MAA(US:MAA) ZACKS·2025-10-30 15:21Core Insights - Mid-America Apartment Communities (MAA) reported Q3 2025 core funds from operations (FFO) per share of $2.16, missing the Zacks Consensus Estimate of $2.17 and reflecting a 2.3% year-over-year decline [1][10] - The company experienced a decrease in same-store revenues and average effective rent per unit, although resident turnover remained low [1][4] Financial Performance - Rental and other property revenues for Q3 totaled $554.4 million, slightly below the Zacks Consensus Estimate of $556.1 million but marginally higher than the previous year's figure [2] - Same-store portfolio revenues fell 0.3% year-over-year, with average effective rent per unit declining by 0.4% [3] - Property operating expenses for the same-store portfolio increased by 2.3% year-over-year, leading to a 1.8% drop in net operating income (NOI) [3] Occupancy and Lease Rates - The average physical occupancy for the same-store portfolio was 95.6%, slightly above the estimate of 95.5% [3] - Resident turnover in the same-store portfolio was historically low at 40.2%, attributed to low move-outs for single-family home purchases [4] - The same-store effective blended lease rate growth was 0.3%, with new lease rates dropping 5.2% and renewal lease rates increasing by 4.5% [4] Portfolio Activity - MAA acquired a multi-family apartment community with 318 units in Kansas City in August 2025 and a land parcel for future development [5] - In October 2025, MAA purchased land in Phoenix, AZ, for a new 280-unit multi-family apartment community [5] - As of September 30, 2025, MAA had seven communities under development with expected costs of $797 million [6] Balance Sheet Position - MAA ended Q3 2025 with cash and cash equivalents of $32.2 million, down from $54.5 million as of June 30, 2025 [7] - The company had a strong balance sheet with $814.7 million in cash and available capacity under its unsecured revolving credit facility, which was increased to $1.5 billion in October 2025 [8] - MAA's net debt/adjusted EBITDAre ratio was 4.2 times, with total outstanding debt of $5.2 billion and an average maturity of 6.3 years [9] 2025 Guidance - MAA revised its 2025 core FFO per share guidance to a range of $8.68-$8.80, with the midpoint adjusted to $8.74 [11] - The company anticipates same-store property revenue growth of -0.25% to 0.15%, with operating expense growth expected between 1.80%-2.60% [12] - Same-store NOI is projected to decrease between 1.90% and 0.40%, with the midpoint remaining at a drop of 1.15% [12]