MID AMERICA APARTMENT COMMUNITIES INC.

Previous wording

The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a 97.4% interest as of March 31, 2025. MAA conducts all of its business through the Operating Partnership and its various subsidiaries. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.

Current wording

The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a 97.5% interest as of June 30, 2025. MAA conducts all of its business through the Operating Partnership and its various subsidiaries. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.

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 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.

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 June 30, 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 June 30, 2025, 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 June 30, 2025.

Previous 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.

Current wording

For the three months ended June 30, 2025, net income available for MAA common shareholders was $107.2 million as compared to $101.0 million for the three months ended June 30, 2024. Results for the three months ended June 30, 2025 included $3.3 million of net casualty related recoveries, $1.7 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares and $0.3 million of non-cash loss from investments. Results for the three months ended June 30, 2024 included $9.3 million of non-cash loss related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, $8.0 million of accrued legal defense costs and $0.9 million of non-cash loss from investments. Revenues for the three months ended June 30, 2025 increased 0.6% as compared to the three months ended June 30, 2024. Property operating expenses, excluding depreciation and amortization, for the three months ended June 30, 2025 increased by 4.3% as compared to the three months ended June 30, 2024. The primary drivers of these changes are discussed in the “Results of Operations” section.

Previous 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.

Current wording

During the three months ended June 30, 2025, 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 to an average effective rent per unit of $1,690 for the three months ended June 30, 2025 as compared to $1,699 for the three months ended June 30, 2024. This represents a decrease of 0.5% for the three months ended June 30, 2025 as compared to the three months ended June 30, 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 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.

Current wording

For the three months ended June 30, 2025, average physical occupancy for our Same Store segment was 95.4%, consistent with the three months ended June 30, 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

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 wording

As of June 30, 2025, resident turnover for our Same Store segment was 41.0% as compared to 43.5% as of June 30, 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.

Previous 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.

Current wording

Demand for apartments in our markets was strong during the second quarter of 2025, as evidenced by robust renewal pricing, solid traffic patterns and lead volumes along with stable occupancy and low resident turnover. 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 and six months ended June 30, 2025. New supply delivering into several of our markets continues to be absorbed in a steady manner as the demand for apartment housing remains strong. We continue to believe that we will begin to see a decline in new apartment deliveries over the back half of this year and into 2026.

Previous 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.

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 June 30, 2025, we had $315.0 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 activities.

Previous 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.

Current wording

For the three months ended June 30, 2025, we achieved net income available for MAA common shareholders of $107.2 million, a 6.1% increase as compared to the three months ended June 30, 2024, and total revenue growth of $3.5 million, representing a 0.6% increase in property revenues as compared to the three months ended June 30, 2024. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Previous 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.

Current wording

The Same Store segment generated a 0.3% decrease in revenues for the three months ended June 30, 2025, primarily the result of average effective rent per unit decrease of 0.5% as compared to the three months ended June 30, 2024. The increase in property revenues from the Non-Same Store and Other segment for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 was primarily the result of increased revenues from completed units in development communities and recently acquired communities.

Previous 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.

Current wording

The increase in property operating expenses for our Same Store segment for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 was primarily driven by increases in personnel expense of $2.0 million, utilities expense of $1.4 million, property tax expense of $1.1 million, and building repair and maintenance expense of $1.0 million. The increase in property operating expenses from the Non-Same Store and Other segment for the three months ended June 30, 2025 as compared to three months ended June 30, 2024 was primarily the result of increased operating expenses from completed development communities and recently acquired communities.

Previous 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.

Current wording

Depreciation and amortization expense for the three months ended June 30, 2025 was $153.5 million, an increase of $8.5 million as compared to the three months ended June 30, 2024. The increase was primarily driven by the recognition of depreciation expense associated with our completed development communities, acquisitions and capital spend activities completed after June 30, 2024 in the normal course of business through June 30, 2025.

Previous 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.

Current wording

Property management expenses for the three months ended June 30, 2025 were $17.5 million, an increase of $0.3 million as compared to the three months ended June 30, 2024. General and administrative expenses for the three months ended June 30, 2025 were $12.8 million, an increase of $0.1 million as compared to the three months ended June 30, 2024.

Previous 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.

Current wording

Interest expense for the three months ended June 30, 2025 was $45.1 million, an increase of $3.8 million as compared to the three months ended June 30, 2024. The increase was due to an increase in our average outstanding debt balance and an increase of 13 basis points in our effective interest rate, partially offset by an increase in capitalized interest during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Previous 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.

Current wording

Other non-operating (income) expense for the six months ended June 30, 2025 was $5.6 million of income, an increase of $1.3 million as compared to the six months ended June 30, 2024. The income for the six months ended June 30, 2025 was primarily driven by $3.6 million of net casualty related recoveries, $1.3 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, and $0.4 million of non-cash gain from investments. The income for the six months ended June 30, 2024 was driven by $4.3 million of non-cash gain from investments, $4.0 million of net casualty related recoveries and $3.8 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, partially offset by $8.0 million of accrued legal defense costs.

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 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):

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 and six months ended June 30, 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 income” in the Condensed Consolidated Statements of Operations.

Current wording

Included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.

Previous 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.

Current wording

For the three months ended June 30, 2025 and 2024, loss on investments is presented net of tax benefit of $0.1 million and $0.2 million, respectively. For the six months ended June 30, 2025 and 2024, gain on investments is presented net of tax expense of $0.1 million and $0.9 million, respectively.

Previous 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.

Current wording

Core FFO attributable to common shareholders and unitholders for the six months ended June 30, 2025 was $521.9 million, a decrease of $10.9 million as compared to the six months ended June 30, 2024, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $12.4 million, interest expenses of $8.6 million, and property management expenses of $0.9 million, partially offset by an increase in property revenues of $9.1 million and a decrease in general and administrative expenses of $1.3 million.

Previous wording

Included in “Other non-operating income” in the Condensed Consolidated Statements of Operations.

Current wording

Included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.

Previous 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.

Current wording

Our net debt to Adjusted EBITDAre ratio as of June 30, 2025 was 4.0x, consistent with our net debt to Adjusted EBITDAre ratio as of December 31, 2024. Adjusted EBITDAre decreased $2.7 million for the trailing twelve months ended June 30, 2025 as compared to the trailing twelve months ended December 31, 2024, while net debt increased $55.7 million as of June 30, 2025 as compared to December 31, 2024. The decrease in Adjusted EBITDAre was primarily due to increases in property operating expenses, excluding depreciation and amortization, property management expenses and general and administrative 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.

Previous 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.

Current wording

Net cash provided by operating activities was $550.1 million for the six months ended June 30, 2025, an increase of $0.4 million as compared to the six months ended June 30, 2024. The increase in operating cash flows was primarily driven by the timing of cash payments.

Previous 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):

Current wording

Net cash used in investing activities was $238.3 million for the six months ended June 30, 2025, a decrease of $91.5 million as compared to the six months ended June 30, 2024. The primary drivers of the change were as follows (dollars in thousands):

Previous 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.

Current wording

The decrease in cash outflows for purchases of real estate and other assets was driven by the number and type of the real estate assets acquired during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. We acquired one land parcel during the six months ended June 30, 2025 while we acquired one apartment community and one land parcel during the six months ended June 30, 2024. 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 six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase in cash outflows for development costs was primarily driven by increased development activity during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase in cash outflows for contributions to affiliates was driven by a larger amount of investments made in the technology-focused limited partnerships during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The decrease in cash inflows from proceeds from sale of marketable equity securities resulted from no marketable equity securities being sold during the six months ended June 30, 2025 as compared to the sale of marketable equity securities during the six months ended June 30, 2024. The increase in cash inflows from proceeds from real estate asset dispositions resulted from the dispositions of two multifamily communities during the six months ended June 30, 2025 as compared to no dispositions of real estate assets during the six months ended June 30, 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 six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Previous 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):

Current wording

Net cash used in financing activities was $300.4 million for the six months ended June 30, 2025, an increase of $102.0 million as compared to the six months ended June 30, 2024. The primary drivers of the change were as follows (dollars in thousands):

Previous 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.

Current wording

The increase in cash inflows related to net proceeds from (payments of) commercial paper was driven by the increase in net borrowings of $65.0 million on our commercial paper program during the six months ended June 30, 2025 as compared to the decrease in net borrowings of $179.0 million on our commercial paper program during the six months ended June 30, 2024. The decrease in cash inflows from proceeds from notes payable resulted from no issuance of unsecured senior notes during the six months ended June 30, 2025 as compared to the issuance of $750.0 million of unsecured senior notes during the six months ended June 30, 2024. The decrease in cash outflows related to principal payments on notes payable resulted from no retirement of unsecured senior notes during the six months ended June 30, 2025 as compared to the retirement of $400.0 million of unsecured senior notes during the during the six months ended June 30, 2024. The decrease in cash outflows related to payment of deferred financing costs resulted from no payments of deferred financing costs during the six months ended June 30, 2025 as compared to the closing costs of $7.2 million related to the issuance of $750.0 million of unsecured senior notes during the six months ended June 30, 2024. The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to $3.0300 per share during the six months ended June 30, 2025 as compared to the dividend rate of $2.9400 per share during the six months ended June 30, 2024.

Previous 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.

Current wording

There was $315.0 million outstanding under MAALP’s unsecured commercial paper program as of June 30, 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 June 30, 2025, the average daily borrowings outstanding under the commercial paper program were $301.6 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 March 31, 2025, there were $310.0 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 June 30, 2025, there were $315.0 million of borrowings outstanding under the commercial paper program.

Previous 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.

Current wording

As of June 30, 2025, MAA owned 117,071,410 OP Units, representing a 97.5% limited partnership interest in MAALP, while the remaining 2,949,657 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 2,949,657 shares of its common stock that, as of June 30, 2025, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.

Previous 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.

Current wording

MAA has no obligation to issue shares through the ATM program. During the six months ended June 30, 2025 and 2024, MAA did not sell any shares of common stock under its ATM program. As of June 30, 2025, 4.0 million shares of MAA’s common stock remained issuable under the ATM program.

Previous wording

As of March 31, 2025, we had $832.8 million of outstanding debt and debt service obligations payable in the year ending December 31, 2025, including the $400.0 million of publicly issued unsecured senior notes maturing in November 2025, the $310.0 million of commercial paper borrowings due April 2025, and $122.8 million of interest payments on fixed rate debt obligations in the year ending December 31, 2025. For a schedule of the maturity dates of our outstanding debt beyond 2025, see the “Liquidity and Capital Resources - Debt” section above. As of March 31, 2025, we also had obligations to make additional capital contributions to five technology-focused limited partnerships in which we hold equity interests. The capital contributions may be called by the general partners at any time after giving appropriate notice. As of March 31, 2025, we had committed to make additional capital contributions totaling up to $26.9 million if and when called by the general partners of the limited partnerships.

Current wording

As of June 30, 2025, we had $806.6 million of outstanding debt and debt service obligations payable in the year ending December 31, 2025, including the $400.0 million of publicly issued unsecured senior notes maturing in November 2025, the $315.0 million of commercial paper borrowings due July 2025, and $91.6 million of interest payments on fixed rate debt obligations in the year ending December 31, 2025. For a schedule of the maturity dates of our outstanding debt beyond 2025, see the “Liquidity and Capital Resources - Debt” section above. As of June 30, 2025, we also had obligations to make additional capital contributions to five technology-focused limited partnerships in which we hold equity interests. The capital contributions may be called by the general partners at any time after giving appropriate notice. As of June 30, 2025, we had committed to make additional capital contributions totaling up to $23.2 million if and when called by the general partners of the limited partnerships.

Previous wording

As of March 31, 2025, we had seven development communities under construction totaling 2,312 apartment units once complete. Total expected costs for the seven development projects are $851.5 million, of which $546.5 million had been incurred through March 31, 2025. In addition, our property redevelopment and repositioning activities are ongoing, and we incur expenditures relating to recurring capital replacements, which typically include scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. For the year ending December 31, 2025, we expect that our total capital expenditures relating to our development activities, our property redevelopment and repositioning activities and recurring capital replacements will be in line with our total capital expenditures for the year ended December 31, 2024. We expect to have additional development projects in the future.

Current wording

As of June 30, 2025, we had eight development communities under construction totaling 2,648 apartment units once complete. Total expected costs for the eight development projects are $942.5 million, of which $616.3 million had been incurred through June 30, 2025. In addition, our property redevelopment and repositioning activities are ongoing, and we incur expenditures relating to recurring capital replacements, which typically include scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. For the year ending December 31, 2025, we expect that our total capital expenditures relating to our development activities, our property redevelopment and repositioning activities and recurring capital replacements will be in line with our total capital expenditures for the year ended December 31, 2024. We expect to have additional development projects in the future.

Previous wording

Our resident leases at our apartment communities allow for adjustments in the rental rate at the time of renewal, which may enable us to seek rent increases. The majority of our leases are for one year or less. The short-term nature of these leases generally serves to reduce our risk to adverse effects of inflation on our revenue. During the three months ended March 31, 2025, we experienced inflationary pressures that drove higher operating expenses, primarily in personnel, utilities, office operations, and building repair and maintenance expenses.

Current wording

Our resident leases at our apartment communities allow for adjustments in the rental rate at the time of renewal, which may enable us to seek rent increases. The majority of our leases are for one year or less. The short-term nature of these leases generally serves to reduce our risk to adverse effects of inflation on our revenue. During the six months ended June 30, 2025, we experienced inflationary pressures that drove higher operating expenses, primarily in personnel, utilities, office operations, and building repair and maintenance expenses.