MAA REPORTS SECOND QUARTER 2026 RESULTS

MAA REPORTS SECOND QUARTER 2026 RESULTS

PR Newswire

GERMANTOWN, Tenn., July 29, 2026

GERMANTOWN, Tenn., July 29, 2026 /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three and six months ended June 30, 2026.

Three months ended June 30,Six months ended June 30,2026202520262025Earnings per common share - diluted$1.04$0.92$2.10$2.46Funds from operations (FFO) per Share - diluted (1)$2.10$2.19$4.32$4.39Core FFO per Share - diluted (1)$2.08$2.15$4.21$4.35(1)A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO is found later in this release.Brad Hill, President and Chief Executive Officer, said, "Second quarter Core FFO results exceeded our expectations due to steady demand and continued disciplined expense management. Our focus on new lease pricing resulted in an acceleration in our new lease sequential pricing trends, supported our consistently strong renewal results and delivered blended lease-over-lease pricing that was 20 basis points better year-over-year. As steady demand increasingly outweighs the declining pressure from new deliveries more broadly across our footprint, the improved pricing and operating fundamentals we see in a number of our markets should become more broad-based, supporting an accelerating recovery. Our pricing momentum, operating discipline, and growing contribution from our new developments, position MAA to deliver attractive future earnings growth."During the second quarter of 2026, MAA's Same Store effective blended lease rate growth was 0.7%, a 20 basis point improvement over the same period in the prior year as well as a 100 basis point improvement on a sequential basis, driven by a 170 basis point improvement in new lease pricing from the first quarter of 2026. As of June 30, 2026, resident turnover in the Same Store Portfolio remained historically low at 39.6% with a low level of move-outs associated with buying single-family homes of 10.9% for the quarter.During the second quarter of 2026, MAA completed the initial lease-up of MAA Cathedral Arts in Dallas, Texas, completed the development of MAA Plaza Midwood located in Charlotte, North Carolina and began construction of a multifamily apartment community in the Kansas City market.During the second quarter of 2026, Mid-America Apartments, L.P. (MAALP), MAA's operating partnership, entered into a unsecured delayed draw term loan (referred to in this release as the DDTL Facility) in the aggregate committed principal amount of up to $350.0 million. The DDTL Facility is scheduled to mature in November 2030. As of June 30, 2026, there was $100.0 million outstanding under the DDTL Facility.During the second quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $130.66 for total consideration of $50 million.Same Store Operating ResultsSame Store results for the three and six months ended June 30, 2026 as compared to the same periods in the prior year are summarized below:Three months ended June 30, 2026 vs. 2025Six months ended June 30, 2026 vs. 2025RevenuesExpensesNOI (1)Average Effective Rent per UnitRevenuesExpensesNOI (1)Average Effective Rent per UnitSame Store Operating Growth-0.3 %0.8 %-1.0 %-0.2 %-0.3 %1.1 %-1.2 %-0.2 %(1)A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, is found later in this release.Same Store operating statistics for the three and six months ended June 30, 2026 are summarized below:Three months ended June 30, 2026Six months ended June 30, 2026As of June 30, 2026Average Effective Rent per UnitAverage Physical OccupancyAverage Effective Rent per UnitAverage Physical OccupancyResident TurnoverSame Store Operating Statistics$1,68895.3 %$1,68795.4 %39.6 %Same Store net effective lease pricing statistics for the three and six months ended June 30, 2026 are summarized below:Same Store Net Effective Lease Pricing StatisticsThree Months EndedJune 30, 2026Six Months EndedJune 30, 2026Effective Blended Lease Rate Growth0.7 %0.3 %Effective New Lease Rate Growth-5.3 %-6.0 %Effective Renewal Lease Rate Growth5.2 %5.3 %Acquisition and Disposition ActivityIn April 2026, MAA closed on the acquisition of a land parcel located in the Nashville market through its pre-purchase development program, and MAA began construction of a 312-unit multifamily apartment community at the property in July 2026.In July 2026, MAA closed on the acquisition of a land parcel located in the Northern Virginia market through its pre-purchase development program and plans future development of a 306-unit multifamily apartment community at the property starting in the third quarter of 2026.In May 2026, MAA closed on the disposition of a 194-unit multifamily apartment community located in the Raleigh, North Carolina market for net proceeds of approximately $40 million, resulting in a gain on the sale of depreciable real estate assets of approximately $35 million.Development and Lease-up ActivityA summary of MAA's development communities under construction as of the end of the second quarter of 2026 is set forth below (dollars in thousands):Units as ofDevelopment Costs as ofExpected ProjectTotalJune 30, 2026June 30, 2026Completions By YearDevelopmentExpectedCostsExpectedProjects (1)TotalDeliveredLeasedTotalto DateRemaining20262027202861,749193127$597,500$360,361$237,139222(1)Two of the development projects were leasing as of June 30, 2026. During the second quarter of 2026, MAA completed the development of MAA Plaza Midwood located in Charlotte, North Carolina and began construction on a 263-unit multifamily apartment community in the Kansas City market. MAA funded approximately $81 million of costs for current and planned development projects, including predevelopment activities, during the second quarter of 2026.A summary of the total units, physical occupancy and cost of MAA's lease-up communities as of the end of the second quarter of 2026 is set forth below (dollars in thousands):TotalAs of June 30, 2026Lease-UpTotalPhysicalCostsProjects (1)UnitsOccupancyto Date51,75974.4%$623,742(1)Two of the lease-up projects are expected to stabilize in the third quarter of 2026, two in the fourth quarter of 2026 and one in the third quarter of 2027.During the second quarter of 2026, MAA completed the lease-up of MAA Cathedral Arts located in Dallas, Texas. Balance Sheet and Financing ActivitiesAs of June 30, 2026, MAA had $882.8 million of combined cash and available capacity under MAALP's unsecured revolving credit facility.In June 2026, MAALP entered into the DDTL Facility in the aggregate committed principal amount of up to $350.0 million. Advances of loans under the DDTL Facility may be requested by MAALP in one or more draws (subject to a maximum of five draws) and will be available until December 21, 2026. The DDTL Facility is scheduled to mature in November 2030. Amounts borrowed under the DDTL Facility will bear interest at a variable rate, at MAALP's election, either (1) based upon the Secured Overnight Financing Rate (SOFR) plus an applicable margin ranging from 0.675% to 1.550% based upon MAALP's credit rating or (2) a base rate plus an applicable margin ranging from 0.00% to 0.55% based upon MAALP's credit rating. The DDTL Facility also contains an uncommitted accordion feature that allows MAALP to increase the total amount of unsecured indebtedness under the DDTL Facility to $550.0 million until December 21, 2026. As of June 30, 2026, there was $100.0 million outstanding under the DDTL Facility. MAALP intends to use the loan proceeds for general corporate purposes, including repayment of other debt.During the second quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $130.66 for total consideration of $50 million.Dividends and distributions paid on shares of common stock and noncontrolling interests during the second quarter of 2026 were $182.5 million, as compared to $181.8 million for the same period in the prior year.Balance sheet highlights as of June 30, 2026 are summarized below (dollars in billions):Total debt to adjusted total assets (1)Net Debt/Adjusted EBITDAre (2)Total debt outstandingAverage effective interest rateFixed rate debt as a % of total debtTotal debt average years to maturity31.2 %4.5x$5.73.9 %86.6 %6.0(1) As defined in the covenants for the unsecured senior notes issued by MAALP.(2) Adjusted EBITDAre is calculated for the trailing twelve month period ended June 30, 2026. A reconciliation of Unsecured notes payable, net and Secured notes payable, net to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.130th Consecutive Quarterly Common Dividend DeclaredMAA declared its 130th consecutive quarterly common dividend, which will be paid on July 31, 2026 to holders of record on July 15, 2026. The current annual dividend rate is $6.12 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA's financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA's Board of Directors deems relevant. MAA's Board of Directors may modify the dividend policy from time to time.2026 Earnings and Same Store Guidance MAA is updating its prior 2026 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to provide updates to its 2026 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT's, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.2026 GuidancePrevious RangePrevious MidpointUpdated RangeUpdated MidpointEarnings:Full Year 2026Full Year 2026Full Year 2026Full Year 2026Earnings per common share - diluted$4.18 to $4.50$4.34$3.96 to $4.20$4.08Core FFO per Share - diluted$8.37 to $8.69$8.53$8.41 to $8.65$8.53Core AFFO per Share - diluted$7.34 to $7.66$7.50$7.38 to $7.62$7.50MAA Same Store Portfolio:Property revenue growth-0.20% to 1.30%0.55 %-0.20% to 0.40%0.10 %Property operating expense growth1.90% to 3.40%2.65 %1.25% to 2.25%1.75 %NOI growth-1.70% to 0.30%-0.70 %-1.70% to 0.10%-0.90 %MAA expects Core FFO for the third quarter of 2026 to be in the range of $2.04 to $2.16 per diluted Share, or $2.10 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the second quarter of 2026 to the midpoint of MAA's guidance for the third quarter of 2026 is summarized below:Core FFO per diluted ShareQ2 2026 per diluted Share reported results$2.08Same Store NOI0.01Non Same Store NOI0.02Interest expense(0.01)Q3 2026 per diluted Share guidance midpoint$2.10MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release. Supplemental Material and Conference CallSupplemental Data to this release can be found on the "For Investors" page of the MAA website at www.maac.com. MAA will host a conference call to further discuss second quarter results on July 30, 2026, at 9:00 AM Central Time. The conference call-in number is (888) 596-4144. You may also join the live webcast of the conference call by accessing the "For Investors" page of the MAA website at www.maac.com. MAA's filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.About MAAMAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of June 30, 2026, MAA had ownership interest in 104,698 apartment units, including communities in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.Forward-Looking StatementsThis release (as well as the Supplemental Data to this release) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead are statements related to expectations, projections, intentions, assumptions and beliefs regarding the future. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "forecasts," "projects," "assumes," "will," "may," "could," "should," "budget," "target," "outlook," "proforma," "opportunity," "guidance" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding quarterly and full year 2026 guidance (including earnings guidance, Same Store Portfolio guidance and other related projections and assumptions), development costs for our development communities, timelines for occupancy, completion and stabilization of our development communities, and timelines for stabilization of our lease-up communities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance, achievements or outcomes to be materially different from the future results, performance, achievements or outcomes expressed or implied by such forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such statements should not be regarded as a representation by us or any other person that the results, performance, achievements or outcomes described in such statements will be achieved.The following factors, among others, could cause our actual results, performance, achievements or outcomes to differ materially from those expressed or implied in the forward-looking statements: adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions; adverse changes in real estate markets, including changes in supply and/or demand for multifamily housing or increased competition from alternative housing options; failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results; unexpected capital needs; material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors; losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits; ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures; level and volatility of interest or capitalization rates or capital market conditions; changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations; extreme weather and natural disasters; disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events; legal proceedings or class action lawsuits; and other risks identified in our annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026, our quarterly reports on Form 10-Q, other reports we file with the SEC and in other documents that we publicly disseminate.Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.FINANCIAL HIGHLIGHTSDollars in thousands, except per share dataThree months ended June 30,Six months ended June 30,2026202520262025Rental and other property revenues$555,127$549,902$1,108,852$1,099,197Net income available for MAA common shareholders$120,828$107,205$244,265$287,956Total NOI (1)$336,407$335,248$684,560$683,190Earnings per common share: (2)Basic$1.04$0.92$2.10$2.46Diluted$1.04$0.92$2.10$2.46Funds from operations per Share - diluted: (2)FFO (1)$2.10$2.19$4.32$4.39Core FFO (1)$2.08$2.15$4.21$4.35Core AFFO (1)$1.77$1.85$3.74$3.89Dividends declared per common share$1.530$1.515$3.060$3.030Dividends/Core FFO (diluted) payout ratio73.6%70.5%72.7%69.7%Dividends/Core AFFO (diluted) payout ratio86.4%81.9%81.8%77.9%Consolidated interest expense$53,132$45,111$104,541$90,272Debt discount and debt issuance cost amortization(1,776)(1,624)(3,535)(3,241)Capitalized interest4,4085,0488,28010,153Total interest incurred$55,764$48,535$109,286$97,184(1) The following reconciliations are found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.(2) See the "Share and Unit Data" section for additional information.Dollars in thousands, except share priceJune 30, 2026December 31, 2025Gross Assets (1)$18,238,708$17,921,913Gross Real Estate Assets (1)$17,968,887$17,662,513Total debt$5,691,901$5,405,372Common shares and units outstanding118,944,528119,819,916Share price$138.94$138.91Book equity value$5,601,501$5,839,645Market equity value$16,526,153$16,644,185Net Debt/Adjusted EBITDAre (2)4.5x4.3x(1) Reconciliations of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets are found later in this release.(2) Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. The following reconciliations are found later in this release: (i) Unsecured notes payable, net and Secured notes payable, net to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.CONSOLIDATED STATEMENTS OF OPERATIONSDollars in thousands, except per share data (Unaudited)Three months ended June 30,Six months ended June 30,2026202520262025Revenues:Rental and other property revenues$555,127$549,902$1,108,852$1,099,197Expenses:Operating expenses, excluding real estate taxes and insurance136,525132,465264,138257,420Real estate taxes and insurance82,19582,189160,154158,587Depreciation and amortization162,548153,521324,418305,871Total property operating expenses381,268368,175748,710721,878Property management expenses17,95517,51140,41638,089General and administrative expenses15,14612,81331,86228,432Interest expense53,13245,111104,54190,272(Gain) loss on sale of depreciable real estate assets(35,255)69(55,419)(71,842)Other non-operating income(2,102)(4,722)(18,107)(5,556)Income before income tax expense124,983110,945256,849297,924Income tax expense(454)(600)(5,975)(1,638)Income from continuing operations before real estate joint venture activity124,529110,345250,874296,286Income from real estate joint venture289530555995Net income124,818110,875251,429297,281Net income attributable to noncontrolling interests3,0682,7485,3207,481Net income available for shareholders121,750108,127246,109289,800Dividends to MAA Series I preferred shareholders9229221,8441,844Net income available for MAA common shareholders$120,828$107,205$244,265$287,956Earnings per common share - basic:Net income available for common shareholders$1.04$0.92$2.10$2.46Earnings per common share - diluted:Net income available for common shareholders$1.04$0.92$2.10$2.46SHARE AND UNIT DATAShares and units in thousandsThree months ended June 30,Six months ended June 30,2026202520262025Net Income Shares (1)Weighted average common shares - basic116,079116,976116,349116,908Effect of dilutive securities6518796241Weighted average common shares - diluted116,144117,163116,445117,149Funds From Operations Shares And UnitsWeighted average common shares and units - basic119,009119,950119,284119,932Weighted average common shares and units - diluted119,094120,015119,360119,995Period End Shares And UnitsCommon shares at June 30,116,015117,071116,015117,071Operating Partnership units at June 30,2,9302,9502,9302,950Total common shares and units at June 30,118,945120,021118,945120,021(1)For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated Financial Statements in MAA's Quarterly Report on Form 10-Q for the three months ended June 30, 2026, expected to be filed with the SEC on or about July 30, 2026.CONSOLIDATED BALANCE SHEETSDollars in thousands (Unaudited)June 30, 2026December 31, 2025AssetsReal estate assets:Land$2,176,947$2,129,401Buildings and improvements and other15,218,04714,852,509Development and capital improvements in progress406,830426,75917,801,82417,408,669Less: Accumulated depreciation(6,244,124)(5,914,017)11,557,70011,494,652Undeveloped land73,35973,359Investment in real estate joint venture41,86841,313Real estate assets, net11,672,92711,609,324Cash and cash equivalents51,83660,258Restricted cash13,16813,717Other assets256,653245,683Assets held for sale—46,401Total assets$11,994,584$11,975,383Liabilities and equityLiabilities:Unsecured notes payable, net$5,331,445$5,044,979Secured notes payable, net360,456360,393Accrued expenses and other liabilities701,182730,366Total liabilities6,393,0836,135,738Redeemable common stock18,90720,402Shareholders' equity:Preferred stock99Common stock1,1571,166Additional paid-in capital7,283,8177,401,962Accumulated distributions in excess of net income(1,846,433)(1,734,986)Accumulated other comprehensive loss(4,555)(5,300)Total MAA shareholders' equity5,433,9955,662,851Noncontrolling interests - Operating Partnership units136,117141,503Total shareholders' equity5,570,1125,804,354Noncontrolling interests - consolidated real estate entities12,48214,889Total equity5,582,5945,819,243Total liabilities and equity$11,994,584$11,975,383RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FADAmounts in thousands, except per share and unit dataThree months ended June 30,Six months ended June 30,2026202520262025Net income available for MAA common shareholders$120,828$107,205$244,265$287,956Depreciation and amortization of real estate assets161,037152,149321,530303,140(Gain) loss on sale of depreciable real estate assets(35,255)69(55,419)(71,842)MAA's share of depreciation and amortization of real estate assets of real estate joint venture168167338331Net income attributable to noncontrolling interests3,0682,7485,3207,481FFO attributable to common shareholders and unitholders249,846262,338516,034527,066(Gain) loss on embedded derivative in preferred shares (1)(1,091)(1,693)483(1,283)Loss (gain) on investments, net of tax (1)(2)1,068317(16,169)(337)Casualty related (recoveries) and charges, net (1)(2,299)(3,346)2,220(3,568)Core FFO attributable to common shareholders and unitholders247,524257,616502,568521,878Recurring capital expenditures(37,242)(35,343)(55,990)(55,449)Core AFFO attributable to common shareholders and unitholders210,282222,273446,578466,429Redevelopment capital expenditures(31,749)(15,435)(42,516)(32,844)Revenue enhancing capital expenditures(23,519)(20,104)(38,081)(35,292)Commercial capital expenditures(2,161)(2,755)(3,379)(6,729)Other capital expenditures(10,608)(12,048)(22,703)(27,489)FAD attributable to common shareholders and unitholders$142,245$171,931$339,899$364,075Dividends and distributions paid$182,546$181,814$365,906$363,581Weighted average common shares - diluted116,144117,163116,445117,149FFO weighted average common shares and units - diluted119,094120,015119,360119,995Earnings per common share - diluted:Net income available for common shareholders$1.04$0.92$2.10$2.46FFO per Share - diluted$2.10$2.19$4.32$4.39Core FFO per Share - diluted$2.08$2.15$4.21$4.35Core AFFO per Share - diluted$1.77$1.85$3.74$3.89(1) Included in Other non-operating income in the Consolidated Statements of Operations.(2) 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.RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME Dollars in thousandsThree Months EndedSix Months EndedJune 30,2026March 31,2026June 30,2025June 30,2026June 30,2025Net income available for MAA common shareholders$120,828$123,437$107,205$244,265$287,956Depreciation and amortization162,548161,870153,521324,418305,871Property management expenses17,95522,46117,51140,41638,089General and administrative expenses15,14616,71612,81331,86228,432Interest expense53,13251,40945,111104,54190,272(Gain) loss on sale of depreciable real estate assets(35,255)(20,164)69(55,419)(71,842)Other non-operating (income) expense(2,102)(16,005)(4,722)(18,107)(5,556)Income tax expense4545,5216005,9751,638Income from real estate joint venture(289)(266)(530)(555)(995)Net income attributable to noncontrolling interests3,0682,2522,7485,3207,481Dividends to MAA Series I preferred shareholders9229229221,8441,844Total NOI$336,407$348,153$335,248$684,560$683,190Same Store NOI$316,219$328,696$319,502$644,915$652,418Non-Same Store and Other NOI20,18819,45715,74639,64530,772Total NOI$336,407$348,153$335,248$684,560$683,190RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAreDollars in thousandsThree Months EndedTwelve Months EndedJune 30, 2026June 30, 2025June 30, 2026December 31, 2025Net income$124,818$110,875$410,714$456,566Depreciation and amortization162,548153,521640,842622,295Interest expense53,13245,111199,526185,257Income tax expense4546008,9324,595EBITDA340,952310,1071,260,0141,268,713(Gain) loss on sale of depreciable real estate assets(35,255)69(55,643)(72,066)Adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates4223511,5711,424EBITDAre306,119310,5271,205,9421,198,071(Gain) loss on embedded derivative in preferred shares (1)(1,091)(1,693)655(1,111)Loss (gain) on investments (1)1,414397(27,524)(7,457)Casualty related (recoveries) and charges, net (1)(2,299)(3,346)1,190(4,598)Legal costs, settlements and (recoveries), net (1)(2)——61,90861,908Adjusted EBITDAre$304,143$305,885$1,242,171$1,246,813(1) Included in Other non-operating income in the Consolidated Statements of Operations(2) During both the twelve months ended June 30, 2026 and December 31, 2025, in accordance with its accounting policies, MAA recognized $61.9 million of accrued legal settlements and legal defense costs.RECONCILIATION OF UNSECURED NOTES PAYABLE, NET AND SECURED NOTES PAYABLE, NET TO NET DEBTDollars in thousandsJune 30, 2026December 31, 2025Unsecured notes payable, net$5,331,445$5,044,979Secured notes payable, net360,456360,393Total debt5,691,9015,405,372Cash and cash equivalents(51,836)(60,258)Net Debt$5,640,065$5,345,114RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETSDollars in thousandsJune 30, 2026December 31, 2025Total assets$11,994,584$11,975,383Accumulated depreciation6,244,1245,914,017Accumulated depreciation for Assets held for sale (1)—32,513Gross Assets$18,238,708$17,921,913(1)Included in Assets held for sale in the Consolidated Balance Sheets. RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETSDollars in thousandsJune 30, 2026December 31, 2025Real estate assets, net$11,672,927$11,609,324Accumulated depreciation6,244,1245,914,017Assets held for sale, net—46,401Accumulated depreciation for Assets held for sale (1)—32,513Cash and cash equivalents51,83660,258Gross Real Estate Assets$17,968,887$17,662,513(1)Included in Assets held for sale in the Consolidated Balance Sheets.NON-GAAP FINANCIAL MEASURESAdjusted EBITDAreFor purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA's core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges and (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA 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. MAA's computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.Core Adjusted Funds from Operations (Core AFFO)Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.Core Funds from Operations (Core FFO)Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges and (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA's methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.EBITDAFor purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.EBITDAreFor purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA's share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA's definition of EBITDAre is in accordance with NAREIT's definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.Funds Available for Distribution (FAD)FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.Funds From Operations (FFO)FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss 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 release, represents FFO attributable to common shareholders and unitholders. While MAA's definition of FFO is in accordance with NAREIT's definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.Gross AssetsGross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.Gross Real Estate AssetsGross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.Net DebtNet Debt represents Unsecured notes payable,net and Secured notes payable,net less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.NON-GAAP FINANCIAL MEASURES (Continued)Net Operating Income (NOI)Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.Non-Same Store and Other NOINon-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.Same Store NOISame Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.OTHER KEY DEFINITIONSAverage Effective Rent per UnitAverage Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.Average Physical OccupancyAverage Physical Occupancy represents the average of the daily physical occupancy for an applicable period.Development CommunitiesCommunities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.Effective Blended Lease Rate GrowthEffective Blended Lease Rate Growth represents the combined weighted average of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth from our Same Store Portfolio for the applicable period.Effective New Lease Rate GrowthEffective New Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for new leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.Effective Renewal Lease Rate GrowthEffective Renewal Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for renewal leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease. Lease-up CommunitiesNew acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.Non-Same Store and Other PortfolioNon-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.Resident TurnoverResident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.Same Store Portfolio (or Same Store)MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA's Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.