Core Points - MAA is set to release its second quarter 2025 results on July 30, 2025, after market close [1] - A conference call will be held on July 31, 2025, at 9:00 a.m. Central Time to discuss performance and answer questions [1] - The conference call can be accessed via specific domestic and international numbers, with a Conference ID provided [2] - A live webcast of the conference call will be available on the company's website, along with an audio archive post-call [3] Company Overview - MAA is an S&P 500 company and a self-administered real estate investment trust (REIT) [4] - The company focuses on delivering strong, full-cycle investment performance through the ownership, management, acquisition, development, and redevelopment of apartment communities [4] - MAA primarily operates in the Southeast, Southwest, and Mid-Atlantic regions of the United States [4]

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Sunbelt is noted to be lagging behind other regions in terms of fundamentals [1] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income and focusing on capital preservation [2] - The Conservative Income Portfolio is run in partnership with Preferred Stock Trader and features two income-generating portfolios along with a bond ladder [2]

Core Viewpoint - Mid-America Apartment (MAA) is positioned to benefit from a diversified portfolio focused on the Sun Belt region, with redevelopment and technology initiatives expected to enhance margins, although high rental unit supply and interest expenses pose challenges [2][9]. Group 1: Company Strengths - MAA has a well-balanced and diverse portfolio across the Southeast, Southwest, and Mid-Atlantic regions, which mitigates risks from economic downturns and supports consistent revenue generation. The projected average physical occupancy for 2025 is 95.8% [3]. - The company is actively pursuing opportunistic investments to optimize its product mix, with seven communities under development, totaling 2,312 units at a projected cost of $851.5 million [4]. - MAA is focused on three internal investment initiatives: interior redevelopments, property repositioning, and Smart Home installations, with expenditures of $6.7 million, $4.1 million, and $3.2 million respectively in Q1 2025, aimed at enhancing portfolio quality [5]. - The company maintains a solid balance sheet with low leverage, having $1.0 billion in cash and available credit as of March 31, 2025, and a low net debt/adjusted EBITDAre ratio of 4 [6]. - MAA has demonstrated a commitment to dividend payouts, increasing its dividend seven times over the past five years, with a five-year annualized growth rate of 11.12% [7]. Group 2: Company Challenges - Despite signs of recovery in lease rates, MAA anticipates supply pressures to persist until late 2025, which may hinder its ability to attract renters and pressure rent growth [8]. - The company faces a significant debt burden, with total debt amounting to $5 billion as of March 31, 2025, and an estimated 8% year-over-year increase in interest expenses for 2025 [10]. - MAA's shares have declined by 2.3% over the past month, underperforming the industry, and the downward revision trend for 2025 FFO per share suggests limited upside potential in the near term [11].

MAA Overview - MAA is a strong performance platform with a total market capitalization of $252 billion and approximately 104,000 apartment units [11] - MAA has a 10-year annual compounded TSR of 112% and has paid 126 consecutive quarterly cash dividends [11] - The company's forecasted core FFO per share for 2025 is $877, representing the midpoint of the guidance range [13, 18] Market Dynamics and Portfolio Strategy - Move-ins from non-MAA states remain steady, with 50% coming from peer coastal/gateway states [29, 32] - The average US housing shortage is 31 million homes, and the average house price in MAA markets is $435,000 as of March 31, 2025 [35, 36] - MAA's top 10 markets account for 74% of NOI, with 26% from mid-tier markets [51] Capital Allocation and Growth Initiatives - MAA expects to maintain a development pipeline of approximately $1 billion [74] - The company anticipates $22 million in expected total stabilized incremental NOI from 2025 development starts [74] - Unit redevelopment program aims for approximately 5,500 to 6,500 units in 2025, with average rent increases of 70% to 90% [90] Financial Position and Outlook - MAA's debt plus preferred to total capitalization is 202%, with 94% of total debt at a fixed rate [117, 124] - The company's 2025 full-year guidance midpoint for core FFO/share is between $861 and $893 [142] - MAA projects acquisitions between $350 million and $450 million and dispositions between $300 million and $350 million for 2025 [146]

Summary of Mid-America Apartment Communities (MAA) 2025 Conference Call Company Overview - **Company**: Mid-America Apartment Communities (MAA) - **Type**: S&P 500 multifamily focused Real Estate Investment Trust (REIT) - **History**: 31 years of operation in high-demand markets, primarily in the Sunbelt region of the U.S. [2][3] Core Insights and Arguments Market Dynamics - **Valuation Gap**: There is a significant valuation gap between public and private markets, with cap rates in the private market around 4.5% to 4.75%, while MAA is trading in the mid to high 5% cap rate range, indicating potential for price adjustment [4] - **Supply and Demand**: Despite facing a 50-year high level of supply, MAA's Net Operating Income (NOI) only decreased by 1.4%, showcasing resilience [5][6] - **Absorption Rates**: The absorption of new units has exceeded supply in the last three quarters, indicating strong demand despite high supply levels [9][22] - **Migration Trends**: Positive net migration into the Sunbelt region is approximately 7%, contributing to strong demand [10] Economic Factors - **Job Growth**: Job growth in the Sunbelt is double that of other regions, with strong wage growth supporting demand for rental units [11] - **Housing Affordability**: Single-family housing prices have increased over 50% in the last five years, making multifamily options more attractive [12] Supply Trends - **Declining Deliveries**: Supply is expected to decrease by 40% to 50% compared to the previous year, particularly in the second half of the year [12] - **Construction Starts**: Construction starts have dropped significantly, with Q1 2025 starts being 80% less than the peak in mid to late 2022 [20] Financial Performance - **Earnings Growth**: MAA is focused on internal and external growth, with a development pipeline of approximately $850 million and plans to increase it to $1 billion to $1.2 billion [15] - **Operating Expenses**: The company is managing operating expenses effectively, with locked-in contracts for supplies and maintenance [29] Future Outlook - **Rent Growth Potential**: MAA anticipates a favorable environment for rent growth, projecting mid to high single-digit growth rates in the coming years [46] - **Resilience in Downturns**: Historical performance indicates that MAA outperforms during economic downturns, supported by diversification across markets and product types [48][49] Additional Important Points - **Technology Investments**: MAA is increasing investments in technology and innovation to drive efficiencies and improve customer service, aiming for an additional $50 million to $55 million in NOI from these initiatives over the next five years [17][18] - **Market Performance**: Specific markets like Tampa are showing positive momentum, while Austin and Phoenix are lagging due to high supply levels [24][27] - **Balance Sheet Strength**: MAA maintains a strong balance sheet with a debt to EBITDA ratio of four times, aiming to increase it to 4.5 to 5 times to support growth [32] This summary encapsulates the key points discussed during the conference call, highlighting MAA's strategic focus, market dynamics, and future growth potential.

Core Viewpoint - Investing in real estate, particularly through Real Estate Investment Trusts (REITs), offers a straightforward way to generate passive income with minimal effort [2][16] Group 1: Agree Realty - Agree Realty focuses on acquiring and developing high-quality retail properties leased to financially strong retailers, with 68.3% of its rent coming from tenants with investment-grade credit [4][6] - The company has a monthly dividend yield of over 4% and has grown its payout at a 5.5% compound annual rate over the past decade [5][6] - Agree Realty maintains a low dividend payout ratio of 72% of its adjusted funds from operations, allowing for cash retention for further investments [6] Group 2: Prologis - Prologis is one of the largest REITs globally, specializing in logistics properties leased under long-term contracts, providing steady rental income [8][10] - The company benefits from strong demand for warehouse space, allowing for new leases at higher market rates, which is expected to drive net operating income growth [9][11] - Prologis has delivered a 13% compound annual dividend growth over the past five years, outperforming the S&P 500 and the REIT sector average [11] Group 3: Mid-America Apartment Communities - Mid-America Apartment Communities is a major apartment landlord in the U.S., owning over 104,000 apartment homes, primarily in the Sun Belt region [12][14] - The REIT has a history of 125 consecutive quarterly dividends, demonstrating a strong record of dividend stability and growth [13] - The company is investing $657.3 million into properties currently in the lease-up phase and plans to spend another $851.5 million on additional development projects [14][15] Group 4: Investment Opportunities - Top REITs like Agree Realty, Prologis, and Mid-America Apartment Communities possess high-quality real estate portfolios and strong financial profiles, enabling them to pay lucrative and growing dividends [16]

Group 1 - Mid-America Apartment Communities, Inc. (MAA) will present at the Nareit REITweek: 2025 Investor Conference on June 4, 2025, from 8:45 a.m. ET to 9:15 a.m. ET [1] - The presentation will be available via a live webcast, with access to materials on the company's website [2] - MAA is a self-administered real estate investment trust (REIT) and a member of the S&P 500, focusing on apartment communities primarily in the Southeast, Southwest, and Mid-Atlantic regions of the U.S. [3]

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]

Group 1 - The article focuses on a currently overvalued listed preferred stock, highlighting its unattractive yields relative to other investments [1] - The purpose of the series is to identify preferred stocks that may not provide favorable returns for investors [1] Group 2 - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [2] - It clarifies that no specific investment advice is being provided, and opinions expressed may not represent the views of the entire platform [2]

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Presents the unaudited condensed consolidated financial statements for MAA and MAALP for the quarter ended March 31, 2025 [Mid-America Apartment Communities, Inc. Financial Statements](index=6&type=section&id=Mid-America%20Apartment%20Communities%2C%20Inc.%20Financial%20Statements) MAA reported net income of $180.8 million, a significant increase driven by a $71.9 million gain on real estate sales MAA Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Real estate assets, net | $11,505,864 | $11,515,418 | | Total assets | $11,811,957 | $11,812,369 | | Total liabilities | $5,654,062 | $5,664,705 | | Total equity | $6,133,470 | $6,125,434 | MAA Condensed Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Rental and other property revenues | $549,295 | $543,622 | | Net income | $186,406 | $147,610 | | Net income available for MAA common shareholders | $180,751 | $142,827 | | Earnings per common share - diluted | $1.54 | $1.22 | MAA Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196,618 | $200,257 | | Net cash used in investing activities | ($61,405) | ($93,012) | | Net cash used in financing activities | ($122,520) | ($94,260) | [Mid-America Apartments, L.P. Financial Statements](index=10&type=section&id=Mid-America%20Apartments%2C%20L.P.%20Financial%20Statements) MAALP's financial results mirror MAA's operationally, with key differences in the capital section detailing partner capital MAALP Condensed Consolidated Statement of Operations Highlights (in thousands, except per unit data) | Account | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Rental and other property revenues | $549,295 | $543,622 | | Net income | $186,406 | $147,610 | | Net income available for MAALP common unitholders | $185,484 | $146,688 | | Earnings per common unit - diluted | $1.54 | $1.22 | - MAALP's balance sheet is identical to MAA's in terms of total assets and liabilities, with the primary difference in the equity section, which is presented as **'Operating Partnership capital' totaling $6.13 billion**[25](index=25&type=chunk) - The cash flow statements for MAALP are identical to those of MAA, reflecting that all business operations are conducted through the Operating Partnership[32](index=32&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details the company's UPREIT structure, asset portfolio, debt of $5.04 billion, and a 0.6% decrease in Same Store NOI - As of March 31, 2025, the Company owned and operated **291 apartment communities** and had seven development communities under construction[37](index=37&type=chunk) Outstanding Debt Summary as of March 31, 2025 (in thousands) | Debt Type | Balance | Weighted Average Effective Rate | | :--- | :--- | :--- | | Unsecured debt | $4,681,868 | 3.8% | | Secured debt | $360,298 | 4.4% | | **Total outstanding debt** | **$5,042,166** | **3.8%** | - In March 2025, the company sold two multifamily communities for net proceeds of approximately **$81 million**, resulting in a **gain of about $72 million**[92](index=92&type=chunk) - The company is a defendant in the **'RealPage Litigation'** but believes the litigation is without merit and plans to defend itself vigorously[83](index=83&type=chunk) Segment Net Operating Income (NOI) (in thousands) | Segment | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Same Store NOI | $332,795 | $334,644 | -0.6% | | Non-Same Store and Other NOI | $15,147 | $11,176 | +35.5% | | **Total NOI** | **$347,942** | **$345,820** | **+0.6%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses a 26.6% net income increase, flat Same Store revenue, and a stable leverage profile amid market headwinds [Overview and Trends](index=33&type=section&id=Overview%20and%20Trends) Net income rose to $180.8 million due to asset sales, while Same Store revenue was flat amid challenging market conditions - Net income available for MAA common shareholders for Q1 2025 was **$180.8 million**, compared to $142.8 million for Q1 2024, largely due to a **$71.9 million gain on asset sales**[101](index=101&type=chunk) Same Store Operating Trends - Q1 2025 vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue Growth | 0.1% | N/A | | Average Effective Rent per Unit | $1,690 | $1,699 | | Average Physical Occupancy | 95.6% | 95.3% | | Resident Turnover (TTM) | 41.5% | 44.4% | - Management believes that while elevated new supply levels are currently impacting rent growth, **solid demand and an expected decline in new supply deliveries** will lead to a strong rebound[108](index=108&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Total property revenues increased 1.0% to $549.3 million, driven by the Non-Same Store segment, while expenses rose 1.8% Property Revenues by Segment - Q1 2025 vs Q1 2024 (in thousands) | Segment | 2025 | 2024 | % Increase | | :--- | :--- | :--- | :--- | | Same Store | $518,825 | $518,533 | 0.1% | | Non-Same Store and Other | $30,470 | $25,089 | 21.4% | | **Total** | **$549,295** | **$543,622** | **1.0%** | Property Operating Expenses by Segment - Q1 2025 vs Q1 2024 (in thousands) | Segment | 2025 | 2024 | % Increase | | :--- | :--- | :--- | :--- | | Same Store | $186,030 | $183,889 | 1.2% | | Non-Same Store and Other | $15,323 | $13,913 | 10.1% | | **Total** | **$201,353** | **$197,802** | **1.8%** | - Interest expense increased by **$4.8 million to $45.2 million** in Q1 2025, driven by a higher average debt balance and interest rate[115](index=115&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) Core FFO decreased slightly to $264.3 million, while the net debt to Adjusted EBITDAre ratio remained stable at 4.0x Reconciliation to Core FFO (in thousands) | Line Item | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net income available for MAA common shareholders | $180,751 | $142,827 | | FFO attributable to common shareholders and unitholders | $264,728 | $288,436 | | **Core FFO attributable to common shareholders and unitholders** | **$264,262** | **$266,169** | Net Debt to Adjusted EBITDAre Ratio | Metric | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Net Debt (in thousands) | $4,986,390 | $4,937,939 | | Adjusted EBITDAre (TTM, in thousands) | $1,250,143 | $1,247,150 | | **Net Debt to Adjusted EBITDAre Ratio** | **4.0x** | **4.0x** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $1.0 billion in available capacity and total debt of $5.04 billion - As of March 31, 2025, the company had **$1.0 billion of combined unrestricted cash and available capacity** under its revolving credit facility[137](index=137&type=chunk) - Cash flow from operations decreased by **$3.6 million to $196.6 million** for Q1 2025 compared to Q1 2024[138](index=138&type=chunk) - Material cash requirements for the remainder of 2025 include **$710 million in principal debt obligations**, funding for seven development projects, and quarterly dividends[64](index=64&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) Debt Maturity Schedule Highlights (in thousands) | Year | Total Maturity | | :--- | :--- | | 2025 | $709,538 | | 2026 | $298,937 | | 2027 | $598,317 | | 2028 | $398,063 | | 2029 | $555,977 | [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's primary market risk is interest rate risk, which is mitigated by using 93.9% fixed-rate debt - The company's main market risk exposure is from changes in interest rates on its borrowings[156](index=156&type=chunk) - As of March 31, 2025, **93.9% of the company's outstanding debt carried a fixed interest rate**, minimizing exposure to interest rate volatility[156](index=156&type=chunk) - There were **no material changes** in the company's market risk profile during the quarter ended March 31, 2025[156](index=156&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures for both MAA and MAALP were effective as of March 31, 2025 - For both MAA and MAALP, management concluded that **disclosure controls and procedures were effective** as of March 31, 2025[157](index=157&type=chunk)[160](index=160&type=chunk) - **No changes occurred** during the quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting[158](index=158&type=chunk)[161](index=161&type=chunk) [PART II – OTHER INFORMATION](index=48&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in legal proceedings, notably the 'RealPage Litigation,' as detailed in the financial statement notes - The company incorporates by reference the disclosure regarding legal proceedings from **Note 10** of the condensed consolidated financial statements[163](index=163&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors.) No material changes were reported to the risk factors disclosed in the 2024 Annual Report on Form 10-K - **No material changes** to risk factors were reported for the quarter ended March 31, 2025, compared to the Annual Report on Form 10-K for the year ended December 31, 2024[164](index=164&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased 8,406 shares to satisfy employee tax obligations, not as part of a public buyback program MAA Common Stock Repurchases - Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 8,406 | $154.86 | | Feb 1 - Feb 28, 2025 | — | — | | Mar 1 - Mar 31, 2025 | — | — | | **Total** | **8,406** | **N/A** | - The repurchased shares were surrendered by employees to satisfy statutory minimum tax obligations from vesting restricted shares, **not as part of a publicly announced plan**[165](index=165&type=chunk) [Other Information](index=49&type=section&id=Item%205.%20Other%20Information.) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2025 - **No director or officer** adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during Q1 2025[168](index=168&type=chunk)[169](index=169&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including required CEO and CFO certifications - The report includes various exhibits, such as **CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act, and Interactive Data Files[171](index=171&type=chunk)