MAA(MAA) - 2025 Q2 - Quarterly Results

Portfolio Statistics Total Multifamily Portfolio Overview 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] Total Multifamily Community Statistics 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] - The highest average effective rents are in Northern Virginia ($2,540) and Tampa, FL ($2,092)[2] Financial Performance Net Operating Income (NOI) Analysis 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] Same Store Portfolio Performance 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 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] 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 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] - Weakest performing markets by YoY NOI growth in Q2 2025 were Austin, TX (-11.6%) and Houston, TX (-11.4%)[6] Sequential Quarter (QoQ) Comparison 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] Year-to-Date (YTD) Comparison 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] - Worst performing markets by YTD NOI growth were Austin, TX (-7.8%) and Jacksonville, FL (-6.6%)[8] Development and Investment Activity Development and Lease-Up Pipeline 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] Redevelopment and Repositioning Programs 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] - Spent $12.4 million in H1 2025 on strategic programs: $5.2 million for WiFi Retrofits and $7.2 million for Property Repositioning[9] Acquisition and Disposition Activity 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] - Disposed of two properties in Columbia, SC (Fairways and TPC Columbia) totaling 576 units in March 2025[11] Capital Structure and Debt Profile Debt Summary 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] Debt Maturities and Covenants 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][14] 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 Key Guidance Metrics 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] Reconciliation of EPS to Core FFO and Core AFFO 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 Credit Ratings and Stock Information 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] 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 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][21]