Mid-America Apartment Communities, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Earnings per common share (diluted) were $0.72 for the three months ended September 30, 2026, compared to $0.84 in the prior year period; for the nine months ended September 30, 2026, earnings were $2.82 compared to $3.30 in the prior year.
• Funds from operations (FFO) per share (diluted) were $2.11 for the quarter and $6.43 for the nine months, compared to $2.14 and $6.53, respectively, in the prior year periods.
• Core FFO per share (diluted) was $2.10 for the quarter and $6.31 for the nine months, compared to $2.16 and $6.51, respectively, in the prior year periods.
• Core AFFO per share (diluted) was $1.79 for the quarter and $5.53 for the nine months, compared to $1.81 and $5.70, respectively, in the prior year periods.
• Rental and other property revenues were $560.1 million for the quarter and $1.669 billion for the nine months, compared to $554.4 million and $1.654 billion, respectively, in the prior year periods.
• Total Net Operating Income (NOI) was $337.9 million for the quarter and $1.022 billion for the nine months, compared to $338.3 million and $1.021 billion, respectively, in the prior year periods.
• Same Store portfolio revenues declined 0.4% for the quarter and 0.3% for the nine months year-over-year.
• Same Store portfolio expenses increased 2.0% for the quarter and 1.4% for the nine months year-over-year.
• Same Store portfolio NOI declined 1.8% for the quarter and 1.4% for the nine months year-over-year.
• Consolidated interest expense was $54.6 million for the quarter and $159.2 million for the nine months, compared to $46.3 million and $136.5 million, respectively, in the prior year periods.
• Total debt outstanding was $5.8 billion as of September 30, 2026, compared to $5.4 billion as of December 31, 2025.
• Net Debt/Adjusted EBITDAre was 4.7x as of September 30, 2026, compared to 4.3x as of December 31, 2025.
• Average effective interest rate was 4.1% as of September 30, 2026.
• Fixed rate debt comprised 79.3% of total debt as of September 30, 2026.
• Total debt average years to maturity was 5.6 years as of September 30, 2026.
• Dividends declared per common share were $1.530 for the quarter and $4.590 for the nine months, compared to $1.515 and $4.545, respectively, in the prior year periods.
• Dividends/Core FFO payout ratio was 72.9% for the quarter and 72.7% for the nine months, compared to 70.1% and 69.8%, respectively, in the prior year periods.
• Dividends/Core AFFO payout ratio was 85.5% for the quarter and 83.0% for the nine months, compared to 83.7% and 79.7%, respectively, in the prior year periods.

Guidance and Future Outlook:

• Updated full-year 2026 Earnings per common share (diluted) guidance is $3.61 to $3.73, with a midpoint of $3.67, down from a previous range of $3.96 to $4.20.
• Updated full-year 2026 Core FFO per share (diluted) guidance is $8.43 to $8.55, with a midpoint of $8.49, up slightly from a previous range of $8.41 to $8.65.
• Updated full-year 2026 Core AFFO per share (diluted) guidance is $7.40 to $7.52, with a midpoint of $7.46, up slightly from a previous range of $7.38 to $7.62.
• Updated full-year 2026 Same Store Property revenue growth guidance is -0.40% to -0.10%, with a midpoint of -0.25%, down from a previous range of -0.20% to 0.40%.
• Updated full-year 2026 Same Store Property operating expense growth guidance is 1.15% to 1.65%, with a midpoint of 1.40%, down from a previous range of 1.25% to 2.25%.
• Updated full-year 2026 Same Store NOI growth guidance is -1.70% to -0.80%, with a midpoint of -1.25%, down from a previous range of -1.70% to -0.10%.
• Fourth quarter 2026 Core FFO per share guidance is $2.12 to $2.24, with a midpoint of $2.18.
• Management attributes the revised forecast to higher interest rates and new resident year-over-year pricing improvements occurring about a quarter later than expected.
• Management noted that October new resident lease pricing improved from September, resulting in the year's first year-over-year improvement in new resident lease-over-lease pricing.

Business Segments and Product Lines:

• Same Store effective blended lease rate growth was 0.4% for the quarter and nine months, an 80 basis point improvement in renewal lease pricing year-over-year.
• Same Store Effective New Lease Rate Growth was -6.0% for the quarter and nine months.
• Same Store Effective Renewal Lease Rate Growth was 5.3% for the quarter and nine months.
• Average Effective Rent per Unit for the Same Store portfolio was $1,691 for the quarter and $1,688 for the nine months.
• Average Physical Occupancy for the Same Store portfolio was 95.3% for the quarter and 95.4% for the nine months.
• Resident turnover in the Same Store Portfolio was 39.6% for the quarter, with move-outs associated with buying single-family homes at a record low of 10.1%.
• MAA completed the initial lease-up of MAA Val Vista (Phoenix, Arizona) and MAA Breakwater (Tampa, Florida).
• MAA completed the development of MAA Milepost II (Denver, Colorado).
• MAA began construction of multifamily apartment communities in Northern Virginia and Nashville, Tennessee, and a phase II expansion in Kansas City.
• As of September 30, 2026, there were 8 development projects totaling 2,236 units with $760.0 million in expected total costs; $395.6 million had been spent to date.
• As of September 30, 2026, there were 4 lease-up projects totaling 1,166 units with 77.6% physical occupancy and $422.2 million in costs to date.
• MAA funded approximately $84 million of costs for current and planned development projects during the third quarter.

Market and Competitive Landscape:

• MAA operates primarily in the Southeast, Southwest, and Mid-Atlantic regions of the United States.
• As of September 30, 2026, MAA had ownership interest in 105,136 apartment units across 16 states.
• Management highlighted sector-leading results driven by resident service and satisfaction.
• Management noted stable occupancy and strong market absorption.

Risks and Challenges:

• Higher interest rates are impacting blended pricing and occupancy.
• New resident year-over-year pricing improvements occurred later than expected.
• Potential risks include adverse effects on occupancy and rental revenues due to unfavorable market and economic conditions, changes in real estate supply and demand, and increased competition from alternative housing options.
• Risks also include failure of development communities to be completed within budget or on time, unexpected capital needs, and material changes in operating costs due to inflation.
• Risks include the ability to obtain financing at favorable rates or refinance existing debt as it matures, and volatility in interest or capitalization rates.
• Potential risks include extreme weather, natural disasters, disease outbreaks, and legal proceedings.

Management Commentary and Tone:

• Brad Hill, President and CEO, stated that third quarter Core FFO met expectations as occupancy was built through the quarter and expense management remained disciplined.
• Management expressed continued optimism that pricing trends will grow increasingly positive into the new year.
• Management noted that October blended pricing accelerated more than 100 basis points year-over-year.

Other Key Points:

• Mid-America Apartments, L.P. borrowed an additional $250.0 million under its unsecured delayed draw term loan (DDTL Facility) in the third quarter; $350.0 million was outstanding as of September 30, 2026.
• On October 1, 2026, MAA redeemed all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock using $43.4 million of cash funded from proceeds of a forward sale agreement.
• MAA repurchased 0.4 million shares of common stock in the third quarter at a weighted average price of $126.72 for a total of $50.0 million.
• In July 2026, MAA closed on the acquisition of a land parcel in Northern Virginia and began development of a 306-unit community.
• In September 2026, MAA sold a 269-unit multifamily community in Washington, D.C. for gross proceeds of approximately $147 million; MAA holds a 35% interest in the joint venture.
• MAA declared its 131st consecutive quarterly common dividend, with an annual rate of $6.12 per share.
• MAA has $660.7 million of combined cash and available capacity under its unsecured revolving credit facility as of September 30, 2026.
• The DDTL Facility matures in November 2030 and includes an uncommitted accordion feature allowing an increase in total unsecured indebtedness to $550.0 million.
• A conference call to discuss results was scheduled for October 29, 2026, at 9:00 AM Central Time.