MAA(US:MAA)2025-10-30 20:16Financial Performance - For the three months ended September 30, 2025, net income available for MAA common shareholders was $98.6 million, a 13.7% decrease compared to $114.3 million for the same period in 2024[116]. - Net income available for MAA common shareholders for the nine months ended September 30, 2025 was $386.6 million, a 7.9% increase compared to $358.1 million for the same period in 2024[132]. - As of September 30, 2025, net income was $570.4 million, an increase from $541.6 million as of December 31, 2024[150]. - Core Funds from Operations (Core FFO) for the nine months ended September 30, 2025 was $780.8 million, a decrease of $16.8 million compared to $797.6 million for the same period in 2024[144]. Revenue and Occupancy - Total revenue for the three months ended September 30, 2025 increased by $3.2 million, representing a 0.6% increase in property revenues compared to the same period in 2024[124]. - Total property revenues for the nine months ended September 30, 2025 were $1,653.6 million, a 0.8% increase from $1,641.2 million in the same period in 2024[133]. - Same Store segment revenues decreased by 0.2% to $1,558.6 million for the nine months ended September 30, 2025, primarily due to a 0.5% decrease in average effective rent per unit[133]. - Average effective rent per unit for the Same Store segment decreased to $1,693, a 0.4% decrease from $1,700 for the three months ended September 30, 2024[118]. - Average physical occupancy for the Same Store segment was 95.6%, slightly down from 95.7% for the same period in 2024[119]. - Resident turnover for the Same Store segment was 40.2%, down from 42.8% as of September 30, 2024[120]. - The Non-Same Store and Other segment generated a revenue increase of 16.2% to $33.5 million for the three months ended September 30, 2025, primarily due to completed units in development communities[125]. - Non-Same Store and Other segment revenues increased by 18.7% to $94.9 million for the nine months ended September 30, 2025, driven by revenues from completed units in development communities and recently acquired communities[133]. Expenses - Property operating expenses for the Same Store segment increased by 2.3% to $198.8 million for the three months ended September 30, 2025, driven by increases in personnel, utilities, and property tax expenses[127]. - Property operating expenses for the nine months ended September 30, 2025 were $632.1 million, an increase of 2.7% compared to $615.2 million for the same period in 2024[134]. - Depreciation and amortization expense for the three months ended September 30, 2025 was $156.7 million, an increase of $9.9 million compared to the same period in 2024[128]. - Depreciation and amortization expense for the nine months ended September 30, 2025 was $462.5 million, an increase of $27.8 million compared to the same period in 2024[135]. - Interest expense for the nine months ended September 30, 2025 was $136.5 million, an increase of $12.2 million compared to the same period in 2024, driven by a higher average outstanding debt balance and an increase of 11 basis points in the effective interest rate[137]. Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2025 were $816.5 million, a decrease of $42.7 million from the same period in 2024[155]. - Net cash used in investing activities was $492.7 million for the nine months ended September 30, 2025, a decrease of $158.9 million compared to the same period in 2024[156]. - Net cash used in financing activities was $334.6 million for the nine months ended September 30, 2025, an increase of $136.0 million compared to the same period in 2024[157]. - Total debt as of September 30, 2025 was $5,197.4 million, with an average effective rate of 3.8%[158]. - Net debt increased to $5,165.1 million as of September 30, 2025, up by $227.2 million from $4,937.9 million as of December 31, 2024[150]. - The net debt to Adjusted EBITDAre ratio was 4.2x as of September 30, 2025, compared to 4.0x as of December 31, 2024[150]. Future Outlook and Commitments - The company expects to meet cash requirements through net cash flows from operating activities, existing cash, and future borrowings[152]. - The company expects to pay quarterly dividends at an annual rate of $6.06 per share of common stock during the year ending December 31, 2025[173]. - The company committed to make additional capital contributions totaling up to $22.4 million to technology-focused limited partnerships[170]. Market Conditions and Risks - Demand for apartments remained solid, supported by strong renewal pricing and stable occupancy, although potential economic pressures could impact future rent collections[122]. - MAALP experienced inflationary pressures during the nine months ended September 30, 2025, leading to higher operating expenses[175]. - As of September 30, 2025, the company had $463.0 million of variable rate debt outstanding under its commercial paper program, indicating exposure to elevated interest rates[123]. - As of September 30, 2025, 91.1% of MAALP's outstanding debt was subject to fixed rates, mitigating interest rate risk[177].