MAA REPORTS FIRST QUARTER 2025 RESULTS

PR Newswire

Wed, Apr 30, 2025, 2:15 PM 17 min read

Brad Hill, President and Chief Executive Officer, said, "First quarter Core FFO was slightly ahead of our expectations, after considering certain timing-related events in the quarter. Same Store operating performance exceeded our expectations with strong demand for apartment housing driving high occupancy, reduced delinquency and improved pricing trends. Our Same Store blended lease pricing increased by 160 basis points sequentially, 70 basis points better than last year's sequential trend. With strong occupancy, improved year-over-year exposure, and record low resident turnover, MAA is well positioned for the busy spring and summer leasing season. As the decline in new deliveries in our markets accelerates throughout 2025, we continue to believe our revenue performance momentum will improve. Our balance sheet is well positioned to provide near term flexibility and to capture emerging new growth opportunities."

During the first quarter of 2025, MAA's Same Store effective blended lease rate declined 0.5%, slightly ahead of our expectations and consistent with the same period in the prior year. On a sequential basis, Same Store effective blended lease rate growth was driven by a 180 basis point improvement in new lease pricing and a 30 basis point improvement in renewal pricing from the fourth quarter of 2024 and compares favorably to the sequential trend in the prior year of a 70 basis point improvement for new lease pricing and a 20 basis point improvement for renewal pricing.
During the first quarter of 2025, MAA's Same Store Portfolio captured strong Average Physical Occupancy of 95.6%, which was 30 basis points higher than the same period in the prior year.
As of March 31, 2025, resident turnover in the Same Store Portfolio remained historically low at 41.5% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
As of March 31, 2025, MAA had seven communities under development with total expected costs of $851.5 million. MAA also had four recently completed development communities and three recently acquired communities in lease-up with a total cost to date of $657.3 million.

Same Store Operating Results
Same Store results for the three months ended March 31, 2025 as compared to the same period in the prior year are summarized below:

	Three months ended March 31, 2025 vs. 2024
	Revenues⁽¹⁾	Expenses	NOI⁽²⁾	Average Effective Rent per Unit
Same Store Operating Growth	0.1 %	1.2 %	-0.6 %	-0.6 %


⁽¹⁾	Includes 2.3% 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 months ended March 31, 2025 are summarized below:

	Three months ended March 31, 2025
	Average Effective Rent per Unit		Average Physical Occupancy	Resident Turnover
Same Store Operating Statistics	$	1,690	95.6 %	41.5 %

Same Store net effective lease pricing statistics for the three months ended March 31, 2025 are summarized below:

Same Store Net Effective Lease Pricing Statistics		Three Months Ended March 31, 2025
Effective Blended Lease Rate Growth		-0.5 %
Effective New Lease Rate Growth		-6.3 %
Effective Renewal Lease Rate Growth		4.5 %

Development and Lease-up Activity
A summary of MAA's development communities under construction as of the end of the first quarter of 2025 is set forth below (dollars in thousands):

Units as of

Development Costs as of

Expected Project

Total

March 31, 2025

Completions By Year

Development

Expected

Costs

Expected

Projects ⁽¹⁾

Total

Delivered

Leased

Total

to Date

Remaining

2025

2026

2027

2,312

322

141

851,500

546,478

305,022


⁽¹⁾	Two of the development projects are currently leasing.

During the first quarter of 2025, MAA funded approximately $67 million of costs for current and planned 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 first quarter of 2025 is set forth below (dollars in thousands):

Total

As of March 31, 2025

Lease-Up

Total

Physical

Costs

Projects ⁽¹⁾

Units

Occupancy

to Date

2,411

71.6

657,284


⁽¹⁾	Two of the lease-up projects are expected to stabilize in the second quarter of 2025, four in the third quarter of 2025 and one in the second quarter of 2026.

During the first quarter of 2025, MAA completed the lease-up of MAA Optimist Park, located in Charlotte, North Carolina.

Disposition Activity
In March 2025, MAA exited the Columbia, South Carolina market after closing on the disposition of its two multifamily properties totaling 576 apartment units with an average age of 32 years. MAA received combined gross proceeds of approximately $83 million and recognized combined net gains on the sale of depreciable real estate assets of approximately $72 million from the sale of these apartment communities.

Balance Sheet and Financing Activities
As of March 31, 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 first quarter of 2025 were $181.8 million, as compared to $176.2 million for the same period in the prior year.

Balance sheet highlights as of March 31, 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 rate	Fixed rate debt as a % of total debt	Total debt average years to maturity
29.1 %	4.0x	$	5.0	3.8 %	93.9 %		7.0


⁽¹⁾	As defined in the covenants for the bonds issued by MAALP.
⁽²⁾	Adjusted EBITDAre is calculated for the trailing twelve month period ended March 31, 2025. A reconciliation of Unsecured notes payable and Secured notes payable to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.

125th Consecutive Quarterly Common Dividend Declared
MAA declared its 125th consecutive quarterly common dividend, which was paid on April 30, 2025 to holders of record on April 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 maintaining 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 Guidance	Full Year 2025
Earnings:	Range	Midpoint
Earnings per common share - diluted	$5.51 to $5.83	$5.67
Core FFO per Share - diluted	$8.61 to $8.93	$8.77
Core AFFO per Share - diluted	$7.63 to $7.95	$7.79

MAA Same Store Portfolio:
Property revenue growth	-0.35% to 1.15%	0.40 %
Property operating expense growth	2.45% to 3.95%	3.20 %
NOI growth	-2.15% to -0.15%	-1.15 %

MAA expects Core FFO for the second quarter of 2025 to be in the range of $2.05 to $2.21 per diluted Share, or $2.13 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the first quarter of 2025 to the midpoint of MAA's guidance for the second quarter of 2025 is summarized below:

	Core FFO per diluted Share
Q1 2025 per diluted Share reported results	$	2.20
Same Store NOI, excluding Property Taxes ⁽¹⁾		(0.05)
Same Store Property Taxes ⁽²⁾		(0.06)
Development, Lease-up and Other Non-Same Store NOI		0.02
Total overhead		0.03
Interest expense and Other non-operating income (expense)		(0.01)
Q2 2025 per diluted Share guidance midpoint	$	2.13


⁽¹⁾	The sequential quarter-over-quarter change is primarily driven by a projected $0.06 increase in property operating expenses due to normal seasonality in leasing and maintenance related operating expenses, consistent with prior years.
⁽²⁾	The sequential quarter-over-quarter change is related to the impact of the timing of real estate tax litigation settlements that occurred during the first quarter of 2025, of which $0.02 were previously projected to be recognized in the second quarter of 2025.

MAA 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 Call
Supplemental 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 first quarter results on May 1, 2025, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. 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 MAA
MAA, 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 March 31, 2025, MAA had ownership interest in 104,011 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 investor.relations@maac.com, or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.

Forward-Looking Statements
This 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 second quarter 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 HIGHLIGHTS

Dollars in thousands, except per share data	Three months ended March 31,
	2025			2024
Rental and other property revenues	$	549,295		$	543,622

Net income available for MAA common shareholders	$	180,751		$	142,827

Total NOI ⁽¹⁾	$	347,942		$	345,820

Earnings per common share: ⁽²⁾
Basic	$	1.55		$	1.22
Diluted	$	1.54		$	1.22

Funds from operations per Share - diluted: ⁽²⁾
FFO ⁽¹⁾	$	2.21		$	2.41
Core FFO ⁽¹⁾	$	2.20		$	2.22
Core AFFO ⁽¹⁾	$	2.04		$	2.06

Dividends declared per common share	$	1.5150		$	1.4700

Dividends/Core FFO (diluted) payout ratio		68.9	%		66.2	%
Dividends/Core AFFO (diluted) payout ratio		74.3	%		71.4	%

Consolidated interest expense	$	45,161		$	40,361
Debt discount and debt issuance cost amortization		(1,617)			(1,842)
Capitalized interest		5,105			3,416
Total interest incurred	$	48,649		$	41,935


⁽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 price	March 31, 2025		December 31, 2024
Gross Assets ⁽¹⁾	$	17,290,165	$	17,170,171
Gross Real Estate Assets ⁽¹⁾	$	17,039,848	$	16,924,002
Total debt	$	5,042,166	$	4,980,957
Common shares and units outstanding		119,976,933		119,958,973
Share price	$	167.58	$	154.57
Book equity value	$	6,157,895	$	6,147,664
Market equity value	$	20,105,734	$	18,542,058
Net 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 and Secured notes payable 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 March 31,
	2025		2024
Revenues:
Rental and other property revenues	$	549,295	$	543,622
Expenses:
Operating expenses, excluding real estate taxes and insurance		124,955		118,199
Real estate taxes and insurance		76,398		79,603
Depreciation and amortization		152,350		143,020
Total property operating expenses		353,703		340,822
Property management expenses		20,578		19,995
General and administrative expenses		15,619		17,045
Interest expense		45,161		40,361
(Gain) loss on sale of depreciable real estate assets		(71,911)		2
Other non-operating income		(834)		(23,526)
Income before income tax expense		186,979		148,923
Income tax expense		(1,038)		(1,795)
Income from continuing operations before real estate joint venture activity		185,941		147,128
Income from real estate joint venture		465		482
Net income		186,406		147,610
Net income attributable to noncontrolling interests		4,733		3,861
Net income available for shareholders		181,673		143,749
Dividends to MAA Series I preferred shareholders		922		922
Net income available for MAA common shareholders	$	180,751	$	142,827

Earnings per common share - basic:
Net income available for common shareholders	$	1.55	$	1.22

Earnings per common share - diluted:
Net income available for common shareholders	$	1.54	$	1.22

SHARE AND UNIT DATA

Shares and units in thousands	Three months ended March 31,
	2025		2024
Net Income Shares ⁽¹⁾
Weighted average common shares - basic		116,840		116,668
Effect of dilutive securities		252		112
Weighted average common shares - diluted		117,092		116,780
Funds From Operations Shares And Units
Weighted average common shares and units - basic		119,913		119,806
Weighted average common shares and units - diluted		119,975		119,857
Period End Shares And Units
Common shares at March 31,		116,916		116,728
Operating Partnership units at March 31,		3,061		3,133
Total common shares and units at March 31,		119,977		119,861


⁽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 March 31, 2025, expected to be filed with the SEC on or about May 1, 2025.

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited)
	March 31, 2025		December 31, 2024
Assets
Real estate assets:
Land	$	2,096,912	$	2,096,912
Buildings and improvements and other		14,286,757		14,160,799
Development and capital improvements in progress		485,254		470,282
		16,868,923		16,727,993
Less: Accumulated depreciation		(5,478,208)		(5,327,584)
		11,390,715		11,400,409
Undeveloped land		73,359		73,359
Investment in real estate joint venture		41,790		41,650
Real estate assets, net		11,505,864		11,515,418

Cash and cash equivalents		55,776		43,018
Restricted cash		13,678		13,743
Other assets		236,639		232,426
Assets held for sale		—		7,764
Total assets	$	11,811,957	$	11,812,369

Liabilities and equity
Liabilities:
Unsecured notes payable	$	4,681,868	$	4,620,690
Secured notes payable		360,298		360,267
Accrued expenses and other liabilities		611,896		683,748
Total liabilities		5,654,062		5,664,705

Redeemable common stock		24,425		22,230

Shareholders' equity:
Preferred stock		9		9
Common stock		1,166		1,166
Additional paid-in capital		7,422,913		7,417,453
Accumulated distributions in excess of net income		(1,467,858)		(1,469,557)
Accumulated other comprehensive loss		(6,522)		(6,940)
Total MAA shareholders' equity		5,949,708		5,942,131
Noncontrolling interests - Operating Partnership units		154,810		155,409
Total shareholders' equity		6,104,518		6,097,540
Noncontrolling interests - consolidated real estate entities		28,952		27,894
Total equity		6,133,470		6,125,434
Total liabilities and equity	$	11,811,957	$	11,812,369

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD

Amounts in thousands, except per share and unit data	Three months ended March 31,
	2025		2024
Net income available for MAA common shareholders	$	180,751	$	142,827
Depreciation and amortization of real estate assets		150,991		141,591
(Gain) loss on sale of depreciable real estate assets		(71,911)		2
MAA's share of depreciation and amortization of real estate assets of real estate joint venture		164		155
Net income attributable to noncontrolling interests		4,733		3,861
FFO attributable to common shareholders and unitholders		264,728		288,436
Loss (gain) on embedded derivative in preferred shares ⁽¹⁾		410		(13,092)
Gain on investments, net of tax ⁽¹⁾⁽²⁾		(654)		(4,090)
Casualty related (recoveries) charges, net ⁽¹⁾		(222)		(5,085)
Core FFO attributable to common shareholders and unitholders		264,262		266,169
Recurring capital expenditures		(20,106)		(18,934)
Core AFFO attributable to common shareholders and unitholders		244,156		247,235
Redevelopment capital expenditures		(17,409)		(9,374)
Revenue enhancing capital expenditures		(15,188)		(13,013)
Commercial capital expenditures		(3,974)		(1,203)
Other capital expenditures		(15,441)		(9,203)
FAD attributable to common shareholders and unitholders	$	192,144	$	214,442

Dividends and distributions paid	$	181,767	$	176,191

Weighted average common shares - diluted		117,092		116,780
FFO weighted average common shares and units - diluted		119,975		119,857

Earnings per common share - diluted:
Net income available for MAA common shareholders	$	1.54	$	1.22

FFO per Share - diluted	$	2.21	$	2.41
Core FFO per Share - diluted	$	2.20	$	2.22
Core AFFO per Share - diluted	$	2.04	$	2.06


⁽¹⁾	Included in Other non-operating income in the Consolidated Statements of Operations.
⁽²⁾	For the three months ended March 31, 2025 and 2024, gain on investments is presented net of tax expense of $0.2 million and $1.1 million, respectively.

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME

Dollars in thousands	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024

Net income available for MAA common shareholders	$	180,751	$	165,724	$	142,827
Depreciation and amortization		152,350		150,852		143,020
Property management expenses		20,578		17,579		19,995
General and administrative expenses		15,619		14,072		17,045
Interest expense		45,161		44,192		40,361
(Gain) loss on sale of depreciable real estate assets		(71,911)		(55,028)		2
Other non-operating (income) expense		(834)		949		(23,526)
Income tax expense		1,038		1,755		1,795
Income from real estate joint venture		(465)		(546)		(482)
Net income attributable to noncontrolling interests		4,733		4,428		3,861
Dividends to MAA Series I preferred shareholders		922		922		922
Total NOI	$	347,942	$	344,899	$	345,820

Same Store NOI	$	332,795	$	331,326	$	334,644
Non-Same Store and Other NOI		15,147		13,573		11,176
Total NOI	$	347,942	$	344,899	$	345,820

RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

Dollars in thousands	Three Months Ended				Twelve Months Ended
	March 31, 2025		March 31, 2024		March 31, 2025		December 31, 2024
Net income	$	186,406	$	147,610	$	580,372	$	541,576
Depreciation and amortization		152,350		143,020		594,946		585,616
Interest expense		45,161		40,361		173,344		168,544
Income tax expense		1,038		1,795		4,483		5,240
EBITDA		384,955		332,786		1,353,145		1,300,976
(Gain) loss on sale of depreciable real estate assets		(71,911)		2		(126,916)		(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		348		338		1,373		1,363
EBITDAre		313,392		333,126		1,216,363		1,236,097
Loss (gain) on embedded derivative in preferred shares ⁽¹⁾		410		(13,092)		32,253		18,751
Gain on investments ⁽¹⁾		(810)		(5,172)		(3,447)		(7,809)
Casualty related (recoveries) charges, net ⁽¹⁾		(222)		(5,085)		(4,463)		(9,326)
Legal costs, settlements and (recoveries), net ⁽¹⁾⁽²⁾		—		—		9,437		9,437
Adjusted EBITDAre	$	312,770	$	309,777	$	1,250,143	$	1,247,150


⁽¹⁾	Included in Other non-operating income in the Consolidated Statements of Operations.
⁽²⁾	During the 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 AND SECURED NOTES PAYABLE TO NET DEBT

Dollars in thousands
	March 31, 2025		December 31, 2024
Unsecured notes payable	$	4,681,868	$	4,620,690
Secured notes payable		360,298		360,267
Total debt		5,042,166		4,980,957
Cash and cash equivalents		(55,776)		(43,018)
Net Debt	$	4,986,390	$	4,937,939

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands
	March 31, 2025		December 31, 2024
Total assets	$	11,811,957	$	11,812,369
Accumulated depreciation		5,478,208		5,327,584
Accumulated depreciation for Assets held for sale ⁽¹⁾		—		30,218
Gross Assets	$	17,290,165	$	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 ASSETS

Dollars in thousands
	March 31, 2025		December 31, 2024
Real estate assets, net	$	11,505,864	$	11,515,418
Accumulated depreciation		5,478,208		5,327,584
Assets held for sale, net		—		7,764
Accumulated depreciation for Assets held for sale ⁽¹⁾		—		30,218
Cash and cash equivalents		55,776		43,018
Gross Real Estate Assets	$	17,039,848	$	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 and Secured notes payable 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.

Exposure

Exposure represents all current vacant units plus all notices to vacate over the next 60 days.

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.

Cision

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SOURCE MAA

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