EX-99.1 2 maa-ex99_1.htm EX-99.1

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
Acquisition Activity/Disposition Activity/Debt and Debt Covenants as of December 31, 2024 | S-9
2025 Guidance/2024 Same Store Components of Net Operating Income Recast For 2025 Same Store Portfolio/Reconciliation of Earnings per Diluted Common Share to Core FFO and Core AFFO per Diluted Share for Full Year 2025 Guidance | S-11
Credit Ratings/Common Stock/Investor Relations Data | S-12

2

EARNINGS RELEASE

MAA REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

GERMANTOWN, TN, February 5, 2025/PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three months ended December 31, 2024.

Fourth Quarter 2024 Operating Results |  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Earnings per common share - diluted |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |
Funds from operations (FFO) per Share - diluted |  | $ | 2.21 |  |  | $ | 2.53 |  |  | $ | 8.77 |  |  | $ | 9.39 |
Core FFO per Share - diluted |  | $ | 2.23 |  |  | $ | 2.32 |  |  | $ | 8.88 |  |  | $ | 9.17 |

A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO, 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, “We are encouraged by the performance trends captured in the fourth quarter and the early signs of improvement in pricing trends as the record level of new supply deliveries has now peaked. Calendar year 2025 will be a transition year for revenue performance as the decline in new supply deliveries will provide for increasingly tighter market conditions and resulting rent growth. As we reprice leases over the busy spring and summer leasing season, the compounding impact in overall revenue performance will become increasingly evident late this year and into 2026. Same Store Portfolio blended lease pricing, on a sequential basis from the seasonally strong third quarter to the typically slower fourth quarter, improved 140 basis points as compared to the same sequential trend of the prior year. Capturing this improvement in year-over-year pricing trends, despite the record level of new supply deliveries over the past year, we believe speaks to the continued strong demand for apartment housing across our portfolio. Further, it puts MAA in a solid position to capture recovery in rental pricing as we head into 2025 with the delivery of new supply poised to meaningfully decline.”

Highlights

•
During the fourth quarter of 2024, MAA’s Same Store Portfolio captured strong Average Physical Occupancy of 95.6%. During the fourth quarter of 2024, MAA’s Same Store Portfolio revenue decreased 0.2%, as compared to the same period in the prior year, with Average Effective Rent per Unit down 0.5%, partially offset by a 1.8% increase in other property revenues.
•
During the fourth quarter of 2024, MAA’s Same Store Portfolio property operating expense increased by 3.4% and MAA's Same Store Portfolio Net Operating Income (NOI) decreased by 2.1%, in each case as compared to the same period in the prior year.
•
As of December 31, 2024, resident turnover remained historically low at 42.0% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
•
During the fourth quarter of 2024, MAA acquired a newly built 386-unit multifamily community located in Dallas, Texas.
•
During the fourth quarter of 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina and a 272-unit multifamily community located in Richmond, Virginia for combined net proceeds of approximately $85 million, resulting in combined gain on the sale of depreciable real estate assets of approximately $55 million.
•
As of December 31, 2024, MAA had seven communities under development, representing 2,312 units once complete, with a projected total cost of $851.5 million and an estimated $374.3 million remaining to be funded. During the fourth quarter of 2024, MAA completed the development of MAA Milepost 35 located in Denver, Colorado and started construction on a 219-unit phase II multifamily expansion at the property. During the fourth quarter of 2024, MAA also completed the development of Novel Val Vista, located in the Phoenix, Arizona market.
•
As of December 31, 2024, MAA had four recently completed development communities and four recently acquired communities in lease-up. Two communities are expected to stabilize in the first quarter of 2025, one in the second quarter of 2025, four in the third quarter of 2025 and one in the second quarter of 2026.
•
In December 2024, MAA’s operating partnership, Mid-America Apartments, L.P. (referred to as MAALP or the Operating Partnership), issued $350.0 million of 10-year unsecured senior notes at a coupon of 4.950% and an issue price of 99.170%.
•
MAA’s balance sheet remains strong with a Net Debt/Adjusted EBITDA re ratio of 4.0x and $1.0 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of December 31, 2024.

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, 2024 as compared to the same periods in the prior year are summarized below:

|  | Three months ended December 31, 2024 vs. 2023 |  | Twelve months ended December 31, 2024 vs. 2023
|  | Revenues |  | Expenses |  | NOI |  | Average Effective Rent per Unit |  | Revenues |  | Expenses |  | NOI |  | Average Effective Rent per Unit
Same Store Operating Growth |  | -0.2% |  | 3.4% |  | -2.1% |  | -0.5% |  | 0.5% |  | 3.9% |  | -1.4% |  | 0.3%

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

Same Store Portfolio operating statistics for the three and twelve months ended December 31, 2024 are summarized below:

|  | Three months ended December 31, 2024 |  | Twelve months ended December 31, 2024 |  | December 31, 2024
|  | Average Effective Rent per Unit |  |  | Average Physical Occupancy |  | Average Effective Rent per Unit |  |  | Average Physical Occupancy |  | Resident Turnover
Same Store Operating Statistics |  | $ | 1,684 |  |  | 95.6% |  | $ | 1,688 |  |  | 95.5% |  | 42.0%

Same Store Portfolio lease pricing for new leases that were effective during the fourth quarter of 2024 declined 8.0%, while Same Store Portfolio lease pricing for renewing leases that were effective during the fourth quarter of 2024 increased 4.2%, producing a decrease of 2.0% for both new and renewing lease pricing on a blended basis in the fourth quarter of 2024 as compared to the prior lease.

Same Store Portfolio lease pricing for both new and renewing leases effective during the year ended December 31, 2024, on a blended basis, declined 0.5% as compared to the prior lease, driven by a 5.9% decrease for leases to new move-in residents, partially offset by a 4.4% increase for renewing leases.

Brad Hill, President and Chief Investment Officer, said, “We remain focused on optimizing our portfolio to deliver enhanced performance throughout 2025 and beyond as the demand and supply dynamics continue to improve. In the fourth quarter, our average physical occupancy was 10 basis points better than the same period in 2023 and we finished the year with exposure, which represents all current vacant units plus all notices to vacate over the next 60 days, 60 basis points better than the prior year. We are encouraged by other positive trends as well. As of January 31, 2025, our exposure improved by 70 basis points compared to the prior year. Similarly, through the month of January, we observed better than normal seasonal blended pricing trends, with a few additional markets showing positive lease-over-lease rates. While the performance from our existing portfolio is gaining momentum, we are increasing our investments in several initiatives that will enhance efficiencies and deliver stronger future earnings growth. Additionally, as our lease-up properties reach stabilization, we expect a growing earnings contribution from this component of our portfolio as new deliveries decrease within our markets.”

Acquisition and Disposition Activity

In October 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas for approximately $106 million. In December 2024, MAA acquired a 3-acre land parcel in the Raleigh, North Carolina market for approximately $5 million for future development.

In October 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina for net proceeds of approximately $38 million. In December 2024, MAA also closed on the disposition of a 272-unit multifamily community located in Richmond, Virginia for net proceeds of approximately $47 million.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the fourth quarter of 2024 is set forth below (dollars in thousands):

|  |  | Units as of |  |  | Development Costs as of |  |  | Expected Project |
Total |  |  | December 31, 2024 |  |  | December 31, 2024 |  |  | Completions By Year |
Development |  |  |  |  |  |  |  |  |  |  |  | Expected |  |  | Costs |  |  | Expected |  |  |  |  |  |  |
Projects (1) |  |  | Total |  |  | Delivered |  |  | Leased |  |  | Total |  |  | to Date |  |  | Remaining |  |  | 2025 |  |  | 2026 |  |  | 2027 |
| 7 |  |  |  | 2,312 |  |  |  | 73 |  |  |  | 14 |  |  | $ | 851,500 |  |  | $ | 477,181 |  |  | $ | 374,319 |  |  |  | 2 |  |  |  | 4 |  |  |  | 1 |

(1)
One of the development projects is currently leasing.

During the fourth quarter of 2024, MAA funded approximately $64 million of costs for current and planned projects, including predevelopment activities.

During the fourth quarter of 2024, MAA completed the development of MAA Milepost 35 located in Denver, Colorado and started construction on a 219-unit phase II multifamily expansion at the property. The phase II development is expected to deliver its first units in the second quarter of 2026, to be completed in the fourth quarter of 2026 and to reach stabilization in the fourth quarter of 2027 at a total cost of approximately $78 million. During the fourth quarter of 2024, MAA also completed the development of Novel Val Vista, located in the Phoenix, Arizona market

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 2024 is set forth below (dollars in thousands):

Total |  |  | As of December 31, 2024 |
Lease-Up |  |  | Total |  |  | Physical |  |  | Costs |
Projects (1) |  |  | Units |  |  | Occupancy |  |  | to Date |
| 8 |  |  |  | 2,763 |  |  |  | 69.7 | % |  | $ | 766,090 |

(1)
Two of the lease-up projects are expected to stabilize in the first quarter of 2025, one in the second quarter of 2025, four in the third quarter of 2025 and one in the second quarter of 2026.

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Property Redevelopment and Repositioning Activity

A summary of MAA’s interior redevelopment program as of the end of the fourth quarter of 2024 is set forth below:

|  | As of December 31, 2024 |  |
|  | Units |  |  | Average Cost |  |  | Increase in Average |  |
|  | Completed |  |  | per Unit |  |  | Effective Rent per Unit |  |
|  | YTD |  |  | YTD |  |  | YTD |  |
Redevelopment |  |  | 5,665 |  |  | $ | 6,219 |  |  | $ | 106 |  |

As of December 31, 2024, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 96,000 units across its apartment community portfolio providing an increase in Average Effective Rent per Unit of approximately $25 per month since the initiative began during the first quarter of 2019.

During the fourth quarter of 2024, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities for higher and above market rent growth after projects are completed and units are fully repriced. For the year ended December 31, 2024, MAA spent $4.8 million on this program.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and twelve months ended December 31, 2024 and 2023 is set forth below (dollars in millions, except per Share data):

|  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Core FFO attributable to common shareholders and unitholders |  | $ | 267.4 |  |  | $ | 277.8 |  |  | $ | 1,065.0 |  |  | $ | 1,098.1 |
Recurring capital expenditures |  |  | (23.4 | ) |  |  | (26.4 | ) |  |  | (112.2 | ) |  |  | (111.7 | )
Core adjusted FFO (Core AFFO) attributable to common shareholders and unitholders |  |  | 244.0 |  |  |  | 251.4 |  |  |  | 952.8 |  |  |  | 986.4 |
Redevelopment, revenue enhancing, commercial and other capital expenditures |  |  | (61.5 | ) |  |  | (52.1 | ) |  |  | (207.3 | ) |  |  | (208.4 | )
FAD attributable to common shareholders and unitholders |  | $ | 182.5 |  |  | $ | 199.3 |  |  | $ | 745.5 |  |  | $ | 778.0 |
Core FFO per Share - diluted |  | $ | 2.23 |  |  | $ | 2.32 |  |  | $ | 8.88 |  |  | $ | 9.17 |
Core AFFO per Share - diluted |  | $ | 2.03 |  |  | $ | 2.10 |  |  | $ | 7.94 |  |  | $ | 8.24 |

A reconciliation of Net income available for MAA common shareholders to FFO, Core FFO, Core AFFO and FAD, 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, 2024, MAA had $1.0 billion 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 2024 were $176.3 million, as compared to $167.8 million for the same period in the prior year.

In December 2024, MAALP publicly issued $350.0 million of unsecured notes due March 2035 with a coupon rate of 4.950% per annum and at an issue price of 99.170%. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing September 1, 2025. The proceeds from the sale of the notes were used to repay borrowings on MAALP's commercial paper program. The notes have an effective interest rate of 5.053%.

Balance sheet highlights as of December 31, 2024 are summarized below (dollars in billions):

Total debt to adjusted total assets (1) |  | Net Debt/Adjusted EBITDA re (2) |  | Total debt outstanding |  |  | Average effective interest rate |  | Fixed rate debt as a % of total debt |  | Total debt average years to maturity |
29.0% |  | 4.0x |  | $ | 5.0 |  |  | 3.8% |  | 95.0% |  |  | 7.3 |

(1)
As defined in the covenants for the bonds issued by MAALP.
(2)
Adjusted EBITDA re is calculated for the trailing twelve month period ended December 31, 2024.

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

Corporate Sustainability

As of December 31, 2024, MAA’s corporate initiatives have led to significant progress in key sustainability performance areas. After achieving its original 2018 baseline targets in 2023, MAA re-established its 2028 targets in 2024 to further improve the reduction in energy use intensity (EUI) and reduction in GHG emissions intensity (GEI). Through December 31, 2023, MAA achieved a 29% reduction in EUI and a 36% reduction in GEI from its 2018 baseline, with the aim to reduce EUI and GEI by 35% and 45% by 2028, respectively. Additionally, as of December 31, 2024, MAA completed its initiative to retrofit common area light fixtures in its portfolio to LED lighting to maximize energy efficiency and MAA had 51 green-certified communities, representing over 15% of its portfolio.

MAA has several community engagement efforts underway and continues to report its progress through its 5 th annual Corporate Sustainability Report, published in October 2024, CDP disclosure, and GRESB assessment, the latter of which MAA has now improved

5

year over year since its first submission in 2020 to a score of 80. MAA believes its initiatives related to solar panel and building automation systems, together with an expansion of its smart irrigation initiative, continue an integrated pathway for sustainability, enhance its resiliency, and create a positive impact for MAA's residents, associates, and investors.

124th Consecutive Quarterly Common Dividend Declared

MAA declared its 124th consecutive quarterly common dividend, which was paid on January 31, 2025 to holders of record on January 15, 2025. The current annual dividend rate is $6.06 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA’s financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify the dividend policy from time to time.

2025 Earnings and Same Store Portfolio Guidance

MAA is providing initial 2025 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store Portfolio performance. MAA expects to update its 2025 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.

2025 Guidance |  | Full Year 2025
Earnings: |  | Range |  | Midpoint
Earnings per common share - diluted |  | $5.51 to $5.83 |  | $5.67
Core FFO per Share - diluted |  | $8.61 to $8.93 |  | $8.77
Core AFFO per Share - diluted |  | $7.63 to $7.95 |  | $7.79
MAA Same Store Portfolio: |  |  |  |
Property revenue growth |  | -0.35% to 1.15% |  | 0.40%
Property operating expense growth |  | 2.45% to 3.95% |  | 3.20%
NOI growth |  | -2.15% to -0.15% |  | -1.15%

The projected difference between Core FFO per diluted Share for the full year of 2024 to the midpoint of MAA's guidance for the full year of 2025 is summarized below:

|  | Core FFO per diluted Share |
2024 per diluted Share reported results |  | $ | 8.88 |
Same Store NOI |  |  | (0.13 | )
Development, Lease-up and Other Non-Same Store NOI |  |  | 0.20 |
2024 Storm-related clean-up costs included in Non-Same Store NOI |  |  | 0.07 |
Total overhead |  |  | (0.05 | )
Interest expense (1) |  |  | (0.18 | )
2025 forecasted acquisitions and dispositions |  |  | (0.02 | )
2025 per diluted Share guidance midpoint |  | $ | 8.77 |

(1)
The projected year-over-year change in Interest expense is primarily driven by higher interest expense as a result of incremental borrowings related to our acquisition activities in 2024, development activities and debt refinancing.

MAA expects Core FFO for the first quarter of 2025 to be in the range of $2.08 to $2.24 per diluted Share, or $2.16 per diluted Share at the midpoint. The projected difference between Core FFO per diluted Share for the fourth quarter of 2024 to the midpoint of MAA's guidance for the first quarter of 2025 is summarized below:

|  | Core FFO per diluted Share |
Q4 2024 per diluted Share reported results |  | $ | 2.23 |
Same Store NOI (1) |  |  | (0.01 | )
Development, Lease-up and Other Non-Same Store NOI |  |  | 0.01 |
2024 Storm-related clean-up costs included in Non-Same Store NOI |  |  | 0.02 |
Total overhead |  |  | (0.06 | )
Interest expense |  |  | (0.02 | )
Other non-operating income (expense) |  |  | (0.01 | )
Q1 2025 per diluted Share guidance midpoint |  | $ | 2.16 |

(1)
The sequential quarter-over-quarter change is calculated with projected Same Store Portfolio NOI for the first quarter of 2025 compared to Same Store NOI from the fourth quarter of 2024, which is recast for the 2025 Same Store Portfolio as provided in the Supplemental Data to this release.

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.

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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 6, 2025, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. 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, 2024, MAA had ownership interest in 104,587 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.

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:

•
inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
•
exposure to risks inherent in investments in a single industry and sector;
•
adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
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failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;
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unexpected capital needs;
•
material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors;
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inability to obtain appropriate insurance coverage at reasonable rates, or at all, losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits;
•
ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
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level and volatility of interest or capitalization rates or capital market conditions;
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the effect of any rating agency actions on the cost and availability of new debt financing;
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the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, which could cause continued or worsening economic and market volatility, and regulatory responses thereto;
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significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;
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ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of MAALP to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
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inability to attract and retain qualified personnel;
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cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
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potential liability for environmental contamination;
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changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;

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•
extreme weather and natural disasters;
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disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
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impact of climate change on our properties or operations;
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legal proceedings or class action lawsuits;
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impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;
•
compliance costs associated with numerous federal, state and local laws and regulations; and
•
other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.

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.

FINANCIAL HIGHLIGHTS

Dollars in thousands, except per share data |  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Rental and other property revenues |  | $ | 549,832 |  |  | $ | 542,247 |  |  | $ | 2,191,015 |  |  | $ | 2,148,468 |
Net income available for MAA common shareholders |  | $ | 165,724 |  |  | $ | 159,554 |  |  | $ | 523,855 |  |  | $ | 549,118 |
Total NOI (1) |  | $ | 344,899 |  |  | $ | 350,465 |  |  | $ | 1,370,923 |  |  | $ | 1,380,327 |
Earnings per common share: (2) |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |
Diluted |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |
Funds from operations per Share - diluted: (2) |  |  |  |  |  |  |  |  |  |  |  |
FFO (1) |  | $ | 2.21 |  |  | $ | 2.53 |  |  | $ | 8.77 |  |  | $ | 9.39 |
Core FFO (1) |  | $ | 2.23 |  |  | $ | 2.32 |  |  | $ | 8.88 |  |  | $ | 9.17 |
Core AFFO (1) |  | $ | 2.03 |  |  | $ | 2.10 |  |  | $ | 7.94 |  |  | $ | 8.24 |
Dividends declared per common share |  | $ | 1.5150 |  |  | $ | 1.4700 |  |  | $ | 5.9250 |  |  | $ | 5.6700 |
Dividends/Core FFO (diluted) payout ratio |  |  | 67.9 | % |  |  | 63.4 | % |  |  | 66.7 | % |  |  | 61.8 | %
Dividends/Core AFFO (diluted) payout ratio |  |  | 74.6 | % |  |  | 70.0 | % |  |  | 74.6 | % |  |  | 68.8 | %
Consolidated interest expense |  | $ | 44,192 |  |  | $ | 38,579 |  |  | $ | 168,544 |  |  | $ | 149,234 |
Mark-to-market debt adjustment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 25 |
Debt discount and debt issuance cost amortization |  |  | (1,464 | ) |  |  | (1,287 | ) |  |  | (6,033 | ) |  |  | (5,849 | )
Capitalized interest |  |  | 5,247 |  |  |  | 3,311 |  |  |  | 17,435 |  |  |  | 12,376 |
Total interest incurred |  | $ | 47,975 |  |  | $ | 40,603 |  |  | $ | 179,946 |  |  | $ | 155,786 |
Amortization of principal on notes payable |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 854 |

(1)
A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
(2)
See the “Share and Unit Data” section for additional information.

Dollars in thousands, except share price |  | December 31, 2024 |  |  | December 31, 2023 |
Gross Assets (1) |  | $ | 17,170,171 |  |  | $ | 16,349,193 |
Gross Real Estate Assets (1) |  | $ | 16,924,002 |  |  | $ | 16,089,909 |
Total debt |  | $ | 4,980,957 |  |  | $ | 4,540,225 |
Common shares and units outstanding |  |  | 119,958,973 |  |  |  | 119,838,096 |
Share price |  | $ | 154.57 |  |  | $ | 134.46 |
Book equity value |  | $ | 6,147,664 |  |  | $ | 6,299,122 |
Market equity value |  | $ | 18,542,058 |  |  | $ | 16,113,430 |
Net Debt/Adjusted EBITDA re (2) |  | 4.0x |  |  | 3.6x |

(1)
A reconciliation of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets, along with discussion of their components, can be found later in this release.
(2)
Adjusted EBITDA re is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Unsecured notes payable and Secured notes payable to Net Debt; and (ii) Net income to EBITDA, EBITDA re and Adjusted EBITDA re.

8

CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share data (Unaudited) |  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenues |  | $ | 549,832 |  |  | $ | 542,247 |  |  | $ | 2,191,015 |  |  | $ | 2,148,468 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding real estate taxes and insurance |  |  | 123,848 |  |  |  | 113,672 |  |  |  | 502,735 |  |  |  | 461,540 |
Real estate taxes and insurance |  |  | 81,085 |  |  |  | 78,110 |  |  |  | 317,357 |  |  |  | 306,601 |
Depreciation and amortization |  |  | 150,852 |  |  |  | 140,888 |  |  |  | 585,616 |  |  |  | 565,063 |
Total property operating expenses |  |  | 355,785 |  |  |  | 332,670 |  |  |  | 1,405,708 |  |  |  | 1,333,204 |
Property management expenses |  |  | 17,579 |  |  |  | 17,467 |  |  |  | 72,040 |  |  |  | 67,784 |
General and administrative expenses |  |  | 14,072 |  |  |  | 15,249 |  |  |  | 56,516 |  |  |  | 58,578 |
Interest expense |  |  | 44,192 |  |  |  | 38,579 |  |  |  | 168,544 |  |  |  | 149,234 |
(Gain) loss on sale of depreciable real estate assets |  |  | (55,028 | ) |  |  | 1 |  |  |  | (55,003 | ) |  |  | 62 |
Gain on sale of non-depreciable real estate assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (54 | )
Other non-operating expense (income) |  |  | 949 |  |  |  | (27,219 | ) |  |  | (1,655 | ) |  |  | (31,185 | )
Income before income tax expense |  |  | 172,283 |  |  |  | 165,500 |  |  |  | 544,865 |  |  |  | 570,845 |
Income tax expense |  |  | (1,755 | ) |  |  | (1,148 | ) |  |  | (5,240 | ) |  |  | (4,744 | )
Income from continuing operations before real estate joint venture activity |  |  | 170,528 |  |  |  | 164,352 |  |  |  | 539,625 |  |  |  | 566,101 |
Income from real estate joint venture |  |  | 546 |  |  |  | 516 |  |  |  | 1,951 |  |  |  | 1,730 |
Net income |  |  | 171,074 |  |  |  | 164,868 |  |  |  | 541,576 |  |  |  | 567,831 |
Net income attributable to noncontrolling interests |  |  | 4,428 |  |  |  | 4,392 |  |  |  | 14,033 |  |  |  | 15,025 |
Net income available for shareholders |  |  | 166,646 |  |  |  | 160,476 |  |  |  | 527,543 |  |  |  | 552,806 |
Dividends to MAA Series I preferred shareholders |  |  | 922 |  |  |  | 922 |  |  |  | 3,688 |  |  |  | 3,688 |
Net income available for MAA common shareholders |  | $ | 165,724 |  |  | $ | 159,554 |  |  | $ | 523,855 |  |  | $ | 549,118 |
Earnings per common share - basic: |  |  |  |  |  |  |  |  |  |  |  |
Net income available for common shareholders |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |
Earnings per common share - diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net income available for common shareholders |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |

SHARE AND UNIT DATA

Shares and units in thousands |  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Net Income Shares (1) |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares - basic |  |  | 116,828 |  |  |  | 116,646 |  |  |  | 116,776 |  |  |  | 116,521 |
Effect of dilutive securities |  |  | 64 |  |  |  | 87 |  |  |  | — |  |  |  | 124 |
Weighted average common shares - diluted |  |  | 116,892 |  |  |  | 116,733 |  |  |  | 116,776 |  |  |  | 116,645 |
Funds From Operations Shares And Units |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares and units - basic |  |  | 119,904 |  |  |  | 119,791 |  |  |  | 119,875 |  |  |  | 119,674 |
Weighted average common shares and units - diluted |  |  | 119,958 |  |  |  | 119,837 |  |  |  | 119,929 |  |  |  | 119,722 |
Period End Shares And Units |  |  |  |  |  |  |  |  |  |  |  |
Common shares at December 31, |  |  | 116,883 |  |  |  | 116,694 |  |  |  | 116,883 |  |  |  | 116,694 |
Operating Partnership units at December 31, |  |  | 3,076 |  |  |  | 3,144 |  |  |  | 3,076 |  |  |  | 3,144 |
Total common shares and units at December 31, |  |  | 119,959 |  |  |  | 119,838 |  |  |  | 119,959 |  |  |  | 119,838 |

(1)
For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Consolidated Financial Statements in MAA’s Annual Report on Form 10-K for the annual period ended December 31, 2024, expected to be filed with the SEC on or about February 7, 2025.

9

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited) |  |  |  |  |  |
|  | December 31, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |
Real estate assets: |  |  |  |  |  |
Land |  | $ | 2,096,912 |  |  | $ | 2,031,403 |
Buildings and improvements and other |  |  | 14,160,799 |  |  |  | 13,515,949 |
Development and capital improvements in progress |  |  | 470,282 |  |  |  | 385,405 |
|  |  | 16,727,993 |  |  |  | 15,932,757 |
Less: Accumulated depreciation |  |  | (5,327,584 | ) |  |  | (4,864,690 | )
|  |  | 11,400,409 |  |  |  | 11,068,067 |
Undeveloped land |  |  | 73,359 |  |  |  | 73,861 |
Investment in real estate joint venture |  |  | 41,650 |  |  |  | 41,977 |
Real estate assets, net |  |  | 11,515,418 |  |  |  | 11,183,905 |
Cash and cash equivalents |  |  | 43,018 |  |  |  | 41,314 |
Restricted cash |  |  | 13,743 |  |  |  | 13,777 |
Other assets |  |  | 232,426 |  |  |  | 245,507 |
Assets held for sale |  |  | 7,764 |  |  |  | — |
Total assets |  | $ | 11,812,369 |  |  | $ | 11,484,503 |
Liabilities and equity |  |  |  |  |  |
Liabilities: |  |  |  |  |  |
Unsecured notes payable |  | $ | 4,620,690 |  |  | $ | 4,180,084 |
Secured notes payable |  |  | 360,267 |  |  |  | 360,141 |
Accrued expenses and other liabilities |  |  | 683,748 |  |  |  | 645,156 |
Total liabilities |  |  | 5,664,705 |  |  |  | 5,185,381 |
Redeemable common stock |  |  | 22,230 |  |  |  | 19,167 |
Shareholders’ equity: |  |  |  |  |  |
Preferred stock |  |  | 9 |  |  |  | 9 |
Common stock |  |  | 1,166 |  |  |  | 1,168 |
Additional paid-in capital |  |  | 7,417,453 |  |  |  | 7,399,921 |
Accumulated distributions in excess of net income |  |  | (1,469,557 | ) |  |  | (1,298,263 | )
Accumulated other comprehensive loss |  |  | (6,940 | ) |  |  | (8,764 | )
Total MAA shareholders’ equity |  |  | 5,942,131 |  |  |  | 6,094,071 |
Noncontrolling interests - Operating Partnership units |  |  | 155,409 |  |  |  | 163,128 |
Total shareholders’ equity |  |  | 6,097,540 |  |  |  | 6,257,199 |
Noncontrolling interests - consolidated real estate entities |  |  | 27,894 |  |  |  | 22,756 |
Total equity |  |  | 6,125,434 |  |  |  | 6,279,955 |
Total liabilities and equity |  | $ | 11,812,369 |  |  | $ | 11,484,503 |

10

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

Amounts in thousands, except per share and unit data |  | Three months ended December 31, |  |  | Year ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Net income available for MAA common shareholders |  | $ | 165,724 |  |  | $ | 159,554 |  |  | $ | 523,855 |  |  | $ | 549,118 |
Depreciation and amortization of real estate assets |  |  | 149,457 |  |  |  | 139,437 |  |  |  | 579,927 |  |  |  | 558,969 |
(Gain) loss on sale of depreciable real estate assets |  |  | (55,028 | ) |  |  | 1 |  |  |  | (55,003 | ) |  |  | 62 |
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture |  |  | 162 |  |  |  | 159 |  |  |  | 628 |  |  |  | 615 |
Gain on consolidation of third-party development (1) |  |  | (206 | ) |  |  | — |  |  |  | (11,239 | ) |  |  | — |
Net income attributable to noncontrolling interests |  |  | 4,428 |  |  |  | 4,392 |  |  |  | 14,033 |  |  |  | 15,025 |
FFO attributable to common shareholders and unitholders |  |  | 264,537 |  |  |  | 303,543 |  |  |  | 1,052,201 |  |  |  | 1,123,789 |
Loss (gain) on embedded derivative in preferred shares (1) |  |  | 4,300 |  |  |  | (20,391 | ) |  |  | 18,751 |  |  |  | (18,528 | )
Gain on sale of non-depreciable real estate assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (54 | )
Gain on investments, net of tax (1)(2) |  |  | (3,205 | ) |  |  | (2,928 | ) |  |  | (6,078 | ) |  |  | (3,531 | )
Casualty related charges (recoveries), net (1) |  |  | 338 |  |  |  | 392 |  |  |  | (9,326 | ) |  |  | 980 |
Gain on debt extinguishment (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (57 | )
Legal costs, settlements and (recoveries), net (1)(3) |  |  | 1,437 |  |  |  | (2,854 | ) |  |  | 9,437 |  |  |  | (4,454 | )
Mark-to-market debt adjustment (4) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (25 | )
Core FFO attributable to common shareholders and unitholders |  |  | 267,407 |  |  |  | 277,762 |  |  |  | 1,064,985 |  |  |  | 1,098,120 |
Recurring capital expenditures |  |  | (23,418 | ) |  |  | (26,318 | ) |  |  | (112,228 | ) |  |  | (111,685 | )
Core AFFO attributable to common shareholders and unitholders |  |  | 243,989 |  |  |  | 251,444 |  |  |  | 952,757 |  |  |  | 986,435 |
Redevelopment capital expenditures |  |  | (17,903 | ) |  |  | (20,735 | ) |  |  | (51,670 | ) |  |  | (98,177 | )
Revenue enhancing capital expenditures |  |  | (15,394 | ) |  |  | (20,455 | ) |  |  | (75,960 | ) |  |  | (71,623 | )
Commercial capital expenditures |  |  | (3,542 | ) |  |  | (2,382 | ) |  |  | (7,823 | ) |  |  | (6,922 | )
Other capital expenditures |  |  | (24,662 | ) |  |  | (8,563 | ) |  |  | (71,820 | ) |  |  | (31,672 | )
FAD attributable to common shareholders and unitholders |  | $ | 182,488 |  |  | $ | 199,309 |  |  | $ | 745,484 |  |  | $ | 778,041 |
Dividends and distributions paid |  | $ | 176,336 |  |  | $ | 167,768 |  |  | $ | 705,160 |  |  | $ | 669,388 |
Weighted average common shares - diluted |  |  | 116,892 |  |  |  | 116,733 |  |  |  | 116,776 |  |  |  | 116,645 |
FFO weighted average common shares and units - diluted |  |  | 119,958 |  |  |  | 119,837 |  |  |  | 119,929 |  |  |  | 119,722 |
Earnings per common share - diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net income available for common shareholders |  | $ | 1.42 |  |  | $ | 1.37 |  |  | $ | 4.49 |  |  | $ | 4.71 |
FFO per Share - diluted |  | $ | 2.21 |  |  | $ | 2.53 |  |  | $ | 8.77 |  |  | $ | 9.39 |
Core FFO per Share - diluted |  | $ | 2.23 |  |  | $ | 2.32 |  |  | $ | 8.88 |  |  | $ | 9.17 |
Core AFFO per Share - diluted |  | $ | 2.03 |  |  | $ | 2.10 |  |  | $ | 7.94 |  |  | $ | 8.24 |

(1)
Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
(2)
For the three months ended December 31, 2024 and 2023, gain on investments is presented net of tax expense of $0.9 million and $0.8 million, respectively. For the twelve months ended December 31, 2024 and 2023, gain on investments is presented net of tax expense of $1.7 million and $0.9 million, respectively.
(3)
During the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
(4)
Included in Interest expense in the Consolidated Statements of Operations.

11

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

Dollars in thousands |  | Three Months Ended |  |  | Year Ended |
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2024 |  |  | December 31, 2023 |
Net income available for MAA common shareholders |  | $ | 165,724 |  |  | $ | 159,554 |  |  | $ | 523,855 |  |  | $ | 549,118 |
Depreciation and amortization |  |  | 150,852 |  |  |  | 140,888 |  |  |  | 585,616 |  |  |  | 565,063 |
Property management expenses |  |  | 17,579 |  |  |  | 17,467 |  |  |  | 72,040 |  |  |  | 67,784 |
General and administrative expenses |  |  | 14,072 |  |  |  | 15,249 |  |  |  | 56,516 |  |  |  | 58,578 |
Interest expense |  |  | 44,192 |  |  |  | 38,579 |  |  |  | 168,544 |  |  |  | 149,234 |
(Gain) loss on sale of depreciable real estate assets |  |  | (55,028 | ) |  |  | 1 |  |  |  | (55,003 | ) |  |  | 62 |
Gain on sale of non-depreciable real estate assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (54 | )
Other non-operating expense (income) |  |  | 949 |  |  |  | (27,219 | ) |  |  | (1,655 | ) |  |  | (31,185 | )
Income tax expense |  |  | 1,755 |  |  |  | 1,148 |  |  |  | 5,240 |  |  |  | 4,744 |
Income from real estate joint venture |  |  | (546 | ) |  |  | (516 | ) |  |  | (1,951 | ) |  |  | (1,730 | )
Net income attributable to noncontrolling interests |  |  | 4,428 |  |  |  | 4,392 |  |  |  | 14,033 |  |  |  | 15,025 |
Dividends to MAA Series I preferred shareholders |  |  | 922 |  |  |  | 922 |  |  |  | 3,688 |  |  |  | 3,688 |
Total NOI |  | $ | 344,899 |  |  | $ | 350,465 |  |  | $ | 1,370,923 |  |  | $ | 1,380,327 |
Same Store NOI |  | $ | 331,047 |  |  | $ | 338,297 |  |  | $ | 1,321,177 |  |  | $ | 1,339,810 |
Non-Same Store and Other NOI |  |  | 13,852 |  |  |  | 12,168 |  |  |  | 49,746 |  |  |  | 40,517 |
Total NOI |  | $ | 344,899 |  |  | $ | 350,465 |  |  | $ | 1,370,923 |  |  | $ | 1,380,327 |

RECONCILIATION OF NET INCOME TO EBITDA, EBITDA re AND ADJUSTED EBITDA re

Dollars in thousands |  | Three Months Ended |  |  | Year Ended |
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2024 |  |  | December 31, 2023 |
Net income |  | $ | 171,074 |  |  | $ | 164,868 |  |  | $ | 541,576 |  |  | $ | 567,831 |
Depreciation and amortization |  |  | 150,852 |  |  |  | 140,888 |  |  |  | 585,616 |  |  |  | 565,063 |
Interest expense |  |  | 44,192 |  |  |  | 38,579 |  |  |  | 168,544 |  |  |  | 149,234 |
Income tax expense (benefit) |  |  | 1,755 |  |  |  | 1,148 |  |  |  | 5,240 |  |  |  | 4,744 |
EBITDA |  |  | 367,873 |  |  |  | 345,483 |  |  |  | 1,300,976 |  |  |  | 1,286,872 |
(Gain) loss on sale of depreciable real estate assets |  |  | (55,028 | ) |  |  | 1 |  |  |  | (55,003 | ) |  |  | 62 |
Gain on consolidation of third-party development (1) |  |  | (206 | ) |  |  | — |  |  |  | (11,239 | ) |  |  | — |
Adjustments to reflect MAA’s share of EBITDA re of unconsolidated affiliates |  |  | 345 |  |  |  | 339 |  |  |  | 1,363 |  |  |  | 1,350 |
EBITDA re |  |  | 312,984 |  |  |  | 345,823 |  |  |  | 1,236,097 |  |  |  | 1,288,284 |
Loss (gain) on embedded derivative in preferred shares (1) |  |  | 4,300 |  |  |  | (20,391 | ) |  |  | 18,751 |  |  |  | (18,528 | )
Gain on sale of non-depreciable real estate assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (54 | )
Gain on investments (1) |  |  | (4,143 | ) |  |  | (3,704 | ) |  |  | (7,809 | ) |  |  | (4,449 | )
Casualty related charges (recoveries), net (1) |  |  | 338 |  |  |  | 392 |  |  |  | (9,326 | ) |  |  | 980 |
Gain on debt extinguishment (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (57 | )
Legal costs, settlements and (recoveries), net (1)(2) |  |  | 1,437 |  |  |  | (2,854 | ) |  |  | 9,437 |  |  |  | (4,454 | )
Adjusted EBITDA re |  | $ | 314,916 |  |  | $ | 319,266 |  |  | $ | 1,247,150 |  |  | $ | 1,261,722 |

(1)
Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
(2)
During the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.0 million, of accrued legal defense costs that are expected to be incurred through July 2027.

12

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

Dollars in thousands |  |  |  |  |  |
|  | December 31, 2024 |  |  | December 31, 2023 |
Unsecured notes payable |  | $ | 4,620,690 |  |  | $ | 4,180,084 |
Secured notes payable |  |  | 360,267 |  |  |  | 360,141 |
Total debt |  |  | 4,980,957 |  |  |  | 4,540,225 |
Cash and cash equivalents |  |  | (43,018 | ) |  |  | (41,314 | )
Net Debt |  | $ | 4,937,939 |  |  | $ | 4,498,911 |

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands |  |  |  |  |  |
|  | December 31, 2024 |  |  | December 31, 2023 |
Total assets |  | $ | 11,812,369 |  |  | $ | 11,484,503 |
Accumulated depreciation |  |  | 5,327,584 |  |  |  | 4,864,690 |
Accumulated depreciation for Assets held for sale (1) |  |  | 30,218 |  |  |  | — |
Gross Assets |  | $ | 17,170,171 |  |  | $ | 16,349,193 |

(1)
Included in Assets held for sale in the Consolidated Balance Sheets.

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

Dollars in thousands |  |  |  |  |  |
|  | December 31, 2024 |  |  | December 31, 2023 |
Real estate assets, net |  | $ | 11,515,418 |  |  | $ | 11,183,905 |
Accumulated depreciation |  |  | 5,327,584 |  |  |  | 4,864,690 |
Assets held for sale, net |  |  | 7,764 |  |  |  | — |
Accumulated depreciation for Assets held for sale (1) |  |  | 30,218 |  |  |  | — |
Cash and cash equivalents |  |  | 43,018 |  |  |  | 41,314 |
Gross Real Estate Assets |  | $ | 16,924,002 |  |  | $ | 16,089,909 |

(1)
Included in Assets held for sale in the Consolidated Balance Sheets.

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NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA re

For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDA re, represents EBITDA re further adjusted for items that are not considered part of MAA’s core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDA re to be an important measure of performance from core operations because Adjusted EBITDA re excludes various income and expense items that are not indicative of operating performance. MAA’s computation of Adjusted EBITDA re may differ from the methodology utilized by other companies to calculate Adjusted EBITDA re. Adjusted EBITDA re should not be considered as an alternative to Net income as an indicator of operating performance.

Core Adjusted Funds from Operations (Core AFFO)

Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds from Operations (Core FFO)

Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA’s methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

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 excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.

EBITDA re

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDA re, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA’s share of EBITDA re of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDA re to be an important measure of performance from core operations because EBITDA re excludes various expense items that are not indicative of operating performance. While MAA’s definition of EBITDA re is in accordance with NAREIT’s definition, it may differ from the methodology utilized by other companies to calculate EBITDA re. EBITDA re should not be considered as an alternative to Net income as an indicator of operating performance.

Funds Available for Distribution (FAD)

FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA’s definition of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Assets

Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

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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, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Net 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 severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Same Store 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 severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

OTHER KEY 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 trailing 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

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