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 97.5% interest as of June 30, 2026. 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 97.6% interest as of September 30, 2026. 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 June 30, 2026, we owned and operated 294 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, 2026, we had six development communities under construction, and 37 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, 2026.

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, 2026, we owned and operated 294 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries. In addition, as of September 30, 2026, we had eight development communities under construction, and 37 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states as of September 30, 2026.

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. 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 experienced 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.

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 a full 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 experienced 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

For the three months ended June 30, 2026, net income available for MAA common shareholders was $120.8 million as compared to $107.2 million for the three months ended June 30, 2025. Results for the three months ended June 30, 2026 included $35.3 million of gain related to the sale of depreciable real estate assets, $2.3 million of net casualty related recoveries and $1.1 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 $1.4 million of non-cash loss from investments. 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. Revenues for the three months ended June 30, 2026 increased 1.0% as compared to the three months ended June 30, 2025. Property operating expenses, excluding depreciation and amortization, for the three months ended June 30, 2026 increased by 1.9% as compared to the three months ended June 30, 2025. The primary drivers of these changes are discussed in the “Results of Operations” section.

Current wording

For the three months ended September 30, 2026, net income available for MAA common shareholders was $83.1 million as compared to $98.6 million for the three months ended September 30, 2025. Results for the three months ended September 30, 2026 included legal (recoveries), costs and settlements, net of $1.0 million, consisting of $2.4 million of income recorded in “Other non-operating (income) expense, net,” partially offset by $1.5 million of expense recorded in “(Expense) income from real estate joint venture.” 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 stock. Revenues for the three months ended September 30, 2026 increased 1.0% as compared to the three months ended September 30, 2025. Property operating expenses, excluding depreciation and amortization, for the three months ended September 30, 2026 increased by 2.9% as compared to the three months ended September 30, 2025. The primary drivers of these changes are discussed in the “Results of Operations” section.

Previous wording

During the three months ended June 30, 2026, revenue for our Same Store segment declined by 0.3% as compared to the three months ended June 30, 2025, primarily driven by average effective rent per unit. The average effective rent per unit for our Same Store segment decreased to $1,688 for the three months ended June 30, 2026 as compared to $1,691 for the three months ended June 30, 2025, a 0.2% decrease for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. 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, 2026, revenue for our Same Store segment declined by 0.4% as compared to the three months ended September 30, 2025, primarily driven by average physical occupancy and average effective rent per unit. The average effective rent per unit for our Same Store segment decreased to $1,691 for the three months ended September 30, 2026 as compared to $1,693 for the three months ended September 30, 2025, a 0.1% decrease for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. 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, 2026, average physical occupancy for our Same Store segment was 95.3% as compared to 95.4% for the three months ended June 30, 2025. 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, 2026, average physical occupancy for our Same Store segment was 95.3% as compared to 95.6% for the three months ended September 30, 2025. 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, 2026, resident turnover for our Same Store segment was 39.6% as compared to 41.0% as of June 30, 2025. 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, 2026, resident turnover for our Same Store segment was 39.6% as compared to 40.2% as of September 30, 2025. 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

Despite an uncertain macroeconomic backdrop, apartment demand in our markets remained steady during the second quarter of 2026, outweighing the declining pressure from new deliveries in a number of our markets, while renewal pricing remained strong and resident turnover continued to improve. 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 suppress demand for apartments, drive lower rent growth on new leases and renewals than what we achieved in the three and six months ended June 30, 2026 and could contribute to uncertain rent collections going forward. We believe that we will continue to see a decline in new apartment deliveries throughout the reminder of calendar year 2026.

Current wording

Despite an uncertain macroeconomic backdrop, apartment demand in our markets remained steady during the third quarter of 2026, partially offsetting the high, but declining pressure from new deliveries in a number of our markets, while renewal pricing remained strong and resident turnover continued to improve. We believe demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to demand factors such as 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 suppress demand for apartments, drive lower rent growth on new leases and renewals than what we achieved in the three and nine months ended September 30, 2026 and could contribute to uncertain rent collections going forward. We believe that we will continue to see a decline in the impact of new apartment deliveries throughout the remainder of calendar year 2026 and into 2027.

Previous wording

Capital remains available to investment-grade borrowers, such as us. However, overall borrowing costs remain at elevated levels relative to our existing fixed rate debt portfolio, and we expect this trend to continue. As of June 30, 2026, we had $764.0 million of variable rate debt outstanding, consisting of $664.0 million under our commercial paper program and $100.0 million under our term loan program. Accordingly, future borrowing activity may continue to expose us to higher interest costs.

Current wording

Capital remains available to investment-grade borrowers, such as us. However, overall borrowing costs remain at elevated levels relative to our existing fixed rate debt portfolio, and we expect this trend to continue. As of September 30, 2026, we had $1.2 billion of variable rate debt outstanding, consisting of $750.0 million under our commercial paper program, $350.0 million under our term loan program, and $110.0 million under our revolving credit facility. Accordingly, future borrowing activity may continue to expose us to higher interest costs.

Previous wording

For the three months ended June 30, 2026, we achieved net income available for MAA common shareholders of $120.8 million, a 12.7% increase as compared to the three months ended June 30, 2025, and total revenue growth of $5.2 million, representing a 1.0% increase in property revenues as compared to the three months ended June 30, 2025. 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, 2026 as compared to the three months ended June 30, 2025.

Current wording

For the three months ended September 30, 2026, we achieved net income available for MAA common shareholders of $83.1 million, a 15.8% decrease as compared to the three months ended September 30, 2025, and total revenue growth of $5.8 million, representing a 1.0% increase in property revenues as compared to the three months ended September 30, 2025. 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, 2026 as compared to the three months ended September 30, 2025.

Previous wording

The Same Store segment generated a 0.3% decrease in revenues for the six months ended June 30, 2026, primarily the result of average effective rent per unit decrease of 0.2% as compared to the six months ended June 30, 2025. The increase in property revenues from the Non-Same Store and Other segment for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 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 0.4% decrease in revenues for the three months ended September 30, 2026, which is the result of average physical occupancy decrease of 0.3% and average effective rent per unit decrease of 0.1% as compared to the three months ended September 30, 2025. The increase in property revenues from the Non-Same Store and Other segment for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 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, 2026 as compared to the three months ended June 30, 2025 was primarily driven by increases in utilities expense of $1.5 million and marketing expense of $0.8 million, partially offset by a decrease in insurance expense of $0.7 million. The increase in property operating expenses from the Non-Same Store and Other segment for the three months ended June 30, 2026 as compared to three months ended June 30, 2025 was primarily the result of increased operating expenses from completed units in 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, 2026 as compared to the three months ended September 30, 2025 was primarily driven by increases in utilities expense of $2.0 million, building repair and maintenance expense of $1.4 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, 2026 as compared to the three months ended September 30, 2025 was primarily the result of increased operating expenses from completed units in development communities and recently acquired communities.

Previous wording

Depreciation and amortization expense for the three months ended June 30, 2026 was $162.5 million, an increase of $9.0 million as compared to the three months ended June 30, 2025. 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, 2025 in the normal course of business through June 30, 2026.

Current wording

Depreciation and amortization expense for the three months ended September 30, 2026 was $166.7 million, an increase of $10.1 million as compared to the three months ended September 30, 2025. 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, 2025 in the normal course of business through September 30, 2026.

Previous wording

Property management expenses for the six months ended June 30, 2026 were $40.4 million, an increase of $2.3 million as compared to the six months ended June 30, 2025. General and administrative expenses for the six months ended June 30, 2026 were $31.9 million, an increase of $3.4 million as compared to the six months ended June 30, 2025.

Current wording

Property management expenses for the three months ended September 30, 2026 were $18.2 million, consistent with the three months ended September 30, 2025. General and administrative expenses for the three months ended September 30, 2026 were $13.4 million, an increase of $0.9 million as compared to the three months ended September 30, 2025.

Previous wording

Interest expense for the three months ended June 30, 2026 was $53.1 million, an increase of $8.0 million as compared to the three months ended June 30, 2025. The increase was primarily due to an increase in our average outstanding debt balance, an increase of 5 basis points in our effective interest rate and a decrease in capitalized interest during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Current wording

Interest expense for the three months ended September 30, 2026 was $54.6 million, an increase of $8.3 million as compared to the three months ended September 30, 2025. The increase was primarily due to an increase in our average outstanding debt balance and an increase of 7 basis points in our effective interest rate during the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.

Previous wording

Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025

Current wording

Comparison of the nine months ended September 30, 2026 to the nine months ended September 30, 2025

Previous wording

For the six months ended June 30, 2026, we achieved net income available for MAA common shareholders of $244.3 million, a 15.2% decrease as compared to the six months ended June 30, 2025, and total revenue growth of $9.7 million, representing a 0.9% increase in property revenues as compared to the six months ended June 30, 2025. The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, we achieved net income available for MAA common shareholders of $327.3 million, a 15.3% decrease as compared to the nine months ended September 30, 2025, and total revenue growth of $15.4 million, representing a 0.9% increase in property revenues as compared to the nine months ended September 30, 2025. 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, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

The following table reflects our property revenues by segment for the six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table reflects our property revenues by segment for the nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

The Same Store segment generated a 0.3% decrease in revenues for the three months ended June 30, 2026, primarily the result of average effective rent per unit decrease of 0.2% as compared to the three months ended June 30, 2025. The increase in property revenues from the Non-Same Store and Other segment for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 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 nine months ended September 30, 2026, primarily the result of average effective rent per unit decrease of 0.2% as compared to the nine months ended September 30, 2025. The increase in property revenues from the Non-Same Store and Other segment for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 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, landscaping and other operating expenses. The following table reflects our property operating expenses by segment for the six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes, insurance, utilities, landscaping and other operating expenses. The following table reflects our property operating expenses by segment for the nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

The increase in property operating expenses for our Same Store segment for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily driven by increases in utilities expense of $2.6 million, property tax expense of $1.6 million and marketing expense of $0.8 million, partially offset by a decrease in insurance expense of $1.4 million. The increase in property operating expenses from the Non-Same Store and Other segment for the six months ended June 30, 2026 as compared to six months ended June 30, 2025 was primarily the result of increased operating expenses from completed units in 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, 2026 as compared to the nine months ended September 30, 2025 was primarily driven by increases in utilities expense of $4.6 million, marketing expense of $1.9 million, and building repair and maintenance expense of $1.5 million. The increase in property operating expenses from the Non-Same Store and Other segment for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 was primarily the result of increased operating expenses from completed units in development communities and recently acquired communities.

Previous wording

Depreciation and amortization expense for the six months ended June 30, 2026 was $324.4 million, an increase of $18.5 million as compared to the six months ended June 30, 2025. 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, 2025 in the normal course of business through June 30, 2026.

Current wording

Depreciation and amortization expense for the nine months ended September 30, 2026 was $491.2 million, an increase of $28.6 million as compared to the nine months ended September 30, 2025. 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, 2025 in the normal course of business through September 30, 2026.

Previous wording

Property management expenses for the three months ended June 30, 2026 were $18.0 million, an increase of $0.4 million as compared to the three months ended June 30, 2025. General and administrative expenses for the three months ended June 30, 2026 were $15.1 million, an increase of $2.3 million as compared to the three months ended June 30, 2025.

Current wording

Property management expenses for the nine months ended September 30, 2026 were $58.6 million, an increase of $2.3 million as compared to the nine months ended September 30, 2025. General and administrative expenses for the nine months ended September 30, 2026 were $45.3 million, an increase of $4.3 million as compared to the nine months ended September 30, 2025.

Previous wording

Interest expense for the six months ended June 30, 2026 was $104.5 million, an increase of $14.3 million as compared to the six months ended June 30, 2025. The increase was primarily due to an increase in our average outstanding debt balance, an increase of 4 basis points in our effective interest rate and a decrease in capitalized interest during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

Interest expense for the nine months ended September 30, 2026 was $159.2 million, an increase of $22.6 million as compared to the nine months ended September 30, 2025. The increase was primarily due to an increase in our average outstanding debt balance, an increase of 5 basis points in our effective interest rate and a decrease in capitalized interest during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

Other non-operating income, net for the six months ended June 30, 2026 was $18.1 million of income, an increase of $12.6 million as compared to the six months ended June 30, 2025. The income for the six months ended June 30, 2026 was primarily driven by $20.5 million of non-cash gain from investments, partially offset by $2.2 million of net casualty related charges. 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.

Current wording

Other non-operating (income) expense, net for the nine months ended September 30, 2026 was $21.1 million of income, an increase of $16.8 million as compared to the nine months ended September 30, 2025. The income for the nine months ended September 30, 2026 was primarily driven by $20.5 million of non-cash gain from investments. 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.

Previous wording

Funds from operations, or FFO, a non-GAAP financial measure, represents net income available for MAA common shareholders (computed in accordance with U.S. generally accepted accounting principles, or GAAP) excluding gains or losses on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this Quarterly Report on Form 10-Q, represents FFO attributable to common shareholders and unitholders.

Current wording

FFO, a non-GAAP financial measure, represents net income available for MAA common shareholders (computed in accordance with U.S. generally accepted accounting principles, or GAAP) excluding gains or losses on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this Quarterly Report on Form 10-Q, represents FFO attributable to common shareholders and unitholders.

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) 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.

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 (recoveries), costs and settlements, 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, 2026 and 2025, 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, 2026 and 2025, 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, net” in the Condensed Consolidated Statements of Operations.

Current wording

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

Previous wording

For the three months ended June 30, 2026 and 2025, loss on investments is presented net of tax benefit of $0.3 million and $0.1 million, respectively. For the six months ended June 30, 2026 and 2025, gain on investments is presented net of tax expense of $4.3 million and $0.1 million, respectively.

Current wording

For the three months ended September 30, 2025, gain on investments is presented net of tax expense of $1.0 million. For the nine months ended September 30, 2026 and 2025, gain on investments is presented net of tax expense of $4.3 million and $1.0 million, respectively.

Previous wording

Core FFO attributable to common shareholders and unitholders for the three months ended June 30, 2026 was $247.5 million, a decrease of $10.1 million as compared to the three months ended June 30, 2025, primarily as a result of increases in interest expense of $8.0 million, property operating expenses, excluding depreciation and amortization, of $4.1 million, and general and administrative expenses of $2.3 million, partially offset by an increase in property revenues of $5.2 million.

Current wording

Core FFO attributable to common shareholders and unitholders for the three months ended September 30, 2026 was $249.9 million, a decrease of $9.0 million as compared to the three months ended September 30, 2025, primarily as a result of an increase in interest expense of $8.3 million.

Previous wording

Core FFO attributable to common shareholders and unitholders for the six months ended June 30, 2026 was $502.6 million, a decrease of $19.3 million as compared to the six months ended June 30, 2025, primarily as a result of increases in interest expense of $14.3 million, and property operating expenses, excluding depreciation and amortization, of $8.3 million, general and administrative expenses of $3.4 million, and property management expenses of $2.3 million, partially offset by an increase in property revenues of $9.7 million.

Current wording

Core FFO attributable to common shareholders and unitholders for the nine months ended September 30, 2026 was $752.5 million, a decrease of $28.4 million as compared to the nine months ended September 30, 2025, primarily as a result of increases in interest expense of $22.6 million, property operating expenses, excluding depreciation and amortization, of $14.5 million, general and administrative expenses of $4.3 million, and property management expenses of $2.3 million, partially offset by an increase in property revenues of $15.4 million.

Previous wording

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

Current wording

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

Previous wording

For the trailing twelve months ended June 30, 2026 and December 31, 2025, in accordance with our accounting policies, we recognized $61.9 million of accrued legal defense costs.

Current wording

For the trailing twelve months ended September 30, 2026 and December 31, 2025, in accordance with our accounting policies, we recognized $52.0 million and $61.9 million, respectively, of accrued legal settlements and legal defense costs.

Previous wording

Our net debt to Adjusted EBITDAre ratio as of June 30, 2026 was 4.5x as compared to a ratio of 4.3x as of December 31, 2025. Adjusted EBITDAre decreased $4.6 million for the trailing twelve months ended June 30, 2026 as compared to the trailing twelve months ended December 31, 2025, while net debt increased $295.0 million as of June 30, 2026 as compared to December 31, 2025. The decrease in Adjusted EBITDAre was primarily due to increases in property operating expenses, excluding depreciation and amortization, general and administrative expenses, 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, 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 development activities.

Current wording

Our net debt to Adjusted EBITDAre ratio as of September 30, 2026 was 4.7x as compared to a ratio of 4.3x as of December 31, 2025. Adjusted EBITDAre decreased $5.3 million for the trailing twelve months ended September 30, 2026 as compared to the trailing twelve months ended December 31, 2025, while net debt increased $468.5 million as of September 30, 2026 as compared to December 31, 2025. The decrease in Adjusted EBITDAre was primarily due to increases in property operating expenses, excluding depreciation and amortization, general and administrative expenses, 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, 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 development activities.

Previous wording

As of June 30, 2026, we had $882.8 million of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.

Current wording

As of September 30, 2026, we had $660.7 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 $482.5 million for the six months ended June 30, 2026, a decrease of $67.5 million as compared to the six months ended June 30, 2025. The decrease in operating cash flows was primarily driven by the timing of cash payments.

Current wording

Net cash provided by operating activities was $739.6 million for the nine months ended September 30, 2026, a decrease of $76.9 million as compared to the nine months ended September 30, 2025. The decrease in operating cash flows was primarily driven by the timing of cash payments.

Previous wording

Net cash used in investing activities was $275.8 million for the six months ended June 30, 2026, an increase of $37.4 million as compared to the six months ended June 30, 2025. The primary drivers of the change were as follows (dollars in thousands):

Current wording

Net cash used in investing activities was $468.4 million for the nine months ended September 30, 2026, a decrease of $24.3 million as compared to the nine months ended September 30, 2025. 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 the number of the real estate assets acquired during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. We acquired land parcels for three developments during the six months ended June 30, 2026 while we acquired one land parcel during the six months ended June 30, 2025. 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, 2026 as compared to the six months ended June 30, 2025. 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 six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

The decrease in cash outflows for purchases of real estate and other assets was driven by the nature of real estate assets acquired during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. We acquired land parcels for four developments and no apartment community during the nine months ended September 30, 2026 while we acquired one land parcel and one apartment community during the nine months ended September 30, 2025. The increase in cash outflows for capital improvements and other was primarily driven by increased capital spending relating to our property redevelopment and repositioning activities during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. The increase in cash outflows for development costs was primarily driven by increased development activity during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

Net cash used in financing activities was $215.8 million for the six months ended June 30, 2026, a decrease of $84.6 million as compared to the six months ended June 30, 2025. The primary drivers of the change were as follows (dollars in thousands):

Current wording

Net cash used in financing activities was $259.8 million for the nine months ended September 30, 2026, a decrease of $74.8 million as compared to the nine months ended September 30, 2025. The primary drivers of the change were as follows (dollars in thousands):