MID AMERICA APARTMENT COMMUNITIES INC.
For the period ended Mar 31, 2025. Filed May 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
MAA$118.93-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0000950170-24-119555
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061849
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 119 current paragraphs.
71 unchanged; 45 reworded; 3 added; 21 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions;
Current report
As of March 31, 2025, resident turnover for our Same Store segment was 41.5% as compared to 44.4% as of March 31, 2024. Resident turnover represents resident move outs, excluding transfers within the Same Store segment, as a percentage of expiring leases on a trailing twelve-month basis as of the end of the reported period.
Current report
MAA has entered into an at-the-market equity offering program, or ATM program, enabling MAA to sell shares of its common stock into the existing market at current market prices from time to time to or through the sales agents under the ATM program. Pursuant to the ATM program, MAA from time to time may also enter into forward sale agreements and sell shares of its common stock pursuant to these agreements. Through the ATM program, MAA may issue up to an aggregate of 4.0 million shares of its common stock at such times as determined by MAA.
Removed paragraphs (21)
Previous report
inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;
Previous report
Depreciation and amortization expense for the three months ended September 30, 2024 was $146.7 million, consistent with the three months ended September 30, 2023.
Previous report
Other non-operating expense (income) for the three months ended September 30, 2024 was $1.7 million of expense as compared to $16.5 million of expense for the three months ended September 30, 2023, a decrease of $14.8 million. The expense for the three months ended September 30, 2024 was primarily driven by $18.3 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, partially offset by $11.0 million of gain on the consolidation of a third-party development and $5.7 million of net casualty related recoveries. The expense for the three months ended September 30, 2023 was driven by $11.3 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares and $6.6 million of non-cash loss from investments, partially offset by $1.5 million of interest income on cash deposits.
Previous report
Comparison of the nine months ended September 30, 2024 to the nine months ended September 30, 2023
Previous report
For the nine months ended September 30, 2024, we achieved net income available for MAA common shareholders of $358.1 million, a 8.1% decrease as compared to the nine months ended September 30, 2023, and total revenue growth of $35.0 million, representing a 2.2% increase in property revenues as compared to the nine months ended September 30, 2023. The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Previous report
Property Revenues
Previous report
The Same Store segment generated a 0.7% increase in revenues for the nine months ended September 30, 2024, primarily the result of average effective rent per unit growth of 0.6% as compared to the nine months ended September 30, 2023. The increase in property revenues from the Non-Same Store and Other segment for the nine months ended September 30, 2024 as compared to nine months ended September 30, 2023 was primarily the result of increased revenues from completed development communities and recently acquired communities.
Previous report
Property Operating Expenses
Previous report
The increase in property operating expenses for our Same Store segment for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 was primarily driven by increases in personnel expense of $5.5 million, real estate tax expense of $4.1 million, office operations expense of $3.6 million, utilities expense of $3.3 million, insurance expense of $2.3 million, marketing expense of $1.9 million, and building repair and maintenance expense of $1.6 million.
Previous report
Depreciation and Amortization
Previous report
Other Income and Expenses
Previous report
Property management expenses for the nine months ended September 30, 2024 were $54.5 million, an increase of $4.1 million as compared to the nine months ended September 30, 2023. General and administrative expenses for the nine months ended September 30, 2024 were $42.4 million, a decrease of $0.9 million as compared to the nine months ended September 30, 2023.
Previous report
Interest expense for the nine months ended September 30, 2024 was $124.4 million, an increase of $13.7 million as compared to the nine months ended September 30, 2023. The increase was due to an increase of 25 basis points in our effective interest rate and an increase in our average outstanding debt balance during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Previous report
Included in “Interest expense” in the Condensed Consolidated Statements of Operations.
Previous report
Core FFO attributable to common shareholders and unitholders for the three months ended September 30, 2024 was $264.8 million, a decrease of $10.1 million as compared to the three months ended September 30, 2023, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $12.3 million and interest expense of $6.1 million, partially offset by an increase in property revenues of $9.1 million.
Previous report
In January 2024, MAALP publicly issued $350.0 million in aggregate principal amount of unsecured senior notes due March 2034 with a coupon rate of 5.000% per annum and at an issue price of 99.019%. Interest is payable semi-annually in arrears on March 15 and September 15 of each year, commencing September 15, 2024. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program. The notes have an effective interest rate of 5.123%.
Previous report
In May 2024, MAALP publicly issued $400.0 million in aggregate principal amount of unsecured senior notes due February 2032 with a coupon rate of 5.300% per annum and at an issue price of 99.496%. Interest is payable semi-annually in arrears on February 15 and August 15 of each year, commencing August 15, 2024. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program. The notes have an effective interest rate of 5.382%.
Previous report
In June 2024, MAALP retired $400.0 million of publicly issued unsecured senior notes at maturity using available cash on hand and borrowings under the commercial paper program.
Previous report
In August 2021, we entered into two 18-month forward sale agreements with respect to a total of 1.1 million shares of our common stock at an initial forward sale price of $190.56 per share, which is net of issuance costs. In January 2023, we settled our two forward sale agreements with respect to all 1.1 million shares at a forward price per share of $185.23, which is inclusive of adjustments made to reflect the then-current federal funds rate, the amount of dividends paid to holders of MAA common stock and commissions paid to sales agents, for net proceeds of $203.7 million. We have used these proceeds primarily to fund our development and redevelopment activities.
Previous report
In November 2021, we entered into an equity distribution agreement (as amended, the “Distribution Agreement”), by and among MAA, MAALP, those certain managers named therein (collectively, the “Managers”) and those certain forward-purchasers named therein (collectively, the “Forward Purchasers”), for the purpose of establishing a new at-the-market equity offering program (the “ATM Program”). Pursuant to the terms of the Distribution Agreement, we may, from time to time, issue and sell through or to the Managers, as sales agents and/or principals or as forward sellers, as agents for the Forward Purchasers, up to 4.0 million shares of our common stock.
Previous report
In August 2024, we entered into Amendment No. 1 to the Distribution Agreement (the “Amendment”), which was entered into in order to (i) reflect the filing by MAA and MAALP of a new shelf registration statement on Form S-3ASR (Registration No. 333-279076 and Registration No. 333-258271-01, respectively), which became effective upon filing with the SEC on May 2, 2024; (ii) include certain other parties as additional Managers; (iii) include certain other parties as additional Forward Purchasers; and (iv) modify certain defined terms in the Distribution Agreement, as well as certain other administrative matters.
Reworded paragraphs (45)
Previous wording
MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. We own, operate, acquire and selectively develop apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the U.S. As of September 30, 2024, we owned and operated 293 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries, and had an ownership interest in one apartment community through an unconsolidated real estate joint venture. In addition, as of September 30, 2024, we had eight development communities under construction, and 35 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of September 30, 2024.
Current wording
MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. We own, operate, acquire and selectively develop apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the U.S. As of March 31, 2025, we owned and operated 291 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries, and had an ownership interest in one apartment community through an unconsolidated real estate joint venture. In addition, as of March 31, 2025, we had seven development communities under construction, and 35 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of March 31, 2025.
Previous wording
We report in two segments, Same Store and Non-Same Store and Other. Our Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. Our Non-Same Store and Other segment includes recently acquired communities, communities being developed or in lease-up, communities that have been disposed of or identified for disposition, communities that have incurred a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. Also included in our Non-Same Store and Other segment are non-multifamily activities and storm-related expenses related to severe weather events, including hurricanes and winter storms. Additional information regarding the composition of our segments is included in Note 11 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Current wording
We report in two segments, Same Store and Non-Same Store and Other. Our Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Our Non-Same Store and Other segment includes recently acquired communities, communities being developed or in lease-up, communities that have been disposed of or identified for disposition, communities that have incurred a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. Also included in our Non-Same Store and Other segment are non-multifamily activities and expenses related to severe weather events, including hurricanes and winter storms. Additional information regarding the composition of our segments is included in Note 11 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous wording
This and other sections of this Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. 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 involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this Quarterly Report on Form 10-Q may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.
Current wording
This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. 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 expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. 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.
Previous wording
The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:
Current wording
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:
Previous wording
adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
Current wording
adverse changes in real estate markets, including the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
Previous wording
other risks identified in this Quarterly Report on Form 10-Q and in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.
Current wording
other risks identified in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2024 or in other reports we file with the Securities and Exchange Commission, or the SEC, from time to time.
Previous wording
New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this Quarterly Report on Form 10-Q to reflect events, circumstances or changes in expectations after the date on which this Quarterly Report on Form 10-Q is filed.
Current wording
Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this Quarterly Report on Form 10-Q to reflect events, circumstances or changes in expectations after the date on which this Quarterly Report on Form 10-Q is filed.
Previous wording
For the three months ended September 30, 2024, net income available for MAA common shareholders was $114.3 million as compared to $109.8 million for the three months ended September 30, 2023. Results for the three months ended September 30, 2024 included $18.3 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, $11.0 million of gain on the consolidation of a third-party development and $5.7 million of net casualty related recoveries. Results for the three months ended September 30, 2023 included $11.3 million of non-cash loss related to the embedded derivative in the MAA Series I preferred shares and $6.6 million of non-cash loss from investments. Revenues for the three months ended September 30, 2024 increased 1.7% as compared to the three months ended September 30, 2023. Property operating expenses, excluding depreciation and amortization, for the three months ended September 30, 2024 increased by 6.2% as compared to the three months ended September 30, 2023. The primary drivers of these changes are discussed in the “Results of Operations” section.
Current wording
For the three months ended March 31, 2025, net income available for MAA common shareholders was $180.8 million as compared to $142.8 million for the three months ended March 31, 2024. Results for the three months ended March 31, 2025 included $71.9 million of gain related to the sale of depreciable real estate assets and $0.4 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. Results for the three months ended March 31, 2024 included $13.1 million of non-cash gain related to the embedded derivative in the MAA Series I preferred shares. Revenues for the three months ended March 31, 2025 increased 1.0% as compared to the three months ended March 31, 2024. Property operating expenses, excluding depreciation and amortization, for the three months ended March 31, 2025 increased by 1.8% as compared to the three months ended March 31, 2024, driven by an 1.2% increase in our Same Store segment and 10.1% increase in our Non-Same Store and Other segment. The primary drivers of these changes are discussed in the “Results of Operations” section.
Previous wording
During the three months ended September 30, 2024, change in revenue for our Same Store segment continued to be primarily driven by average effective rent per unit. The average effective rent per unit for our Same Store segment decreased from the prior year, down 0.4% for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. Average effective rent per unit represents the average of gross rent amounts, after the effect of leasing concessions, for occupied apartment units plus prevalent market rates asked for unoccupied apartment units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. We believe average effective rent per unit is a helpful measurement in evaluating average pricing; however, it does not represent actual rental revenue collected per unit.
Current wording
During the three months ended March 31, 2025, revenue for our Same Store segment remained steady, growing 0.1%, as compared to the three months ended March 31, 2024. The slight increase in revenues for our Same Store segment was driven by higher occupancy and improved collections, partially offset by a decrease in average effective rent per unit. The average effective rent per unit for our Same Store segment decreased to an average effective rent per unit of $1,690 for the three months ended March 31, 2025 as compared to $1,699 for the three months ended March 31, 2024. This represents a decrease of 0.6% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Average effective rent per unit represents the average of gross rent amounts, after the effect of leasing concessions, for occupied apartment units plus prevalent market rates asked for unoccupied apartment units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. We believe average effective rent per unit is a helpful measurement in evaluating average pricing; however, it does not represent actual rental revenue collected per unit.
Previous wording
For the three months ended September 30, 2024, average physical occupancy for our Same Store segment was 95.7%, consistent with the three months ended September 30, 2023. Average physical occupancy is a measurement of the total number of our apartment units that are occupied by residents, and it represents the average of the daily physical occupancy for the period.
Current wording
For the three months ended March 31, 2025, average physical occupancy for our Same Store segment was 95.6%, as compared to 95.3% for the three months ended March 31, 2024. Average physical occupancy is a measurement of the total number of our apartment units that are occupied by residents, and it represents the average of the daily physical occupancy for the period.
Previous wording
An important part of our portfolio strategy is to maintain diversity of markets, submarkets, product types and price points in the Southeast, Southwest and Mid-Atlantic regions of the U.S. We have multifamily assets in 39 defined markets, with a presence in approximately 150 submarkets and a mixture of garden-style, mid-rise and high-rise communities. This diversity helps to mitigate exposure to economic issues, including supply and demand factors, in any one geographic market or area. We believe that a well-balanced portfolio, including both urban and suburban locations, with a broad range of monthly rent price points, will provide higher performance and lower volatility throughout the full economic cycle.
Current wording
An important part of our portfolio strategy is to maintain diversity of markets, submarkets, product types and price points in the Southeast, Southwest and Mid-Atlantic regions of the U.S. We have multifamily assets in 38 defined markets, with a presence in approximately 150 submarkets and a mixture of garden-style, mid-rise and high-rise communities. This diversity helps to mitigate exposure to economic issues, including supply and demand factors, in any one geographic market or area. We believe that a well-balanced portfolio, including both urban and suburban locations, with a broad range of monthly rent price points, will provide higher performance and lower volatility throughout the full economic cycle.
Previous wording
Demand for apartments in our markets was strong during the third quarter of 2024, which is contributing to the steady absorption of the high volume of new supply delivered in the third quarter, which we believe has now peaked. The strong demand resulted in record low resident turnover, steady occupancy and strong renewal pricing and collections. We believe demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to job growth, population growth, household formation and in-migration over the long term. We continue to monitor pressures surrounding housing supply, inflation trends and general economic conditions. A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent pricing on new leases and renewals than what we achieved in the three and nine months ended September 30, 2024. We continue to believe that in calendar year 2025 we will see a meaningful decline in the amount of new apartment deliveries impacting our portfolio, and we will enter a new multi-year cycle with demand outpacing supply.
Current wording
Demand for apartments in our markets was solid during the first quarter of 2025, as evidenced by stable occupancy, high leasing traffic, low resident turnover and strong collections performance. We believe demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to job growth, population growth, household formation and in-migration over the long term. We continue to monitor pressures surrounding housing supply, inflation trends and general economic conditions. A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent growth on new leases and renewals than what we achieved in the three months ended March 31, 2025. Current elevated supply levels are impacting rent growth performance in certain markets of our portfolio. However, with continued solid demand and the resulting steady absorption of the new supply pipeline, we continue to believe that the decline in new supply deliveries expected throughout 2025 will fuel a strong and quick rebound in rent performance.
Previous wording
Access to the financial markets remains available for high-credit rated borrowers, such as ourselves. Overall borrowing costs remain at elevated levels and we expect this trend to continue. As of September 30, 2024, we had $490.0 million of variable rate debt outstanding under our commercial paper program. Our continued exposure to elevated interest rates will be a result of additional variable rate borrowings or future financing and refinancing activities.
Current wording
Access to the financial markets remains available for high-credit rated borrowers, such as ourselves. However, overall borrowing costs remain at elevated levels and we expect this trend to continue. As of March 31, 2025, we had $310.0 million of variable rate debt outstanding under our commercial paper program. Our continued exposure to elevated interest rates will be a result of additional variable rate borrowings or refinancing activities.
Previous wording
For the three months ended September 30, 2024, we achieved net income available for MAA common shareholders of $114.3 million, a 4.1% increase as compared to the three months ended September 30, 2023, and total revenue growth of $9.1 million, representing a 1.7% increase in property revenues as compared to the three months ended September 30, 2023. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.
Current wording
For the three months ended March 31, 2025, we achieved net income available for MAA common shareholders of $180.8 million, a 26.6% increase as compared to the three months ended March 31, 2024, and total revenue growth of $5.7 million, representing an 1.0% increase in property revenues as compared to the three months ended March 31, 2024. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous wording
The increase in property revenues from the Non-Same Store and Other segment for the three months ended September 30, 2024 as compared to three months ended September 30, 2023 was primarily the result of increased revenues from completed development communities and recently acquired communities.
Current wording
The increase in property revenues from the Non-Same Store and Other segment for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 was primarily the result of increased revenues from completed development communities and recently acquired communities.
Previous wording
The increase in property operating expenses for our Same Store segment for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 was primarily driven by increases in personnel expense of $1.6 million, utilities expense of $1.3 million, office operations expense of $1.1 million, and marketing expense of $1.0 million. The increase in property operating expenses from the Non-Same Store and Other segment for the three months ended September 30, 2024 as compared to three months ended September 30, 2023 was primarily the result of increased operating expenses from completed development communities and recently acquired communities.
Current wording
The increase in property operating expenses for our Same Store segment for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 was primarily driven by increases in personnel expense of $2.1 million, utilities expense of $1.7 million, office operations expense of $1.1 million, and building repair and maintenance of $0.8 million, partially offset by a decrease in property taxes of $4.5 million. The increase in property operating expenses from the Non-Same Store and Other segment for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 was primarily the result of increased expenses from completed development communities and recently acquired communities.
Previous wording
Depreciation and amortization expense for the nine months ended September 30, 2024 was $434.8 million, an increase of $10.6 million as compared to the nine months ended September 30, 2023. The increase was primarily driven by the recognition of depreciation expense associated with our completed development communities, acquisitions and capital spend activities completed after September 30, 2023 in the normal course of business through September 30, 2024.
Current wording
Depreciation and amortization expense for the three months ended March 31, 2025 was $152.4 million, an increase of $9.3 million as compared to the three months ended March 31, 2024. The increase was primarily driven by the recognition of depreciation expense associated with our completed development communities and capital spend activities completed after March 31, 2024 in the normal course of business through March 31, 2025.
Previous wording
Property management expenses for the three months ended September 30, 2024 were $17.3 million, an increase of $1.0 million as compared to the three months ended September 30, 2023. General and administrative expenses for the three months ended September 30, 2024 were $12.7 million, a decrease of $0.8 million as compared to the three months ended September 30, 2023.
Current wording
Property management expenses for the three months ended March 31, 2025 were $20.6 million, an increase of $0.6 million as compared to the three months ended March 31, 2024. General and administrative expenses for the three months ended March 31, 2025 were $15.6 million, a decrease of $1.4 million as compared to the three months ended March 31, 2024.
Previous wording
Interest expense for the three months ended September 30, 2024 was $42.7 million, an increase of $6.1 million as compared to the three months ended September 30, 2023. The increase was due to an increase of 36 basis points in our effective interest rate and an increase in our average outstanding debt balance during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.
Current wording
Interest expense for the three months ended March 31, 2025 was $45.2 million, an increase of $4.8 million as compared to the three months ended March 31, 2024. The increase was due to an increase in our average outstanding debt balance and an increase of 18 basis points in our effective interest rate, partially offset by an increase in capitalized interest during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous wording
Other non-operating expense (income) for the nine months ended September 30, 2024 was $2.6 million of income as compared to $4.0 million of income for the nine months ended September 30, 2023, a decrease of $1.4 million. The income for the nine months ended September 30, 2024 was primarily driven by $11.0 million of gain on the consolidation of a third-party development, $9.7 million of net casualty related recoveries and $3.7 million of non-cash gain from investments, partially offset by $14.5 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares and $8.0 million of accrued legal defense costs. The income for the nine months ended September 30, 2023 was driven by $3.0 million of interest income, $1.0 million of miscellaneous income, and $0.7 million of non-cash gain from investments, partially offset by $1.9 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares.
Current wording
Other non-operating income for the three months ended March 31, 2025 was $0.8 million, a decrease of $22.7 million as compared to the three months ended March 31, 2024. The income for the three months ended March 31, 2025 was driven by $0.7 million of net non-cash gain from investments. The income for the three months ended March 31, 2024 was driven by $13.1 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, $5.2 million of net non-cash gain from investments and $5.1 million in net casualty related recoveries.
Previous wording
Core FFO represents FFO as adjusted for items that are not considered part of our 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 to FFO, Core FFO, when used in this Quarterly Report on Form 10-Q, represents Core FFO attributable to common shareholders and unitholders.
Current wording
Core FFO represents FFO as adjusted for items that are not considered part of our 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 (recoveries) charges, 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 to FFO, Core FFO, when used in this Quarterly Report on Form 10-Q, represents Core FFO attributable to common shareholders and unitholders.
Previous wording
The following table presents a reconciliation of net income available for MAA common shareholders to FFO attributable to common shareholders and unitholders and Core FFO attributable to common shareholders and unitholders for the three and nine months ended September 30, 2024 and 2023, as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands):
Current wording
The following table presents a reconciliation of net income available for MAA common shareholders to FFO attributable to common shareholders and unitholders and Core FFO attributable to common shareholders and unitholders for the three months ended March 31, 2025 and 2024, as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands):
Previous wording
Included in “Other non-operating expense (income)” in the Condensed Consolidated Statements of Operations.
Current wording
Included in “Other non-operating income” in the Condensed Consolidated Statements of Operations.
Previous wording
For the three months ended September 30, 2024 and 2023, loss on investments is presented net of tax benefit of $0.1 million and $1.4 million, respectively. For the nine months ended September 30, 2024 and 2023, gain on investments is presented net of tax expense of $0.8 million and $0.1 million, respectively.
Current wording
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.
Previous wording
Core FFO attributable to common shareholders and unitholders for the nine months ended September 30, 2024 was $797.6 million, a decrease of $22.8 million as compared to the nine months ended September 30, 2023, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $38.8 million, interest expense of $13.7 million and property management expenses of $4.1 million, partially offset by an increase in property revenues of $35.0 million.
Current wording
Core FFO attributable to common shareholders and unitholders for the three months ended March 31, 2025 was $264.3 million, a decrease of $1.9 million as compared to the three months ended March 31, 2024, primarily as a result of increases in interest expense of $4.8 million, property operating expenses, excluding depreciation and amortization, of $3.6 million, and property management expenses of $0.6 million partially offset by an increase in property revenues of $5.7 million and a decrease in general and administrative expenses of $1.4 million.
Previous wording
Adjusted EBITDAre is comprised of EBITDAre further adjusted for items that are not considered part of our 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, management 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. Our computation of Adjusted EBITDAre may differ from the methodology utilized by other REITs to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to net income, or any other GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity.
Current wording
Adjusted EBITDAre is comprised of EBITDAre further adjusted for items that are not considered part of our 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 (recoveries) charges, net; gain or loss on debt extinguishment; and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, management 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. Our computation of Adjusted EBITDAre may differ from the methodology utilized by other REITs to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to net income, or any other GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity.
Previous wording
Included in “Other non-operating expense (income)” in the Condensed Consolidated Statements of Operations.
Current wording
Included in “Other non-operating income” in the Condensed Consolidated Statements of Operations.
Previous wording
For the nine months ended September 30, 2024, in accordance with our accounting policies, we recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
Current wording
For the year ended December 31, 2024, in accordance with our accounting policies, we recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
Previous wording
Our net debt to Adjusted EBITDAre ratio as of September 30, 2024 was 3.9x, as compared to a ratio of 3.6x as of December 31, 2023. Adjusted EBITDAre decreased $10.2 million for the trailing twelve months ended September 30, 2024 as compared to the trailing twelve months ended December 31, 2023, while net debt increased $326.8 million as of September 30, 2024 as compared to December 31, 2023. The decrease in Adjusted EBITDAre was primarily due to increases in property operating expenses, excluding depreciation and amortization and property management expenses, partially offset by an increase in property revenues, while the increase in net debt was primarily due to an increase in unsecured notes payable, partially offset by an increase in cash and cash equivalents. The increase in unsecured notes payable was primarily driven by an increase in cash requirements to fund acquisition and development activities.
Current wording
Our net debt to Adjusted EBITDAre ratio as of March 31, 2025 was 4.0x, consistent with our net debt to Adjusted EBITDAre ratio as of December 31, 2024. Adjusted EBITDAre increased $3.0 million for the trailing twelve months ended March 31, 2025 as compared to the trailing twelve months ended December 31, 2024, while net debt increased $48.5 million as of March 31, 2025 as compared to December 31, 2024. The increase in Adjusted EBITDAre was primarily due to an increase in property revenues, partially offset by an increase in property operating expenses, excluding depreciation and amortization, while the increase in net debt was primarily due to an increase in unsecured commercial paper, partially offset by an increase in cash and cash equivalents. The increase in unsecured commercial paper was primarily driven by an increase in cash requirements to fund development activities.
Previous wording
As of September 30, 2024, we had $805.7 million of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.
Current wording
As of March 31, 2025, we had $1.0 billion of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.
Previous wording
Net cash provided by operating activities was $859.2 million for the nine months ended September 30, 2024, a decrease of $13.1 million as compared to the nine months ended September 30, 2023. The decrease in operating cash flows was primarily driven by an increase in property operating expenses.
Current wording
Net cash provided by operating activities was $196.6 million for the three months ended March 31, 2025, a decrease of $3.6 million as compared to the three months ended March 31, 2024. The decrease in operating cash flows was primarily driven by our operating performance.
Previous wording
Net cash used in financing activities was $198.6 million for the nine months ended September 30, 2024, a decrease of $130.8 million as compared to the nine months ended September 30, 2023. The primary drivers of the change were as follows (dollars in thousands):
Current wording
Net cash used in investing activities was $61.4 million for the three months ended March 31, 2025, a decrease of $31.6 million as compared to the three months ended March 31, 2024. The primary drivers of the change were as follows (dollars in thousands):
Previous wording
The increase in cash outflows for purchases of real estate and other assets was driven by our acquisition activity during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. We acquired two apartment communities and two land parcels during the nine months ended September 30, 2024 while we acquired one land parcel during the nine months ended September 30, 2023. The decrease in cash outflows for capital improvements and other was primarily driven by decreased capital spend relating to our property redevelopment and repositioning activities during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase in cash outflows for development costs was primarily driven by increased development activity, including financing a third party’s development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The decrease in cash outflows for contributions to affiliates was driven by a lesser amount of investments made in the technology-focused limited partnerships during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase in cash inflows from proceeds from sale of marketable equity securities resulted from the sale of marketable equity securities during the nine months ended September 30, 2024 as compared to no marketable securities being sold during the nine months ended September 30, 2023. The decrease in cash inflows from proceeds from real estate asset dispositions resulted from no dispositions during the nine months ended September 30, 2024 as compared to the disposition of one land parcel during the nine months ended September 30, 2023. The increase in cash inflows from net proceeds from insurance recoveries was driven by increased insurance reimbursements received for property and storm-related casualty claims during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Current wording
The increase in cash outflows for capital improvements and other was primarily driven by increased capital spend relating to our property redevelopment and repositioning activities during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase in cash outflows for development costs was primarily driven by increased development activity during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase in cash inflows from proceeds from real estate asset dispositions resulted from the dispositions of two multifamily communities during the three months ended March 31, 2025 as compared to no dispositions of real estate assets during the three months ended March 31, 2024. The decrease in cash inflows from net proceeds from insurance recoveries was driven by decreased insurance reimbursements received for property and storm-related casualty claims during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous wording
Net cash used in investing activities was $651.6 million for the nine months ended September 30, 2024, an increase of $223.0 million as compared to the nine months ended September 30, 2023. The primary drivers of the change were as follows (dollars in thousands):
Current wording
Net cash used in financing activities was $122.5 million for the three months ended March 31, 2025, an increase of $28.3 million as compared to the three months ended March 31, 2024. The primary drivers of the change were as follows (dollars in thousands):
Previous wording
The decrease in cash outflows related to net payments of commercial paper resulted from the decrease in net borrowings of $5.0 million on our commercial paper program during the nine months ended September 30, 2024 as compared to the decrease in net borrowings of $20.0 million on our commercial paper program during the nine months ended September 30, 2023. The increase in cash inflows from proceeds from notes payable resulted from the issuance of $750.0 million of unsecured senior notes during the nine months ended September 30, 2024 as compared to no issuance of unsecured senior notes during the nine months ended September 30, 2023. The increase in cash outflows related to principal payments on notes payable resulted from the retirement of $400.0 million of unsecured senior notes during the nine months ended September 30, 2024 as compared to the retirement of $3.0 million of a secured property mortgage prior to its maturity during the nine months ended September 30, 2023. The increase in cash outflows related to payment of deferred financing costs resulted from the closing costs of $7.2 million related to the issuance of $750.0 million of unsecured senior notes during the nine months ended September 30, 2024 as compared to no payments of deferred financing costs during the nine months ended September 30, 2023. The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to $4.4100 per share during the nine months ended September 30, 2024 as compared to the dividend rate of $4.2000 per share during the nine months ended September 30, 2023. The decrease in cash inflows related to the proceeds from issuances of common shares resulted from the proceeds from the settlement of two forward sale agreements with respect to a total of 1.1 million shares at a forward price per share of $185.23 during the nine months ended September 30, 2023. The decrease in cash outflows from the net change in other financing activities was primarily driven by employees surrendering fewer shares of MAA common stock to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted shares during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Current wording
The increase in cash inflows related to net proceeds from (payments of) commercial paper resulted from the increase in net borrowings of $60.0 million on our commercial paper program during the three months ended March 31, 2025 as compared to the decrease in net borrowings of 260.0 million on our commercial paper program during the three months ended March 31, 2024. The decrease in cash inflows from proceeds from notes payable resulted from no issuance of unsecured senior notes during the three months ended March 31, 2025 as compared to the issuance of $350.0 million of unsecured senior notes during the three months ended March 31, 2024. The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to $1.5150 per share during the three months ended March 31, 2025 as compared to the dividend rate of $1.4700 per share during the three months ended March 31, 2024.
Previous wording
There was $490.0 million outstanding under MAALP’s unsecured commercial paper program as of September 30, 2024. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $625.0 million. For the three months ended September 30, 2024, the average daily borrowings outstanding under the commercial paper program were $403.8 million.
Current wording
There was $310.0 million outstanding under MAALP’s unsecured commercial paper program as of March 31, 2025. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $625.0 million. For the three months ended March 31, 2025, the average daily borrowings outstanding under the commercial paper program were $322.4 million.
Previous wording
MAALP has established an unsecured commercial paper program, whereby it can issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $625.0 million. As of September 30, 2024, there were $490.0 million of borrowings outstanding under the commercial paper program.
Current wording
MAALP has established an unsecured commercial paper program, whereby it can issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $625.0 million. As of March 31, 2025, there were $310.0 million of borrowings outstanding under the commercial paper program.
Previous wording
As of September 30, 2024, MAALP had $4.1 billion of publicly issued unsecured senior notes outstanding.
Current wording
As of March 31, 2025, MAALP had $4.4 billion of publicly issued unsecured senior notes outstanding.
Previous wording
As of September 30, 2024, MAA owned 116,880,291 OP Units, comprising a 97.4% limited partnership interest in MAALP, while the remaining 3,075,552 outstanding OP Units were held by limited partners of MAALP other than MAA. Holders of OP Units (other than MAA) may require us to redeem their OP Units from time to time, in which case we may, at our option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed. MAA has registered under the Securities Act the 3,075,552 shares of its common stock that, as of September 30, 2024, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.
Current wording
As of March 31, 2025, MAA owned 116,916,381 OP Units, comprising a 97.4% limited partnership interest in MAALP, while the remaining 3,060,552 outstanding OP Units were held by limited partners of MAALP other than MAA. Holders of OP Units (other than MAA) may require us to redeem their OP Units from time to time, in which case we may, at our option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed. MAA has registered under the Securities Act the 3,060,552 shares of its common stock that, as of March 31, 2025, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.
Previous wording
We have no obligation to issue shares through the ATM program. During the three and nine months ended September 30, 2024 and 2023, we did not sell any shares of common stock under our ATM program. As of September 30, 2024, 4.0 million shares remained issuable under the ATM program.
Current wording
MAA has no obligation to issue shares through the ATM program. During the three months ended March 31, 2025 and 2024, MAA did not sell any shares of common stock under its ATM program. As of March 31, 2025, 4.0 million shares of MAA’s common stock remained issuable under the ATM program.
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Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table reflects our property revenues by segment for the nine months ended September 30, 2024 and 2023 (dollars in thousands):
Previous report — wording carried elsewhere
Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes, insurance, utilities and other operating expenses. The following table reflects our property operating expenses by segment for the nine months ended September 30, 2024 and 2023 (dollars in thousands):
Previous report — wording carried elsewhere
For the twelve months ended September 30, 2024, in accordance with our accounting policies, we recognized $8.5 million of accrued legal defense costs that are expected to be incurred through July 2027.