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]

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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]