MAA REPORTS SECOND QUARTER 2025 RESULTS

Yahoo

30-07-2025

GERMANTOWN, Tenn., July 30, 2025 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three months ended June 30, 2025.
Three months ended June 30,
Six months ended June 30,2025
2024
2025
2024Earnings per common share - diluted (1)$
0.92
$
0.86
$
2.46
$
2.09
Funds from operations (FFO) per Share - diluted (1)$
2.19
$
2.06
$
4.39
$
4.47
Core FFO per Share - diluted (1)$
2.15
$
2.22
$
4.35
$
4.44(1)
A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO is found later in this release.
Brad Hill, President and Chief Executive Officer, said, "Second quarter Core FFO results exceeded our expectations. Despite increased macroeconomic uncertainty, we are encouraged by the record demand for rental housing that persists in our markets, leading to second quarter blended lease performance 40 bps higher than last year. Our uniquely diversified portfolio, backed by a strong operating and resident service platform, delivered record resident retention and robust renewal pricing, resulting in strong occupancy and a 100 bps sequential improvement in Same Store blended pricing. As we move further from the peak level of supply reached in 2024, the strengthening demand/supply dynamic coupled with our growing development pipeline, which is nearing $1 billion, should support robust revenue and earnings performance and enhance long-term value creation."
During the second quarter of 2025, MAA's Same Store effective blended lease rate growth was 0.5%. On a sequential basis, the 100 basis point improvement in Same Store effective blended lease rate growth was driven by a 150 basis point improvement in new lease pricing and a 20 basis point improvement in renewal pricing from the first quarter of 2025.
As of June 30, 2025, resident turnover in the Same Store Portfolio remained historically low at 41.0% with a record low level of move-outs associated with buying single family-homes of 11.0%.
During the second quarter of 2025, MAA began construction on a 336-unit multifamily apartment community located in Charleston, South Carolina. As of June 30, 2025, MAA had eight communities under development with total expected costs of $942.5 million. MAA also had four recently completed development communities and two recently acquired communities in lease-up with a total cost to date of $573.9 million.
Same Store Operating ResultsSame Store results for the three and six months ended June 30, 2025 as compared to the same period in the prior year are summarized below:
Three months ended June 30, 2025 vs. 2024Six months ended June 30, 2025 vs. 2024
Revenues(1)ExpensesNOI(2)Average Effective Rent per UnitRevenues(1)ExpensesNOI(2)Average Effective Rent per Unit
Same Store Operating Growth-0.3 %3.8 %-2.6 %-0.5 %-0.1 %2.5 %-1.6 %-0.5 %
(1)
Includes 2.4% increase in other property revenues.
(2)
A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, is found later in this release.
Same Store operating statistics for the three and six months ended June 30, 2025 are summarized below:
Three months ended June 30, 2025Six months ended June 30, 2025As of June 30, 2025
Average Effective Rent per Unit
Average Physical OccupancyAverage Effective Rent per Unit
Average Physical OccupancyResident Turnover
Same Store Operating Statistics$
1,690
95.4 %$
1,690
95.5 %41.0 %
Same Store net effective lease pricing statistics for the three and six months ended June 30, 2025 are summarized below:
Same Store Net Effective Lease Pricing StatisticsThree Months EndedJune 30, 2025Six Months EndedJune 30, 2025
Effective Blended Lease Rate Growth0.5 %0.2 %
Effective New Lease Rate Growth-4.8 %-5.4 %
Effective Renewal Lease Rate Growth4.7 %4.6 %
Development and Lease-up Activity
A summary of MAA's development communities under construction as of the end of the second quarter of 2025 is set forth below (dollars in thousands):Units as of
Development Costs as of
Expected ProjectTotal
June 30, 2025
June 30, 2025
Completions By YearDevelopmentExpected
Costs
ExpectedProjects (1)
Total
Delivered
Leased
Total
to Date
Remaining
2025
2026
2027
2028
82,648549248
$
942,500
$
616,296
$
326,2042411
(1)
Two of the development projects are currently leasing.
In June 2025, MAA closed on the acquisition of a land parcel located in Charleston, South Carolina through our pre-purchase development program and began construction on a 336-unit multifamily apartment community.
During the second quarter of 2025, MAA funded approximately $92 million of costs for current and planned development projects, including predevelopment activities.
A summary of the total units, physical occupancy and cost of MAA's lease-up communities as of the end of the second quarter of 2025 is set forth below (dollars in thousands):
Total
As of June 30, 2025Lease-Up
Total
Physical
CostsProjects (1)
Units
Occupancy
to Date
62,10180.7
%$
573,896
(1)
Three of the lease-up projects are expected to stabilize in the third quarter of 2025, two in the fourth quarter of 2025 and one in the second quarter of 2026.
During the second quarter of 2025, MAA completed the lease-up of MAA Boggy Creek, located in Orlando, Florida.
Balance Sheet and Financing Activities
As of June 30, 2025, MAA had $1.0 billion of combined cash and available capacity under MAALP's unsecured revolving credit facility. MAALP is a reference to MAA's operating partnership, Mid-America Apartments, L.P.
Dividends and distributions paid on shares of common stock and noncontrolling interests during the second quarter of 2025 were $181.8 million, as compared to $176.3 million for the same period in the prior year.
Balance sheet highlights as of June 30, 2025 are summarized below (dollars in billions):
Total debt to adjusted total assets (1)Net Debt/Adjusted EBITDAre (2)Total debt outstanding
Average effective interest rateFixed rate debt as a % of total debtTotal debt average years to maturity28.9 %4.0x$
5.0
3.8 %93.8 %
6.7
(1)
As defined in the covenants for the bonds issued by MAALP.
(2)
Adjusted EBITDAre is calculated for the trailing twelve month period ended June 30, 2025. A reconciliation of Unsecured notes payable, net and Secured notes payable, net to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.
126th Consecutive Quarterly Common Dividend Declared
MAA declared its 126th consecutive quarterly common dividend, which will be paid on July 31, 2025 to holders of record on July 15, 2025. The current annual dividend rate is $6.06 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA's financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA's Board of Directors deems relevant. MAA's Board of Directors may modify the dividend policy from time to time.
2025 Earnings and Same Store Guidance
MAA is updating its prior 2025 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to provide updates to its 2025 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.
FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT's, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
2025 GuidancePrevious RangePrevious Midpoint
Revised RangeRevised Midpoint
Earnings:Full Year 2025Full Year 2025
Full Year 2025Full Year 2025
Earnings per common share - diluted$5.51 to $5.83$5.67
$5.25 to $5.49$5.37
Core FFO per Share - diluted$8.61 to $8.93$8.77
$8.65 to $8.89$8.77
Core AFFO per Share - diluted$7.63 to $7.95$7.79
$7.67 to $7.91$7.79
MAA Same Store Portfolio:Property revenue growth-0.35% to 1.15%0.40 %
-0.20% to 0.40%0.10 %
Property operating expense growth2.45% to 3.95%3.20 %
1.75% to 2.75%2.25 %
NOI growth-2.15% to -0.15%-1.15 %
-1.90% to -0.40%-1.15 %
MAA expects Core FFO for the third quarter of 2025 to be in the range of $2.08 to $2.24 per diluted Share, or $2.16 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the second quarter of 2025 to the midpoint of MAA's guidance for the third quarter of 2025 is summarized below:
Core FFO per diluted ShareQ2 2025 per diluted Share reported results$
2.15Same Store NOI
0.02Development, Lease-up and Other Non-Same Store NOI
0.01Total overhead
(0.01)Interest expense and Other non-operating income (expense)
(0.01)Q3 2025 per diluted Share guidance midpoint$
2.16MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.
Supplemental Material and Conference CallSupplemental Data to this release can be found on the "For Investors" page of the MAA website at www.maac.com. MAA will host a conference call to further discuss second quarter results on July 31, 2025, at 9:00 AM Central Time. The conference call-in number is [phone]. You may also join the live webcast of the conference call by accessing the "For Investors" page of the MAA website at www.maac.com. MAA's filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.
About MAAMAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of June 30, 2025, MAA had ownership interest in 104,347 apartment units, including communities currently in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at [e-mail], or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.
Forward-Looking StatementsThis release (as well as the Supplemental Data to this release) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements do not discuss historical fact, but instead are statements related to expectations, projections, intentions, assumptions and beliefs regarding the future. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "forecasts," "projects," "assumes," "will," "may," "could," "should," "budget," "target," "outlook," "proforma," "opportunity," "guidance" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding quarterly and full year 2025 guidance (including earnings guidance, Same Store Portfolio guidance and other related projections and assumptions), development costs for our development communities, timelines for occupancy, completion and stabilization of our development communities, and timelines for stabilization of our lease-up communities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance, achievements or outcomes to be materially different from the future results, performance, achievements or outcomes expressed or implied by such forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such statements should not be regarded as a representation by us or any other person that the results, performance, achievements or outcomes described in such statements will be achieved.
The following factors, among others, could cause our actual results, performance, achievements or outcomes to differ materially from those expressed or implied in the forward-looking statements: adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions; adverse changes in real estate markets, including changes in supply and/or demand for multifamily housing or increased competition from alternative housing options; failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results; unexpected capital needs; material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors; losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits; ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures; level and volatility of interest or capitalization rates or capital market conditions; changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations; extreme weather and natural disasters; disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events; legal proceedings or class action lawsuits; and other risks identified in our annual report on Form 10-K for the year ended December 31, 2024, our quarterly reports on Form 10-Q and other reports we file with the SEC from time to time.
Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.
FINANCIAL HIGHLIGHTSDollars in thousands, except per share dataThree months ended June 30,
Six months ended June 30,2025
2024
2025
2024Rental and other property revenues$
549,902
$
546,435
$
1,099,197
$
1,090,057
Net income available for MAA common shareholders$
107,205
$
101,031
$
287,956
$
243,858
Total NOI (1)$
335,248
$
340,639
$
683,190
$
686,459
Earnings per common share: (2)
Basic$
0.92
$
0.86
$
2.46
$
2.09Diluted$
0.92
$
0.86
$
2.46
$
2.09
Funds from operations per Share - diluted: (2)
FFO (1)$
2.19
$
2.06
$
4.39
$
4.47Core FFO (1)$
2.15
$
2.22
$
4.35
$
4.44Core AFFO (1)$
1.85
$
1.92
$
3.89
$
3.98
Dividends declared per common share$
1.5150
$
1.4700
$
3.0300
$
2.9400
Dividends/Core FFO (diluted) payout ratio
70.5
%
66.2
%
69.7
%
66.2
%
Dividends/Core AFFO (diluted) payout ratio
81.9
%
76.6
%
77.9
%
73.9
%Consolidated interest expense$
45,111
$
41,265
$
90,272
$
81,626Debt discount and debt issuance cost amortization
(1,624)(1,213)(3,241)(3,055)Capitalized interest
5,0483,72410,1537,140Total interest incurred$
48,535
$
43,776
$
97,184
$
85,711(1)
The following reconciliations are found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
(2)
See the "Share and Unit Data" section for additional information.
Dollars in thousands, except share priceJune 30, 2025
December 31, 2024Gross Assets (1)$
17,466,996
$
17,170,171Gross Real Estate Assets (1)$
17,228,793
$
16,924,002Total debt$
5,048,143
$
4,980,957Common shares and units outstanding
120,021,067119,958,973Share price$
148.01
$
154.57Book equity value$
6,090,400
$
6,147,664Market equity value$
17,764,318
$
18,542,058Net Debt/Adjusted EBITDAre (2)4.0x
4.0x(1)
Reconciliations of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets are found later in this release.
(2)
Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. The following reconciliations are found later in this release: (i) Unsecured notes payable, net and Secured notes payable, net to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.
CONSOLIDATED STATEMENTS OF OPERATIONS Dollars in thousands, except per share data (Unaudited)Three months ended June 30,
Six months ended June 30,2025
2024
2025
2024Revenues:
Rental and other property revenues$
549,902
$
546,435
$
1,099,197
$
1,090,057Expenses:
Operating expenses, excluding real estate taxes and insurance
132,465126,213257,420244,412Real estate taxes and insurance
82,18979,583158,587159,186Depreciation and amortization
153,521145,022305,871288,042Total property operating expenses
368,175350,818721,878691,640Property management expenses
17,51117,20138,08937,196General and administrative expenses
12,81312,67128,43229,716Interest expense
45,11141,26590,27281,626Loss (gain) on sale of depreciable real estate assets
6923(71,842)25Other non-operating (income) expense
(4,722)19,244(5,556)(4,282)Income before income tax expense
110,945105,213297,924254,136Income tax expense
(600)(1,020)(1,638)(2,815)Income from continuing operations before real estate joint venture activity
110,345104,193296,286251,321Income from real estate joint venture
530469995951Net income
110,875104,662297,281252,272Net income attributable to noncontrolling interests
2,7482,7097,4816,570Net income available for shareholders
108,127101,953289,800245,702Dividends to MAA Series I preferred shareholders
9229221,8441,844Net income available for MAA common shareholders$
107,205
$
101,031
$
287,956
$
243,858
Earnings per common share - basic:
Net income available for common shareholders$
0.92
$
0.86
$
2.46
$
2.09
Earnings per common share - diluted:
Net income available for common shareholders$
0.92
$
0.86
$
2.46
$
2.09
SHARE AND UNIT DATA Shares and units in thousandsThree months ended June 30,
Six months ended June 30,2025
2024
2025
2024Net Income Shares (1)
Weighted average common shares - basic
116,976116,783116,908116,727Effect of dilutive securities
187—241—Weighted average common shares - diluted
117,163116,783117,149116,727Funds From Operations Shares And Units
Weighted average common shares and units - basic
119,950119,888119,932119,848Weighted average common shares and units - diluted
120,015119,944119,995119,901Period End Shares And Units
Common shares at June 30,
117,071116,858117,071116,858Operating Partnership units at June 30,
2,9503,0942,9503,094Total common shares and units at June 30,
120,021119,952120,021119,952(1)
For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated Financial Statements in MAA's Quarterly Report on Form 10-Q for the three months ended June 30, 2025, expected to be filed with the SEC on or about July 31, 2025.
CONSOLIDATED BALANCE SHEETSDollars in thousands (Unaudited)
June 30, 2025
December 31, 2024Assets
Real estate assets:
Land$
2,105,602
$
2,096,912Buildings and improvements and other
14,468,73314,160,799Development and capital improvements in progress
484,955470,282
17,059,29016,727,993Less: Accumulated depreciation
(5,631,399)(5,327,584)
11,427,89111,400,409Undeveloped land
73,35973,359Investment in real estate joint venture
41,66241,650Real estate assets, net
11,542,91211,515,418
Cash and cash equivalents
54,48243,018Restricted cash
13,63413,743Other assets
224,569232,426Assets held for sale
—7,764Total assets$
11,835,597
$
11,812,369
Liabilities and equity
Liabilities:
Unsecured notes payable, net$
4,687,813
$
4,620,690Secured notes payable, net
360,330360,267Accrued expenses and other liabilities
697,054683,748Total liabilities
5,745,1975,664,705
Redeemable common stock
21,13522,230
Shareholders' equity:
Preferred stock
99Common stock
1,1681,166Additional paid-in capital
7,431,6277,417,453Accumulated distributions in excess of net income
(1,535,340)(1,469,557)Accumulated other comprehensive loss
(6,110)(6,940)Total MAA shareholders' equity
5,891,3545,942,131Noncontrolling interests - Operating Partnership units
147,439155,409Total shareholders' equity
6,038,7936,097,540Noncontrolling interests - consolidated real estate entities
30,47227,894Total equity
6,069,2656,125,434Total liabilities and equity$
11,835,597
$
11,812,369
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FADAmounts in thousands, except per share and unit dataThree months ended June 30,
Six months ended June 30,2025
2024
2025
2024Net income available for MAA common shareholders$
107,205
$
101,031
$
287,956
$
243,858Depreciation and amortization of real estate assets
152,149143,623303,140285,214Loss (gain) on sale of depreciable real estate assets
6923(71,842)25MAA's share of depreciation and amortization of real estate assets of real estate joint venture
167154331309Net income attributable to noncontrolling interests
2,7482,7097,4816,570FFO attributable to common shareholders and unitholders
262,338247,540527,066535,976(Gain) loss on embedded derivative in preferred shares (1)
(1,693)9,286(1,283)(3,806)Loss (gain) on investments, net of tax (1)(2)
317685(337)(3,405)Casualty related (recoveries) charges, net (1)
(3,346)1,135(3,568)(3,950)Legal costs, settlements and (recoveries), net (1)(3)
—8,000—8,000Core FFO attributable to common shareholders and unitholders
257,616266,646521,878532,815Recurring capital expenditures
(35,343)(36,341)(55,449)(55,275)Core AFFO attributable to common shareholders and unitholders
222,273230,305466,429477,540Redevelopment capital expenditures
(15,435)(11,624)(32,844)(20,998)Revenue enhancing capital expenditures
(20,104)(25,629)(35,292)(38,642)Commercial capital expenditures
(2,755)(1,867)(6,729)(3,070)Other capital expenditures (4)
(12,048)(12,912)(27,489)(22,115)FAD attributable to common shareholders and unitholders$
171,931
$
178,273
$
364,075
$
392,715
Dividends and distributions paid$
181,814
$
176,304
$
363,581
$
352,495
Weighted average common shares - diluted
117,163116,783117,149116,727FFO weighted average common shares and units - diluted
120,015119,944119,995119,901
Earnings per common share - diluted:
Net income available for MAA common shareholders$
0.92
$
0.86
$
2.46
$
2.09
FFO per Share - diluted$
2.19
$
2.06
$
4.39
$
4.47Core FFO per Share - diluted$
2.15
$
2.22
$
4.35
$
4.44Core AFFO per Share - diluted$
1.85
$
1.92
$
3.89
$
3.98(1)
Included in Other non-operating (income) expense in the Consolidated Statements of Operations.
(2)
For the three months ended June 30, 2025 and 2024, loss on investments is presented net of tax benefit of $0.1 million and $0.2 million, respectively. For the six months ended June 30, 2025 and 2024, gain on investments is presented net of tax expense of $0.1 million and $0.9 million, respectively.
(3)
During the three and six months ended June 30, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
(4)
For the three and six months ended June 30, 2024, $0.9 million of reconstruction-related capital expenditures relating to storm costs that have been reimbursed through insurance coverage are excluded from other capital expenditures.
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME Dollars in thousandsThree Months Ended
Six Months EndedJune 30,2025
March 31,2025
June 30,2024
June 30,2025
June 30,2024Net income available for MAA common shareholders$
107,205
$
180,751
$
101,031
$
287,956
$
243,858Depreciation and amortization
153,521152,350145,022305,871288,042Property management expenses
17,51120,57817,20138,08937,196General and administrative expenses
12,81315,61912,67128,43229,716Interest expense
45,11145,16141,26590,27281,626Loss (gain) on sale of depreciable real estate assets
69(71,911)23(71,842)25Other non-operating (income) expense
(4,722)(834)19,244(5,556)(4,282)Income tax expense
6001,0381,0201,6382,815Income from real estate joint venture
(530)(465)(469)(995)(951)Net income attributable to noncontrolling interests
2,7484,7332,7097,4816,570Dividends to MAA Series I preferred shareholders
9229229221,8441,844Total NOI$
335,248
$
347,942
$
340,639
$
683,190
$
686,459Same Store NOI$
319,612
$
332,795
$
328,310
$
652,407
$
662,954Non-Same Store and Other NOI
15,63615,14712,32930,78323,505Total NOI$
335,248
$
347,942
$
340,639
$
683,190
$
686,459
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAreDollars in thousandsThree Months Ended
Twelve Months EndedJune 30, 2025
June 30, 2024
June 30, 2025
December 31, 2024Net income$
110,875
$
104,662
$
586,585
$
541,576Depreciation and amortization
153,521145,022603,445585,616Interest expense
45,11141,265177,190168,544Income tax expense
6001,0204,0635,240EBITDA
310,107291,9691,371,2831,300,976Loss (gain) on sale of depreciable real estate assets
6923(126,870)(55,003)Gain on consolidation of third-party development (1)
——(11,239)(11,239)Adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates
3513391,3841,363EBITDAre
310,527292,3311,234,5581,236,097(Gain) loss on embedded derivative in preferred shares (1)
(1,693)9,28621,27418,751Loss (gain) on investments (1)
397859(3,908)(7,809)Casualty related (recoveries) charges, net (1)
(3,346)1,135(8,944)(9,326)Legal costs, settlements and (recoveries), net (1)(2)
—8,0001,4379,437Adjusted EBITDAre$
305,885
$
311,611
$
1,244,417
$
1,247,150(1)
Included in Other non-operating (income) expense in the Consolidated Statements of Operations.
(2)
During the three months ended June 30, 2024 and twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
RECONCILIATION OF UNSECURED NOTES PAYABLE, NET AND SECURED NOTES PAYABLE, NET TO NET DEBTDollars in thousands
June 30, 2025
December 31, 2024Unsecured notes payable, net$
4,687,813
$
4,620,690Secured notes payable, net
360,330360,267Total debt
5,048,1434,980,957Cash and cash equivalents
(54,482)(43,018)Net Debt$
4,993,661
$
4,937,939
RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETSDollars in thousands
June 30, 2025
December 31, 2024Total assets$
11,835,597
$
11,812,369Accumulated depreciation
5,631,3995,327,584Accumulated depreciation for Assets held for sale (1)
—30,218Gross Assets$
17,466,996
$
17,170,171(1)
Included in Assets held for sale in the Consolidated Balance Sheets.
RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETSDollars in thousands
June 30, 2025
December 31, 2024Real estate assets, net$
11,542,912
$
11,515,418Accumulated depreciation
5,631,3995,327,584Assets held for sale, net
—7,764Accumulated depreciation for Assets held for sale (1)
—30,218Cash and cash equivalents
54,48243,018Gross Real Estate Assets$
17,228,793
$
16,924,002(1)
Included in Assets held for sale in the Consolidated Balance Sheets.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDAre
For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA's core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA's computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Core Adjusted Funds from Operations (Core AFFO)
Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.
Core Funds from Operations (Core FFO)
Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA's methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
EBITDA
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.
EBITDAre
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA's share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA's definition of EBITDAre is in accordance with NAREIT's definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Funds Available for Distribution (FAD)
FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.
Funds From Operations (FFO)
FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA's definition of FFO is in accordance with NAREIT's definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Assets
Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Real Estate Assets
Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Net Debt
Net Debt represents Unsecured notes payable,net and Secured notes payable,net less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.
NON-GAAP FINANCIAL MEASURES (Continued)
Net Operating Income (NOI)
Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Non-Same Store and Other NOI
Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Same Store NOI
Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
OTHER KEY DEFINITIONS
Average Effective Rent per Unit
Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.
Average Physical Occupancy
Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.
Development Communities
Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.
Effective Blended Lease Rate Growth
Effective Blended Lease Rate Growth represents the combined weighted average of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth from our Same Store Portfolio for the applicable period.
Effective New Lease Rate Growth
Effective New Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for new leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Effective Renewal Lease Rate Growth
Effective Renewal Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for renewal leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Lease-up Communities
New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
Non-Same Store and Other Portfolio
Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.
Resident Turnover
Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.
Same Store Portfolio (or Same Store)
MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA's Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.
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SOURCE MAA
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