MAA REPORTS SECOND QUARTER 2025 RESULTS
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
2024
Earnings 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. 2024
Six months ended June 30, 2025 vs. 2024
Revenues(1)
Expenses
NOI(2)
Average Effective Rent per Unit
Revenues(1)
Expenses
NOI(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, 2025
Six months ended June 30, 2025
As of June 30, 2025
Average Effective Rent per Unit
Average Physical Occupancy
Average Effective Rent per Unit
Average Physical Occupancy
Resident 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 Statistics
Three Months EndedJune 30, 2025
Six Months EndedJune 30, 2025
Effective Blended Lease Rate Growth
0.5 %
0.2 %
Effective New Lease Rate Growth
-4.8 %
-5.4 %
Effective Renewal Lease Rate Growth
4.7 %
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 Project
Total
June 30, 2025
June 30, 2025
Completions By Year
Development
Expected
Costs
Expected
Projects (1)
Total
Delivered
Leased
Total
to Date
Remaining
2025
2026
2027
2028
8
2,648
549
248
$
942,500
$
616,296
$
326,204
2
4
1
1
(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, 2025
Lease-Up
Total
Physical
Costs
Projects (1)
Units
Occupancy
to Date
6
2,101
80.7
%
$
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 rate
Fixed rate debt as a % of total debt
Total debt average years to maturity
28.9 %
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 Guidance
Previous Range
Previous Midpoint
Revised Range
Revised Midpoint
Earnings:
Full Year 2025
Full Year 2025
Full Year 2025
Full 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 growth
2.45% 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 Share
Q2 2025 per diluted Share reported results
$
2.15
Same Store NOI
0.02
Development, Lease-up and Other Non-Same Store NOI
0.01
Total overhead
(0.01)
Interest expense and Other non-operating income (expense)
(0.01)
Q3 2025 per diluted Share guidance midpoint
$
2.16
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 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 (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 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 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 HIGHLIGHTS
Dollars in thousands, except per share data
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Rental 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
$
2.09
Diluted
$
0.92
$
0.86
$
2.46
$
2.09
Funds from operations per Share - diluted: (2)
FFO (1)
$
2.19
$
2.06
$
4.39
$
4.47
Core FFO (1)
$
2.15
$
2.22
$
4.35
$
4.44
Core 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
%
