MAA says concessions in the 5-week range on Q4 earnings call

Core Insights - Apartment supply in the Sun Belt negatively impacted MAA in Q4 2025, with same-store revenues declining by 0.1% year over year and net operating income decreasing by 0.5% during the period [1] Market Conditions - Approximately two-thirds of MAA's competitors are providing concessions, averaging around five weeks, which increases to eight to ten weeks for lease-ups [2] - Despite broader economic concerns, MAA executives anticipate a recovery in demand for their region, indicating optimism for the upcoming year [3] Financial Performance - Rent-to-income ratios have improved, making rents more affordable, with new apartment deliveries sharply declining by over 60% in 2026 compared to peak levels [4] - MAA expects the creation of 340,000 to 350,000 jobs in its markets this year, while apartment completions are projected to be about half that number, indicating an improving job-to-completion ratio [4] Regional Performance - Richmond, Virginia; Kansas City, Missouri; and Greenville, South Carolina showed strong performance in Q4, with same-store revenue rates increasing by 4.2%, 3%, and 2.9% year over year, respectively [6] - MAA's mid-tier markets, particularly in Virginia and South Carolina, are outperforming the overall portfolio, with strong pricing power and occupancy rates [6] - Atlanta and Dallas, MAA's two largest markets, are also showing steady progress in pricing and occupancy, with significant year-over-year improvements in Q4 [6]