Core Insights - Mid-America Apartment Communities (MAA) reported Q2 2025 core funds from operations (FFO) per share of $2.15, exceeding the Zacks Consensus Estimate of $2.14 but down 3.15% from $2.22 year over year [1][8] - The company experienced a decline in same-store revenues, with average effective rent per unit decreasing year over year, although resident turnover remained low [1][4] Financial Performance - Rental and other property revenues for Q2 totaled $549.9 million, missing the Zacks Consensus Estimate by 0.4% but up 0.6% from the previous year [2] - Same-store portfolio revenues fell 0.3% year over year, with average effective rent per unit declining by 0.5% [3] - Property operating expenses for the same-store portfolio increased by 3.8% year over year, leading to a 2.6% drop in net operating income (NOI) [3][8] Occupancy and Lease Rates - The average physical occupancy for the same-store portfolio was 95.4%, slightly below the estimate of 95.7% [3] - Resident turnover in the same-store portfolio was historically low at 41.0%, with only 11.0% related to buying single-family homes [4] - The same-store effective blended lease rate growth was 0.5%, while the effective new lease rate dropped 4.8% and the effective renewal lease rate increased by 4.7% [4] Development Activities - In June 2025, MAA acquired a land parcel in Charleston, SC, and began construction on a 336-unit multifamily apartment community [5] - As of June 30, 2025, MAA had eight communities under development with total expected costs of $942.5 million, alongside four recently completed and two recently acquired communities in lease-up costing $573.9 million [5] Balance Sheet and Debt Position - MAA ended Q2 2025 with cash and cash equivalents of $54.5 million, up from $43 million at the end of 2024 [6] - The company had a strong balance sheet with $1.0 billion in combined cash and capacity under its unsecured revolving credit facility and a net debt/adjusted EBITDAre ratio of 4 times [6] - Total outstanding debt was $5 billion, with an average maturity of 6.7 years [6] 2025 Guidance - MAA projects Q3 2025 core FFO per share between $2.08 and $2.24, with a midpoint of $2.16, aligning with the Zacks Consensus Estimate of $2.17 [9] - The company revised its 2025 core FFO per share guidance to a range of $8.65 to $8.89, with the midpoint unchanged at $8.77 [9] - Same-store property revenue growth is anticipated between -0.20% and 0.40%, with operating expense growth expected between 1.75% and 2.75% [10]