MAA Filings — Mid-America Apartment Communities, Inc. - FilingSpy
MAA
Mid-America Apartment Communities, Inc.
A real estate investment trust that owns and runs more than 100,000 apartment units across the Southeast, Southwest, and Mid-Atlantic U.S., one of the largest apartment owners in the country. It grew out of The Cates Co., an apartment management business George Cates started in Memphis in 1977, and went public as Mid-America Apartment Communities in 1994. The name is a quirk: the company felt the "Mid-America" label made people think of Kansas, so it officially rebranded to the ticker it had used for years, MAA.
Same-store rent fell for a ninth straight quarter, but a $35.3M asset sale gain lifted net income 12.7%.
Same-store rent declined again, but a one-time gain on asset sales masked the pressure on underlying earnings. rose 0.8% to $553.7 million and increased 12.7% to $124.4 million, driven entirely by a $35.3 million gain on real estate sales, while fell as rose $8.0 million. The core portfolio is still waiting for a supply-driven recovery, while rising debt costs and a shrinking fixed-rate cushion are tightening the financial picture.
Key takeaways
rose 12.7% to $124.4 million, but the increase came entirely from a $35.3 million gain on the sale of depreciable real estate assets; the prior-year quarter had a negligible gain.
, which strips out asset sale gains and non-cash items, declined as a $8.0 million increase in and higher property operating costs more than offset the modest gain.
Same-store average effective rent per unit fell 0.2% to $1,688, the ninth consecutive quarter of negative rent growth, while average physical occupancy held essentially flat at 95.3%.
Section summaries
Management's Discussion and Analysis
Same Store revenue dipped 0.3% on slightly lower rent, while net income rose 12.7% aided by a $35.3M gain on asset sales.
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Total property grew 1.0% to $555.1M, driven by a 22.1% jump in Non- revenue from development lease-ups and acquisitions, while Same Store revenue edged down 0.3%.
Total rose 0.8% to $553.7 million, with the increase coming from a 22.1% rise in Non-Same Store revenue from development lease-ups and acquisitions; Same Store revenue declined 0.3%.
increased $8.0 million to $53.1 million, reflecting a higher average debt balance, a slight uptick in the effective rate, and lower .
to rose to 4.5x from 4.3x at year-end 2025, and the share of debt at fixed rates fell to 86.6% from 87.1% in the prior quarter.
What changed
The prior quarter flagged whether same-store rent would turn positive in Q2 2026; it did not, falling 0.2% for a ninth consecutive quarterly decline, though the rate of decline narrowed from 0.3% in Q1.
The prior quarter flagged whether to would continue rising within the 4.5x to 5.5x target range; it held steady at 4.5x, but net debt grew another $295 million to fund development.
The prior quarter flagged how the declining share of fixed-rate debt would affect ; the fixed-rate share fell further to 86.6%, and interest expense rose $8.0 million to $53.1 million, partly due to lower .
The $61.9 million in legal costs and settlements that weighed on FY 2025 results did not repeat as a material charge this quarter, removing a drag that had pressured prior-period earnings.
What to watch
Whether same-store average effective rent turns positive in Q3 2026 as management expects new apartment supply to decline, or remains negative for a tenth consecutive quarter.
Whether the declining share of fixed-rate debt — now at 86.6% — and rising debt balance push higher still, particularly if the Federal Reserve does not cut rates.
Whether to , now at 4.5x, continues to rise within the company's 4.5x to 5.5x target range and how that affects borrowing costs and access to capital.
Any material developments in the antitrust class action lawsuits, which remain an unresolved contingency with no liability recorded.
decreased 0.2% to $1,688, and average was essentially flat at 95.3%.
Property operating expenses rose 1.9% to $218.7M, with costs up 0.8% on higher utilities and marketing, partially offset by lower insurance.
increased $8.0M to $53.1M due to a higher average debt balance, a slight uptick in the effective rate, and lower .
to increased to 4.5x from 4.3x at year-end 2025, as net debt grew $295M to fund development while trailing Adjusted EBITDAre declined $4.6M.
The company expects a decline in new apartment deliveries through the rest of 2026 and has $882.8M in combined cash and capacity to meet near-term obligations.
Quantitative and Qualitative Disclosures About Market Risk
Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. Our primary market risk exposure is to changes in interest rates on our borro…
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Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. Our primary market risk exposure is to changes in interest rates on our borrowings. As of June 30, 2026, 25.6% of our total market capitalization consisted of debt borrowings. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve this objective, we manage our exposure to fluctuations in market interest rates for borrowings through the use of fixed rate debt instruments and from time to time interest rate swaps to effectively fix the interest rate on anticipated future debt transactions. We use our best efforts to have our debt instruments mature across multiple years, which we believe limits our exposure to interest rate changes in any one year. We do not enter into derivative instruments for trading or other speculative purposes. As of June 30, 2026, 86.6% of our outstanding debt was subject to fixed rates. We regularly review interest rate exposure on outstanding borrowings in an effort to minimize the risk of interest rate fluctuations. There have been no material changes in our market risk as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026.
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As disclosed in Note 10 to the condensed consolidated financial statements included in the Quarterly Report on Form 10-Q, we are engaged in certain legal proceedings, and the disclosure set forth in Note 10 relating to legal proceedings is incorporated herein by reference.
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As disclosed in Note 10 to the condensed consolidated financial statements included in the Quarterly Report on Form 10-Q, we are engaged in certain legal proceedings, and the disclosure set forth in Note 10 relating to legal proceedings is incorporated herein by reference.
There have been no material changes to the risk factors that were discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026. 42
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There have been no material changes to the risk factors that were discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026.
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