6% from the previous year [2] - Same-store portfolio revenues fell 0.3% year over year, with average effective rent per unit declining by 0.5% [3] - Property operating expenses for the same-store portfolio increased by 3.8% year over year, leading to a 2.6% drop in net operating income (NOI) [3][8] Occupancy and Lease Rates - The average physical occupancy for the same-store portfolio was 95.4%, slightly below the estimate of 95.7% [3] - Resident turnover in the same-store portfolio was historically low at 41.0%, with only 11.0% related to buying single-family homes [4] - The same-store effective blended lease rate growth was 0.5%, while the effective new lease rate dropped 4.8% and the effective renewal lease rate increased by 4.7% [4] Development Activities - In June 2025, MAA acquired a land parcel in Charleston, SC, and began construction on a 336-unit multifamily apartment community [5] - As of June 30, 2025, MAA had eight communities under development with total expected costs of $942.5 million, alongside four recently completed and two recently acquired communities in lease-up costing $573.9 million [5] Balance Sheet and Debt Position - MAA ended Q2 2025 with cash and cash equivalents of $54.5 million, up from $43 million at the end of 2024 [6] - The company had a strong balance sheet with $1.0 billion in combined cash and capacity under its unsecured revolving credit facility and a net debt/adjusted EBITDAre ratio of 4 times [6] - Total outstanding debt was $5 billion, with an average maturity of 6.7 years [6] 2025 Guidance - MAA projects Q3 2025 core FFO per share between $2.08 and $2.24, with a midpoint of $2.16, aligning with the Zacks Consensus Estimate of $2.17 [9] - The company revised its 2025 core FFO per share guidance to a range of $8.65 to $8.89, with the midpoint unchanged at $8.77 [9] - Same-store property revenue growth is anticipated between -0.20% and 0.40%, with operating expense growth expected between 1.75% and 2.75% [10]

Financial Data and Key Metrics Changes - The company reported core FFO for the quarter of $2.15 per diluted share, which was $0.02 per share ahead of the midpoint of guidance [20] - Same store revenue results were in line with expectations, benefiting from strong collections during the quarter [20] - The company reaffirmed the midpoint of its full year core FFO guidance at $8.77 per share while narrowing the range to $8.65 to $8.89 per share [24] Business Line Data and Key Metrics Changes - The blended pricing for the quarter was 0.5%, representing a 100 basis point improvement from the first quarter [14] - Average physical occupancy remained stable at 95.4% with net delinquency at just 0.3% of billed rents [14] - The company completed 2,678 interior unit upgrades, achieving rent increases of $95 above non-upgraded units, with a cash on cash return exceeding 19% [16] Market Data and Key Metrics Changes - Absorption across markets reached the highest level in over 25 years, with absorption outpacing new deliveries for four consecutive quarters [7][8] - The strongest performing markets included Virginia, Kansas City, Charleston, and Greenville, while markets like Austin, Phoenix, and Nashville faced significant pricing pressure [14][15] - Current occupancy as of July was 95.7%, with a 60-day exposure of 7.1%, which is 10 basis points lower than the previous year [18] Company Strategy and Development Direction - The company remains committed to disciplined expansion of its development pipeline, with a current active pipeline of 2,648 units valued at nearly $1 billion [9] - The company is prioritizing rents and long-term value creation in its leasing strategy, allowing it to achieve expected lease-up rents [10] - The acquisition market remains quiet, but the company is evaluating several opportunities, including a stabilized suburban acquisition in Kansas City [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate economic cycles, citing a strong balance sheet and liquidity position [11] - The company noted that demand remains resilient, supported by stable employment and strong wage growth, leading to good collections and improving rent-to-income ratios [8] - Management anticipates continuous improvement in the leasing environment over the next several quarters due to strong absorption and declining deliveries [19] Other Important Information - The company has lowered the midpoint of effective rent growth guidance to negative 0.25% while maintaining average physical occupancy guidance at 95.6% for the year [23] - The company expects to renovate approximately 6,000 units in 2025, with more expected in 2026 [17] - The company achieved an overall premium decrease on its property and casualty insurance program [24] Q&A Session Summary Question: July trends are trending better than the second quarter - Management indicated that both renewal trends and new lease rates are contributing to the improvement, with new lease rates showing the best performance so far this year [27] Question: Changes to 2025 lease rate growth assumption - The biggest impact on the guidance was from Q2 performance, with a revision of total lease over lease guidance by roughly 100 basis points [30] Question: Expectation for new lease rate growth in current guidance - Management expects new lease rates to be in the negative 4% range for the back half of the year, with strong renewals playing a larger part [32] Question: Trends in Atlanta market - Management noted that while revenue growth in Atlanta was slower, there is positive momentum, and occupancy and pricing improvements are expected [46] Question: Competitive pricing environment - Management observed that operators are pushing more towards occupancy, which has affected pricing strategies, but they expect a shift towards rate pushing as market conditions improve [78] Question: Changes in underwriting for development - Management stated that their development underwriting remains conservative, with yields achieved on development deals being 20% to 30% higher than originally underwritten [89] Question: Real estate taxes outlook - Management indicated that there could be a tailwind from real estate taxes moving forward, as municipalities may not impose as much of a headwind as in previous years [92]

Financial Data and Key Metrics Changes - The company reported core FFO for the quarter of $2.15 per diluted share, which was $0.02 per share ahead of the midpoint of guidance [20] - Same store revenue results were in line with expectations, benefiting from strong collections during the quarter [20] - The company reaffirmed the midpoint of its same store NOI and core FFO guidance for the year while revising other areas of guidance [25] Business Line Data and Key Metrics Changes - The second quarter saw a blended pricing growth of 0.5%, representing a 100 basis point improvement from the first quarter [13] - Average physical occupancy remained stable at 95.4%, with net delinquency at just 0.3% of billed rents [13] - The company completed 2,678 interior unit upgrades, achieving rent increases of $95 above non-upgraded units [15] Market Data and Key Metrics Changes - Absorption across markets reached the highest level in over 25 years, with absorption outpacing new deliveries for four consecutive quarters [6][7] - The strongest performing markets included Virginia, Kansas City, Charleston, and Greenville, while markets like Austin faced record supply pressure [13][14] - Current occupancy as of July is 95.7%, with a 60-day exposure of 7.1%, which is 10 basis points lower than the previous year [18] Company Strategy and Development Direction - The company remains committed to disciplined expansion of its development pipeline, with a current active pipeline of 2,648 units valued at nearly $1 billion [8] - The acquisition market remains quiet, but the company is evaluating several opportunities, including a stabilized suburban acquisition in Kansas City [9][10] - The company plans to continue investing in high-demand regions, particularly in the Sunbelt markets, while also exploring opportunities in mid-tier markets [41][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate economic cycles, citing strong job growth, wage growth, and demographic tailwinds [10] - The company anticipates a continuously improving lease environment over the next several quarters due to strong absorption and declining deliveries [19] - Management noted that consumer sentiment is improving, with lower chances of recession, which supports a more favorable operating environment [35] Other Important Information - The company has a strong balance sheet with $1 billion in combined cash and borrowing capacity under its revolving credit facility [21] - The company expects to renovate approximately 6,000 units in 2025, with more expected in 2026 [15] - The company achieved an overall premium decrease on its property and casualty insurance program [24] Q&A Session Summary Question: July trends are trending better than the second quarter - Management indicated that both renewal trends and new lease rates are contributing to the improvement, with new lease rates showing the best performance of the year so far [29] Question: Changes to 2025 lease rate growth assumption - The majority of the adjustment was due to Q2 performance, with a revision of total lease over lease guidance by roughly 100 basis points [31] Question: Expectation for new lease rate growth in current guidance - The company expects new lease rate growth to be in the negative 4% range for the back half of the year, with strong renewals continuing to play a significant role [34] Question: Trends in Atlanta market - Management noted that while revenue growth in Atlanta was slower than expected, there are positive momentum indicators, including improved occupancy and reduced concessions [48] Question: Competitive pricing environment - Management observed that operators are generally pushing for occupancy, which has affected pricing strategies, but they expect a shift towards rate pushing as market conditions improve [78]

Group 1 - Mid-America Apartment Communities (MAA) reported revenue of $549.9 million for the quarter ended June 2025, a year-over-year increase of 0.6% [1] - The earnings per share (EPS) for the same period was $2.15, compared to $0.86 a year ago, indicating significant growth [1] - The reported revenue was a surprise of -0.41% compared to the Zacks Consensus Estimate of $552.15 million, while the EPS surprise was +0.47% against a consensus estimate of $2.14 [1] Group 2 - Key metrics indicate that average physical occupancy for same-store properties was 95.4%, slightly below the three-analyst average estimate of 95.6% [4] - The diluted net earnings per share was reported at $0.92, which is lower than the seven-analyst average estimate of $0.94 [4] - Over the past month, shares of Mid-America Apartment Communities returned +2.3%, compared to a +3.4% change in the Zacks S&P 500 composite [3]

Core Viewpoint - Mid-America Apartment Communities (MAA) reported quarterly funds from operations (FFO) of $2.15 per share, slightly exceeding the Zacks Consensus Estimate of $2.14 per share, but down from $2.22 per share a year ago [1][2] Financial Performance - The company achieved revenues of $549.9 million for the quarter ended June 2025, which was 0.41% below the Zacks Consensus Estimate, compared to $546.43 million in the same quarter last year [2] - Over the last four quarters, MAA has surpassed consensus FFO estimates three times [2] Stock Performance - MAA shares have declined approximately 1.5% since the beginning of the year, while the S&P 500 has increased by 8.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus FFO estimate for the upcoming quarter is $2.17, with projected revenues of $558.89 million, and for the current fiscal year, the estimate is $8.76 on $2.22 billion in revenues [7] - The outlook for the REIT and Equity Trust - Residential industry is currently in the top 35% of Zacks industries, suggesting a favorable environment for stocks in this sector [8]

[Portfolio Statistics](index=1&type=section&id=Portfolio%20Statistics) [Total Multifamily Portfolio Overview](index=1&type=section&id=TOTAL%20MULTIFAMILY%20PORTFOLIO%20AT%20JUNE%2030%2C%202025) As of June 30, 2025, the company's total multifamily portfolio comprised 101,979 units, primarily Same Store, concentrated in Sunbelt markets Total Multifamily Portfolio Units as of June 30, 2025 | Category | Units | | :--- | :--- | | Same Store | 96,568 | | Non-Same Store | 2,761 | | Lease-up | 2,101 | | **Total Completed Units** | **101,430** | | Development Units | 549 | | **Total Multifamily Units** | **101,979** | - The top three markets by total unit count are Atlanta, GA (**11,774**), Dallas, TX (**10,503**), and Austin, TX (**7,179**)[1](index=1&type=chunk) [Total Multifamily Community Statistics](index=2&type=section&id=TOTAL%20MULTIFAMILY%20COMMUNITY%20STATISTICS) As of June 30, 2025, the $16.7 billion multifamily portfolio maintained 94.4% occupancy and an average effective rent of $1,694 per unit Portfolio Key Metrics as of June 30, 2025 | Metric | Total Multifamily Communities | | :--- | :--- | | Gross Real Assets | $16,707,529 (in thousands) | | Physical Occupancy | 94.4% | | Average Effective Rent (Q2 2025) | $1,694 | - Atlanta, GA represents the largest portion of the portfolio by gross real assets at **12.8%** (**$2.13 billion**)[2](index=2&type=chunk) - The highest average effective rents are in Northern Virginia (**$2,540**) and Tampa, FL (**$2,092**)[2](index=2&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Net Operating Income (NOI) Analysis](index=3&type=section&id=COMPONENTS%20OF%20NET%20OPERATING%20INCOME) Total NOI for Q2 2025 decreased by 1.6% to $335.2 million, primarily due to a 2.6% decline in Same Store NOI from rising expenses NOI Performance (Three Months Ended June 30, 2025 vs 2024) | Metric | Q2 2025 ($ in thousands) | Q2 2024 ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Total NOI** | **$335,248** | **$340,639** | **(1.6)%** | | Same Store NOI | $319,612 | $328,310 | (2.6)% | | Same Store Revenues | $518,955 | $520,420 | (0.3)% | | Same Store Expenses | $199,343 | $192,110 | 3.8% | - For the Same Store portfolio in Q2 2025, the largest expense categories driving the **3.8%** YoY increase were Office Operations (**+10.4%**), Marketing (**+6.8%**), and Personnel (**+4.8%**)[4](index=4&type=chunk) [Same Store Portfolio Performance](index=4&type=section&id=Same%20Store%20Portfolio%20Performance) The 96,568-unit Same Store portfolio experienced a 2.6% YoY NOI decline in Q2 2025, with varied market performance and stable 95.4% occupancy [NOI Contribution & Occupancy](index=4&type=section&id=MULTIFAMILY%20SAME%20STORE%20PORTFOLIO%20NOI%20CONTRIBUTION%20PERCENTAGE) In Q2 2025, Atlanta and Dallas were top Same Store NOI contributors, with total physical occupancy at 95.4%, slightly down from Q2 2024 - Top 3 markets by Same Store NOI contribution: Atlanta, GA (**11.8%**), Dallas, TX (**9.3%**), and a tie between Orlando, FL and Tampa, FL (**7.2%** each)[5](index=5&type=chunk) Same Store Occupancy Comparison | Period | Average Physical Occupancy | | :--- | :--- | | Q2 2025 | 95.4% | | Q2 2024 | 95.5% | | YTD 2025 | 95.5% | | YTD 2024 | 95.4% | [Quarter-over-Quarter (YoY) Comparison](index=5&type=section&id=MULTIFAMILY%20SAME%20STORE%20PORTFOLIO%20QUARTER%20OVER%20QUARTER%20COMPARISONS) Q2 2025 Same Store NOI declined 2.6% YoY due to 3.8% expense growth, with Northern Virginia showing strength and Austin/Houston experiencing significant declines Total Same Store Performance (Q2 2025 vs Q2 2024) | Metric | % Change | | :--- | :--- | | Revenues | (0.3)% | | Expenses | 3.8% | | **NOI** | **(2.6)%** | | Average Effective Rent per Unit | (0.5)% | - Strongest performing markets by YoY NOI growth in Q2 2025 were Fredericksburg, VA (**+5.4%**) and Memphis, TN (**+6.3%**)[6](index=6&type=chunk) - Weakest performing markets by YoY NOI growth in Q2 2025 were Austin, TX (**-11.6%**) and Houston, TX (**-11.4%**)[6](index=6&type=chunk) [Sequential Quarter (QoQ) Comparison](index=6&type=section&id=MULTIFAMILY%20SAME%20STORE%20PORTFOLIO%20SEQUENTIAL%20QUARTER%20COMPARISONS) Same Store NOI decreased 4.0% QoQ from Q1 to Q2 2025, driven by a 7.2% expense increase, with Fort Worth and Austin experiencing the largest declines Total Same Store Performance (Q2 2025 vs Q1 2025) | Metric | % Change | | :--- | :--- | | Revenues | 0.0% | | Expenses | 7.2% | | **NOI** | **(4.0)%** | | Average Effective Rent per Unit | 0.0% | - The **7.2%** sequential increase in expenses was a key driver of the NOI decline. Notable market expense increases include Fort Worth, TX (**+25.1%**) and Savannah, GA (**+13.0%**)[7](index=7&type=chunk) [Year-to-Date (YTD) Comparison](index=7&type=section&id=MULTIFAMILY%20SAME%20STORE%20PORTFOLIO%20YEAR%20TO%20DATE%20COMPARISONS) YTD Same Store NOI decreased 1.6% through June 30, 2025, due to 2.5% expense growth, with Northern Virginia showing strength and Austin/Jacksonville experiencing declines Total Same Store Performance (YTD 2025 vs YTD 2024) | Metric | % Change | | :--- | :--- | | Revenues | (0.1)% | | Expenses | 2.5% | | **NOI** | **(1.6)%** | | Average Effective Rent per Unit | (0.5)% | - Best performing markets by YTD NOI growth were Northern Virginia (**+5.4%**) and Fredericksburg, VA (**+5.4%**)[8](index=8&type=chunk) - Worst performing markets by YTD NOI growth were Austin, TX (**-7.8%**) and Jacksonville, FL (**-6.6%**)[8](index=8&type=chunk) [Development and Investment Activity](index=9&type=section&id=Development%20and%20Investment%20Activity) [Development and Lease-Up Pipeline](index=9&type=section&id=MULTIFAMILY%20DEVELOPMENT%20PIPELINE) The company has an active development pipeline of 2,648 units ($942.5M total cost) and 2,101 units in lease-up at 80.7% occupancy Active Development Pipeline Summary | Metric | Value | | :--- | :--- | | Total Units | 2,648 | | Total Expected Cost | $942.5M | | Costs to Date | $616.3M | | Remaining Costs | $326.2M | - The lease-up portfolio consists of **2,101** units across **6** properties with a weighted average occupancy of **80.7%**[9](index=9&type=chunk) [Redevelopment and Repositioning Programs](index=9&type=section&id=MULTIFAMILY%20INTERIOR%20REDEVELOPMENT%2C%20WIFI%20RETROFIT%20AND%20PROPERTY%20REPOSITIONING%20ACTIVITY) In H1 2025, the company completed 2,678 interior redevelopments, yielding a 7.0% rent increase, and invested $12.4 million in WiFi and property repositioning - Completed **2,678** interior unit redevelopments in H1 2025, yielding a **7.0%** (**$95**/unit) average rent increase[9](index=9&type=chunk) - Spent **$12.4 million** in H1 2025 on strategic programs: **$5.2 million** for WiFi Retrofits and **$7.2 million** for Property Repositioning[9](index=9&type=chunk) [Acquisition and Disposition Activity](index=10&type=section&id=2025%20ACQUISITION%20ACTIVITY%20AS%20OF%20JUNE%2030%2C%202025) As of June 30, 2025, the company acquired land for a Charleston development and disposed of two properties totaling 576 units in Columbia, SC - Acquired land for the MAA Point Hope development in Charleston, SC in June 2025[11](index=11&type=chunk) - Disposed of two properties in Columbia, SC (Fairways and TPC Columbia) totaling **576** units in March 2025[11](index=11&type=chunk) [Capital Structure and Debt Profile](index=10&type=section&id=DEBT%20AND%20DEBT%20COVENANTS%20AS%20OF%20JUNE%2030%2C%202025) [Debt Summary](index=10&type=section&id=DEBT%20SUMMARIES) As of June 30, 2025, total debt was $5.05 billion at 3.8% effective interest, predominantly fixed and unsecured, with 95.5% of gross assets unencumbered Debt Composition as of June 30, 2025 | Category | Balance ($ in thousands) | % of Total | Effective Interest Rate | | :--- | :--- | :--- | :--- | | Fixed rate debt | $4,733,143 | 93.8% | 3.8% | | Floating rate debt | $315,000 | 6.2% | 4.7% | | **Total Debt** | **$5,048,143** | **100.0%** | **3.8%** | - The company's asset base is largely unencumbered, with **95.5%** of gross assets (**$16.7 billion**) not pledged as collateral[12](index=12&type=chunk) [Debt Maturities and Covenants](index=10&type=section&id=DEBT%20MATURITIES%20AND%20COVENANTS) The company has $714.7 million in debt maturing in 2025 and was in full compliance with all debt covenants as of June 30, 2025, demonstrating significant headroom - The company has **$714.7 million** in debt maturing in 2025, which includes **$315.0 million** in commercial paper and **$399.7 million** in public bonds[13](index=13&type=chunk)[14](index=14&type=chunk) Key Debt Covenant Compliance | Covenant | Required | Actual | Status | | :--- | :--- | :--- | :--- | | Total debt to adjusted total assets | ≤ 60% | 28.9% | Yes | | Total unencumbered assets to total unsecured debt | > 150% | 348.1% | Yes | | Consolidated income available for debt service to total annual debt service charge | ≥ 1.5x | 6.3x | Yes | [Full Year 2025 Guidance](index=12&type=section&id=2025%20GUIDANCE) [Key Guidance Metrics](index=12&type=section&id=Key%20Guidance%20Metrics) For FY2025, MAA projects Core FFO per diluted share of $8.65-$8.89, with Same Store NOI declining 0.40%-1.90% due to modest revenue and expense growth Full Year 2025 Key Financial Guidance | Metric | Midpoint | Range | | :--- | :--- | :--- | | Core FFO per Share - diluted | $8.77 | $8.65 - $8.89 | | Core AFFO per Share - diluted | $7.79 | $7.67 - $7.91 | | Earnings per common share - diluted | $5.37 | $5.25 - $5.49 | Full Year 2025 Same Store Portfolio Guidance | Metric | Midpoint | Range | | :--- | :--- | :--- | | Property revenue growth | 0.10% | -0.20% to 0.40% | | Property operating expense growth | 2.25% | 1.75% to 2.75% | | **NOI growth** | **-1.15%** | **-1.90% to -0.40%** | - Projected transaction volume for 2025 includes **$250-$350 million** in acquisitions and **$250-$300 million** in dispositions[18](index=18&type=chunk) [Reconciliation of EPS to Core FFO and Core AFFO](index=12&type=section&id=RECONCILIATION%20OF%20EARNINGS%20PER%20DILUTED%20COMMON%20SHARE%20TO%20CORE%20FFO%20AND%20CORE%20AFFO%20PER%20DILUTED%20SHARE) The company reconciles GAAP EPS to non-GAAP Core FFO and Core AFFO, primarily adjusting for real estate depreciation, gains on asset sales, and recurring capital expenditures FY 2025 Guidance Reconciliation (Midpoints) | Metric | Per Share Amount | | :--- | :--- | | Earnings per common share - diluted | $5.37 | | (+) Real estate depreciation | $5.13 | | (-) Gains on sale of depreciable assets | ($1.69) | | **Core FFO per Share - diluted** | **$8.77** | | (-) Recurring capital expenditures | ($0.98) | | **Core AFFO per Share - diluted** | **$7.79** | [Shareholder Information](index=13&type=section&id=Shareholder%20Information) [Credit Ratings and Stock Information](index=13&type=section&id=CREDIT%20RATINGS) MAA maintains stable investment-grade credit ratings from all major agencies and trades on NYSE, with a Q2 2025 quarterly dividend of $1.5150 per share - The company maintains stable, investment-grade credit ratings: A- (Fitch), A3 (Moody's), and A- (S&P)[19](index=19&type=chunk) Recent Dividend Information | Quarter | Declaration Date | Record Date | Payment Date | Distribution per Share | | :--- | :--- | :--- | :--- | :--- | | Q2 2025 | 5/21/2025 | 7/15/2025 | 7/31/2025 | $1.5150 | [Investor Relations](index=13&type=section&id=INVESTOR%20RELATIONS%20DATA) MAA provides investor information, including press releases and SEC filings, through its investor relations department and website, with key contacts listed - Investor information is available via the company's website (www.maac.com), email (investor.relations@maac.com), or a toll-free number (866-576-9689)[20](index=20&type=chunk)[21](index=21&type=chunk)

Core Insights - Mid-America Apartment Communities, Inc. (MAA) reported strong operating results for Q2 2025, with Core FFO results exceeding expectations despite macroeconomic uncertainties [3][4] - The company experienced record demand for rental housing, leading to a 0.5% growth in Same Store effective blended lease rates and a 100 basis point improvement in Same Store blended pricing [3][5] - MAA's development pipeline is nearing $1 billion, which is expected to support robust revenue and earnings performance [3][4] Financial Performance - For the three months ended June 30, 2025, MAA reported earnings per diluted share of $0.92, up from $0.86 in the same period of 2024 [2][25] - Funds from operations (FFO) per diluted share increased to $2.19 from $2.06 year-over-year, while Core FFO per diluted share decreased slightly to $2.15 from $2.22 [2][25] - Total rental and other property revenues for Q2 2025 were $549.9 million, compared to $546.4 million in Q2 2024 [25] Same Store Operating Results - Same Store revenues decreased by 0.3%, while expenses increased by 3.8%, resulting in a 2.6% decline in Net Operating Income (NOI) for Q2 2025 compared to Q2 2024 [4][5] - The average effective rent per unit for Same Store properties was $1,690, with a physical occupancy rate of 95.4% [6][5] - Resident turnover in the Same Store Portfolio remained low at 41.0%, with only 11.0% of move-outs attributed to purchasing single-family homes [5][6] Development and Lease-up Activity - MAA has eight communities under development with total expected costs of $942.5 million, and recently began construction on a 336-unit multifamily apartment community in Charleston, South Carolina [5][8] - As of June 30, 2025, MAA had six lease-up projects with a total of 2,101 units and a physical occupancy rate of 80.7% [9][5] - Three of the lease-up projects are expected to stabilize in Q3 2025, while two are projected for Q4 2025 and one for Q2 2026 [9][5] Balance Sheet and Financing - As of June 30, 2025, MAA had $1.0 billion in combined cash and available capacity under its unsecured revolving credit facility [11][12] - Total debt was reported at $5.048 billion, with a total debt to adjusted total assets ratio of 28.9% [12][26] - The company declared its 126th consecutive quarterly common dividend, with an annual dividend rate of $6.06 per common share [13][25] 2025 Guidance - MAA updated its 2025 guidance, expecting earnings per diluted common share to range from $5.51 to $5.83 and Core FFO per diluted share to range from $8.61 to $8.93 [16][14] - The company anticipates Same Store property revenue growth between -0.35% to 1.15% and NOI growth between -2.15% to -0.15% for the year [16][14]

Core Insights - Mid-America Apartment Communities (MAA) is a real estate investment trust (REIT) focused on owning, operating, and acquiring apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the U.S. [1] - MAA is expected to report its second-quarter 2025 results on July 30, after market close [1] Financial Performance - In the last reported quarter, MAA achieved core FFO per share of $2.20, exceeding the Zacks Consensus Estimate of $2.16, driven by healthy demand and increased occupancy [2] - Over the past four quarters, MAA surpassed the Zacks Consensus Estimate three times, with an average beat of 0.92% [2] U.S. Apartment Market Overview - The U.S. apartment market showed resilience in Q2, absorbing over 227,000 units, surpassing the peak leasing surge of 2021 and early 2022 [3] - National occupancy rose to 95.6% in June, an increase of 140 basis points year over year, despite muted rent growth of just 0.19% [4] Supply and Demand Dynamics - More than 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2, indicating a historically elevated supply [5] - Tech-driven markets like San Francisco and New York gained momentum, while tourism-dependent cities like Las Vegas and Orlando showed signs of weakness [6] Factors Impacting MAA - MAA's exposure to the Sunbelt region likely benefited from strong rental demand, supported by a pro-business environment and lower urban density [7] - Elevated new supply in several Sunbelt markets may have limited MAA's ability to increase rents or occupancy [8] Projections for MAA - MAA expects Q2 core FFO per share to range between $2.05 and $2.21, with a consensus estimate of $2.15 [10] - The Zacks Consensus Estimate for quarterly revenues is $552.21 million, reflecting a 1.06% increase year over year [13] - Same-store property net operating income is projected to decline by 0.6% year over year, with average physical occupancy expected to rise to 95.8% [13] Market Sentiment - MAA's activities have not instilled confidence among analysts, leading to a downward revision of the consensus estimate for core FFO per share to $2.15, indicating a year-over-year decline of 3.15% [14] - MAA currently holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -0.32%, suggesting limited potential for a positive surprise in FFO per share [15]

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no stock, option, or similar derivative positions held by the analyst in any of the mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not compensated beyond the platform [2] - The views expressed may not reflect those of the platform as a whole, and the analysts may not be licensed or certified [3]