MAA-I Mid America Apartment Communities Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 7, 2024

 

MID-AMERICA APARTMENT COMMUNITIES, INC.

(Exact name of registrant as specified in its charter)

 

Tennessee	001-12762	62-1543819
(State or Other Jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

 

MID-AMERICA APARTMENTS, L.P.

(Exact name of registrant as specified in its charter)

 

Tennessee	333-190028-01	62-1543816
(State or Other Jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

6815 Poplar Avenue, Suite 500
Germantown, Tennessee	38138
(Address of Principal Executive Offices)	(Zip Code)

 

(901) 682-6600

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share (Mid-America Apartment Communities, Inc.)	MAA	New York Stock Exchange
8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share (Mid-America Apartment Communities, Inc.)	MAA*I	New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

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ITEM 2.02. Results of Operations and Financial Condition.

On February 7, 2024, Mid-America Apartment Communities, Inc. (“MAA”) issued a press release announcing its consolidated results of operations and financial condition as of December 31, 2023 and for the three and twelve months then ended (the “Press Release”). Copies of the Press Release and supplemental data schedules are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

The information in this Current Report under this Item 2.02 (including Exhibits 99.1 and 99.2) is being “furnished” and shall not be deemed to be “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by MAA or Mid-America Apartments, L.P. (“MAALP”), under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”).

ITEM 7.01 Regulation FD Disclosure.

In the Press Release, MAA provided certain information with respect to lease pricing for the month ended January 31, 2024. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report.

The information in this Current Report under this Item 7.01 (including Exhibit 99.1) is being “furnished” and shall not be deemed to be “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by MAA or MAALP under the Exchange Act or the Securities Act.

 

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
99.1		Press Release dated February 7, 2024
99.2		Supplemental Data Schedules dated February 7, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

			MID-AMERICA APARTMENT COMMUNITIES, INC.
Date:	February 7, 2024		/s/Albert M. Campbell, III
			Albert M. Campbell, III
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

 

			MID-AMERICA APARTMENTS, L.P.
			By: Mid-America Apartment Communities, Inc., its general partner
Date:	February 7, 2024		/s/Albert M. Campbell, III
			Albert M. Campbell, III
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

 

 

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TABLE OF CONTENTS
Earnings Release	3
Financial Highlights	8
Consolidated Statements of Operations/Share and Unit Data	9
Consolidated Balance Sheets	10
Reconciliation of Non-GAAP Financial Measures	11
Non-GAAP Financial Measures	14
Other Key Definitions	15
Portfolio Statistics	S-1
Components of Net Operating Income/Components of Same Store Portfolio Property Operating Expenses	S-3
Multifamily Same Store Portfolio NOI Contribution Percentage	S-4
Multifamily Same Store Portfolio Comparisons	S-5
Multifamily Development Pipeline/Multifamily Lease-up Communities/Multifamily Interior Redevelopment Pipeline	S-8
2023 Acquisition Activity/2023 Disposition Activity	S-9
Debt and Debt Covenants as of December 31, 2023	S-9
2024 Guidance/Reconciliation of Full Year 2023 per Diluted Share Results Compared to Full Year 2024 per Diluted Share Guidance	S-11
Reconciliation of Earnings per Diluted Common Share to Core FFO and Core AFFO per Diluted Share for 2024 Guidance	S-12
Credit Ratings/Common Stock/Investor Relations Data	S-12

 

 

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EARNINGS RELEASE

MAA REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

GERMANTOWN, TN, February 7, 2024/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the quarter ended December 31, 2023.

Fourth Quarter 2023 Operating Results		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Earnings per common share - diluted		$	1.37			$	1.67			$	4.71			$	5.48
Funds from operations (FFO) per Share - diluted		$	2.53			$	2.12			$	9.39			$	8.20
Core FFO per Share - diluted		$	2.32			$	2.32			$	9.17			$	8.50

A reconciliation of FFO and Core FFO to Net income available for MAA common shareholders, and discussion of the components of FFO and Core FFO, can be found later in this release. FFO per Share – diluted and Core FFO per Share – diluted include diluted common shares and units.

Eric Bolton, Chairman and Chief Executive Officer, said, “Core FFO performance for the fourth quarter was ahead of expectations. Stable employment conditions, continued positive migration trends, and historically low resident move-outs continue to drive solid demand. As expected, the delivery of new apartment supply is currently impacting rent growth performance and will likely persist through the summer leasing season. We expect that the volume of new apartment deliveries will start to decline in late 2024, setting the stage for improved rent growth. We are encouraged by the stable demand trends and are optimistic about the longer-term outlook for rent growth and higher values. Compared to a year ago, we start 2024 with more certainty about the direction of interest rates, clear evidence that new supply trends are set to moderate, and a healthy demand for apartment housing across our markets. We are well positioned to continue working through the current new supply pipeline, as well as pursue new growth opportunities that are emerging.”

Highlights

Same Store Portfolio Operating Results

To ensure comparable reporting with prior periods, the Same Store Portfolio includes properties that were owned by MAA and stabilized at the beginning of the previous year. Same Store Portfolio results for the three and twelve months ended December 31, 2023 as compared to the same period in the prior year are summarized below:

		Three months ended December 31, 2023 vs. 2022								Twelve months ended December 31, 2023 vs. 2022
		Revenues		Expenses		NOI		Average Effective Rent per Unit		Revenues		Expenses		NOI		Average Effective Rent per Unit
Same Store Operating Growth		2.1%		5.9%		0.1%		2.2%		6.2%		6.5%		6.0%		7.0%

A reconciliation of NOI, including Same Store NOI, to Net income available for MAA common shareholders, and discussion of the components of NOI, can be found later in this release.

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Same Store Portfolio operating statistics for the three and twelve months ended December 31, 2023, which were in line with prior guidance expectations, are summarized below:

		Three months ended December 31, 2023						Twelve months ended December 31, 2023						December 31, 2023
		Average Effective Rent per Unit				Average Physical Occupancy		Average Effective Rent per Unit				Average Physical Occupancy		Resident Turnover
Same Store Operating Statistics		$	1,685			95.5%		$	1,676			95.6%		44.9%

Same Store Portfolio lease pricing for new leases that were effective during the fourth quarter of 2023 was impacted by new supply pressures and typical fourth quarter seasonal factors. While new lease pricing declined 7.0% during the fourth quarter of 2023, the increase in renewal lease pricing remained steady, increasing 4.8% which produced a decrease of 1.6% for both new and renewing lease pricing on a blended basis. As expected, new lease pricing in January 2024 improved and renewal lease pricing held consistent, resulting in a decrease of 0.3% for both new and renewing lease pricing on a blended basis for leases that were effective during January 2024.

Same Store Portfolio lease pricing for both new and renewing leases effective during the year ended December 31, 2023, on a blended basis, increased 2.1% as compared to the prior lease, driven by a 6.1% increase for renewing leases, partially offset by a 1.9% decrease for leases to new move-in residents.

Acquisition Activity

In October 2023, MAA acquired a 323-unit multifamily community currently in lease-up and located in the Phoenix, Arizona market for approximately $103 million. In November 2023, MAA acquired a 352-unit multifamily community currently in lease-up and located in the Charlotte, North Carolina market for approximately $107 million.

 

During the fourth quarter of 2023, MAA also acquired a half-acre land parcel that is part of our current multifamily development property, MAA Nixie, in the Raleigh, North Carolina market.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the fourth quarter of 2023 is set forth below (dollars in thousands):

				Units as of												Development Costs as of												Expected Project
Total				December 31, 2023												December 31, 2023												Completions By Year
Development																Expected				Spend				Expected
Projects (1)				Total				Delivered				Leased				Total				to Date				Remaining				2024				2025
	5				1,970				202				150			$	647,250			$	391,610			$	255,640				3				2

During the fourth quarter of 2023, MAA funded $48.0 million of costs for current and planned projects, including predevelopment activities. MAA expects to begin four to six multifamily development projects over the next 18 to 24 months.

A summary of the total units, physical occupancy and cost of MAA’s lease-up communities as of the end of the fourth quarter of 2023 is set forth below (dollars in thousands):

Total

As of December 31, 2023

Lease-Up

Total

Physical

Spend

Projects (1)

Units

Occupancy

to Date

3

1,015

69.0

%

$

298,207

The current expected average stabilized NOI yield on the four in progress or recently completed internally developed communities currently leasing is 6.5%.

During the fourth quarter of 2023, MAA completed the lease-up of MAA Windmill Hill, located in the Austin, TX market.

Property Redevelopment and Repositioning Activity

A summary of MAA’s interior redevelopment program and Smart Home technology initiative as of the end of the fourth quarter of 2023 is set forth below:

		As of December 31, 2023
		Units				Units				Average Cost				Increase in Average
		Completed				Completed				per Unit				Effective Rent per Unit
		QTD				YTD				YTD				YTD
Redevelopment			1,394				6,858			$	6,453			$	98
Smart Home			216				21,159			$	1,533			$	20		(1)

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As of December 31, 2023, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 93,000 units across its apartment community portfolio since the initiative began during the first quarter of 2019.

During the fourth quarter of 2023, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities resulting in higher and above market rent growth. The five projects started in 2022 and completed during the year ended December 31, 2023 are expected to deliver yields on cost averaging 8%. For the year ended December 31, 2023, MAA spent $17.0 million on this program. As of December 31, 2023, for all projects completed and either fully or partially repriced, MAA has captured yields on cost averaging approximately 14%. An additional six projects will begin in the first half of 2024.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and twelve months ended December 31, 2023 and 2022 is set forth below (dollars in millions, except per Share data):

		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Core FFO attributable to common shareholders and unitholders		$	277.8			$	274.7			$	1,098.1			$	1,008.2
Recurring capital expenditures			(26.4	)			(13.9	)			(111.7	)			(98.2	)
Core adjusted FFO (Core AFFO) attributable to common shareholders and unitholders			251.4				260.8				986.4				910.0
Redevelopment, revenue enhancing, commercial and other capital expenditures			(52.1	)			(61.9	)			(208.4	)			(194.9	)
FAD attributable to common shareholders and unitholders		$	199.3			$	198.9			$	778.0			$	715.1
Core FFO per Share - diluted		$	2.32			$	2.32			$	9.17			$	8.50
Core AFFO per Share - diluted		$	2.10			$	2.20			$	8.24			$	7.67

A reconciliation of FFO, Core FFO, Core AFFO and FAD to Net income available for MAA common shareholders, and discussion of the components of FFO, Core FFO, Core AFFO and FAD, can be found later in this release.

Balance Sheet and Financing Activities

As of December 31, 2023, MAA had $791.8 million of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the fourth quarter of 2023 were $167.8 million, as compared to $148.3 million for the same period in the prior year.

In January 2024, MAALP publicly issued $350 million of unsecured senior notes due March 2034 with a coupon rate of 5.000% per annum, and at an issue price of 99.019%. Interest is payable semi-annually in arrears on March 15 and September 15 of each year, commencing September 15, 2024. The proceeds from the sale of the notes were used to repay borrowings on our commercial paper program. The notes have an effective interest rate of 5.123%.

Balance sheet highlights as of December 31, 2023 are summarized below (dollars in billions):

Total debt to adjusted total assets (1)		Net Debt/Adjusted EBITDAre (2)		Total debt outstanding				Average effective interest rate		Fixed rate debt as a % of total debt		Total debt average years to maturity
27.8%		3.6x		$	4.5			3.6%		89.1%			6.8

A reconciliation of Net Debt to Unsecured notes payable and Secured notes payable and a reconciliation of Adjusted EBITDAre to Net income, along with discussion of the components of Net Debt and Adjusted EBITDAre, can be found later in this release.

Corporate Sustainability

As of the end of 2023, MAA’s corporate initiatives have led to significant progress in key sustainability performance areas. We have achieved a 25% reduction in energy use intensity (EUI) and a 35% reduction in GHG emissions intensity (GEI) from our 2018 baseline, meeting our goals before our original 2028 target. Additionally, we have updated 62% of our portfolio to all LED lighting to maximize energy efficiency and now have 31 green-certified communities, approximately 10% of MAA’s portfolio, with more in the pipeline. After achieving targets from our 2018 baseline, we have now re-established a target to further reduce EUI and GEI by 10% percent by 2028, respectively.

We also have several community engagement efforts underway and have reported our progress through our annual Corporate Sustainability Report, CDP disclosure, and GRESB assessment, the latter of which we have now improved year over year since our first submission in 2020. We will continue to focus on deepening engagement and building an integrated pathway for sustainability, an integral component of our continued resiliency, that creates a positive impact for our residents, associates, and investors.

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120th Consecutive Quarterly Common Dividend Declared

MAA declared its 120th consecutive quarterly common dividend, which will be paid on January 31, 2024 to holders of record on January 12, 2024. The current annual dividend rate is $5.88 per common share, an increase of 5% from the immediately prior rate. 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.

2024 Earnings and Same Store Portfolio Guidance

MAA is providing initial 2024 guidance for Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share, along with its expectations for growth in Property revenue, Property operating expense and NOI for the Same Store Portfolio in 2024. MAA expects to update its 2024 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.

2024 Guidance		Full Year 2024
Earnings:		Range		Midpoint
Earnings per common share - diluted		$4.45 to $4.85		$4.65
Core FFO per Share - diluted		$8.68 to $9.08		$8.88
Core AFFO per Share - diluted		$7.72 to $8.12		$7.92
MAA Same Store Portfolio:
Property revenue growth		0.15% to 1.65%		0.90%
Property operating expense growth		4.10% to 5.60%		4.85%
NOI growth		-2.80% to 0.20%		-1.30%

A reconciliation of the full year 2023 Earnings per diluted common share and Core FFO per diluted Share to the midpoint of the initial 2024 guidance is provided on page S-11 of the Supplemental Data to this release. The projected year-over-year change in our Core FFO per diluted Share is primarily driven by higher interest expense as a result of incremental borrowings related to our acquisition activities in 2023, development activities and debt refinancing.

MAA expects Core FFO for the first quarter of 2024 to be in the range of $2.12 to $2.28 per diluted Share, or $2.20 per diluted Share at the midpoint. MAA 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 Call

Supplemental 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 fourth quarter results on February 8, 2024, at 9:00 AM Central Time. The conference call-in number is (800)-343-4849. 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 MAA

MAA, 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 December 31, 2023, MAA had ownership interest in 102,662 apartment units, including communities currently 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.

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Forward-Looking Statements

Sections of this release contain 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. 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 involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

New factors may also emerge from time to time that could have a material adverse effect on our business. 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.

 

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FINANCIAL HIGHLIGHTS

 

Dollars in thousands, except per share data		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Rental and other property revenues		$	542,247			$	527,965			$	2,148,468			$	2,019,866
Net income available for MAA common shareholders		$	159,554			$	192,699			$	549,118			$	633,748
Total NOI (1)		$	350,465			$	346,791			$	1,380,327			$	1,296,172
Earnings per common share: (2)
Basic		$	1.37			$	1.67			$	4.71			$	5.49
Diluted		$	1.37			$	1.67			$	4.71			$	5.48
Funds from operations per Share - diluted: (2)
FFO (1)		$	2.53			$	2.12			$	9.39			$	8.20
Core FFO (1)		$	2.32			$	2.32			$	9.17			$	8.50
Core AFFO (1)		$	2.10			$	2.20			$	8.24			$	7.67
Dividends declared per common share		$	1.4700			$	1.4000			$	5.6700			$	4.9875
Dividends/Core FFO (diluted) payout ratio			63.4	%			60.3	%			61.8	%			58.7	%
Dividends/Core AFFO (diluted) payout ratio			70.0	%			63.6	%			68.8	%			65.0	%
Consolidated interest expense		$	38,579			$	38,084			$	149,234			$	154,747
Mark-to-market debt adjustment			—				13				25				(77	)
Debt discount and debt issuance cost amortization			(1,287	)			(1,528	)			(5,849	)			(5,985	)
Capitalized interest			3,311				2,582				12,376				8,728
Total interest incurred		$	40,603			$	39,151			$	155,786			$	157,413
Amortization of principal on notes payable		$	—			$	358			$	854			$	1,401

 

Dollars in thousands, except share price
		December 31, 2023				December 31, 2022
Gross Assets (1)		$	16,349,193			$	15,543,912
Gross Real Estate Assets (1)		$	16,089,909			$	15,336,793
Total debt		$	4,540,225			$	4,414,903
Common shares and units outstanding			119,838,096				118,645,269
Share price		$	134.46			$	156.99
Book equity value		$	6,299,122			$	6,210,419
Market equity value		$	16,113,430			$	18,626,121
Net Debt/Adjusted EBITDAre (2)		3.6x				3.7x

 

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CONSOLIDATED STATEMENTS OF OPERATIONS

 

Dollars in thousands, except per share data (Unaudited)		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Revenues:
Rental and other property revenues		$	542,247			$	527,965			$	2,148,468			$	2,019,866
Expenses:
Operating expenses, excluding real estate taxes and insurance			113,672				106,594				461,540				435,108
Real estate taxes and insurance			78,110				74,580				306,601				288,586
Depreciation and amortization			140,888				138,237				565,063				542,998
Total property operating expenses			332,670				319,411				1,333,204				1,266,692
Property management expenses			17,467				17,034				67,784				65,463
General and administrative expenses			15,249				14,742				58,578				58,833
Interest expense			38,579				38,084				149,234				154,747
Loss (gain) on sale of depreciable real estate assets			1				(82,799	)			62				(214,762	)
Gain on sale of non-depreciable real estate assets			—				—				(54	)			(809	)
Other non-operating (income) expense			(27,219	)			23,465				(31,185	)			42,713
Income before income tax expense			165,500				198,028				570,845				646,989
Income tax (expense) benefit			(1,148	)			458				(4,744	)			6,208
Income from continuing operations before real estate joint venture activity			164,352				198,486				566,101				653,197
Income from real estate joint venture			516				450				1,730				1,579
Net income			164,868				198,936				567,831				654,776
Net income attributable to noncontrolling interests			4,392				5,315				15,025				17,340
Net income available for shareholders			160,476				193,621				552,806				637,436
Dividends to MAA Series I preferred shareholders			922				922				3,688				3,688
Net income available for MAA common shareholders		$	159,554			$	192,699			$	549,118			$	633,748
Earnings per common share - basic:
Net income available for common shareholders		$	1.37			$	1.67			$	4.71			$	5.49
Earnings per common share - diluted:
Net income available for common shareholders		$	1.37			$	1.67			$	4.71			$	5.48

 

SHARE AND UNIT DATA

 

 

Shares and units in thousands		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Net Income Shares (1)
Weighted average common shares - basic			116,646				115,398				116,521				115,344
Effect of dilutive securities			87				251				124				239
Weighted average common shares - diluted			116,733				115,649				116,645				115,583
Funds From Operations Shares And Units
Weighted average common shares and units - basic			119,791				118,568				119,674				118,538
Weighted average common shares and units - diluted			119,837				118,646				119,722				118,618
Period End Shares And Units
Common shares at December 31,			116,694				115,480				116,694				115,480
Operating Partnership units at December 31,			3,144				3,165				3,144				3,165
Total common shares and units at December 31,			119,838				118,645				119,838				118,645

 

9

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CONSOLIDATED BALANCE SHEETS

 

Dollars in thousands (Unaudited)
		December 31, 2023				December 31, 2022
Assets
Real estate assets:
Land		$	2,031,403			$	2,008,364
Buildings and improvements and other			13,515,949				12,841,947
Development and capital improvements in progress			385,405				332,035
			15,932,757				15,182,346
Less: Accumulated depreciation			(4,864,690	)			(4,302,747	)
			11,068,067				10,879,599
Undeveloped land			73,861				64,312
Investment in real estate joint venture			41,977				42,290
Real estate assets, net			11,183,905				10,986,201
Cash and cash equivalents			41,314				38,659
Restricted cash			13,777				22,412
Other assets			245,507				193,893
Total assets		$	11,484,503			$	11,241,165
Liabilities and equity
Liabilities:
Unsecured notes payable		$	4,180,084			$	4,050,910
Secured notes payable			360,141				363,993
Accrued expenses and other liabilities			645,156				615,843
Total liabilities			5,185,381				5,030,746
Redeemable common stock			19,167				20,671
Shareholders’ equity:
Preferred stock			9				9
Common stock			1,168				1,152
Additional paid-in capital			7,399,921				7,202,834
Accumulated distributions in excess of net income			(1,298,263	)			(1,188,854	)
Accumulated other comprehensive loss			(8,764	)			(10,052	)
Total MAA shareholders’ equity			6,094,071				6,005,089
Noncontrolling interests - Operating Partnership units			163,128				163,595
Total shareholders’ equity			6,257,199				6,168,684
Noncontrolling interests - consolidated real estate entities			22,756				21,064
Total equity			6,279,955				6,189,748
Total liabilities and equity		$	11,484,503			$	11,241,165

 

 

 

10

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RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS

 

Amounts in thousands, except per share and unit data		Three months ended December 31,								Year ended December 31,
		2023				2022				2023				2022
Net income available for MAA common shareholders		$	159,554			$	192,699			$	549,118			$	633,748
Depreciation and amortization of real estate assets			139,437				136,469				558,969				535,835
Loss (gain) on sale of depreciable real estate assets			1				(82,799	)			62				(214,762	)
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture			159				155				615				621
Net income attributable to noncontrolling interests			4,392				5,315				15,025				17,340
FFO attributable to common shareholders and unitholders			303,543				251,839				1,123,789				972,782
(Gain) loss on embedded derivative in preferred shares (1)			(20,391	)			10,743				(18,528	)			21,107
Gain on sale of non-depreciable real estate assets			—				—				(54	)			(809	)
(Gain) loss on investments, net of tax (1)(2)			(2,928	)			4,786				(3,531	)			35,822
Casualty related charges (recoveries), net (1)(3)			392				(759	)			980				(29,930	)
(Gain) loss on debt extinguishment (1)			—				—				(57	)			47
Legal (recoveries), costs and settlements, net (1)			(2,854	)			8,000				(4,454	)			8,535
COVID-19 related costs (1)			—				73				—				575
Mark-to-market debt adjustment (4)			—				(13	)			(25	)			77
Core FFO attributable to common shareholders and unitholders			277,762				274,669				1,098,120				1,008,206
Recurring capital expenditures			(26,318	)			(13,825	)			(111,685	)			(98,168	)
Core AFFO attributable to common shareholders and unitholders			251,444				260,844				986,435				910,038
Redevelopment capital expenditures			(20,735	)			(23,755	)			(98,177	)			(101,035	)
Revenue enhancing capital expenditures			(20,455	)			(26,472	)			(71,623	)			(65,572	)
Commercial capital expenditures			(2,382	)			(1,938	)			(6,922	)			(4,692	)
Other capital expenditures			(8,563	)			(9,822	)			(31,672	)			(23,595	)
FAD attributable to common shareholders and unitholders		$	199,309			$	198,857			$	778,041			$	715,144
Dividends and distributions paid		$	167,768			$	148,306			$	669,388			$	554,532
Weighted average common shares - diluted			116,733				115,649				116,645				115,583
FFO weighted average common shares and units - diluted			119,837				118,646				119,722				118,618
Earnings per common share - diluted:
Net income available for common shareholders		$	1.37			$	1.67			$	4.71			$	5.48
FFO per Share - diluted		$	2.53			$	2.12			$	9.39			$	8.20
Core FFO per Share - diluted		$	2.32			$	2.32			$	9.17			$	8.50
Core AFFO per Share - diluted		$	2.10			$	2.20			$	8.24			$	7.67

 

11

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RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS

 

Dollars in thousands		Three Months Ended												Year Ended
		December 31, 2023				September 30, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income available for MAA common shareholders		$	159,554			$	109,810			$	192,699			$	549,118			$	633,748
Depreciation and amortization			140,888				146,702				138,237				565,063				542,998
Property management expenses			17,467				16,298				17,034				67,784				65,463
General and administrative expenses			15,249				13,524				14,742				58,578				58,833
Interest expense			38,579				36,651				38,084				149,234				154,747
Loss (gain) on sale of depreciable real estate assets			1				75				(82,799	)			62				(214,762	)
Gain on sale of non-depreciable real estate assets			—				—				—				(54	)			(809	)
Other non-operating (income) expense			(27,219	)			16,493				23,465				(31,185	)			42,713
Income tax expense (benefit)			1,148				(209	)			(458	)			4,744				(6,208	)
Income from real estate joint venture			(516	)			(447	)			(450	)			(1,730	)			(1,579	)
Net income attributable to noncontrolling interests			4,392				3,000				5,315				15,025				17,340
Dividends to MAA Series I preferred shareholders			922				922				922				3,688				3,688
Total NOI		$	350,465			$	342,819			$	346,791			$	1,380,327			$	1,296,172
Same Store NOI		$	329,819			$	324,745			$	329,458			$	1,306,939			$	1,232,893
Non-Same Store and Other NOI			20,646				18,074				17,333				73,388				63,279
Total NOI		$	350,465			$	342,819			$	346,791			$	1,380,327			$	1,296,172

 

RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME

 

 

Dollars in thousands		Three Months Ended								Year Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	164,868			$	198,936			$	567,831			$	654,776
Depreciation and amortization			140,888				138,237				565,063				542,998
Interest expense			38,579				38,084				149,234				154,747
Income tax expense (benefit)			1,148				(458	)			4,744				(6,208	)
EBITDA			345,483				374,799				1,286,872				1,346,313
Loss (gain) on sale of depreciable real estate assets			1				(82,799	)			62				(214,762	)
Adjustments to reflect MAA’s share of EBITDAre of unconsolidated affiliates			339				338				1,350				1,357
EBITDAre			345,823				292,338				1,288,284				1,132,908
(Gain) loss on embedded derivative in preferred shares (1)			(20,391	)			10,743				(18,528	)			21,107
Gain on sale of non-depreciable real estate assets			—				—				(54	)			(809	)
(Gain) loss on investments (1)			(3,704	)			6,068				(4,449	)			45,357
Casualty related charges (recoveries), net (1)(2)			392				(759	)			980				(29,930	)
(Gain) loss on debt extinguishment (1)			—				—				(57	)			47
Legal (recoveries), costs and settlements, net (1)			(2,854	)			8,000				(4,454	)			8,535
COVID-19 related costs (1)			—				73				—				575
Adjusted EBITDAre		$	319,266			$	316,463			$	1,261,722			$	1,177,790

 

 

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RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE

 

Dollars in thousands
		December 31, 2023				December 31, 2022
Unsecured notes payable		$	4,180,084			$	4,050,910
Secured notes payable			360,141				363,993
Total debt			4,540,225				4,414,903
Cash and cash equivalents			(41,314	)			(38,659	)
1031(b) exchange proceeds included in Restricted cash (1)			—				(9,186	)
Net Debt		$	4,498,911			$	4,367,058

RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS

 

Dollars in thousands
		December 31, 2023				December 31, 2022
Total assets		$	11,484,503			$	11,241,165
Accumulated depreciation			4,864,690				4,302,747
Gross Assets		$	16,349,193			$	15,543,912

 

 

RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET

 

Dollars in thousands
		December 31, 2023				December 31, 2022
Real estate assets, net		$	11,183,905			$	10,986,201
Accumulated depreciation			4,864,690				4,302,747
Cash and cash equivalents			41,314				38,659
1031(b) exchange proceeds included in Restricted cash (1)			—				9,186
Gross Real Estate Assets		$	16,089,909			$	15,336,793

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NON-GAAP FINANCIAL MEASURES

Adjusted EBITDAre

For 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 (recoveries) charges, net, gain or loss on debt extinguishment, legal (recoveries), costs and settlements, net and COVID-19 related costs. 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 does not include 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 (recoveries) charges, net, gain or loss on debt extinguishment, legal (recoveries), costs and settlements, net, COVID-19 related costs, mark-to-market debt adjustments and other non-core items. 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.

EBITDA

For 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 does not include 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.

EBITDAre

For 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 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 does not include 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 and asset impairment, 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 Assets

Gross Assets represents Total assets plus Accumulated depreciation. 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.

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NON-GAAP FINANCIAL MEASURES (Continued)

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, 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 Debt

Net Debt represents Unsecured notes payable and Secured notes payable 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.

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 NOI

Non-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 hurricanes. 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 NOI

Same 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 hurricanes. 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 DEFINITIONS

Average Effective Rent per Unit

Average 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 Occupancy

Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.

Development Communities

Communities 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.

Lease-up Communities

New 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 Portfolio

Non-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 Turnover

Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a rolling twelve month basis as of the end of the reported quarter.

Same Store Portfolio

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.

CONTACT: Investor Relations of MAA, 866-576-9689 (toll free), investor.relations@maac.com

15

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Exhibit 99.2

 

PORTFOLIO STATISTICS

 

TOTAL MULTIFAMILY PORTFOLIO AT DECEMBER 31, 2023 (1)

In apartment units

 

		Same Store				Non-Same Store				Lease-up				Total Completed Communities				Development Units Delivered				Total
Atlanta, GA			11,434				—				340				11,774				—				11,774
Dallas, TX			10,116				—				—				10,116				—				10,116
Austin, TX			6,829				350				—				7,179				—				7,179
Charlotte, NC			5,651				560				352				6,563				—				6,563
Orlando, FL			5,274				633				—				5,907				—				5,907
Tampa, FL			5,220				196				—				5,416				—				5,416
Raleigh/Durham, NC			5,350				—				—				5,350				—				5,350
Houston, TX			4,867				308				—				5,175				—				5,175
Nashville, TN			4,375				—				—				4,375				—				4,375
Fort Worth, TX			3,687				—				—				3,687				—				3,687
Jacksonville, FL			3,496				—				—				3,496				—				3,496
Phoenix, AZ			2,623				345				323				3,291				3				3,294
Charleston, SC			3,168				—				—				3,168				—				3,168
Greenville, SC			2,355				—				—				2,355				—				2,355
Richmond, VA			1,732				272				—				2,004				—				2,004
Northern Virginia			1,888				—				—				1,888				—				1,888
Savannah, GA			1,837				—				—				1,837				—				1,837
Memphis, TN			1,811				—				—				1,811				—				1,811
San Antonio, TX			1,504				—				—				1,504				—				1,504
Birmingham, AL			1,462				—				—				1,462				—				1,462
Fredericksburg, VA			1,435				—				—				1,435				—				1,435
Huntsville, AL			1,228				—				—				1,228				—				1,228
Denver, CO			812				306				—				1,118				3				1,121
Kansas City, MO-KS			1,110				—				—				1,110				—				1,110
Other			6,022				1,152				—				7,174				196				7,370
Total Multifamily Units			95,286				4,122				1,015				100,423				202				100,625

 

 

Supplemental Data S-1

 

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PORTFOLIO STATISTICS (CONTINUED)

 

TOTAL MULTIFAMILY COMMUNITY STATISTICS (1)

Dollars in thousands, except Average Effective Rent per Unit

		As of December 31, 2023												Average Effective				As of December 31, 2023
		Gross Real Assets				Percent to Total of Gross Real Assets				Physical Occupancy				Rent per Unit for the Three Months Ended December 31, 2023				Completed Units				Total Units, Including Development
Atlanta, GA		$	2,099,011				13.6	%			94.9	%		$	1,850				11,434
Dallas, TX			1,581,062				10.1	%			95.3	%			1,669				10,116
Charlotte, NC			1,150,196				7.4	%			95.7	%			1,652				6,211
Orlando, FL			1,029,405				6.6	%			96.3	%			2,013				5,907
Tampa, FL			1,008,515				6.5	%			96.4	%			2,105				5,416
Austin, TX			956,439				6.1	%			94.9	%			1,620				7,179
Raleigh/Durham, NC			733,776				4.7	%			96.4	%			1,545				5,350
Houston, TX			701,516				4.5	%			96.2	%			1,429				5,175
Northern Virginia			574,576				3.7	%			96.2	%			2,356				1,888
Nashville, TN			561,712				3.6	%			96.1	%			1,700				4,375
Phoenix, AZ			484,590				3.1	%			95.5	%			1,751				2,968
Charleston, SC			430,805				2.8	%			96.3	%			1,771				3,168
Fort Worth, TX			392,220				2.5	%			95.3	%			1,576				3,687
Jacksonville, FL			313,862				2.0	%			96.2	%			1,548				3,496
Denver, CO			296,222				1.9	%			95.9	%			1,977				1,118
Richmond, VA			279,446				1.8	%			96.6	%			1,606				2,004
Fredericksburg, VA			256,103				1.6	%			96.7	%			1,801				1,435
Greenville, SC			239,869				1.5	%			95.9	%			1,327				2,355
Savannah, GA			226,109				1.5	%			96.0	%			1,694				1,837
Kansas City, MO-KS			192,746				1.2	%			95.5	%			1,577				1,110
Birmingham, AL			172,272				1.1	%			95.5	%			1,391				1,462
San Antonio, TX			171,357				1.1	%			95.5	%			1,387				1,504
All Other Markets by State (individual markets <1% gross real assets)
Tennessee			205,054				1.3	%			95.6	%			1,336				2,754
Florida			190,803				1.2	%			95.7	%			1,826				1,806
Alabama			176,224				1.1	%			95.6	%			1,397				1,648
Virginia			163,070				1.0	%			95.6	%			1,734				1,039
Kentucky			101,958				0.7	%			95.6	%			1,211				1,308
Maryland			83,654				0.5	%			94.5	%			2,189				361
Nevada			75,519				0.5	%			97.1	%			1,575				721
South Carolina			39,169				0.3	%			95.7	%			1,209				576
Stabilized Communities		$	14,887,260				95.5	%			95.7	%		$	1,692				99,408
Phoenix, AZ			172,899				1.1	%			86.7	%			1,904				326				640
Charlotte, NC			106,421				0.7	%			81.0	%			1,952				352				352
Tampa, FL			95,949				0.6	%			—				—				—				495
Denver, CO			95,631				0.6	%			—				—				3				352
Salt Lake City, UT			91,627				0.6	%			30.3	%			1,793				196				400
Atlanta, GA			90,645				0.6	%			39.7	%			2,215				340				340
Raleigh/Durham, NC			51,071				0.3	%			—				—				—				406
Lease-up / Development Communities		$	704,243				4.5	%			58.0	%		$	1,987				1,217				2,985
Total Multifamily Communities		$	15,591,503				100.0	%			95.2	%		$	1,696				100,625				102,393

 

Supplemental Data S-2

 

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COMPONENTS OF NET OPERATING INCOME

Dollars in thousands

 

		Three Months Ended												As of December 31, 2023
		December 31, 2023				December 31, 2022				Percent Change				Apartment Units				Gross Real Assets
Operating Revenues
Same Store Communities		$	508,357			$	498,024				2.1	%			95,286			$	14,057,956
Non-Same Store Communities			24,006				23,487								4,122				829,304
Lease-up/Development Communities			3,568				—								1,217				704,243
Total Multifamily Portfolio		$	535,931			$	521,511								100,625			$	15,591,503
Commercial Property/Land			6,316				6,454								—				373,556
Total Operating Revenues		$	542,247			$	527,965								100,625			$	15,965,059
Property Operating Expenses
Same Store Communities		$	178,538			$	168,566				5.9	%
Non-Same Store Communities			8,500				9,677
Lease-up/Development Communities			1,682				103
Hurricane Expenses			—				227
Total Multifamily Portfolio		$	188,720			$	178,573
Commercial Property/Land			3,062				2,601
Total Property Operating Expenses		$	191,782			$	181,174
Net Operating Income
Same Store Communities		$	329,819			$	329,458				0.1	%
Non-Same Store Communities			15,506				13,810
Lease-up/Development Communities			1,886				(103	)
Hurricane Expenses			—				(227	)
Total Multifamily Portfolio		$	347,211			$	342,938
Commercial Property/Land			3,254				3,853
Total Net Operating Income		$	350,465			$	346,791				1.1	%

 

COMPONENTS OF SAME STORE PORTFOLIO PROPERTY OPERATING EXPENSES

Dollars in thousands

 

		Three Months Ended												Year Ended
		December 31, 2023				December 31, 2022				Percent Change				December 31, 2023				December 31, 2022				Percent Change
Property Taxes		$	65,568			$	63,210				3.7	%		$	258,052			$	244,476				5.6	%
Personnel			37,750				36,069				4.7	%			154,263				146,319				5.4	%
Utilities			32,325				30,828				4.9	%			128,654				122,563				5.0	%
Building Repair and Maintenance			22,226				20,415				8.9	%			93,753				85,350				9.8	%
Office Operations			7,873				6,869				14.6	%			29,854				27,337				9.2	%
Insurance			7,971				6,849				16.4	%			29,785				26,031				14.4	%
Marketing			4,825				4,326				11.5	%			23,451				22,034				6.4	%
Total Property Operating Expenses		$	178,538			$	168,566				5.9	%		$	717,812			$	674,110				6.5	%

 

 

Supplemental Data S-3

 

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MULTIFAMILY SAME STORE PORTFOLIO NOI CONTRIBUTION PERCENTAGE

 

										Average Physical Occupancy
						Percent of				Three Months Ended								Year Ended
		Apartment Units				Same Store NOI				December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Atlanta, GA			11,434				12.7	%			94.4	%			95.4	%			94.5	%			95.4	%
Dallas, TX			10,116				9.6	%			95.4	%			95.5	%			95.6	%			95.6	%
Tampa, FL			5,220				7.2	%			96.0	%			95.7	%			95.8	%			96.0	%
Orlando, FL			5,274				6.7	%			96.0	%			96.1	%			96.0	%			96.2	%
Charlotte, NC			5,651				6.3	%			95.4	%			95.7	%			95.6	%			95.8	%
Austin, TX			6,829				5.8	%			94.7	%			94.8	%			95.1	%			95.2	%
Raleigh/Durham, NC			5,350				5.6	%			96.1	%			95.6	%			95.9	%			95.6	%
Nashville, TN			4,375				4.9	%			96.1	%			95.7	%			95.8	%			95.8	%
Houston, TX			4,867				3.8	%			95.8	%			95.9	%			95.6	%			95.6	%
Charleston, SC			3,168				3.7	%			95.8	%			95.8	%			95.9	%			95.9	%
Fort Worth, TX			3,687				3.6	%			95.2	%			95.2	%			95.6	%			95.5	%
Phoenix, AZ			2,623				3.2	%			94.9	%			96.1	%			95.5	%			95.9	%
Jacksonville, FL			3,496				3.2	%			95.3	%			96.2	%			95.7	%			96.5	%
Northern Virginia			1,888				3.0	%			96.2	%			96.0	%			96.2	%			95.7	%
Savannah, GA			1,837				2.1	%			96.1	%			96.1	%			96.2	%			96.7	%
Greenville, SC			2,355				2.0	%			96.0	%			96.1	%			96.1	%			96.3	%
Richmond, VA			1,732				1.9	%			96.0	%			95.9	%			95.9	%			96.2	%
Fredericksburg, VA			1,435				1.8	%			96.9	%			95.9	%			96.4	%			96.3	%
Memphis, TN			1,811				1.5	%			95.3	%			95.1	%			94.7	%			95.0	%
Birmingham, AL			1,462				1.3	%			96.5	%			95.9	%			96.2	%			95.8	%
Kansas City, MO-KS			1,110				1.1	%			95.9	%			95.9	%			95.9	%			95.7	%
San Antonio, TX			1,504				1.1	%			96.0	%			94.8	%			95.8	%			95.6	%
Huntsville, AL			1,228				1.1	%			95.7	%			95.4	%			95.3	%			95.6	%
Denver, CO			812				1.0	%			95.4	%			95.4	%			95.4	%			95.7	%
Other			6,022				5.8	%			95.9	%			96.0	%			95.9	%			96.2	%
Total Same Store			95,286				100.0	%			95.5	%			95.6	%			95.6	%			95.8	%

 

Supplemental Data S-4

 

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MULTIFAMILY SAME STORE PORTFOLIO QUARTER OVER QUARTER COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

						Revenues												Expenses												NOI												Average Effective Rent per Unit
		Units				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg
Atlanta, GA			11,434			$	65,782			$	65,170				0.9	%		$	24,002			$	22,595				6.2	%		$	41,780			$	42,575				(1.9	)%		$	1,850			$	1,827				1.3	%
Dallas, TX			10,116				53,058				51,776				2.5	%			21,351				20,702				3.1	%			31,707				31,074				2.0	%			1,669				1,630				2.4	%
Tampa, FL			5,220				34,580				33,693				2.6	%			10,875				10,425				4.3	%			23,705				23,268				1.9	%			2,110				2,065				2.2	%
Orlando, FL			5,274				32,905				32,027				2.7	%			10,911				10,280				6.1	%			21,994				21,747				1.1	%			1,973				1,919				2.8	%
Charlotte, NC			5,651				29,181				28,177				3.6	%			8,496				7,732				9.9	%			20,685				20,445				1.2	%			1,640				1,576				4.1	%
Austin, TX			6,829				35,073				35,160				(0.2	)%			16,102				15,359				4.8	%			18,971				19,801				(4.2	)%			1,617				1,622				(0.3	)%
Raleigh/Durham, NC			5,350				26,664				25,895				3.0	%			8,097				7,467				8.4	%			18,567				18,428				0.8	%			1,545				1,506				2.6	%
Nashville, TN			4,375				23,685				23,059				2.7	%			7,476				7,055				6.0	%			16,209				16,004				1.3	%			1,700				1,671				1.7	%
Houston, TX			4,867				22,117				21,628				2.3	%			9,692				9,634				0.6	%			12,425				11,994				3.6	%			1,418				1,382				2.6	%
Charleston, SC			3,168				17,687				16,999				4.0	%			5,492				4,296				27.8	%			12,195				12,703				(4.0	)%			1,771				1,675				5.7	%
Fort Worth, TX			3,687				19,019				18,807				1.1	%			7,177				7,496				(4.3	)%			11,842				11,311				4.7	%			1,576				1,546				1.9	%
Phoenix, AZ			2,623				14,282				14,499				(1.5	)%			3,615				3,450				4.8	%			10,667				11,049				(3.5	)%			1,741				1,747				(0.3	)%
Jacksonville, FL			3,496				16,487				16,603				(0.7	)%			5,962				5,326				11.9	%			10,525				11,277				(6.7	)%			1,548				1,538				0.6	%
Northern Virginia			1,888				13,850				13,222				4.7	%			3,979				3,717				7.0	%			9,871				9,505				3.9	%			2,356				2,248				4.8	%
Savannah, GA			1,837				10,028				9,609				4.4	%			3,146				2,840				10.8	%			6,882				6,769				1.7	%			1,694				1,604				5.6	%
Greenville, SC			2,355				10,291				10,058				2.3	%			3,650				3,392				7.6	%			6,641				6,666				(0.4	)%			1,327				1,286				3.2	%
Richmond, VA			1,732				9,030				8,826				2.3	%			2,750				2,721				1.1	%			6,280				6,105				2.9	%			1,649				1,591				3.6	%
Fredericksburg, VA			1,435				8,342				8,187				1.9	%			2,356				2,211				6.6	%			5,986				5,976				0.2	%			1,801				1,773				1.6	%
Memphis, TN			1,811				7,937				7,816				1.5	%			2,872				2,717				5.7	%			5,065				5,099				(0.7	)%			1,358				1,348				0.7	%
Birmingham, AL			1,462				6,782				6,446				5.2	%			2,594				2,440				6.3	%			4,188				4,006				4.5	%			1,391				1,353				2.8	%
Kansas City, MO-KS			1,110				5,576				5,306				5.1	%			1,853				1,771				4.6	%			3,723				3,535				5.3	%			1,577				1,514				4.2	%
San Antonio, TX			1,504				6,676				6,547				2.0	%			2,961				2,810				5.4	%			3,715				3,737				(0.6	)%			1,387				1,381				0.4	%
Huntsville, AL			1,228				5,363				5,287				1.4	%			1,782				1,704				4.6	%			3,581				3,583				(0.1	)%			1,319				1,296				1.8	%
Denver, CO			812				5,070				5,019				1.0	%			1,742				1,340				30.0	%			3,328				3,679				(9.5	)%			1,960				1,934				1.4	%
Other			6,022				28,892				28,208				2.4	%			9,605				9,086				5.7	%			19,287				19,122				0.9	%			1,519				1,481				2.6	%
Total Same Store			95,286			$	508,357			$	498,024				2.1	%		$	178,538			$	168,566				5.9	%		$	329,819			$	329,458				0.1	%		$	1,685			$	1,649				2.2	%

 

Supplemental Data S-5

 

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MULTIFAMILY SAME STORE PORTFOLIO SEQUENTIAL QUARTER COMPARISONS

Dollars in thousands, except Average Effective Rent per Unit

						Revenues												Expenses												NOI												Average Effective Rent per Unit
		Units				Q4 2023				Q3 2023				% Chg				Q4 2023				Q3 2023				% Chg				Q4 2023				Q3 2023				% Chg				Q4 2023				Q3 2023				% Chg
Atlanta, GA			11,434			$	65,782			$	66,153				(0.6	)%		$	24,002			$	24,773				(3.1	)%		$	41,780			$	41,380				1.0	%		$	1,850			$	1,861				(0.6	)%
Dallas, TX			10,116				53,058				53,563				(0.9	)%			21,351				21,068				1.3	%			31,707				32,495				(2.4	)%			1,669				1,671				(0.2	)%
Tampa, FL			5,220				34,580				34,566				0.0	%			10,875				12,164				(10.6	)%			23,705				22,402				5.8	%			2,110				2,112				(0.1	)%
Orlando, FL			5,274				32,905				32,970				(0.2	)%			10,911				11,348				(3.9	)%			21,994				21,622				1.7	%			1,973				1,981				(0.4	)%
Charlotte, NC			5,651				29,181				29,542				(1.2	)%			8,496				8,766				(3.1	)%			20,685				20,776				(0.4	)%			1,640				1,651				(0.6	)%
Austin, TX			6,829				35,073				35,635				(1.6	)%			16,102				15,824				1.8	%			18,971				19,811				(4.2	)%			1,617				1,635				(1.1	)%
Raleigh/Durham, NC			5,350				26,664				26,769				(0.4	)%			8,097				8,686				(6.8	)%			18,567				18,083				2.7	%			1,545				1,549				(0.2	)%
Nashville, TN			4,375				23,685				23,766				(0.3	)%			7,476				7,979				(6.3	)%			16,209				15,787				2.7	%			1,700				1,705				(0.3	)%
Houston, TX			4,867				22,117				22,049				0.3	%			9,692				10,626				(8.8	)%			12,425				11,423				8.8	%			1,418				1,418				0.0	%
Charleston, SC			3,168				17,687				17,736				(0.3	)%			5,492				5,642				(2.7	)%			12,195				12,094				0.8	%			1,771				1,756				0.8	%
Fort Worth, TX			3,687				19,019				19,181				(0.8	)%			7,177				8,135				(11.8	)%			11,842				11,046				7.2	%			1,576				1,579				(0.2	)%
Phoenix, AZ			2,623				14,282				14,431				(1.0	)%			3,615				3,925				(7.9	)%			10,667				10,506				1.5	%			1,741				1,746				(0.3	)%
Jacksonville, FL			3,496				16,487				16,754				(1.6	)%			5,962				6,407				(6.9	)%			10,525				10,347				1.7	%			1,548				1,559				(0.7	)%
Northern Virginia			1,888				13,850				13,783				0.5	%			3,979				4,344				(8.4	)%			9,871				9,439				4.6	%			2,356				2,345				0.5	%
Savannah, GA			1,837				10,028				10,031				(0.0	)%			3,146				3,399				(7.4	)%			6,882				6,632				3.8	%			1,694				1,684				0.6	%
Greenville, SC			2,355				10,291				10,297				(0.1	)%			3,650				3,637				0.4	%			6,641				6,660				(0.3	)%			1,327				1,329				(0.2	)%
Richmond, VA			1,732				9,030				9,119				(1.0	)%			2,750				2,891				(4.9	)%			6,280				6,228				0.8	%			1,649				1,644				0.3	%
Fredericksburg, VA			1,435				8,342				8,296				0.6	%			2,356				2,473				(4.7	)%			5,986				5,823				2.8	%			1,801				1,801				(0.0	)%
Memphis, TN			1,811				7,937				7,795				1.8	%			2,872				3,098				(7.3	)%			5,065				4,697				7.8	%			1,358				1,362				(0.3	)%
Birmingham, AL			1,462				6,782				6,714				1.0	%			2,594				2,513				3.2	%			4,188				4,201				(0.3	)%			1,391				1,386				0.4	%
Kansas City, MO-KS			1,110				5,576				5,537				0.7	%			1,853				2,164				(14.4	)%			3,723				3,373				10.4	%			1,577				1,569				0.6	%
San Antonio, TX			1,504				6,676				6,716				(0.6	)%			2,961				2,567				15.3	%			3,715				4,149				(10.5	)%			1,387				1,393				(0.4	)%
Huntsville, AL			1,228				5,363				5,358				0.1	%			1,782				2,014				(11.5	)%			3,581				3,344				7.1	%			1,319				1,325				(0.5	)%
Denver, CO			812				5,070				5,111				(0.8	)%			1,742				1,520				14.6	%			3,328				3,591				(7.3	)%			1,960				1,975				(0.7	)%
Other			6,022				28,892				29,007				(0.4	)%			9,605				10,171				(5.6	)%			19,287				18,836				2.4	%			1,519				1,516				0.2	%
Total Same Store			95,286			$	508,357			$	510,879				(0.5	)%		$	178,538			$	186,134				(4.1	)%		$	329,819			$	324,745				1.6	%		$	1,685			$	1,690				(0.3	)%

 

Supplemental Data S-6

 

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MULTIFAMILY SAME STORE PORTFOLIO FULL YEAR COMPARISONS AS OF DECEMBER 31, 2023 AND 2022

Dollars in thousands, except Average Effective Rent per Unit

						Revenues												Expenses												NOI												Average Effective Rent per Unit
		Units				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg				Q4 2023				Q4 2022				% Chg
Atlanta, GA			11,434			$	261,678			$	250,477				4.5	%		$	96,333			$	89,778				7.3	%		$	165,345			$	160,699				2.9	%		$	1,848			$	1,743				6.0	%
Dallas, TX			10,116				211,791				197,971				7.0	%			84,747				79,848				6.1	%			127,044				118,123				7.6	%			1,659				1,546				7.3	%
Tampa, FL			5,220				137,304				127,805				7.4	%			45,760				41,941				9.1	%			91,544				85,864				6.6	%			2,098				1,943				8.0	%
Orlando, FL			5,274				131,110				120,555				8.8	%			44,648				41,448				7.7	%			86,462				79,107				9.3	%			1,964				1,793				9.6	%
Charlotte, NC			5,651				115,988				108,112				7.3	%			34,159				31,492				8.5	%			81,829				76,620				6.8	%			1,626				1,496				8.7	%
Austin, TX			6,829				141,608				134,997				4.9	%			62,503				58,696				6.5	%			79,105				76,301				3.7	%			1,627				1,546				5.2	%
Raleigh/Durham, NC			5,350				105,749				98,179				7.7	%			32,713				30,628				6.8	%			73,036				67,551				8.1	%			1,534				1,421				8.0	%
Nashville, TN			4,375				94,192				87,948				7.1	%			30,212				29,318				3.0	%			63,980				58,630				9.1	%			1,694				1,577				7.4	%
Houston, TX			4,867				87,922				83,856				4.8	%			38,579				36,999				4.3	%			49,343				46,857				5.3	%			1,407				1,337				5.2	%
Charleston, SC			3,168				69,633				63,896				9.0	%			21,705				19,838				9.4	%			47,928				44,058				8.8	%			1,733				1,568				10.5	%
Fort Worth, TX			3,687				76,248				72,164				5.7	%			29,697				28,954				2.6	%			46,551				43,210				7.7	%			1,569				1,473				6.6	%
Phoenix, AZ			2,623				57,709				55,504				4.0	%			14,723				13,890				6.0	%			42,986				41,614				3.3	%			1,745				1,660				5.1	%
Jacksonville, FL			3,496				66,544				63,883				4.2	%			23,681				21,385				10.7	%			42,863				42,498				0.9	%			1,552				1,462				6.2	%
Northern Virginia			1,888				54,574				50,888				7.2	%			16,717				15,776				6.0	%			37,857				35,112				7.8	%			2,319				2,162				7.2	%
Savannah, GA			1,837				39,593				36,489				8.5	%			12,784				12,089				5.7	%			26,809				24,400				9.9	%			1,664				1,505				10.6	%
Greenville, SC			2,355				41,110				38,586				6.5	%			13,785				13,997				(1.5	)%			27,325				24,589				11.1	%			1,316				1,222				7.7	%
Richmond, VA			1,732				35,815				33,969				5.4	%			11,172				10,864				2.8	%			24,643				23,105				6.7	%			1,627				1,522				6.9	%
Fredericksburg, VA			1,435				33,121				31,995				3.5	%			9,485				9,017				5.2	%			23,636				22,978				2.9	%			1,794				1,731				3.7	%
Memphis, TN			1,811				31,435				30,255				3.9	%			11,641				10,954				6.3	%			19,794				19,301				2.6	%			1,354				1,308				3.6	%
Birmingham, AL			1,462				26,738				25,220				6.0	%			10,222				9,613				6.3	%			16,516				15,607				5.8	%			1,376				1,303				5.6	%
Kansas City, MO-KS			1,110				21,875				20,445				7.0	%			7,963				7,407				7.5	%			13,912				13,038				6.7	%			1,556				1,452				7.1	%
San Antonio, TX			1,504				26,584				25,237				5.3	%			11,240				11,002				2.2	%			15,344				14,235				7.8	%			1,388				1,317				5.4	%
Huntsville, AL			1,228				21,405				20,484				4.5	%			7,581				6,868				10.4	%			13,824				13,616				1.5	%			1,313				1,246				5.4	%
Denver, CO			812				20,304				19,322				5.1	%			6,338				5,468				15.9	%			13,966				13,854				0.8	%			1,959				1,859				5.4	%
Other			6,022				114,721				108,766				5.5	%			39,424				36,840				7.0	%			75,297				71,926				4.7	%			1,504				1,415				6.3	%
Total Same Store			95,286			$	2,024,751			$	1,907,003				6.2	%		$	717,812			$	674,110				6.5	%		$	1,306,939			$	1,232,893				6.0	%		$	1,676			$	1,567				7.0	%

 

Supplemental Data S-7

 

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MULTIFAMILY DEVELOPMENT PIPELINE

Dollars in thousands

				Units as of									Development Costs as of
				December 31, 2023									December 31, 2023												Expected
													Expected			Spend			Expected				Start		Initial
		Location		Total			Delivered			Leased			Total			to Date			Remaining				Date		Occupancy		Completion		Stabilization (1)
Novel Daybreak (2)		Salt Lake City, UT			400			196			148		$	99,450		$	91,620		$	7,830			2Q21		2Q23		3Q24		1Q25
Novel Val Vista (2)		Phoenix, AZ			317			3			1			79,800			71,227			8,573			4Q20		4Q23		4Q24		3Q25
MAA Milepost 35		Denver, CO			352			3			1			125,000			92,980			32,020			1Q22		4Q23		4Q24		3Q25
MAA Nixie		Raleigh, NC			406			—			—			145,500			45,932			99,568			4Q22		4Q24		3Q25		3Q26
MAA Breakwater		Tampa, FL			495			—			—			197,500			89,851			107,649			4Q22		1Q25		4Q25		4Q26
Total Active					1,970			202			150		$	647,250		$	391,610		$	255,640

MULTIFAMILY LEASE-UP COMMUNITIES

Dollars in thousands

				As of December 31, 2023
		Location		Total Units				Physical Occupancy		Spend to Date				Construction Completed		Expected Stabilization (1)
MAA Central Avenue		Phoenix, AZ		323				86.7%		$	101,654			(3)		3Q24
MAA Optimist Park		Charlotte, NC		352				81.0%			105,922			(3)		3Q24
Novel West Midtown (2)		Atlanta, GA		340				39.7%			90,631			3Q23		4Q24
Total					1,015			69.0%		$	298,207

MULTIFAMILY INTERIOR REDEVELOPMENT PIPELINE

Dollars in thousands, except per unit data

Year ended December 31, 2023
Units Completed				Redevelopment Spend				Average Cost per Unit				Increase in Average Effective Rent per Unit				Increase in Average Effective Rent per Unit		Estimated Units Remaining in Pipeline
	6,858			$	44,253			$	6,453			$	98			7.1%		9,000 - 13,000

 

Supplemental Data S-8

 

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2023 ACQUISITION ACTIVITY

 

Multifamily Acquisitions		Market		Apartment Units		Closing Date
MAA Central Ave		Phoenix, AZ		323		October 2023
MAA Optimist Park		Charlotte, NC		352		November 2023

 

Land Acquisition		Market		Acreage		Closing Date
MAA Packing District II		Orlando, FL		6		February 2023
MAA Nixie		Raleigh, NC		0.4		November 2023

 

 

2023 DISPOSITION ACTIVITY

 

Land Dispositions		Market		Acreage		Closing Date
Traditions Commercial Lots		Gulf Shores, AL		21		March 2023

 

 

DEBT AND DEBT COVENANTS AS OF DECEMBER 31, 2023

Dollars in thousands

DEBT SUMMARIES
Fixed Rate Versus Floating Rate Debt		Balance				Percent of Total				Effective Interest Rate				Average Years to Rate Maturity
Fixed rate debt		$	4,045,225				89.1	%			3.4	%			7.6
Floating rate debt			495,000				10.9	%			5.7	%			0.1
Total		$	4,540,225				100.0	%			3.6	%			6.8
Unsecured Versus Secured Debt		Balance				Percent of Total				Effective Interest Rate				Average Years to Contract Maturity
Unsecured debt		$	4,180,084				92.1	%			3.6	%			5.2
Secured debt			360,141				7.9	%			4.4	%			25.1
Total		$	4,540,225				100.0	%			3.6	%			6.8
Unencumbered Versus Encumbered Assets		Total Cost				Percent of Total				Q4 2023 NOI				Percent of Total
Unencumbered gross assets		$	15,589,407				95.4	%		$	335,993				95.9	%
Encumbered gross assets			759,786				4.6	%			14,472				4.1	%
Total		$	16,349,193				100.0	%		$	350,465				100.0	%

 

FIXED INTEREST RATE MATURITIES

Maturity		Fixed Rate Debt					Effective Interest Rate
2024		$	399,659					4.0	%
2025			398,547					4.2	%
2026			297,973					1.2	%
2027			597,334					3.7	%
2028			397,303					4.2	%
2029			557,747					3.7	%
2030			297,887					3.1	%
2031			445,645					1.8	%
2032			—					—
2033			—					—
Thereafter			653,130					3.8	%
Total		$	4,045,225					3.4	%

 

Supplemental Data S-9

 

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DEBT AND DEBT COVENANTS AS OF DECEMBER 31, 2023 (CONTINUED)

Dollars in thousands

DEBT MATURITIES OF OUTSTANDING BALANCES

Maturity		Commercial Paper ⁽¹⁾ & Revolving Credit Facility ⁽²⁾				Public Bonds				Secured				Total
2024		$	495,000			$	399,659			$	—			$	894,659
2025			—				398,547				—				398,547
2026			—				297,973				—				297,973
2027			—				597,334				—				597,334
2028			—				397,303				—				397,303
2029			—				557,747				—				557,747
2030			—				297,887				—				297,887
2031			—				445,645				—				445,645
2032			—				—				—				—
2033			—				—				—				—
Thereafter			—				292,989				360,141				653,130
Total		$	495,000			$	3,685,084			$	360,141			$	4,540,225

DEBT COVENANT ANALYSIS (1)

Bond Covenants		Required		Actual		Compliance
Total debt to adjusted total assets		60% or less		27.8%		Yes
Total secured debt to adjusted total assets		40% or less		2.2%		Yes
Consolidated income available for debt service to total annual debt service charge		1.5x or greater for trailing 4 quarters		7.8x		Yes
Total unencumbered assets to total unsecured debt		Greater than 150%		365.9%		Yes
Bank Covenants		Required		Actual		Compliance
Total debt to total capitalized asset value		60% or less		19.3%		Yes
Total secured debt to total capitalized asset value		40% or Less		1.6%		Yes
Total adjusted EBITDA to fixed charges		1.5x or greater for trailing 4 quarters		8.0x		Yes
Total unsecured debt to total unsecured capitalized asset value		60% or less		18.5%		Yes

Supplemental Data S-10

 

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2024 GUIDANCE

MAA provides guidance on expected Core FFO per diluted Share and Core AFFO per diluted Share, which are non-GAAP financial measures, along with guidance for expected Earnings per diluted common share. A reconciliation of expected Earnings per diluted common share to expected Core FFO per diluted Share and Core AFFO per diluted Share is provided on the following page.

		Full Year 2024
Earnings:		Range		Midpoint
Earnings per common share - diluted		$4.45 to $4.85		$4.65
Core FFO per Share - diluted		$8.68 to $9.08		$8.88
Core AFFO per Share - diluted		$7.72 to $8.12		$7.92
MAA Same Store Portfolio:
Number of units		97,290		97,290
Average physical occupancy		95.4% to 96.0%		95.7%
Property revenue growth		0.15% to 1.65%		0.90%
Effective rent growth		0.10% to 1.60%		0.85%
Property operating expense growth		4.10% to 5.60%		4.85%
NOI growth		-2.80% to 0.20%		-1.30%
Real estate tax expense growth		4.00% to 5.50%		4.75%
Corporate Expenses: ($ in millions)
Property management expenses		$72.0 to $74.0		$73.0
General and administrative expenses		$58.5 to $60.5		$59.5
Total overhead		$130.5 to $134.5		$132.5
Transaction/Investment Volume: ($ in millions)
Multifamily acquisition volume		$350.0 to $450.0		$400.0
Multifamily disposition volume		$50.0 to $150.0		$100.0
Development investment		$250.0 to $350.0		$300.0
Debt:
Average effective interest rate		3.5% to 3.7%		3.6%
Capitalized interest ($ in millions)		$13.0 to $15.0		$14.0
Diluted FFO Shares Outstanding:
Diluted common shares and units		119.75 to 120.25 million		120.0 million

 

RECONCILIATION OF FULL YEAR 2023 PER DILUTED SHARE RESULTS COMPARED TO FULL YEAR 2024 PER DILUTED SHARE GUIDANCE

A reconciliation of full year 2023 results for Earnings per diluted common share and Core FFO per diluted Share to the midpoint of the 2024 guidance is summarized below:

		Earnings per common share				Core FFO
2023 per diluted Share reported results		$	4.71			$	9.17
Same Store NOI			(0.14	)			(0.14	)
Development, Lease-up and Other Non-Same Store NOI			0.13				0.13
Winter storm costs included in NOI			(0.01	)			(0.01	)
Overhead/technology			(0.05	)			(0.05	)
Interest expense (1)			(0.17	)			(0.17	)
Other non-operating income (expense)			(0.04	)			(0.04	)
2024 forecasted acquisitions and dispositions			(0.01	)			(0.01	)
Non-Core FFO items (2)			(0.23	)			—
Gain on sale of depreciable assets and real estate depreciation and amortization expense			0.46				—
2024 per diluted Share guidance midpoint		$	4.65			$	8.88

 

Supplemental Data S-11

 

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RECONCILIATION OF EARNINGS PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER DILUTED SHARE FOR 2024 GUIDANCE

 

		Full Year 2024 Guidance Range
		Low				High
Earnings per common share - diluted		$	4.45			$	4.85
Real estate depreciation and amortization			4.91				4.91
Gains on sale of depreciable assets			(0.69	)			(0.69	)
FFO per Share - diluted			8.67				9.07
Non-Core FFO items (1)			0.01				0.01
Core FFO per Share - diluted			8.68				9.08
Recurring capital expenditures			(0.96	)			(0.96	)
Core AFFO per Share - diluted		$	7.72			$	8.12

 

CREDIT RATINGS

 

		Commercial		Long-Term
		Paper Rating		Debt Rating		Outlook
Fitch Ratings (1)		F1		A-		Stable
Moody’s Investors Service (2)		P-2		A3		Stable
Standard & Poor’s Ratings Services (1)		A-2		A-		Stable

 

COMMON STOCK

 

Stock Symbol:

MAA

Exchange Traded:

NYSE

Estimated Future Dates:

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Earnings release & conference call

Early May

Late July

Late October

Early February

Dividend Information - Common Shares:

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Declaration date

12/13/2022

3/21/2023

5/16/2023

9/29/2023

12/12/2023

Record date

1/13/2023

4/14/2023

7/14/2023

10/13/2023

1/12/2024

Payment date

1/31/2023

4/28/2023

7/31/2023

10/31/2023

1/31/2024

Distributions per share

$

1.4000

$

1.4000

$

1.4000

$

1.4000

$

1.4700

 

INVESTOR RELATIONS DATA

 

MAA does not send quarterly reports, earnings releases and supplemental data to shareholders, but provides them upon request.

For recent press releases, SEC filings and other information, call 866-576-9689 (toll free) or email investor.relations@maac.com. This information, as well as access to MAA’s quarterly conference call, is also available on the “For Investors” page of MAA’s website at www.maac.com.

 

For Questions Contact:
	Name		Title
	Andrew Schaeffer		Senior Vice President, Treasurer and Director of Capital Markets
	Jennifer Patrick		Director of Investor Relations
	Phone: 866-576-9689 (toll free)
	Email: investor.relations@maac.com

 

Supplemental Data S-12

 

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v3.24.0.1

Document And Entity Information	Feb. 07, 2024
Document And Entity Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 07, 2024
Entity Registrant Name	MID-AMERICA APARTMENT COMMUNITIES, INC.
Entity Central Index Key	0000912595
Entity Emerging Growth Company	false
Entity File Number	001-12762
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1543819
Entity Address, Address Line One	6815 Poplar Avenue
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Germantown
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38138
City Area Code	901
Local Phone Number	682-6600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Common Stock [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol(s)	MAA
Security Exchange Name	NYSE
Cumulative Preferred Stock [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share
Trading Symbol(s)	MAAI
Security Exchange Name	NYSE
Limited Partner [Member]
Document And Entity Information [Line Items]
Entity Registrant Name	MID-AMERICA APARTMENTS, L.P.
Entity File Number	333-190028-01
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1543816

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