MID AMERICA APARTMENT COMMUNITIES INC.

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 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.

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 September 30, 2025, 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, 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 September 30, 2025.

Previous 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.

Current wording

For the three months ended September 30, 2025, net income available for MAA common shareholders was $98.6 million as compared to $114.3 million for the three months ended September 30, 2024. Results for the three months ended September 30, 2025 included $8.9 million of accrued legal defense costs, partially offset by $5.4 million of non-cash gain from investments and $2.0 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. 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. Revenues for the three months ended September 30, 2025 increased 0.6% as compared to the three months ended September 30, 2024. Property operating expenses, excluding depreciation and amortization, for the three months ended September 30, 2025 increased by 2.1% as compared to the three months ended September 30, 2024. The primary drivers of these changes are discussed in the “Results of Operations” section.

Previous 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.

Current wording

During the three months ended September 30, 2025, the change in revenue for our Same Store segment was primarily driven by average effective rent per unit. The average effective rent per unit for our Same Store segment decreased to $1,693 for the three months ended September 30, 2025 as compared to $1,700 for the three months ended September 30, 2024, a 0.4% decrease for the three months ended September 30, 2025 as compared to the three months ended September 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 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.

Current wording

For the three months ended September 30, 2025, average physical occupancy for our Same Store segment was 95.6% as compared to 95.7% for the three months ended September 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 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.

Current wording

As of September 30, 2025, resident turnover for our Same Store segment was 40.2% as compared to 42.8% as of September 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 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.

Current wording

Demand for apartments in our markets was solid during the third quarter of 2025, as evidenced by strong 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, in-migration and housing affordability 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 nine months ended September 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 solid. We continue to believe that we will continue to see a decline in new apartment deliveries in calendar year 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 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.

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 as compared to our in-place fixed rate debt, and we expect this trend to continue. As of September 30, 2025, we had $463.0 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 and future financing activities.

Previous 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.

Current wording

For the three months ended September 30, 2025, we achieved net income available for MAA common shareholders of $98.6 million, a 13.7% decrease as compared to the three months ended September 30, 2024, and total revenue growth of $3.2 million, representing a 0.6% increase in property revenues as compared to the three months ended September 30, 2024. The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous 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.

Current wording

The Same Store segment generated a 0.3% decrease in revenues for the three months ended September 30, 2025, primarily the result of average effective rent per unit decrease of 0.4% as compared to the three months ended September 30, 2024. The increase in property revenues from the Non-Same Store and Other segment for the three months ended September 30, 2025 as compared to the three months ended September 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 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.

Current wording

The increase in property operating expenses for our Same Store segment for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 was primarily driven by increases in personnel expense of $1.9 million, utilities expense of $1.2 million, and property tax expense of $1.1 million. The increase in property operating expenses from the Non-Same Store and Other segment for the three months ended September 30, 2025 as compared to three months ended September 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 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.

Current wording

Depreciation and amortization expense for the three months ended September 30, 2025 was $156.7 million, an increase of $9.9 million as compared to the three months ended September 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 September 30, 2024 in the normal course of business through September 30, 2025.

Previous 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.

Current wording

Property management expenses for the three months ended September 30, 2025 were $18.2 million, an increase of $0.9 million as compared to the three months ended September 30, 2024. General and administrative expenses for the three months ended September 30, 2025 were $12.5 million, a decrease of $0.2 million as compared to the three months ended September 30, 2024.

Previous wording

Interest expense for the six months ended June 30, 2025 was $90.3 million, an increase of $8.6 million as compared to the six months ended June 30, 2024. The increase was due to an increase in our average outstanding debt balance and an increase of 15 basis points in our effective interest rate, partially offset by an increase in capitalized interest during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Current wording

Interest expense for the three months ended September 30, 2025 was $46.3 million, an increase of $3.6 million as compared to the three months ended September 30, 2024. The increase was due to an increase in our average outstanding debt balance during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous wording

Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024

Current wording

Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024

Previous wording

For the six months ended June 30, 2025, we achieved net income available for MAA common shareholders of $288.0 million, an 18.1% increase as compared to the six months ended June 30, 2024, and total revenue growth of $9.1 million, representing a 0.8% increase in property revenues as compared to the six 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 six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, we achieved net income available for MAA common shareholders of $386.6 million, a 7.9% increase as compared to the nine months ended September 30, 2024, and total revenue growth of $12.4 million, representing a 0.8% increase in property revenues as compared to the nine months ended September 30, 2024. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Previous wording

The following table reflects our property revenues by segment for the six months ended June 30, 2025 and 2024 (dollars in thousands):

Current wording

The following table reflects our property revenues by segment for the nine months ended September 30, 2025 and 2024 (dollars in thousands):

Previous wording

The Same Store segment generated a 0.1% decrease in revenues for the six months ended June 30, 2025, primarily the result of average effective rent per unit decrease of 0.5% as compared to the six months ended June 30, 2024. The increase in property revenues from the Non-Same Store and Other segment for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily the result of increased revenues from completed units in development communities and recently acquired communities.

Current wording

The Same Store segment generated a 0.2% decrease in revenues for the nine months ended September 30, 2025, primarily the result of average effective rent per unit decrease of 0.5% as compared to the nine months ended September 30, 2024. The increase in property revenues from the Non-Same Store and Other segment for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily the result of increased revenues from completed units in development communities and recently acquired communities.

Previous wording

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 six months ended June 30, 2025 and 2024 (dollars in thousands):

Current wording

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, 2025 and 2024 (dollars in thousands):

Previous wording

The increase in property operating expenses for our Same Store segment for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily driven by increases in personnel expense of $4.1 million, utilities expense of $3.1 million, office operations expense of $2.0 million, building repair and maintenance expense of $1.8 million, and marketing expense of $1.2 million partially offset by a decrease in property tax expense of $3.5 million. The increase in property operating expenses from the Non-Same Store and Other segment for the six months ended June 30, 2025 as compared to six months ended June 30, 2024 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 nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily driven by increases in personnel expense of $6.0 million, utilities expense of $4.4 million, building repair and maintenance expense of $2.4 million, office operations expense of $1.9 million, and marketing expense of $1.4 million, partially offset by a decrease in property tax expense of $2.4 million. The increase in property operating expenses from the Non-Same Store and Other segment for the nine months ended September 30, 2025 as compared to nine months ended September 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 six months ended June 30, 2025 was $305.9 million, an increase of $17.8 million as compared to the six 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.

Current wording

Depreciation and amortization expense for the nine months ended September 30, 2025 was $462.5 million, an increase of $27.8 million as compared to the nine months ended September 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 September 30, 2024 in the normal course of business through September 30, 2025.

Previous wording

Property management expenses for the six months ended June 30, 2025 were $38.1 million, an increase of $0.9 million as compared to the six months ended June 30, 2024. General and administrative expenses for the six months ended June 30, 2025 were $28.4 million, a decrease of $1.3 million as compared to the six months ended June 30, 2024.

Current wording

Property management expenses for the nine months ended September 30, 2025 were $56.3 million, an increase of $1.8 million as compared to the nine months ended September 30, 2024. General and administrative expenses for the nine months ended September 30, 2025 were $41.0 million, a decrease of $1.5 million as compared to the nine months ended September 30, 2024.

Previous 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.

Current wording

Interest expense for the nine months ended September 30, 2025 was $136.5 million, an increase of $12.2 million as compared to the nine months ended September 30, 2024. The increase was due to an increase in our average outstanding debt balance and an increase of 11 basis points in our effective interest rate, partially offset by an increase in capitalized interest during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Previous 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.

Current wording

Other non-operating expense (income) for the nine months ended September 30, 2025 was $4.3 million of income, an increase of $1.7 million as compared to the nine months ended September 30, 2024. The income for the nine months ended September 30, 2025 was primarily driven by $5.8 million of non-cash gain from investments, $3.7 million of net casualty related recoveries, and $3.3 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 $8.9 million of accrued legal defense costs. 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.

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 (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.

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) and 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 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):

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 nine months ended September 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) expense” in the Condensed Consolidated Statements of Operations.

Current wording

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

Previous 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.

Current wording

For the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, gain on investments is presented net of tax expense of $1.0 million, $1.0 million and $0.8 million, respectively. For the three months ended September 30, 2024, loss on investments is presented net of tax benefit of $0.1 million.

Previous wording

For the three and six months ended June 30, 2024, we recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.

Current wording

For the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, we recognized $8.9 million, $8.9 million and $8.0 million, respectively, of accrued legal defense costs that are expected to be incurred through July 2027.

Previous wording

Core FFO attributable to common shareholders and unitholders for the three months ended June 30, 2025 was $257.6 million, a decrease of $9.0 million as compared to the three months ended June 30, 2024, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $8.9 million, interest expenses of $3.8 million, and property management expenses of $0.3 million, partially offset by an increase in property revenues of $3.5 million.

Current wording

Core FFO attributable to common shareholders and unitholders for the three months ended September 30, 2025 was $258.9 million, a decrease of $5.8 million as compared to the three months ended September 30, 2024, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $4.5 million, interest expenses of $3.6 million, and property management expenses of $0.9 million, partially offset by an increase in property revenues of $3.2 million.

Previous 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.

Current wording

Core FFO attributable to common shareholders and unitholders for the nine months ended September 30, 2025 was $780.8 million, a decrease of $16.8 million as compared to the nine months ended September 30, 2024, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $16.9 million, interest expenses of $12.2 million, and property management expenses of $1.8 million, partially offset by an increase in property revenues of $12.4 million and a decrease in general and administrative expenses of $1.5 million.

Previous wording

Net debt, a non-GAAP financial measure, represents unsecured notes payable and secured notes payable less cash and cash equivalents and 1031(b) exchange proceeds included in restricted cash. Management considers net debt a helpful tool in evaluating our debt position. Net debt should not be considered as an alternative to any 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

Net debt, a non-GAAP financial measure, represents unsecured notes payable, net and secured notes payable, net less cash and cash equivalents and 1031(b) exchange proceeds included in restricted cash. Management considers net debt a helpful tool in evaluating our debt position. Net debt should not be considered as an alternative to any 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

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.

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) and 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

The following table presents a reconciliation of unsecured notes payable and secured notes payable to net debt as of June 30, 2025 and December 31, 2024, as we believe unsecured notes payable and secured notes payable, combined, is the most directly comparable GAAP measure (dollars in thousands):

Current wording

The following table presents a reconciliation of unsecured notes payable, net and secured notes payable, net to net debt as of September 30, 2025 and December 31, 2024, as we believe unsecured notes payable, net and secured notes payable, net, combined, is the most directly comparable GAAP measure (dollars in thousands):

Previous wording

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

Current wording

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

Previous 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.

Current wording

For the trailing twelve months ended September 30, 2025 and December 31, 2024, in accordance with our accounting policies, we recognized $8.9 million and $8.0 million, respectively, 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 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.

Current wording

Our net debt to Adjusted EBITDAre ratio as of September 30, 2025 was 4.2x, as compared to a ratio of 4.0x as of December 31, 2024. Adjusted EBITDAre decreased $5.1 million for the trailing twelve months ended September 30, 2025 as compared to the trailing twelve months ended December 31, 2024, while net debt increased $227.2 million as of September 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, and property management expenses, partially offset by an increase in property revenues and a decrease in general and administrative expenses, while the increase in net debt was primarily due to an increase in unsecured notes payable, net, and a decrease in cash and cash equivalents. The increase in unsecured notes payable, net was primarily driven by an increase in cash requirements to fund acquisition and development activities.

Previous wording

As of June 30, 2025, we had $1.0 billion of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.

Current wording

As of September 30, 2025, we had $814.7 million of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.

Previous 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.

Current wording

Net cash provided by operating activities was $816.5 million for the nine months ended September 30, 2025, a decrease of $42.7 million as compared to the nine months ended September 30, 2024. The decrease in operating cash flows was primarily driven by the timing of cash payments.

Previous 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):

Current wording

Net cash used in investing activities was $492.7 million for the nine months ended September 30, 2025, a decrease of $158.9 million as compared to the nine months ended September 30, 2024. The primary drivers of the change were as follows (dollars in thousands):

Previous 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.

Current wording

The decrease in cash outflows for purchases of real estate and other assets was driven by the number of the real estate assets acquired during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. We acquired one apartment community and one land parcel during the nine months ended September 30, 2025 while we acquired two apartment communities and two land parcels during the nine months ended September 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 nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The decrease in cash outflows for development costs was primarily driven by decreased development activity during the nine months ended September 30, 2025 as compared to the nine months ended September 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 nine months ended September 30, 2025 as compared to the nine months ended September 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 nine months ended September 30, 2025 as compared to the sale of marketable equity securities during the nine months ended September 30, 2024. The increase in cash inflows from proceeds from real estate asset dispositions resulted from the dispositions of two multifamily communities during the nine months ended September 30, 2025 as compared to no dispositions of real estate assets during the nine months ended September 30, 2024. The decrease in cash inflows from net proceeds from insurance recoveries was driven by decreased insurance reimbursements received for storm-related casualty claims during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.