MAA(US:MAA)2025-10-29 20:15Multifamily Portfolio Overview - As of September 30, 2025, the total multifamily portfolio consists of 102,566 units, with 96,568 in stabilized communities and 412 in development[1]. - The gross real assets for the total multifamily portfolio amount to $16,950,457, with Atlanta, GA representing 13.3% of the total[2]. - The company has a total of 1,827 units in lease-up/development communities, contributing to future revenue growth potential[1]. - As of September 30, 2025, MAA has a total of 2,412 active multifamily communities with a total development cost of $797 million, of which $543.16 million has been spent to date[9]. Revenue and Operating Income - Total operating revenues for the multifamily portfolio increased to $554,373, compared to $551,126 in the previous year, reflecting a slight growth[3]. - Net operating income for the total multifamily portfolio decreased by 0.4% to $338,309 from $339,565 year-over-year[3]. - Total Same Store Portfolio revenues decreased by 0.3% to $520.8 million, while NOI increased by 1.69%[6]. - The total net operating income (NOI) for the same-store portfolio was $584,231,000, reflecting a decrease of 2.4% year-over-year[8]. Occupancy and Rent Metrics - The average effective rent per unit for the total multifamily communities is $1,697, with a physical occupancy rate of 94.8%[2]. - The average physical occupancy for the nine months ended September 30, 2025 is 95.5%[5]. - The average occupancy rate for multifamily lease-up communities is 66.1%, with MAA Vale in Raleigh/Durham, NC achieving 90.8% occupancy[10]. - Average Effective Rent in Atlanta, GA decreased by 0.6% to $1,064.76 per unit compared to Q3 2024[6]. Expense Management - Property operating expenses for same-store communities rose by 2.3% to $198,833, driven by increases in personnel and utility costs[4]. - The company reported a 1.9% increase in expenses year-over-year, totaling $974,400,000[8]. - Orlando, FL experienced a significant 15.8% decrease in expenses to $11.55 million in Q3 2025[7]. Market Performance by Location - Atlanta, GA has the highest NOI contribution percentage at 11.7% with a physical occupancy of 95.2%[5]. - Dallas, TX shows an NOI contribution of 8.8% with a physical occupancy of 95.3%[5]. - Orlando, FL maintains a physical occupancy of 95.9% and an NOI contribution of 7.9%[5]. - The lowest NOI contribution is from Huntsville, AL at 0.9% with a physical occupancy of 92.5%[5]. Future Guidance and Strategic Initiatives - Future guidance indicates a cautious outlook, with expectations for continued fluctuations in rental income across different markets[8]. - Market expansion efforts are ongoing, with a focus on maintaining occupancy rates across various regions[8]. - The company is considering strategic acquisitions to bolster its portfolio and market presence[8]. - New product and technology developments are being explored to enhance operational efficiency and tenant satisfaction[8]. Financial Projections - Earnings per diluted common share for Full Year 2025 is projected to be between $4.18 and $4.30, with a midpoint of $4.24[18]. - Core FFO per diluted share is expected to range from $8.68 to $8.80, with a midpoint of $8.74[18]. - Average physical occupancy for the MAA Same Store Portfolio is forecasted to be between 95.50% and 95.70%, averaging 95.60%[18]. - Property revenue growth is anticipated to be between -0.25% and 0.15%, with a midpoint of -0.05%[18]. Debt and Financing - The total debt as of September 30, 2025, is $5,197.36 million, with 91.1% being fixed-rate debt at an effective interest rate of 3.8%[13]. - MAA's secured debt constitutes only 6.9% of total debt, indicating a strong reliance on unsecured financing[13]. - MAA's total unencumbered assets to total unsecured debt ratio is 340.6%, significantly exceeding the required 150%[16]. Dividend and Credit Ratings - Dividend per share for Q1 2025 is set at $1.5150, with similar distributions expected for subsequent quarters[19]. - The company maintains stable credit ratings with Fitch at A-, Moody's at A3, and S&P at A-[19].