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What changed in Mid-America Apartment Communities's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Mid-America Apartment Communities's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+187 added−190 removedSource: 10-K (2026-02-06) vs 10-K (2025-02-07)

Top changes in Mid-America Apartment Communities's 2025 10-K

187 paragraphs added · 190 removed · 167 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThe following multifamily projects were under development as of December 31, 2024 (dollars in thousands): Project Market Total Units Units Completed Costs to Date Budgeted Costs Estimated Costs Per Unit Expected Completion MAA Nixie Raleigh/Durham, NC 406 73 $ 127,944 $ 145,500 $ 358 3rd Quarter 2025 MAA Breakwater Tampa, FL 495 — 154,540 197,500 399 4th Quarter 2025 Modera Liberty Row (1) Charlotte, NC 239 — 100,492 112,000 469 1st Quarter 2026 MAA Plaza Midwood (2) Charlotte, NC 302 — 29,105 101,500 336 4th Quarter 2026 Modera Chandler (2) Phoenix, AZ 345 — 34,068 117,500 341 4th Quarter 2026 MAA Porter Richmond, VA 306 — 15,994 99,500 325 3rd Quarter 2027 MAA Milepost 35 II Denver, CO 219 — 15,038 78,000 356 4th Quarter 2026 Total 2,312 73 $ 477,181 $ 851,500 (1) In July 2024, we agreed to finance the third-party development of this property currently under construction.
Biggest changeThe following multifamily projects were under development as of December 31, 2025 (dollars in thousands): Project Market Total Units Units Completed Costs to Date Budgeted Costs Estimated Costs Per Unit Expected Completion MAA Breakwater Tampa, FL 495 344 $ 192,360 $ 197,500 $ 399 1st Quarter 2026 Modera Liberty Row (1) Charlotte, NC 239 228 111,567 (3) 112,000 469 1st Quarter 2026 MAA Plaza Midwood (2) Charlotte, NC 302 88 87,111 101,500 336 3rd Quarter 2026 Modera Chandler (2) Phoenix, AZ 345 — 75,791 117,500 341 4th Quarter 2026 MAA Milepost 35 II Denver, CO 219 — 51,656 78,000 356 4th Quarter 2026 MAA Rove Richmond, VA 306 — 53,087 99,500 325 3rd Quarter 2027 MAA Point Hope (2) Charleston, SC 336 — 24,257 91,000 271 1st Quarter 2028 MAA One Scottsdale Phoenix, AZ 280 — 29,783 135,000 482 3rd Quarter 2028 Total 2,522 660 $ 625,612 $ 932,000 (1) In July 2024, we agreed to finance the third-party development of this property currently under construction.
To achieve these objectives, we intend to continue to pursue the following goals and strategies: • create value for our shareholders, residents, associates and the communities in which our properties are located; • effectively operate our existing properties with an intense property and asset management focus; • utilize technology to provide services desired by our residents and create efficiencies and performance advantages in our operations; • take an opportunistic approach to buying, selling, developing and renovating apartment communities; • diversify our portfolio across markets, submarkets, product type (i.e., garden style, mid-rise, and high-rise) and price points to minimize operating performance volatility; • offer attractive work environments, compensation and incentive packages and career development opportunities to attract and retain required talent; and • actively manage our balance sheet and capital structure.
To achieve these objectives, we intend to continue to pursue the following goals and strategies: • create value for our shareholders, residents, associates and the communities in which our properties are located; • effectively operate our existing properties with an intense property and asset management focus; • utilize technology to provide services desired by our residents and create efficiencies and performance advantages in our operations; • take an opportunistic approach to buying, developing, selling and renovating apartment communities; • diversify our portfolio across markets, submarkets, product type (i.e., garden style, mid-rise, and high-rise) and price points to minimize operating performance volatility; • offer attractive work environments, compensation and incentive packages and career development opportunities to attract and retain required talent; and • actively manage our balance sheet and capital structure.
In deciding to sell an apartment community, we consider current market conditions and generally solicit competing bids from unrelated parties for these individual properties, considering the sales price and other key terms of each proposal. We also consider portfolio dispositions when such a structure is useful to maximize proceeds and efficiency of execution.
In deciding to sell an apartment community, we consider current market conditions and generally solicit competing bids from unrelated parties for these individual properties. We then consider the sales price and other key terms of each proposal. We also consider portfolio dispositions when such a structure is useful to maximize proceeds and efficiency of execution.
Investment in technology continues to drive operating efficiencies in our business and helps us to better meet the changing needs of our residents. Our residents have the ability to conduct business with us 24 hours a day, 7 days a week and complete online leasing applications, leases and renewals through our web-based resident portal.
Investment in technology continues to drive operating efficiencies in our business and helps us to better meet the changing needs of our residents. Our residents have the ability to conduct business with us 24 hours a day, seven days a week and complete online leasing applications, leases and renewals through our web-based resident portal.
As of December 31, 2024, we had completed installation of Smart Home technology in over 96,000 units across our 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.
As of December 31, 2025, we had completed installation of Smart Home technology in over 96,000 units across our 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.
Compliance with the various laws and regulations we are subject to did not have a material effect on our capital expenditures, results of operations and competitive position for the year ended December 31, 2024 as compared to prior periods.
Compliance with the various laws and regulations we are subject to did not have a material effect on our capital expenditures, results of operations and competitive position for the year ended December 31, 2025 as compared to prior periods.
These studies generally include historical reviews of the site, reviews of certain public records, preliminary investigations of the site and surrounding properties, inspection for the presence of asbestos, poly-chlorinated biphenyls and underground storage tanks and the preparation and issuance of written reports.
These studies generally include historical reviews of the site, reviews of certain public records, preliminary investigations of the site and surrounding properties, inspection for the presence of asbestos, poly-chlorinated biphenyls and underground storage tanks followed by the preparation and issuance of written reports.
The steps taken to meet these objectives include: • providing management information and improved customer services through technology innovations; • implementing programs to control expenses through investment in cost-saving initiatives; • analyzing individual asset productivity performances to identify best practices and improvement areas; • maintaining the physical condition of each property through ongoing capital investments; • improving the “curb appeal,” amenities and common areas of the apartment communities through environmentally-thoughtful landscaping and exterior improvements, and repositioning apartment communities from time to time to enhance or maintain market positions; • effectively utilizing search engine optimization, internet leasing solutions and other internet tools to generate leasing traffic; • managing lease expirations to align with peak leasing traffic patterns and to maximize productivity of property staffing; and • allocating additional capital, including capital for selective interior and exterior improvements.
The steps taken to meet these objectives include: • providing quality housing, exceptional service and a high-quality resident experience; • delivering management information and improved customer services through technology innovations; • implementing programs to control expenses through investment in cost-saving initiatives; • analyzing individual asset productivity performances to identify best practices and improvement areas; • maintaining the physical condition of each property through ongoing capital investments; • improving the “curb appeal,” amenities and common areas of the apartment communities through environmentally-thoughtful landscaping and exterior improvements, and repositioning apartment communities from time to time to enhance or maintain market positions; • effectively utilizing search engine optimization, internet leasing solutions and other internet tools to generate leasing traffic; • managing lease expirations to align with peak leasing traffic patterns and to maximize productivity of property staffing; and • allocating additional capital, including capital for selective interior and exterior improvements.
We continuously review opportunities for lowering our cost of capital. We plan to continue using unsecured debt to take advantage of the lower cost of capital and flexibility provided by these markets. We will evaluate opportunities to repurchase shares when we believe that our share price is significantly below our net present value.
We plan to continue using unsecured debt to take advantage of the lower cost of capital and flexibility provided by these markets. We will evaluate opportunities to repurchase shares when we believe that our share price is significantly below our net present value.
(2) Number of communities includes seven communities under development as of December 31, 2024. One of these developments is a phase II expansion of an existing apartment community. (3) Number of units excludes development units not yet delivered as of December 31, 2024. Our business is conducted principally through the Operating Partnership.
(2) Number of communities includes eight communities under development as of December 31, 2025. One of these developments is a phase II expansion of an existing apartment community. (3) Number of units excludes development units not yet delivered as of December 31, 2025. Our business is conducted principally through the Operating Partnership.
During the year ended December 31, 2024, we disposed of two multifamily communities totaling 488 units. Property Redevelopment and Repositioning Activity We focus on both interior unit upgrades and property amenity and common area upgrades above and beyond routine capital upkeep on our apartment communities that we believe have the ability to support additional rent growth.
During the year ended December 31, 2025, we disposed of two multifamily communities totaling 576 units. 5 Property Redevelopment and Repositioning Activity We focus on both interior unit upgrades and property amenity and common area upgrades above and beyond routine capital upkeep on our apartment communities that we believe have the ability to support additional rent growth.
Even if MAA continues to qualify as a REIT, it will continue to be subject to certain federal, state and local taxes on its income and its property. For the year ended December 31, 2024, MAA paid total distributions of $5.88 per share of common stock to its shareholders, which was above the 90% REIT distribution requirement.
Even if MAA continues to qualify as a REIT, it will continue to be subject to certain federal, state and local taxes on its income and its property. For the year ended December 31, 2025, MAA paid total distributions of $6.06 per share of common stock to its shareholders, which was above the 90% REIT distribution requirement.
For additional information on net debt and Adjusted EBITDA re , including reconciliations of the most directly comparable U.S. generally accepted accounting principles, or GAAP, measures to both net debt and Adjusted EBITDA re , see “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Non-GAAP Financial Measures - Net Debt, EBITDA, EBITDA re , and Adjusted EBITDA re ” in this Annual Report on Form 10-K.
For additional information on net debt and Adjusted EBITDA re , including reconciliations of the most directly comparable U.S. generally accepted accounting principles, or GAAP, measures to both net debt and Adjusted EBITDA re , see “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Non-GAAP Financial Measures - Net Debt, EBITDA, EBITDA re , and Adjusted EBITDA re ” in this Annual Report on Form 10-K. 7 We continuously review opportunities for lowering our cost of capital.
Also, as of December 31, 2024, females represented approximately 46% of our workforce, 57% of our collective corporate, regional and property leadership positions and 54% of our associates promoted during the year ended December 31, 2024. We take a comprehensive approach to supporting our associates’ physical and emotional health as well as their financial and professional well-being.
Also, as of December 31, 2025, females represented approximately 45% of our workforce, 56% of our collective corporate, regional and property leadership positions and 50% of our associates promoted during the year ended December 31, 2025. We take a comprehensive approach to supporting our associates’ physical and emotional health as well as their financial and professional well-being.
As of December 31, 2024, we maintained full or partial ownership of apartment communities, including communities currently in development, across 16 states and the District of Columbia, summarized as follows: Multifamily Communities (1) Units Consolidated 300 (2) 102,079 (3) Unconsolidated 1 269 Total 301 102,348 (1) As of December 31, 2024, 35 of the Company’s apartment communities included retail components.
As of December 31, 2025, we maintained full or partial ownership of apartment communities, including communities currently in development, across 16 states and the District of Columbia, summarized as follows: Multifamily Communities (1) Units Consolidated 301 (2) 102,814 (3) Unconsolidated 1 269 Total 302 103,083 (1) As of December 31, 2025, 35 of the Company’s apartment communities included retail components.
During the year ended December 31, 2024, we renovated the kitchens and bathrooms of 5,665 apartment units at an average cost of $6,219 per apartment unit, achieving average rental rate increases of 7.3% above the normal market rate for similar but non-renovated apartment units.
During the year ended December 31, 2025, we renovated the kitchens and bathrooms of 5,995 apartment units at an average cost of $6,080 per apartment unit, achieving average rental rate increases of 7.0% above the normal market rate for similar but non-renovated apartment units.
As of December 31, 2024, ethnic/cultural minorities represented approximately 54% of our workforce, 43% of our collective corporate, regional and property leadership positions and 55% of our associates promoted during the year ended December 31, 2024.
As of December 31, 2025, ethnic/cultural minorities represented approximately 55% of our workforce, 44% of our collective corporate, regional and property leadership positions and 49% of our associates promoted during the year ended December 31, 2025.
We may issue new equity to maintain our debt within the target range. Covenants for our unsecured senior notes limit our total debt to 60% or less of our adjusted total assets.
We may issue new equity to maintain our debt within the target range. Covenants for our unsecured senior notes limit our total debt to 60% or less of our adjusted total assets. As of December 31, 2025, our total debt was 30.2% of our adjusted total assets.
We are not aware of any existing conditions that we believe would be considered a material environmental liability. Nevertheless, it is possible that the studies do not reveal all environmental risks or that there are material environmental liabilities of which we are not aware.
As of the date of this Annual Report on Form 10-K, we are not aware of any existing conditions that we believe would be considered a material environmental liability. Nevertheless, it is possible that the studies do not reveal all environmental risks or that there are material environmental liabilities of which we are not aware.
Maintaining a diverse portfolio includes: • Operating apartment communities in a variety of markets across the Southeast, Southwest, and Mid-Atlantic regions of the U.S. • Operating apartment communities in a variety of submarkets within our markets (urban, suburban, inner loop, etc.) • Operating apartment communities of different product types such as high-rise, mid-rise and garden style • Offering a variety of different rent price points within a market or submarket We believe a diverse portfolio performs well during economic up cycles and weathers economic down cycles better than a more homogenous portfolio.
Maintaining a diverse portfolio includes: • operating apartment communities in a variety of markets primarily across the Southeast, Southwest, and Mid-Atlantic regions of the U.S.; • operating apartment communities in a variety of submarkets within our markets (urban, suburban, inner loop, etc.); • operating apartment communities of different product types such as high-rise, mid-rise and garden style; and • offering a variety of different rent price points within a market or submarket.
MAA is the sole general partner of the Operating Partnership, holding 116,883,421 OP Units, comprising a 97.4% partnership interest in the Operating Partnership as of December 31, 2024.
MAA is the sole general partner of the Operating Partnership, holding 116,878,077 OP Units, comprising a 97.5% partnership interest in the Operating Partnership as of December 31, 2025.
We call this outlook our “Brighter View.” To achieve these objectives, we use our Core Values to guide the way we interact with each other and conduct business by: • appreciating the uniqueness of each individual; • communicating openly and with integrity; • embracing opportunities; and • doing the right thing at the right time for the right reasons. 6 We strive to recruit, develop and retain a talented and diverse workforce that mirrors the diversity of our residents and the communities where we do business.
We call this outlook our “Brighter View.” To achieve these objectives, we use our Core Values to guide the way we interact with each other and conduct business by: • appreciating the uniqueness of each individual; • communicating openly and with integrity; • embracing opportunities; and • doing the right thing at the right time for the right reasons.
From there, we are able to develop and continuously improve our work environment to enhance job satisfaction. We regularly conduct surveys with all associates to measure associate engagement and capture topical feedback to guide current programs, projects and progress. We are also driven to prove that we are listening, and that real action and improvements are executed as a result.
We regularly conduct surveys with all associates to measure associate engagement and capture topical feedback to guide current programs, projects and progress. We are also driven to prove that we are listening to feedback given, and that real action and improvements are executed as a result.
We monitor our debt levels to a ratio of net debt to Adjusted EBITDA re in order to maintain our investment grade credit ratings. We believe this is an important factor in the management of our debt levels to maintain an optimal capital structure, and it is also considered in the assignment of our credit ratings.
We believe this is an important factor in the management of our debt levels to maintain an optimal capital structure, and it is also considered in the assignment of our credit ratings. Adjusted EBITDA re is measured on a trailing twelve-month basis. As of December 31, 2025, our net debt to Adjusted EBITDA re ratio was 4.3x.
We have the option to purchase the property once construction is complete and the property is stabilized. We consider an apartment community to be stabilized once it achieves 90% average physical occupancy for 90 days. (2) We own 95% of the joint venture that owns this property.
We have the option to purchase the property once it is stabilized. We consider an apartment community to be stabilized once it achieves 90% average physical occupancy for 90 days. (2) We own 95% of the joint venture that owns this property. (3) Represents the cost to MAA, net of the $9.6 million non-equity contribution from the third party developer.
For a definition of average effective rent per unit, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Trends” in this Annual Report on Form 10-K. Separately, we continued our property repositioning program to upgrade and reposition the amenity and common areas at certain of our apartment communities.
For a definition of average effective rent per unit, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Trends” in this Annual Report on Form 10-K.
See “Risk Factors – Environmental problems are possible and can be costly” and “Risk Factors – Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties” in this Annual Report on Form 10-K.
See “Risk Factors – Environmental problems are possible and can be costly” and “Risk Factors – Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties” in this Annual Report on Form 10-K. 8 Should any potential environmental risks or conditions be discovered during our due diligence process, the potential costs of remediation will be assessed carefully and factored into the cost of acquisition, assuming the identified risks and factors are deemed to be manageable and within reason.
The following multifamily development projects were completed during the year ended December 31, 2024 (dollars in thousands): As of December 31, 2024 Project Location Total Units Development Costs Development Costs per Unit Construction Completed Novel Daybreak (1) Salt Lake City, UT 400 $ 95,091 $ 238 3rd Quarter 2024 Novel Val Vista (1) Phoenix, AZ 317 78,707 248 4th Quarter 2024 MAA Milepost 35 Denver, CO 352 123,634 351 4th Quarter 2024 Total 1,069 $ 297,432 (1) We own 80% of the joint venture that owns this property. 5 Dispositions We sell apartment communities and other assets that no longer meet our long-term strategy or when market conditions are favorable, and we redeploy the proceeds from those sales to acquire, develop and redevelop additional apartment communities and rebalance our portfolio across or within geographic regions.
The following multifamily development project was completed during the year ended December 31, 2025 (dollars in thousands): As of December 31, 2025 Project Location Total Units Development Costs Development Costs per Unit Construction Completed MAA Nixie Raleigh/Durham, NC 406 $ 142,841 352 3rd Quarter 2025 Dispositions We sell apartment communities and other assets that no longer meet our long-term strategy or when market conditions are favorable, and we redeploy the proceeds from those sales to acquire, develop and redevelop additional apartment communities and rebalance our portfolio across or within geographic regions.
The program includes targeted plans to move all apartment units at such apartment communities to higher rents. For the year ended December 31, 2024, we spent $4.8 million on this program. Portfolio Strategy Our goal is to maintain a diversified, balanced portfolio that we believe provides the optimal path to maximizing operating performance over the full economic cycle.
We spent $7.8 million on the WiFi retrofit program and $12.1 million on the property repositioning program during the year ended December 31, 2025. Portfolio Strategy Our goal is to maintain a diversified, balanced portfolio that we believe provides the optimal path to maximizing operating performance over the full economic cycle.
Human Capital As of December 31, 2024, we employed 2,532 associates. Our associates’ time, energy, creativity and passion are essential to our continued success as a company.
We believe a diverse portfolio performs well during economic up cycles and weathers economic down cycles better than a more homogenous portfolio. Human Capital As of December 31, 2025, we employed 2,507 associates. Our associates’ time, energy, creativity and passion are essential to our continued success as a company.
We utilize a variety of communication channels to provide associates with timely information that is relevant to their role in the company, to company-wide initiatives and their professional interests. We also believe the best way to gain in-depth insight into how associates feel about working at MAA is to provide regular, frequent, and trusted opportunities to safely share feedback.
We utilize a variety of communication channels to provide associates with timely information that is relevant to their role in the company, to company-wide initiatives and to their professional interests.
We believe this plan of operation, coupled with the portfolio’s strengths in targeting residents across a geographically diverse platform, should position us for continued operational growth.
We believe this plan of operation, coupled with the portfolio’s strengths in targeting residents across a geographically diverse platform, should position us for continued operational growth. For information regarding trends in market demand, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Trends” in this Annual Report on Form 10-K.
Typically, fixed price construction contracts are signed with unrelated parties to minimize the risk of increases in construction costs. We may also engage in limited expansion development opportunities on existing communities in which we typically serve as the developer. During the year ended December 31, 2024, we incurred $313.9 million in development costs and completed three development projects.
We may also engage in limited expansion development opportunities on existing communities in which we typically serve as the developer. During the year ended December 31, 2025, we incurred $272.0 million in development costs and completed one development project.
We will continue to evaluate opportunities that arise, and we will utilize this strategy to increase our number of apartment communities in strong and growing markets. 4 We acquired the following properties during the year ended December 31, 2024: Multifamily Acquisitions Market Units Date Acquired MAA Vale Raleigh, NC 306 May 2024 MAA Boggy Creek Orlando, FL 310 September 2024 MAA Cathedral Arts Dallas, TX 386 October 2024 Modera Chandler (1) Phoenix, AZ 345 April 2024 (1) Represents a pre-purchase multifamily development.
We will continue to evaluate opportunities that arise, and we will utilize this strategy to increase our number of apartment communities in strong and growing markets. 4 We acquired the following properties during the year ended December 31, 2025: Multifamily Acquisition Market Units Date Acquired MAA ONE28 Kansas City, MO-KS 318 August 2025 Land Acquisitions Market Acres Date Acquired MAA Point Hope (1) Charleston, SC 18.7 June 2025 MAA ONE28 II Kansas City, MO-KS 0.9 October 2025 MAA One Scottsdale Phoenix, AZ 3.2 October 2025 (1) Represents a pre-purchase multifamily development.
We own 95% of the joint venture that owns this property. Construction of this development commenced in the second quarter of 2024. Land Acquisitions Market Acres Date Acquired MAA Porter Richmond, VA 3.3 August 2024 MAA Nixie II Raleigh/Durham, NC 3.3 December 2024 Development activities may be conducted through wholly-owned entities or through joint ventures with our pre-purchase transaction partners.
We own 95% of the joint venture that owns this property. Construction of this development commenced in the second quarter of 2025. Development activities may be conducted through wholly-owned entities or through joint ventures with our pre-purchase transaction partners. Typically, fixed price construction contracts are signed with unrelated parties to minimize the risk of increases in construction costs.
The purpose of these studies is to identify potential sources of contamination at the site and to assess the status of environmental regulatory compliance.
Environmental Matters As a part of our standard apartment community acquisition and development processes, we generally obtain environmental studies of the sites from outside environmental engineering firms. The purpose of these studies is to identify potential sources of contamination at the site and to assess the status of environmental regulatory compliance.
As of December 31, 2024, our total debt was 29.0% of our adjusted total assets. 7 We intend to target the ratio of our net debt to Adjusted EBITDA re to a range of 4.5x to 5.5x.
We intend to target the ratio of our net debt to Adjusted EBITDA re to a range of 4.5x to 5.5x. We monitor our debt levels to a ratio of net debt to Adjusted EBITDA re in order to maintain our investment grade credit ratings.
This group works collaboratively with our Chief Executive Officer and other members of our executive team to ensure our policies and actions are guided by our culture of inclusivity and are free from discriminatory practices and bias. We recruit from a diverse range of sources including historically Black colleges and universities as well as technical/trade schools.
The committee works collaboratively with our Chief Executive Officer and other members of our executive team to help ensure employment related policies, practices, and educational efforts are consistently applied and in a manner intended to be free from discrimination and bias. 6 We recruit from a diverse range of sources and talent pools including advertising open positions on job boards that target a broad range of candidate populations.
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We are committed to an inclusive working environment that not only values diversity in ideas and opinions, but also fosters a sense of belonging and connection where associates feel recognized and appreciated regardless of individual differences.
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Separately, we continued our WiFi retrofit program at select apartment communities, as well as our 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.
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Our goal through these efforts is to support and promote inclusive diversity, equal opportunity and fair treatment for all those working at the company and as a result create more value for all the constituents we serve.
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These values inform our human capital management approach, including how we recruit, develop and retain our workforce and support an environment where associates feel included and respected. We maintain policies and practices intended to support a respectful and inclusive workplace and to promote equal employment opportunity and fair treatment. These practices are integrated into and support ongoing operations.
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Our Inclusive Diversity Council is comprised of individuals across all areas of our company whose aim is to cultivate conversations, expand education and examine our practices surrounding diversity and inclusion.
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Our Inclusion & Belonging Committee is comprised of associates from across the organization and is intended to support ongoing review of policies, practices, and educational efforts related to inclusion.
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Adjusted EBITDA re is measured on a trailing twelve-month basis. As of December 31, 2024, our net debt to Adjusted EBITDA re ratio was 4.0x.
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We also believe the best way to gain in-depth insight into our associates’ outlook on their experience at MAA is to provide regular, frequent, and trusted opportunities to safely share feedback. From there, we are able to develop and continuously improve our work environment to enhance job satisfaction.
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For information regarding trends in market demand, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Trends” in this Annual Report on Form 10-K. 8 Environmental Matters As a part of our standard apartment community acquisition and development processes, we generally obtain environmental studies of the sites from outside environmental engineering firms.
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The environmental studies we received on properties that we have acquired have not revealed any material environmental liabilities.
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Should any potential environmental risks or conditions be discovered during our due diligence process, the potential costs of remediation will be assessed carefully and factored into the cost of acquisition, assuming the identified risks and factors are deemed to be manageable and within reason.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe impact of a disease outbreak or other public health event on our business, financial condition, results of operations and cash flows is difficult to predict and, as was demonstrated by the COVID-19 pandemic, will depend on a number of factors, including: • the duration and scope of the event in the U.S.; • our residents’ and commercial tenants’ ability or willingness to pay rent in full on a timely basis; • federal, state, local and industry-initiated efforts that may adversely affect the ability of landlords, including us, to collect rent and customary fees, adjust rental rates and enforce remedies for the failure to pay rent, such as the various orders that were issued by governmental authorities and public officials during the COVID-19 pandemic to temporarily halt residential evictions; • the regulatory focus on landlords as distinguished from other providers of essential services; 16 • our ability to renew leases or relet units on favorable terms, or at all, including as a result of unfavorable economic and market conditions in those markets where our properties are located; • our ability to lease or relet units due to social distancing or other restrictions that may frustrate our leasing activities; • our ability to successfully complete the lease-up of properties in our lease-up portfolio and attain expected rental and occupancy rates due to social distancing or other restrictions that may frustrate our leasing activities, which, for example, led us to temporarily close property amenities and temporarily prohibit public access in our property leasing offices during the COVID-19 pandemic; • our ability to continue our apartment unit redevelopment programs and attain increased rental rates for renovated or upgraded units due to social distancing or other restrictions, which, for example, caused us to temporarily suspend our apartment unit redevelopment activities during the COVID-19 pandemic; • our ability to complete the construction of properties in our development portfolio on schedule and on budget due to social distancing or other restrictions, labor shortages, supply chain disruptions and escalating labor and material costs; • the impact of supply chain disruptions and inflationary pressures on our normal business operations, including repair and maintenance work and unit renovations and upgrades; • disruption and instability in the financial markets, which experienced significant volatility during the COVID-19 pandemic, or deteriorations in credit and financing conditions (or a refusal or failure of one or more lenders under our unsecured revolving credit facility to fund their respective financing commitment to us), which could affect our ability to access capital necessary to fund our business operations or refinance maturing debt on a timely basis, on attractive terms, or at all, which would adversely affect our ability to meet liquidity and capital expenditure requirements; • stock market volatility that negatively affects the market price of our securities, including market conditions unrelated to our operating performance or prospects; • the impact on our workforce of any vaccine mandate implemented by governmental authorities, which could result in employee attrition; and • our ability to manage our business to the extent our management or other personnel are impacted in significant numbers and are not willing, available or allowed to conduct work.
Biggest changeThe impact of a disease outbreak or other public health event on our business, financial condition, results of operations and cash flows is difficult to predict and, as was demonstrated by the COVID-19 pandemic, will depend on a number of factors, including the duration and scope of the event in the U.S. and any associated governmental directives; our residents’ and commercial tenants’ ability or willingness to pay rent in full on a timely basis; federal, state, local and industry-initiated efforts that may adversely affect the ability of landlords, including us, to collect rent and customary fees, adjust rental rates and enforce remedies for the failure to pay rent; the regulatory focus on landlords as distinguished from other providers of essential services; and the extent of the impact on our development and redevelopment programs and activities due to governmental directives or other restrictions, labor shortages, supply chain disruptions and escalating labor and material costs.
Our development and construction activities are subject to the following risks: • we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations; • we may be unable to obtain financing for development activities under favorable terms, which could cause a delay in construction resulting in increased costs, decreases in revenue and potentially cause us to abandon the opportunity; • yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget, higher than expected concessions for lease-up and lower rents than initially estimated; • bankruptcy of developers in our development projects could impose delays and costs on us with respect to the development of our communities and may adversely affect our financial condition and results of operations; • we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities; • we may be unable to complete construction and lease-up of an apartment community on schedule, including by reason of work stoppages, labor disputes, shortages of skilled tradespeople and shortages of building components and materials; • we may incur development or construction costs, including labor and building components and materials, that exceed our original estimates and we may be unable to charge rents that would compensate for any increase in such costs; 13 • occupancy rates and rents at a newly developed apartment community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community; • when we sell apartment communities that we developed or renovated, we may be subject to warranty or construction defects that are uninsured or exceed the limit of our insurance; • our failure to successfully enter into a joint venture agreement may prohibit an otherwise advantageous investment; • changes in laws and regulations, or enforcement priorities, such as the imposition of tariffs or changes in immigration laws or their enforcement, could result in higher building component costs, tighter overall labor conditions and a shortage of skilled tradespeople, which could increase our costs of development and cause delays in the construction of our development communities; and • adoption of laws and regulations designed to address climate change and its effects, including “green” building codes, could increase our costs of development and cause delays in the construction of our development communities.
Our development and construction activities are subject to the following risks: • we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations; • we may be unable to obtain financing for development activities under favorable terms, which could cause a delay in construction resulting in increased costs, decreases in revenue and potentially cause us to abandon the opportunity; • yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget, higher than expected concessions for lease-up and lower rents than initially estimated; • bankruptcy of developers in our development projects could impose delays and costs on us with respect to the development of our communities and may adversely affect our financial condition and results of operations; • we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities; • we may be unable to complete construction and lease-up of an apartment community on schedule, including by reason of work stoppages, labor disputes, shortages of skilled tradespeople and shortages of building components and materials; 13 • we may incur development or construction costs, including labor and building components and materials, that exceed our original estimates and we may be unable to charge rents that would compensate for any increase in such costs; • occupancy rates and rents at a newly developed apartment community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community; • when we sell apartment communities that we developed or renovated, we may be subject to warranty or construction defects that are uninsured or exceed the limit of our insurance; • our failure to successfully enter into a joint venture agreement may prohibit an otherwise advantageous investment; • changes in laws and regulations, or enforcement priorities, such as the imposition of tariffs or changes in immigration laws or their enforcement, could result in higher building component costs, tighter overall labor conditions and a shortage of skilled tradespeople, which could increase our costs of development and cause delays in the construction of our development communities; and • adoption of laws and regulations designed to address climate change and its effects, including “green” building codes, could increase our costs of development and cause delays in the construction of our development communities.
The form, timing and amount of dividend distributions will depend on actual cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as MAA’s Board of Directors may consider relevant. MAA’s Board of Directors may modify our dividend policy from time to time.
The form, timing and amount of dividend distributions will depend on actual cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as MAA’s Board of Directors may consider relevant. MAA’s Board of Directors may modify MAA’s dividend policy from time to time.
We exercise our discretion in determining amounts, coverage limits, deductibles and self-insured retention provisions of our insurance, with a view to maintaining what we believe is appropriate insurance at a reasonable cost and on suitable terms. Despite our insurance coverage, we may incur material losses due to uninsured risks, deductibles, self-insured retentions and/or losses in excess of coverage limits.
We exercise our discretion in determining amounts, coverage limits, deductibles and self-insured retention provisions of our insurance, with a view to maintaining what we believe is appropriate insurance at a reasonable cost and on suitable terms. 16 Despite our insurance coverage, we may incur material losses due to uninsured risks, deductibles, self-insured retentions and/or losses in excess of coverage limits.
As of December 31, 2024, 867,846 shares of preferred stock were issued and outstanding, all of which shares were MAA Series I preferred stock. 20 Tennessee Anti-Takeover Statutes As a Tennessee corporation, MAA is subject to various legislative acts, which impose restrictions on and require compliance with procedures designed to protect shareholders against unfair or coercive mergers and acquisitions.
As of December 31, 2025, 867,846 shares of preferred stock were issued and outstanding, all of which shares were MAA Series I preferred stock. 20 Tennessee Anti-Takeover Statutes As a Tennessee corporation, MAA is subject to various legislative acts, which impose restrictions on and require compliance with procedures designed to protect shareholders against unfair or coercive mergers and acquisitions.
As of December 31, 2024, approximately 41.2% of our portfolio (based on the number of completed apartment units) was located in our top five markets: Atlanta, Georgia; Dallas, Texas; Austin, Texas; Charlotte, North Carolina; and Orlando, Florida. In addition, our overall operations are concentrated in the Southeast, Southwest and Mid-Atlantic regions of the U.S.
As of December 31, 2025, approximately 41.2% of our portfolio (based on the number of completed apartment units) was located in our top five markets: Atlanta, Georgia; Dallas, Texas; Austin, Texas; Charlotte, North Carolina; and Orlando, Florida. In addition, our overall operations are concentrated in the Southeast, Southwest and Mid-Atlantic regions of the U.S.
Risks Related to Our Real Estate Investments and Our Operations Unfavorable market and economic conditions could adversely affect occupancy levels, rental revenues and the value of our properties. General economic conditions in the U.S. have fluctuated in recent quarters, and concerns persist regarding negative macroeconomic conditions, such as inflation and the labor market.
Risks Related to Our Real Estate Investments and Our Operations Unfavorable market and economic conditions could adversely affect occupancy levels, rental revenues and the value of our properties. General economic conditions in the U.S. have fluctuated in recent years, and concerns persist regarding negative macroeconomic conditions, such as inflation and the labor market.
To the extent a disease outbreak or other public health event adversely affects our business, financial condition, results of operations and cash flows, it may also have the effect of heightening many of the other risk described in this Annual Report on Form 10-K.
To the extent a disease outbreak or other public health event adversely affects our business, financial condition, results of operations and cash flows, it may also have the effect of heightening many of the other risks described in this Annual Report on Form 10-K.
We are dependent on a concentration of our investments in a single asset class, making our results of operations more vulnerable to a downturn or slowdown in the multifamily sector or other economic factors. As of December 31, 2024, substantially all of our investments are concentrated in the multifamily sector.
We are dependent on a concentration of our investments in a single asset class, making our results of operations more vulnerable to a downturn or slowdown in the multifamily sector or other economic factors. As of December 31, 2025, substantially all of our investments are concentrated in the multifamily sector.
As of December 31, 2024, we had outstanding borrowings of $5.0 billion. Our indebtedness contains financial covenants as to interest coverage ratios, maximum secured debt, maintenance of unencumbered asset value, and total debt to gross assets, among others, and cross default provisions with other material debt.
As of December 31, 2025, we had outstanding borrowings of $5.4 billion. Our indebtedness contains financial covenants as to interest coverage ratios, maximum secured debt, maintenance of unencumbered asset value, and total debt to gross assets, among others, and cross default provisions with other material debt.
As of December 31, 2024, the amount of our total debt was $5.0 billion. We may incur additional indebtedness in the future in connection with, among other things, our acquisition, development and operating activities.
As of December 31, 2025, the amount of our total debt was $5.4 billion. We may incur additional indebtedness in the future in connection with, among other things, our acquisition, development and operating activities.
Also, as of December 31, 2024, MAA owned approximately 97.4% of the OP Units. As such, MAA has substantial influence on the outcome of substantially all matters submitted to the Operating Partnership’s unitholders for approval.
Also, as of December 31, 2025, MAA owned approximately 97.5% of the OP Units. As such, MAA has substantial influence on the outcome of substantially all matters submitted to the Operating Partnership’s unitholders for approval.
As of December 31, 2024, we had seven development communities under construction representing 2,312 units once complete. We may make further investments in these and other development communities as opportunities arise and may do so through joint ventures with unaffiliated parties.
As of December 31, 2025, we had eight development communities under construction representing 2,522 units once complete. We may make further investments in these and other development communities as opportunities arise and may do so through joint ventures with unaffiliated parties.
In each case, our acquisition may be without any, or with only limited, recourse with respect to unknown liabilities or conditions, and we may be obligated to pay substantial sums to settle or cure it, which could adversely affect our cash flow and operating results. Our implementation of long-standing succession planning could have adverse effects.
In each case, our acquisition may be without any, or with only limited, recourse with respect to unknown liabilities or conditions, and we may be obligated to pay substantial sums to settle or cure it, which could adversely affect our cash flow and operating results.
Additionally, if non-compliant with building efficiency standards, our existing communities may decrease in value. 12 Operations from new acquisitions, development projects and redevelopment activities may fail to perform as expected. We intend to acquire, develop and redevelop apartment communities as part of our business strategy. Newly acquired, developed or renovated properties may not perform as we expect.
Additionally, if non-compliant with building efficiency standards, our existing communities may decrease in value. 12 Operations from new acquisitions, development projects, redevelopment activities, and platform initiatives may fail to perform as expected. We intend to continue to acquire, develop and redevelop apartment communities as part of our business strategy.
We may also overestimate the revenue (or underestimate the expenses) that a new or repositioned property may generate. The occupancy rates and rents at these properties may fail to meet our expectations underlying our investment.
Newly acquired, developed or renovated properties may not perform as we expect. We may also overestimate the revenue (or underestimate the expenses) that a new or repositioned property may generate. The occupancy rates and rents at these properties may fail to meet our expectations underlying our investment.
For example, we are currently a defendant, among other companies, in lawsuits filed by plaintiffs individually and on behalf of a purported class of plaintiffs alleging that RealPage, Inc. and many of the largest owners and operators of apartment communities in the country, including us, conspired to artificially inflate the prices of multifamily rents above competitive levels using RealPage’s revenue management software in violation of state and federal antitrust laws.
For example, we recently entered into a settlement agreement to settle lawsuits filed by plaintiffs individually and on behalf of a purported class of plaintiffs alleging that RealPage, Inc. and many of the largest owners and operators of apartment communities in the country, including us, conspired to artificially inflate multifamily residential rental prices above competitive levels using RealPage’s revenue management software in violation of state and federal antitrust laws.
We plan to sell apartment communities that no longer meet our long-term strategy. However, adverse market conditions could limit our ability to sell properties when we want and to change our portfolio promptly to meet our strategic objectives.
We are subject to certain risks associated with selling apartment communities, which could limit our operational and financial flexibility. We plan to sell apartment communities that no longer meet our long-term strategy. However, adverse market conditions could limit our ability to sell properties when we want and to change our portfolio promptly to meet our strategic objectives.
If we are unable to promptly renew the leases or relet the units, or if the rental rates upon renewal or reletting are significantly lower than expected rates, then our financial condition and results of operations may be adversely affected.
If we are unable to promptly renew the leases or relet the units, or if the rental rates upon renewal or reletting are significantly lower than expected rates, then our financial condition and results of operations may be adversely affected. 14 We rely on information technology systems in our operations, and any breach or security failure of those systems could materially adversely affect our business, financial condition, results of operations and reputation.
Similarly, if our service providers fail to use adequate security or data protection processes, or use personal data in an unpermitted or improper manner, we may be liable for certain losses and it may damage our reputation. Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties.
Similarly, if our service providers fail to use adequate security or data protection processes, or use personal data in an unpermitted or improper manner, we may be liable for certain losses and it may damage our reputation. A failure to keep pace with developments in technology could impair our operations or competitive position.
We store and maintain confidential financial and business information regarding us and persons with whom we do business on our information technology systems.
We rely on proprietary and third-party information technology systems to process, transmit and store information and to manage or support our business processes. We store and maintain confidential financial and business information regarding us and persons with whom we do business on our information technology systems.
For more detail on these lawsuits, see Note 11 to the consolidated financial statements included in this Annual Report on Form 10-K. 15 Legal proceedings, if decided adversely to or settled by us, and not covered by insurance, could result in liability material to our financial condition, results of operations or cash flows.
Legal proceedings, if decided adversely to or settled by us, and not covered by insurance, could result in liability material to our financial condition, results of operations or cash flows.
This risk of a data breach or security failure, particularly through cyber-attacks or cyber-intrusion, has generally increased due to the rise in new technologies, such as ransomware and generative artificial intelligence, and the increased sophistication and activities of the perpetrators of attempted attacks and intrusions, including as a result of the intensification of state-sponsored cybersecurity attacks during periods of geopolitical conflict, such as the ongoing conflicts involving Ukraine and in the Middle East. 14 The security measures put in place by us and our service providers cannot provide absolute security and there can be no assurance that we or our service providers will not suffer a data security incident in the future, that unauthorized parties will not gain access to sensitive information stored on our or our service providers’ systems, that such access will not, whether temporarily or permanently, impact, interfere with or interrupt our operations, or that any such incident will be discovered in a timely manner.
The security measures put in place by us and our service providers cannot provide absolute security and there can be no assurance that we or our service providers will not suffer a data security incident in the future, that unauthorized parties will not gain access to sensitive information stored on our or our service providers’ systems, that such access will not, whether temporarily or permanently, impact, interfere with or interrupt our operations, or that any such incident will be discovered in a timely manner.
Such significant changes over a relatively short period of time could result in unintended negative effects, such as creating employee dissatisfaction that could affect retention of key employees or impacting short-term strategic initiatives, which could adversely affect our business. We are subject to certain risks associated with selling apartment communities, which could limit our operational and financial flexibility.
In the last few years, we have transformed our executive team by elevating several internal candidates to key leadership positions. Such significant change over a relatively short period of time could result in unintended negative effects, such as creating employee dissatisfaction that could affect retention of other key employees or impacting short-term strategic initiatives, which could adversely affect our business.
Similarly, another lawsuit alleging violations of the District of Columbia’s antitrust laws has been filed by the District of Columbia against RealPage and a number of large apartment community owners and operators, including us.
Similarly, other lawsuits alleging violations of antitrust and other laws have been filed by the District of Columbia and the Commonwealth of Kentucky against RealPage and a number of large apartment community owners and operators, including us. For more detail on these legal proceedings, see Note 11 to the consolidated financial statements included in this Annual Report on Form 10-K.
Removed
In the last three years, we have transformed our executive team by elevating internal candidates to the offices of Chief Executive Officer (effective April 1, 2025), President, Chief Financial Officer, Chief Administrative Officer, Chief Strategy and Analysis Officer and Chief Technology and Innovation Officer.
Added
Further, we intend to continue to implement platform initiatives across our apartment communities as part of our business strategy. Once implemented, platform initiatives may not perform as we expect. We may also overestimate the revenue (or expense savings) that such platform initiatives may generate. Our implementation of long-standing succession planning could have adverse effects.
Removed
We rely on information technology systems in our operations, and any breach or security failure of those systems could materially adversely affect our business, financial condition, results of operations and reputation. We rely on proprietary and third-party information technology systems to process, transmit and store information and to manage or support our business processes.
Added
This risk of a data breach or security failure, particularly through cyber-attacks or cyber-intrusion, has generally increased due to the rise in new technologies, such as ransomware and generative artificial intelligence, and the increased sophistication and activities of the perpetrators of attempted attacks and intrusions, including as a result of the intensification of state-sponsored cybersecurity attacks during periods of geopolitical conflict, such as the ongoing conflicts involving Ukraine and in the Middle East.
Added
Our business continues and will continue to demand the use of sophisticated systems, software and technology, including artificial intelligence. These systems, software and technologies must be refined, updated and replaced on a regular basis in order for us to meet our business requirements, our residents’ demands and expectations, and regulatory requirements.
Added
If we are unable to do so on a timely basis or at a reasonable cost, or fail to do so, our business could suffer.
Added
Also, we may not achieve the benefits that we anticipate from any new system, software or technology, and a failure to do so could result in higher than anticipated costs or could adversely affect our results of operations. 15 Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changePartnering with our Chief Technology and Innovation Officer is our Vice President Cyber Security, who has over 30 years of IT technical and IT business process experience and has been an IT and cyber security leader for multiple financial services companies.
Biggest changePartnering with our Chief Technology and Innovation Officer is our Senior Vice President Information Security and Privacy, who has over 30 years of IT technical and IT business process experience and has been an IT and cyber security leader for multiple financial services companies.
Our Vice President Cyber Security has a dotted line reporting relationship to our Chief Administrative Officer and General Counsel to help ensure that risks from cybersecurity threats are considered as part of the broader ERM process.
Our Senior Vice President Information Security and Privacy has a dotted line reporting relationship to our Chief Administrative Officer and General Counsel to help ensure that risks from cybersecurity threats are considered as part of the broader ERM process.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following schedule summarizes our apartment community portfolio by location as of December 31, 2024, as well as occupancy levels and average effective rent per unit by location for the year ended December 31, 2024: Number of Communities (1) Number of Units (2) Average Physical Occupancy (3) Average Effective Rent per Unit (4) Atlanta, GA 29 11,434 94.6 % $ 1,819 Dallas, TX 27 10,117 95.3 % 1,662 Austin, TX 20 6,829 95.0 % 1,585 Charlotte, NC 19 5,651 95.6 % 1,638 Orlando, FL 13 5,643 95.9 % 1,979 Tampa, FL 14 5,416 96.0 % 2,093 Raleigh/Durham, NC 15 5,350 95.8 % 1,540 Houston, TX 16 5,175 95.4 % 1,432 Nashville, TN 12 4,375 95.9 % 1,691 Fort Worth, TX 9 3,687 95.3 % 1,579 Jacksonville, FL 10 3,496 95.7 % 1,514 Charleston, SC 11 3,168 96.1 % 1,801 Phoenix, AZ 9 2,968 95.3 % 1,734 Greenville, SC 10 2,354 95.8 % 1,331 Northern Virginia 4 1,888 96.6 % 2,445 Savannah, GA 6 1,837 95.8 % 1,706 Memphis, TN 4 1,811 95.2 % 1,371 Richmond, VA 6 1,732 96.4 % 1,659 San Antonio, TX 4 1,504 95.6 % 1,373 Birmingham, AL 5 1,462 95.6 % 1,403 Fredericksburg, VA 4 1,435 96.6 % 1,850 Huntsville, AL 3 1,228 95.2 % 1,307 Denver, CO 3 1,118 95.3 % 1,974 Kansas City, MO-KS 3 1,110 95.8 % 1,614 Chattanooga, TN 4 943 95.4 % 1,291 Lexington, KY 4 924 96.4 % 1,273 Norfolk / Hampton / Virginia Beach, VA 3 788 94.8 % 1,671 Las Vegas, NV 2 721 96.5 % 1,582 Tallahassee, FL 2 604 95.6 % 1,538 South Florida, FL 1 480 95.5 % 2,421 Gainesville, FL 2 468 95.8 % 1,692 Louisville, KY 1 384 95.7 % 1,201 Maryland, MD 1 361 96.4 % 2,265 Gulf Shores, AL 1 324 95.3 % 1,429 Panama City, FL 1 254 95.2 % 1,687 Charlottesville, VA 1 251 96.3 % 2,081 Same Store 279 97,290 95.5 % $ 1,688 Charlotte, NC 4 (5) 696 89.5 % 1,908 Phoenix, AZ 3 (5) 640 88.3 % 1,887 Columbia, SC 2 576 92.9 % 1,247 Orlando, FL 2 574 87.9 % 2,098 Salt Lake City, UT 1 400 69.5 % 1,766 Raleigh/Durham, NC 2 379 70.8 % 1,876 Denver, CO 1 352 66.9 % 2,268 Austin, TX 1 350 95.5 % 1,626 Atlanta, GA 1 340 82.1 % 2,115 Dallas, TX 1 386 44.0 % 1,978 Richmond, VA 1 (5) — — — Tampa, FL 1 (5) — — — Gulf Shores, AL 1 96 95.7 % 2,325 Total (6) 300 102,079 94.8 % $ 1,697 (1) Number of communities includes seven communities under development as of December 31, 2024.
Biggest changeThe following schedule summarizes our apartment community portfolio by location as of December 31, 2025, as well as occupancy levels and average effective rent per unit by location for the year ended December 31, 2025: Number of Communities (1) Number of Units (2) Average Physical Occupancy (3) Average Effective Rent per Unit (4) Atlanta, GA 29 11,434 95.3 % $ 1,791 Dallas, TX 26 9,755 95.3 % 1,662 Austin, TX 20 6,795 95.1 % 1,532 Charlotte, NC 20 5,995 95.8 % 1,645 Orlando, FL 14 5,907 95.8 % 1,983 Tampa, FL 14 5,416 96.0 % 2,093 Raleigh/Durham, NC 15 5,350 95.6 % 1,524 Houston, TX 15 4,859 95.8 % 1,450 Nashville, TN 12 4,375 95.6 % 1,669 Fort Worth, TX 9 3,687 95.5 % 1,579 Jacksonville, FL 10 3,496 95.6 % 1,478 Charleston, SC 11 3,168 96.0 % 1,831 Phoenix, AZ 9 2,968 95.8 % 1,702 Greenville, SC 10 2,354 95.9 % 1,356 Northern Virginia 4 1,888 96.2 % 2,550 Savannah, GA 6 1,837 95.2 % 1,707 Memphis, TN 3 1,193 94.9 % 1,426 Richmond, VA 6 1,732 96.3 % 1,698 San Antonio, TX 4 1,504 95.2 % 1,340 Birmingham, AL 5 1,462 95.8 % 1,426 Fredericksburg, VA 4 1,435 96.5 % 1,944 Huntsville, AL 3 1,228 93.4 % 1,276 Denver, CO 3 1,118 95.4 % 1,939 Kansas City, MO-KS 3 1,110 95.6 % 1,670 Chattanooga, TN 4 943 95.6 % 1,262 Lexington, KY 4 924 96.2 % 1,329 Norfolk / Hampton / Virginia Beach, VA 3 788 95.9 % 1,734 Las Vegas, NV 2 721 95.6 % 1,598 Tallahassee, FL 2 604 96.1 % 1,558 South Florida, FL 1 480 95.4 % 2,452 Gainesville, FL 2 468 95.6 % 1,710 Louisville, KY 1 384 95.7 % 1,235 Rockville, MD 1 361 96.4 % 2,353 Gulf Shores, AL 1 324 95.2 % 1,406 Panama City, FL 1 254 95.2 % 1,623 Charlottesville, VA 1 251 96.1 % 2,126 Same Store 278 96,568 95.6 % $ 1,690 Phoenix, AZ 4 (5) 640 84.1 % 1,799 Charlotte, NC 3 668 43.9 % 2,058 Dallas, TX 2 748 77.1 % 1,642 Raleigh/Durham, NC 2 712 50.2 % 1,693 Memphis, TN 1 618 93.2 % 1,236 Salt Lake City, UT 1 400 86.4 % 1,707 Austin, TX 1 384 94.6 % 1,235 Denver, CO 1 352 85.0 % 2,139 Tampa, FL 1 344 27.5 % 3,058 Atlanta, GA 1 340 82.1 % 2,009 Kansas City, MO-KS 1 318 74.6 % 1,494 Houston, TX 1 316 94.4 % 1,276 Orlando, FL 1 310 93.2 % 1,966 Gulf Shores, AL 1 96 95.8 % 2,299 Charleston, SC 1 (5) — — — Richmond, VA 1 (5) — — — Total (6) 301 102,814 94.3 % $ 1,695 (1) Number of communities includes eight communities under development as of December 31, 2025.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K for a discussion of our Same Store and Non-Same Store and Other segments. 26 Mortgage Financing As of December 31, 2024, we had $363.3 million of indebtedness collateralized, secured and outstanding as set forth in Schedule III – Real Estate and Accumulated Depreciation included in this Annual Report on Form 10-K.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K for a discussion of our Same Store and Non-Same Store and Other segments. 26 Mortgage Financing As of December 31, 2025, we had $363.3 million of indebtedness collateralized, secured and outstanding as set forth in Schedule III – Real Estate and Accumulated Depreciation included in this Annual Report on Form 10-K.
One of these development communities is a phase II expansion of an existing apartment community. (2) Number of units excludes development units not yet delivered. (3) Average physical occupancy is calculated by dividing the average daily number of units occupied in 2024 by the total number of units at each apartment community.
One of these development communities is a phase II expansion of an existing apartment community. (2) Number of units excludes development units not yet delivered. (3) Average physical occupancy is calculated by dividing the average daily number of units occupied in 2025 by the total number of units at each apartment community.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePurchases of Equity Securities The following table reflects repurchases of shares of MAA’s common stock during the three months ended December 31, 2024: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs (1) October 1, 2024 - October 31, 2024 — $ — — 4,000,000 November 1, 2024 - November 30, 2024 — $ — — 4,000,000 December 1, 2024 - December 31, 2024 — $ — — 4,000,000 Total — — 4,000,000 (1) This column reflects the number of shares of MAA’s common stock that are available for purchase under the 4.0 million share repurchase program authorized by MAA’s Board of Directors in December 2015. 28 Comparison of Five-year Cumulative Total Returns The following graph compares the cumulative total returns of the shareholders of MAA since December 31, 2019 with the S&P 500 Index and the Dow Jones (DJ) U.S.
Biggest changePurchases of Equity Securities The following table reflects repurchases of shares of MAA’s common stock during the three months ended December 31, 2025: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs (1) October 1, 2025 - October 31, 2025 — $ — — 4,000,000 November 1, 2025 - November 30, 2025 — $ — — 4,000,000 December 1, 2025 - December 31, 2025 206,916 $ 131.61 206,916 3,793,084 Total 206,916 206,916 3,793,084 (1) This column reflects the number of shares of MAA’s common stock that are available for purchase under the 4.0 million share repurchase program authorized by MAA’s Board of Directors in December 2015.
The timing and amount of future dividends will depend on actual cash flows from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify our dividend policy from time to time.
The timing and amount of future dividends will depend on actual cash flows from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify MAA’s dividend policy from time to time.
As of December 31, 2024, 4.0 million shares of MAA’s common stock remained issuable under the ATM program. 27 Stock Repurchase Plan In December 2015, MAA’s Board of Directors authorized the repurchase of up to 4.0 million shares of MAA common stock, which represented approximately 5.3% of MAA’s common stock outstanding at the time of such authorization.
As of December 31, 2025, 4.0 million shares of MAA’s common stock remained issuable under the ATM program. 27 Stock Repurchase Plan In December 2015, MAA’s Board of Directors authorized the repurchase of up to 4.0 million shares of MAA common stock, which represented approximately 5.3% of MAA’s common stock outstanding at the time of such authorization.
MAA has no obligation to issue shares through the ATM program. During the year ended December 31, 2024, MAA did not sell any shares of common stock under the ATM program.
MAA has no obligation to issue shares through the ATM program. During the year ended December 31, 2025, MAA did not sell any shares of common stock under the ATM program.
Real Estate Apartments Index. The graph assumes that the base share price for our common stock and each index is $100 and that all dividends are reinvested. The performance graph is not necessarily indicative of future investment performance.
The graph assumes that the base share price for our common stock and each index is $100 and that all dividends are reinvested. The performance graph is not necessarily indicative of future investment performance.
During the year ended December 31, 2024, MAA issued 10,610 shares through the DRSPP and no shares were issued at a discount. Mid-America Apartments, L.P. Operating Partnership Units There is no established public trading market for the Operating Partnership’s OP Units.
During the year ended December 31, 2025, MAA issued 10,006 shares through the DRSPP and no shares were issued at a discount. Mid-America Apartments, L.P. Operating Partnership Units There is no established public trading market for the Operating Partnership’s OP Units.
From time to time, we may repurchase shares under this authorization when we believe that shareholder value would be enhanced. Factors affecting this determination include, among others, the share price and expected rates of return. As of December 31, 2024, no shares have been repurchased under the authorization.
From time to time, we may repurchase shares under this authorization when we believe that shareholder value would be enhanced. Factors affecting this determination include, among others, the share price and expected rates of return. As of December 31, 2025, 206,916 shares have been repurchased under the authorization. See “Purchases of Equity Securities” below.
As of February 4, 2025, there were approximately 2,000 holders of record of the common stock. MAA believes it has a significantly larger number of beneficial owners of its common stock. MAA has a history of declaring dividends to holders of MAA common stock.
As of February 3, 2026, there were approximately 1,900 holders of record of the common stock. MAA believes it has a significantly larger number of beneficial owners of its common stock. MAA has a history of declaring dividends to holders of MAA common stock.
During the year ended December 31, 2024, MAA issued a total of 68,419 shares of common stock upon redemption of OP Units.
During the year ended December 31, 2025, MAA issued a total of 133,714 shares of common stock upon redemption of OP Units.
As of December 31, 2024, there were 119,958,973 OP Units outstanding in the Operating Partnership, of which 116,883,421 OP Units, or 97.4%, were owned by MAA and 3,075,552 OP Units, or 2.6%, were owned by limited partners.
As of December 31, 2025, there were 119,819,916 OP Units outstanding in the Operating Partnership, of which 116,878,077 OP Units, or 97.5%, were owned by MAA and 2,941,839 OP Units, or 2.5%, were owned by limited partners.
Year Ended December 31, 2019 2020 2021 2022 2023 2024 Mid-America Apartment Communities, Inc. $ 100.00 $ 99.36 $ 184.68 $ 129.74 $ 115.38 $ 138.39 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 DJ U.S. Real Estate Apartments Index 100.00 88.07 142.47 96.76 103.64 124.86 Ite m 6. [Reserved]. 29
Year Ended December 31, 2020 2021 2022 2023 2024 2025 Mid-America Apartment Communities, Inc. $ 100.00 $ 185.87 $ 130.58 $ 116.13 $ 139.29 $ 130.43 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 DJ U.S. Real Estate Apartments Index 100.00 161.76 109.86 117.67 141.76 129.69 28 Ite m 6. [Reserved]. 29
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Comparison of Five-year Cumulative Total Returns The following graph compares the cumulative total returns of the shareholders of MAA since December 31, 2020 with the S&P 500 Index and the Dow Jones (DJ) U.S. Real Estate Apartments Index.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeDebt The following schedule reflects our outstanding debt as of December 31, 2024 (dollars in thousands): Principal Balance Average Years to Rate Maturity Weighted Average Effective Rate Unsecured debt Fixed rate senior notes $ 4,400,000 6.4 3.7 % Variable rate commercial paper 250,000 0.1 4.7 % Debt issuance costs, discounts and premiums (29,310 ) Total unsecured debt $ 4,620,690 6.0 3.8 % Secured debt Fixed rate property mortgages $ 363,293 24.1 4.4 % Debt issuance costs (3,026 ) Total secured debt $ 360,267 24.1 4.4 % Total debt $ 4,980,957 7.3 3.8 % 37 The following schedule presents the contractual maturity dates of our outstanding debt, net of debt issuance costs, discounts and premiums, as of December 31, 2024 (dollars in thousands): Commercial Paper (1) & Revolving Credit Facility (2) Senior Notes Property Mortgages Total 2025 $ 250,000 $ 399,340 $ — $ 649,340 2026 — 298,744 — 298,744 2027 — 598,121 — 598,121 2028 — 397,911 — 397,911 2029 — 556,359 — 556,359 2030 — 298,230 — 298,230 2031 — 446,302 — 446,302 2032 — 394,680 — 394,680 2033 — — — — 2034 — 343,795 — 343,795 Thereafter — 637,208 360,267 997,475 Total $ 250,000 $ 4,370,690 $ 360,267 $ 4,980,957 (1) There was $250.0 million outstanding under MAALP ’ s commercial paper program as of December 31, 2024.
Biggest changeThe increase in cash outflows from the acquisition of noncontrolling interests resulted from the acquisitions of the noncontrolling interests in two consolidated real estate entities during the year ended December 31, 2025 as compared to no acquisition of noncontrolling interests during the year ended December 31, 2024. 36 Debt The following schedule reflects our outstanding debt as of December 31, 2025 (dollars in thousands): Principal Balance Average Years to Rate Maturity Weighted Average Effective Rate Unsecured debt Fixed rate senior notes $ 4,400,000 6.0 3.8 % Variable rate commercial paper 676,000 0.1 3.9 % Debt issuance costs, discounts and premiums (31,021 ) Total unsecured debt $ 5,044,979 5.2 3.8 % Secured debt Fixed rate property mortgages $ 363,293 23.1 4.4 % Debt issuance costs (2,900 ) Total secured debt $ 360,393 23.1 4.4 % Total debt $ 5,405,372 6.4 3.8 % The following schedule presents the contractual maturity dates of our outstanding debt, net of debt issuance costs, discounts and premiums, as of December 31, 2025 (dollars in thousands): Commercial Paper (1) & Revolving Credit Facility (2) Senior Notes Property Mortgages Total 2026 $ 676,000 $ 299,516 $ — $ 975,516 2027 — 598,907 — 598,907 2028 — 398,519 — 398,519 2029 — 554,833 — 554,833 2030 — 298,573 — 298,573 2031 — 446,959 — 446,959 2032 — 395,428 — 395,428 2033 — 393,928 — 393,928 2034 — 344,477 — 344,477 2035 — 344,342 — 344,342 Thereafter — 293,497 360,393 653,890 Total $ 676,000 $ 4,368,979 $ 360,393 $ 5,405,372 (1) There was $676.0 million outstanding under MAALP ’ s commercial paper program as of December 31, 2025.
Core FFO represents FFO as adjusted for items that are not considered part of our 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.
Core FFO represents FFO as adjusted for items that are not considered part of our core business operations, such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges and (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net; and mark-to-market debt adjustments.
Adjusted EBITDA re is comprised of EBITDA re further adjusted for items that are not considered part of our 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.
Adjusted EBITDA re is comprised of EBITDA re further adjusted for items that are not considered part of our core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments; casualty related charges and (recoveries), net; gain or loss on debt extinguishment; and legal costs, settlements and (recoveries), net.
The timing and amount of future dividends will depend on actual cash flows from operations, our 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 our dividend policy from time to time.
The timing and amount of future dividends will depend on actual cash flows from operations, our 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 MAA’s dividend policy from time to time.
We believe demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to job growth, population growth, household formation and in-migration over the long term. We continue to monitor pressures surrounding housing supply, inflation trends and general economic conditions.
We believe demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to job growth, population growth, household formation, in-migration and housing affordability over the long term. We continue to monitor pressures surrounding housing supply, inflation trends and general economic conditions.
In December 2024, MAALP publicly issued $350.0 million in aggregate principal amount of unsecured senior 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.
In December 2024, MAALP publicly issued $350.0 million in aggregate principal amount of unsecured senior 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, and commenced on September 1, 2025.
The increase in property revenues from the Non-Same Store and Other segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily the result of increased revenues from completed development communities and recently acquired communities. 31 Property Operating Expenses Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes, insurance, utilities, landscaping and other operating expenses.
The increase in property revenues from the Non-Same Store and Other segment for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily the result of increased revenues from completed development communities and recently acquired communities. 31 Property Operating Expenses Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes, insurance, utilities, landscaping and other operating expenses.
(2) Primarily comprised of a ground lease underlying one apartment community we own and the lease of our corporate headquarters. As of December 31, 2024, we also had obligations, which are not reflected in the table above, to make additional capital contributions to six technology-focused limited partnerships in which we hold equity interests.
(2) Primarily comprised of a ground lease underlying one apartment community we own and the lease of our corporate headquarters. As of December 31, 2025, we also had obligations, which are not reflected in the table above, to make additional capital contributions to six technology-focused limited partnerships in which we hold equity interests.
We have multifamily assets in 39 defined markets, with a presence in approximately 150 submarkets and a mixture of garden-style, mid-rise and high-rise communities. This diversity helps to mitigate exposure to economic issues, including supply and demand factors, in any one geographic market or area.
We have multifamily assets in 38 defined markets, with a presence in approximately 150 submarkets and a mixture of garden-style, mid-rise and high-rise communities. This diversity helps to mitigate exposure to economic issues, including supply and demand factors, in any one geographic market or area.
No material impairment losses were recognized during the years ended December 31, 2024 and 2023. Our impairment assessments may contain uncertainties because they require management to make assumptions and to apply judgment to estimate future undiscounted cash flows and the fair value of the assets.
No material impairment losses were recognized during the years ended December 31, 2025 and 2024. Our impairment assessments may contain uncertainties because they require management to make assumptions and to apply judgment to estimate future undiscounted cash flows and the fair value of the assets.
As of December 31, 2024, we owned and operated 293 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries, and had an ownership interest in one apartment community through an unconsolidated real estate joint venture.
As of December 31, 2025, we owned and operated 293 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries, and had an ownership interest in one apartment community through an unconsolidated real estate joint venture.
For the year ending December 31, 2025, we expect that our total capital expenditures relating to our development activities, our property redevelopment and repositioning activities and recurring capital replacements will be in line with our total capital expenditures for the year ended December 31, 2024. We expect to have additional development projects in the future.
For the year ending December 31, 2026, we expect that our total capital expenditures relating to our development activities, our property redevelopment and repositioning activities and recurring capital replacements will be in line with our total capital expenditures for the year ended December 31, 2025. We expect to have additional development projects in the future.
MAA has no obligation to issue shares through the ATM program. During the years ended December 31, 2024 and 2023, MAA did not sell any shares of common stock under the ATM program. As of December 31, 2024, 4.0 million shares of MAA’s common stock remained issuable under the ATM program.
MAA has no obligation to issue shares through the ATM program. During the years ended December 31, 2025 and 2024, MAA did not sell any shares of common stock under the ATM program. As of December 31, 2025, 4.0 million shares of MAA’s common stock remained issuable under the ATM program.
The increase in property operating expenses from the Non-Same Store and Other segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily the result of increased expenses from completed development communities and recently acquired communities.
The increase in property operating expenses from the Non-Same Store and Other segment for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily the result of increased expenses from completed development communities and recently acquired communities.
The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The following discussion describes the primary drivers of the decrease in net income available for MAA common shareholders for the year ended December 31, 2025 as compared to the year ended December 31, 2024.
In addition, as of December 31, 2024, we had seven development communities under construction, and 35 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of December 31, 2024. We report in two segments, Same Store and Non-Same Store and Other.
In addition, as of December 31, 2025, we had eight development communities under construction, and 35 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of December 31, 2025. We report in two segments, Same Store and Non-Same Store and Other.
We typically declare cash dividends on MAA’s common stock on a quarterly basis, subject to approval by MAA’s Board of Directors. We expect to pay quarterly dividends at an annual rate of $6.06 per share of MAA common stock during the year ending December 31, 2025.
We typically declare cash dividends on MAA’s common stock on a quarterly basis, subject to approval by MAA’s Board of Directors. We expect to pay quarterly dividends at an annual rate of $6.12 per share of MAA common stock during the year ending December 31, 2026.
A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent pricing on new leases and renewals than what we achieved in the year ended December 31, 2024.
A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent growth on new leases and renewals than what we achieved in the year ended December 31, 2025.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a 97.4% interest as of December 31, 2024.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a 97.5% interest as of December 31, 2025.
As discussed below, we have other material cash requirements that do not represent contractual obligations, but that we expect to incur in the ordinary course of our business. As of December 31, 2024, we had seven development communities under construction totaling 2,312 apartment units once complete.
As discussed below, we have other material cash requirements that do not represent contractual obligations, but that we expect to incur in the ordinary course of our business. As of December 31, 2025, we had eight development communities under construction totaling 2,522 apartment units once complete.
The increase in cash inflows from proceeds from sale of marketable equity securities resulted from the sale of marketable equity securities during the year ended December 31, 2024 as compared to no marketable securities being sold during the year ended December 31, 2023.
The decrease in cash inflows from proceeds from sale of marketable equity securities resulted from no marketable securities being sold during the year ended December 31, 2025 as compared to the sale of marketable equity securities during the year ended December 31, 2024.
The capital contributions may be called by the general partners at any time after giving appropriate notice. As of December 31, 2024, we had committed to make additional capital contributions totaling up to $30.6 million if and when called by the general partners of the limited partnerships.
The capital contributions may be called by the general partners at any time after giving appropriate notice. As of December 31, 2025, we had committed to make additional capital contributions totaling up to $20.8 million if and when called by the general partners of the limited partnerships.
During the year ended December 31, 2024, we acquired three apartment communities and closed on the pre-purchase of a multifamily development community. During the year ended December 31, 2023, we acquired two apartment communities.
During the year ended December 31, 2025, we acquired one apartment community and closed on the pre-purchase of a multifamily development community. During the year ended December 31, 2024, we acquired three apartment communities and closed on the pre-purchase of a multifamily development community.
The decrease in cash outflows for capital improvements and other was primarily driven by decreased capital spend relating to our property redevelopment and repositioning activities during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The increase in cash outflows for capital improvements and other was primarily driven by increased capital spend relating to our property redevelopment and repositioning activities during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
As of December 31, 2024, we had $1.0 billion of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility. Cash Flows from Operating Activities Net cash provided by operating activities was $1.1 billion for the year ended December 31, 2024, a decrease of $38.9 million as compared to the year ended December 31, 2023.
As of December 31, 2025, we had $879.2 million of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility. Cash Flows from Operating Activities Net cash provided by operating activities was $1.1 billion for the year ended December 31, 2025, a decrease of $20.1 million as compared to the year ended December 31, 2024.
The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program. The notes have an effective interest rate of 5.053%. In October 2023, MAALP retired $350.0 million of publicly issued unsecured senior notes at maturity using available cash on hand and borrowings under the commercial paper program.
The notes have an effective interest rate of 5.382%. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program. In June 2024, MAALP retired $400.0 million of publicly issued unsecured senior notes at maturity using available cash on hand and borrowings under the commercial paper program.
The decrease in cash outflows for contributions to affiliates was driven by a lesser amount of investments made in the technology-focused limited partnerships during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The increase in cash outflows for contributions to affiliates was driven by a larger amount of investments made in the technology-focused limited partnerships during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
The increase was primarily driven by the recognition of depreciation expense associated with our completed development communities and capital spend activities made in the normal course of business during the year ended December 31, 2024, partially offset from decreased depreciation expense from disposed communities during the year ended December 31, 2023.
The increase in depreciation and amortization expense for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily driven by the recognition of depreciation expense associated with our completed development communities and capital spend activities made in the normal course of business during the year ended December 31, 2025, partially offset from decreased depreciation expense from communities disposed of during the years ended December 31, 2025 and 2024.
Property operating expenses, excluding depreciation and amortization, for the year ended December 31, 2024 increased by 6.8% as compared to the year ended December 31, 2023, driven by a 3.9% increase in our Same Store segment and 71.8% increase in our Non-Same Store and Other segment. The primary drivers of these changes are discussed in the “Results of Operations” section.
Property operating expenses, excluding depreciation and amortization, for the year ended December 31, 2025 increased by 2.2% as compared to the year ended December 31, 2024, driven by a 2.0% increase in our Same Store segment and 4.3% increase in our Non-Same Store and Other segment. The primary drivers of these changes are discussed in the “Results of Operations” section.
Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $625.0 million. For the year ended December 31, 2024, average daily borrowings outstanding under the commercial paper program were $336.3 million. (2) There were no borrowings outstanding under MAALP’s $1.25 billion unsecured revolving credit facility as of December 31, 2024.
Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $750.0 million. For the year ended December 31, 2025, average daily borrowings outstanding under the commercial paper program were $379.9 million. (2) There were no borrowings outstanding under MAALP’s $1.5 billion unsecured revolving credit facility as of December 31, 2025.
During the year ended December 31, 2024, we experienced inflationary pressures that drove higher operating expenses, primarily in personnel, real estate taxes, utilities, office operations, insurance and marketing expenses. Critical Accounting Estimates A critical accounting estimate is one that is both important to our financial condition and results of operations and that involves some degree of uncertainty.
During the year ended December 31, 2025, we experienced inflationary pressures that drove higher operating expenses, primarily in personnel, utilities, building repair and maintenance, marketing and office operations expenses. 39 Critical Accounting Estimates A critical accounting estimate is one that is both important to our financial condition and results of operations and that involves some degree of uncertainty.
The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to $5.880 per share during the year ended December 31, 2024 as compared to the dividend rate of $5.600 per share during the year ended December 31, 2023.
The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to $6.06 per share during the year ended December 31, 2025 as compared to the dividend rate of $5.88 per share during the year ended December 31, 2024.
The Same Store segment generated a 0.5% increase in revenues for the year ended December 31, 2024, primarily the result of average effective rent per unit growth of 0.3% as compared to the year ended December 31, 2023.
The Same Store segment generated a 0.1% decrease in revenues for the year ended December 31, 2025, primarily the result of a decrease in average effective rent per unit of 0.5% as compared to the year ended December 31, 2024.
During the year ended December 31, 2024, we acquired three multifamily apartment communities for approximately $271 million and acquired three land parcels for future development for approximately $30 million. These activities were funded from borrowings under the commercial paper program and available cash on hand.
During the year ended December 31, 2025, we acquired one multifamily apartment community for approximately $96 million and acquired three land parcels for future development for approximately $37 million. These activities were funded from borrowings under the commercial paper program and available cash on hand.
The decrease in operating cash flows was primarily driven by an increase in property operating expenses. 35 Cash Flows from Investing Activities Net cash used in investing activities was $825.5 million for the year ended December 31, 2024, an increase of $50.2 million as compared to the year ended December 31, 2023.
The decrease in operating cash flows was primarily driven by an increase in property operating expenses. 35 Cash Flows from Investing Activities Net cash used in investing activities was $690.2 million for the year ended December 31, 2025, a decrease of $135.3 million as compared to the year ended December 31, 2024.
Overview For the year ended December 31, 2024, net income available for MAA common shareholders was $523.9 million as compared to $549.1 million for the year ended December 31, 2023.
Overview For the year ended December 31, 2025, net income available for MAA common shareholders was $443.2 million as compared to $523.9 million for the year ended December 31, 2024.
The increase was due to an increase in our average outstanding debt balance and an increase of 25 basis points in our effective interest rate during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The increase was due to an increase in our average outstanding debt balance and an increase of nine basis points in our effective interest rate, partially offset by an increase in capitalized interest during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
The increase in unsecured notes payable was primarily driven by an increase in cash requirements to fund acquisition and development activities. Liquidity and Capital Resources Overview Our cash flows from operating, investing and financing activities, as well as general economic and market conditions, are the principal factors affecting our liquidity and capital resources.
The increase in borrowings under the commercial paper program was primarily driven by an increase in cash requirements to fund acquisition, development, redevelopment and property repositioning activities. Liquidity and Capital Resources Overview Our cash flows from operating, investing and financing activities, as well as general economic and market conditions, are the principal factors affecting our liquidity and capital resources.
For the year ended December 31, 2024, we disposed of two apartment communities, resulting in a gain on sale of depreciable real estate assets of $55.0 million. For the year ended December 31, 2023, we did not dispose of any apartment communities. During the year ended December 31, 2024, we did not dispose of any land parcels.
For the years ended December 31, 2025 and 2024, we disposed of two apartment communities each year, resulting in gains on sale of depreciable real estate assets of $72.0 million and $55.0 million, respectively. During the years ended December 31, 2025 and 2024, we did not dispose of any land parcels.
Results of Operations For the year ended December 31, 2024, we achieved net income available for MAA common shareholders of $523.9 million, a 4.6% decrease as compared to the year ended December 31, 2023, and total revenue growth of $42.5 million, representing a 2.0% increase in property revenues as compared to the year ended December 31, 2023.
Results of Operations For the year ended December 31, 2025, we achieved net income available for MAA common shareholders of $443.2 million, a 15.4% decrease as compared to the year ended December 31, 2024, and total revenue growth of $18.1 million, representing a 0.8% increase in property revenues as compared to the year ended December 31, 2024.
The increase in cash inflows from proceeds from notes payable resulted from the issuance of $1.1 billion of unsecured senior notes during the year ended December 31, 2024 as compared to no issuance of unsecured senior notes during the year ended December 31, 2023.
The decrease in cash inflows from proceeds from notes payable resulted from the issuance of $400.0 million of unsecured senior notes during the year ended December 31, 2025 as compared to the issuance of $1.1 billion of unsecured senior notes during the year ended December 31, 2024.
Average physical occupancy is a measurement of the total number of our apartment units that are occupied by residents, and it represents the average of the daily physical occupancy for the period. As of December 31, 2024, resident turnover for our Same Store segment was 42.0% as compared to 44.9% as of December 31, 2023.
For the year ended December 31, 2025, average physical occupancy for our Same Store segment was 95.6% as compared to 95.5% for the year ended December 31, 2024. Average physical occupancy is a measurement of the total number of our apartment units that are occupied by residents, and it represents the average of the daily physical occupancy for the period.
(2) For the years 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) For the year ended December 31, 2024, in accordance with our accounting policies, we recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
(2) For the years ended December 31, 2025 and 2024, gain on investments is presented net of tax expense of $1.4 million and $1.7 million, respectively. (3) For the years ended December 31, 2025 and 2024, in accordance with our accounting policies, we recognized $61.9 million and $8.0 million, respectively, of accrued legal settlements and legal defense costs.
Revenues for the year ended December 31, 2024 increased 2.0% as compared to the year ended December 31, 2023, driven by a 44.7% increase in our Non-Same Store and Other segment.
Revenues for the year ended December 31, 2025 increased 0.8% as compared to the year ended December 31, 2024, driven by an 18.9% increase in our Non-Same Store and Other segment.
The following table presents a reconciliation of net income available for MAA common shareholders to FFO and Core FFO for the years ended December 31, 2024 and 2023, as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands): Year ended December 31, 2024 2023 Net income available for MAA common shareholders $ 523,855 $ 549,118 Depreciation and amortization of real estate assets 579,927 558,969 (Gain) loss on sale of depreciable real estate assets (55,003 ) 62 MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 628 615 Gain on consolidation of third-party development (1) (11,239 ) — Net income attributable to noncontrolling interests 14,033 15,025 FFO attributable to common shareholders and unitholders 1,052,201 1,123,789 Loss (gain) on embedded derivative in preferred shares (1) 18,751 (18,528 ) Gain on sale of non-depreciable real estate assets — (54 ) Gain on investments, net of tax (1) (6,078 ) (3,531 ) Casualty related (recoveries) charges, net (1)(2) (9,326 ) 980 Gain on debt extinguishment (1) — (57 ) Legal costs, settlements and (recoveries), net (1)(3) 9,437 (4,454 ) Mark-to-market debt adjustment (4) — (25 ) Core FFO attributable to common shareholders and unitholders $ 1,064,985 $ 1,098,120 (1) Included in “Other non-operating (income) expense” in the Consolidated Statements of Operations.
The following table presents a reconciliation of net income available for MAA common shareholders to FFO and Core FFO for the years ended December 31, 2025 and 2024, as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands): Year ended December 31, 2025 2024 Net income available for MAA common shareholders $ 443,221 $ 523,855 Depreciation and amortization of real estate assets 616,774 579,927 Gain on sale of depreciable real estate assets (72,066 ) (55,003 ) MAA’s share of depreciation and amortization of real estate assets of real estate joint venture 667 628 Gain on consolidation of third-party development (1) — (11,239 ) Net income attributable to noncontrolling interests 9,657 14,033 FFO attributable to common shareholders and unitholders 998,253 1,052,201 (Gain) loss on embedded derivative in preferred shares (1) (1,111 ) 18,751 Gain on investments, net of tax (1)(2) (6,069 ) (6,078 ) Casualty related (recoveries) and charges, net (1) (4,598 ) (9,326 ) Legal costs, settlements and (recoveries), net (1)(3) 61,908 9,437 Core FFO attributable to common shareholders and unitholders $ 1,048,383 $ 1,064,985 (1) Included in “Other non-operating expense (income)” in the Consolidated Statements of Operations.
Other Income and Expenses Property management expenses for the year ended December 31, 2024 were $72.0 million, an increase of $4.3 million as compared to the year ended December 31, 2023. General and administrative expenses for the year ended December 31, 2024 were $56.5 million, a decrease of $2.1 million as compared to the year ended December 31, 2023.
Other Income and Expenses Property management expenses for the year ended December 31, 2025 were $74.8 million, an increase of $2.7 million as compared to the year ended December 31, 2024. General and administrative expenses for the year ended December 31, 2025 were $54.8 million, a decrease of $1.7 million as compared to the year ended December 31, 2024.
Interest expense for the year ended December 31, 2024 was $168.5 million, an increase of $19.3 million as compared to the year ended December 31, 2023.
Interest expense for the year ended December 31, 2025 was $185.3 million, an increase of $16.7 million as compared to the year ended December 31, 2024.
The notes have an effective interest rate of 5.123%. 38 In May 2024, MAALP publicly issued $400.0 million in aggregate principal amount of unsecured senior notes due February 2032 with a coupon rate of 5.300% per annum and at an issue price of 99.496%.
In May 2024, MAALP publicly issued $400.0 million in aggregate principal amount of unsecured senior notes due February 2032 with a coupon rate of 5.300% per annum and at an issue price of 99.496%. Interest is payable semi-annually in arrears on February 15 and August 15 of each year, and commenced on August 15, 2024.
A discussion of the results of operations for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is found in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 9, 2024, which is available free of charge on the SEC’s website at https://www.sec.gov and on our website at https://www.maac.com, on the “For Investors” page under “Filings and Financials—Annual Reports.” Property Revenues The following table reflects our property revenues by segment for the years ended December 31, 2024 and 2023 (dollars in thousands): December 31, 2024 December 31, 2023 Increase % Increase Same Store $ 2,084,836 $ 2,075,096 $ 9,740 0.5 % Non-Same Store and Other 106,179 73,372 32,807 44.7 % Total $ 2,191,015 $ 2,148,468 $ 42,547 2.0 % The increase in property revenues for our Non-Same Store and Other segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was the primary driver of total property revenue growth.
A discussion of the results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023 is found in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 7, 2025, which is available free of charge on the SEC’s website at https://www.sec.gov and on our website at https://www.maac.com, on the “For Investors” page under “Filings and Financials—Annual Reports.” Property Revenues The following table reflects our property revenues by segment for the years ended December 31, 2025 and 2024 (dollars in thousands): December 31, 2025 December 31, 2024 Increase (decrease) % Change Same Store $ 2,077,162 $ 2,080,027 $ (2,865 ) (0.1 )% Non-Same Store and Other 131,964 110,988 20,976 18.9 % Total $ 2,209,126 $ 2,191,015 $ 18,111 0.8 % The increase in property revenues for our Non-Same Store and Other segment for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was the primary driver of total property revenue growth.
Depreciation and Amortization Depreciation and amortization expense for the year ended December 31, 2024 was $585.6 million, an increase of $20.6 million as compared to the year ended December 31, 2023.
Depreciation and Amortization Depreciation and amortization expense for the year ended December 31, 2025 was $622.3 million, an increase of $36.7 million as compared to the year ended December 31, 2024.
The income for the year ended December 31, 2023 was primarily driven by $18.5 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, $4.4 million of non-cash gain from investments, $5.5 million of miscellaneous income and $3.4 million of interest income, partially offset by $1.0 million in net casualty loss.
The expense for the year ended December 31, 2025 was primarily driven by $61.9 million of legal costs and settlements, partially offset by $7.5 million of non-cash gain from investments, $4.6 million of net casualty related recoveries and $1.1 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares.
Trends During the year ended December 31, 2024, revenue growth for our Same Store segment continued to be primarily driven by growth in average effective rent per unit.
Trends During the year ended December 31, 2025, the change in revenue for our Same Store segment was primarily driven by average effective rent per unit. The average effective rent per unit for our Same Store segment decreased to $1,690 for the year ended December 31, 2025 as compared to $1,698 for the year ended December 31, 2024.
The following table presents a reconciliation of unsecured notes payable and secured notes payable to net debt as of December 31, 2024 and 2023, as we believe unsecured notes payable and secured notes payable, combined, is the most directly comparable GAAP measure (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 34 The following table presents a reconciliation of net income to EBITDA, EBITDA re and Adjusted EBITDA re for the years ended December 31, 2024 and 2023, as we believe net income is the most directly comparable GAAP measure (dollars in thousands): Year Ended December 31, 2024 December 31, 2023 Net income $ 541,576 $ 567,831 Depreciation and amortization 585,616 565,063 Interest expense 168,544 149,234 Income tax expense 5,240 4,744 EBITDA 1,300,976 1,286,872 (Gain) loss on sale of depreciable real estate assets (55,003 ) 62 Gain on consolidation of third-party development (1) (11,239 ) — Adjustments to reflect the Company’s share of EBITDA re of an unconsolidated affiliate 1,363 1,350 EBITDA re 1,236,097 1,288,284 Loss (gain) on embedded derivative in preferred shares (1) 18,751 (18,528 ) Gain on sale of non-depreciable real estate assets — (54 ) Gain on investments (1) (7,809 ) (4,449 ) Casualty related (recoveries) charges, net (1) (9,326 ) 980 Gain on debt extinguishment (1) — (57 ) Legal costs, settlements and (recoveries), net (1) (2) 9,437 (4,454 ) Adjusted EBITDA re $ 1,247,150 $ 1,261,722 (1) Included in “Other non-operating (income) expense” in the Consolidated Statements of Operations.
The following table presents a reconciliation of unsecured notes payable, net and secured notes payable, net to net debt as of December 31, 2025 and 2024, as we believe unsecured notes payable, net and secured notes payable, net, combined, is the most directly comparable GAAP measure (dollars in thousands): December 31, 2025 December 31, 2024 Unsecured notes payable, net $ 5,044,979 $ 4,620,690 Secured notes payable, net 360,393 360,267 Total debt 5,405,372 4,980,957 Cash and cash equivalents (60,258 ) (43,018 ) Net debt $ 5,345,114 $ 4,937,939 34 The following table presents a reconciliation of net income to EBITDA, EBITDA re and Adjusted EBITDA re for the years ended December 31, 2025 and 2024, as we believe net income is the most directly comparable GAAP measure (dollars in thousands): Year Ended December 31, 2025 December 31, 2024 Net income $ 456,566 $ 541,576 Depreciation and amortization 622,295 585,616 Interest expense 185,257 168,544 Income tax expense 4,595 5,240 EBITDA 1,268,713 1,300,976 Gain on sale of depreciable real estate assets (72,066 ) (55,003 ) Gain on consolidation of third-party development (1) — (11,239 ) Adjustments to reflect the Company’s share of EBITDA re of an unconsolidated affiliate 1,424 1,363 EBITDA re 1,198,071 1,236,097 (Gain) loss on embedded derivative in preferred shares (1) (1,111 ) 18,751 Gain on investments (1) (7,457 ) (7,809 ) Casualty related (recoveries) and charges, net (1) (4,598 ) (9,326 ) Legal costs, settlements and (recoveries), net (1) (2) 61,908 9,437 Adjusted EBITDA re $ 1,246,813 $ 1,247,150 (1) Included in “Other non-operating expense (income)” in the Consolidated Statements of Operations.
(2) For the year ended December 31, 2024, in accordance with our accounting policies, we recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027. Our net debt to Adjusted EBITDA re ratio as of December 31, 2024 was 4.0x, as compared to a ratio of 3.6x as of December 31, 2023.
(2) For the years ended December 31, 2025 and 2024, in accordance with our accounting policies, we recognized $61.9 million and $8.0 million, respectively, of accrued legal settlements and legal defense costs. Our net debt to Adjusted EBITDA re ratio as of December 31, 2025 was 4.3x as compared to a ratio of 4.0x as of December 31, 2024.
Unsecured Senior Notes As of December 31, 2024, MAALP had $4.4 billion of publicly issued unsecured senior notes outstanding. In January 2024, MAALP publicly issued $350.0 million in aggregate principal amount of unsecured senior notes due March 2034 with a coupon rate of 5.000% per annum and at an issue price of 99.019%.
In January 2024, MAALP publicly issued $350.0 million in aggregate principal amount 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, and commenced on September 15, 2024.
As a result of the adjustments recorded to reflect the change in fair value of the derivative asset, the fair value of the embedded derivative asset decreased to $13.2 million as of December 31, 2024 as compared to $31.9 million as of December 31, 2023, a decrease in value of the asset of $18.7 million.
As a result of the adjustments recorded to reflect the change in fair value of the derivative asset, the fair value of the embedded derivative asset increased to $14.3 million as of December 31, 2025 as compared to $13.2 million as of December 31, 2024, an increase in value of the asset of $1.1 million.
The increase in cash inflows from net proceeds from insurance recoveries was driven by increased insurance reimbursements received for property and storm-related casualty claims during the year ended December 31, 2024 as compared to the year ended December 31, 2023. 36 Cash Flows from Financing Activities Net cash used in financing activities was $271.1 million for the year ended December 31, 2024, a decrease of $96.8 million as compared to the year ended December 31, 2023.
The decrease in cash inflows from net proceeds from insurance recoveries was driven by a decrease in insurance reimbursements received for storm-related casualty claims during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
We believe that the estimates and assumptions summarized below are most important to the portrayal of our financial condition and results of operations because they involve a significant level of estimation uncertainty and they have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. 40 Acquisition of real estate assets We account for our acquisitions of investments in real estate as asset acquisitions in accordance with Accounting Standards Codification Topic 805, Business Combinations, which requires the cost of the real estate acquired to be allocated to the individual acquired tangible assets, consisting of land, buildings and improvements and other, and identified intangible assets, consisting of the value of in-place leases and other contracts, on a relative fair value basis.
Acquisition of real estate assets We account for our acquisitions of investments in real estate as asset acquisitions in accordance with Accounting Standards Codification Topic 805, Business Combinations, which requires the cost of the real estate acquired to be allocated to the individual acquired tangible assets, consisting of land, buildings and improvements and other, and identified intangible assets, consisting of the value of in-place leases and other contracts, on a relative fair value basis.
Average effective rent per unit represents the average of gross rent amounts, after the effect of leasing concessions, for occupied apartment units plus prevalent market rates asked for unoccupied apartment units, divided by the total number of units. Leasing concessions represent discounts to the current market rate.
This represents a decrease of 0.5% for the year ended December 31, 2025 as compared to the year ended December 31, 2024. Average effective rent per unit represents the average of gross rent amounts, after the effect of leasing concessions, for occupied apartment units plus prevalent market rates asked for unoccupied apartment units, divided by the total number of units.
The primary drivers of the change were as follows (dollars in thousands): Primary drivers of cash (outflow) inflow during the year ended December 31, (Decrease) Increase 2024 2023 in Net Cash Purchases of real estate and other assets $ (301,071 ) $ (223,453 ) $ (77,618 ) Capital improvements and other (322,372 ) (341,224 ) 18,852 Development costs (313,888 ) (198,152 ) (115,736 ) Contributions to affiliates (2,874 ) (16,636 ) 13,762 Proceeds from real estate asset dispositions 84,209 2,946 81,263 Proceeds from sale of markable equity securities 9,975 — 9,975 Net proceeds from insurance recoveries 20,195 945 19,250 The increase in cash outflows for purchases of real estate and other assets was primarily driven by the number of the real estate assets acquired during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The primary drivers of the change were as follows (dollars in thousands): Primary drivers of cash (outflow) inflow during the year ended December 31, Increase (Decrease) 2025 2024 in Net Cash Purchases of real estate and other assets $ (133,447 ) $ (301,071 ) $ 167,624 Capital improvements and other (360,238 ) (322,372 ) (37,866 ) Development costs (272,030 ) (313,888 ) 41,858 Contributions to affiliates (9,850 ) (2,874 ) (6,976 ) Proceeds from sale of markable equity securities — 9,975 (9,975 ) Net proceeds from insurance recoveries 3,657 20,195 (16,538 ) The decrease in cash outflows for purchases of real estate and other assets was primarily driven by the number of real estate assets acquired during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
Valuation of embedded derivative The redemption feature embedded in the MAA Series I preferred stock is reported as a derivative asset and is adjusted to its fair value at each reporting date, with a corresponding non-cash adjustment to the statement of operations.
These estimates are subjective and our ability to realize future cash flows and asset fair values is affected by factors such as ongoing maintenance and improvement of the assets, changes in economic conditions and changes in operating performance. 40 Valuation of embedded derivative The redemption feature embedded in the MAA Series I preferred stock is reported as a derivative asset and is adjusted to its fair value at each reporting date, with a corresponding non-cash adjustment to the statement of operations.
Total expected costs for the seven development projects are $851.5 million, of which $477.2 million had been incurred through December 31, 2024.
Total expected costs for the eight development projects are $932.0 million, of which $625.6 million had been incurred through December 31, 2025.
For example, changes in the inputs of the MAALP bond yields, estimated yields on preferred stock instruments from REITs with similar credit ratings as MAA and treasury rates could cause the valuation of the embedded derivative to materially change from the recorded balance as of December 31, 2024. 41 Significant Accounting Policies For more information regarding our significant accounting policies, including the accounting polices related to the critical accounting estimates discussed above as well as a brief description of recent accounting pronouncements that could have a material impact on our financial statements, see Note 1 to the consolidated financial statements included in this Annual Report on Form 10-K.
Significant Accounting Policies For more information regarding our significant accounting policies, including the accounting polices related to the critical accounting estimates discussed above as well as a brief description of recent accounting pronouncements that could have a material impact on our financial statements, see Note 1 to the consolidated financial statements included in this Annual Report on Form 10-K.
Results for the year ended December 31, 2023 included $18.5 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares and $3.5 million of non-cash gain, net of tax, from investments.
Results for the year ended December 31, 2025 included $72.1 million of gain related to the sale of depreciable real estate assets, $6.1 million of non-cash gain, net of tax, from investments, $4.6 million in net casualty gain and $1.1 million of non-cash gain related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, partially offset by $61.9 million of legal costs and settlements.
Interest is payable semi-annually in arrears on February 15 and August 15 of each year, commencing August 15, 2024. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program. The notes have an effective interest rate of 5.382%.
The notes have an effective interest rate of 5.123%. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program.
MAALP has established an unsecured commercial paper program, whereby it can issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $625.0 million. As of December 31, 2024, there were $250.0 million of borrowings outstanding under the commercial paper program.
MAALP has established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days. In October 2025, MAALP amended its commercial paper program to increase the maximum aggregate principal amount of notes that may be outstanding under the program from $625.0 million to $750.0 million.
The following schedule reflects the maturities and average effective interest rates of our outstanding fixed rate debt, net of debt issuance costs, discounts and premiums, as of December 31, 2024 (dollars in thousands): Fixed Rate Debt Average Effective Rate 2025 $ 399,340 4.2 % 2026 298,744 1.2 % 2027 598,121 3.7 % 2028 397,911 4.2 % 2029 556,359 3.7 % 2030 298,230 3.1 % 2031 446,302 1.8 % 2032 394,680 5.4 % 2033 — — 2034 343,795 5.1 % Thereafter 997,475 4.2 % Total $ 4,730,957 3.8 % Unsecured Revolving Credit Facility & Commercial Paper MAALP has entered into an unsecured revolving credit facility with a borrowing capacity of $1.25 billion and an option to expand to $2.0 billion.
The following schedule reflects the maturities and average effective interest rates of our outstanding fixed rate debt, net of debt issuance costs, discounts and premiums, as of December 31, 2025 (dollars in thousands): Fixed Rate Debt Average Effective Rate 2026 $ 299,516 1.2 % 2027 598,907 3.7 % 2028 398,519 4.2 % 2029 554,833 3.7 % 2030 298,573 3.1 % 2031 446,959 1.8 % 2032 395,428 5.4 % 2033 393,928 4.8 % 2034 344,477 5.1 % 2035 344,342 5.1 % Thereafter 653,890 3.8 % Total $ 4,729,372 3.8 % 37 Unsecured Revolving Credit Facility & Commercial Paper In October 2025, MAALP amended its unsecured revolving credit facility, increasing its borrowing capacity to $1.5 billion with an option to expand to $2.0 billion.
Overall borrowing costs remain at elevated levels and we expect this trend to continue. As of December 31, 2024, we had $250.0 million of variable rate debt outstanding under our commercial paper program. Our continued exposure to elevated interest rates will be a result of additional variable rate borrowings or future financing and refinancing activities.
However, overall borrowing costs remain at elevated levels as compared to our in-place fixed rate debt, and we expect this trend to continue. As of December 31, 2025, we had $676.0 million of variable rate debt outstanding under our commercial paper program.
Management considers net debt a helpful tool in evaluating our debt position. Net debt should not be considered as an alternative to any GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity.
Net debt should not be considered as an alternative to any GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity. 33 Earnings before interest, taxes, depreciation and amortization, or EBITDA, a non-GAAP financial measure, represents net income (computed in accordance with GAAP) plus depreciation and amortization, interest expense, and income taxes.
Core FFO attributable to common shareholders and unitholders for the year ended December 31, 2024 was $1.1 billion, a decrease of $33.1 million as compared to the year ended December 31, 2023, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $52.0 million, interest expense of $19.3 million and property management expenses of $4.3 million, partially offset by an increase in property revenues of $42.5 million. 33 Net Debt, EBITDA, EBITDAre, and Adjusted EBITDAre Net debt, a non-GAAP financial measure, represents unsecured notes payable and secured notes payable less cash and cash equivalents and 1031(b) exchange proceeds included in restricted cash.
Core FFO attributable to common shareholders and unitholders for the year ended December 31, 2025 was $1.0 billion, a decrease of $16.6 million as compared to the year ended December 31, 2024, primarily as a result of increases in property operating expenses, excluding depreciation and amortization, of $17.7 million, and interest expense of $16.7 million, partially offset by an increase in property revenues of $18.1 million.
We believe that in calendar year 2025 we will see continued decline in the amount of new apartment deliveries impacting our portfolio and we will enter a new multi-year cycle with demand outpacing supply. Access to the financial markets remains available for high-credit rated borrowers, such as ourselves.
New supply deliveries, while still elevated by historical standards, continue to be absorbed in a steady manner as the demand for apartment housing remains solid. We believe that we will continue to see a decline in new apartment deliveries in calendar year 2026. Access to the financial markets remains available for high-credit rated borrowers, such as ourselves.
The primary drivers of the change were as follows (dollars in thousands): Primary drivers of cash (outflow) inflow during the year ended December 31, (Decrease) Increase 2024 2023 in Net Cash Net change in commercial paper $ (245,000 ) $ 475,000 $ (720,000 ) Proceeds from notes payable 1,091,646 — 1,091,646 Principal payments on notes payable (400,000 ) (353,861 ) (46,139 ) Payment of deferred financing costs (10,317 ) (2 ) (10,315 ) Dividends paid on common shares (686,900 ) (651,717 ) (35,183 ) Proceeds from issuances of common shares 1,230 205,070 (203,840 ) Acquisition of noncontrolling interests — (15,757 ) 15,757 Net change in other financing activities 166 (5,279 ) 5,445 The increase in cash outflows related to the net change in commercial paper resulted from the decrease in net borrowings of $245.0 million under our commercial paper program during the year ended December 31, 2024 as compared to the increase in net borrowings of $475.0 million under our commercial paper program during the year ended December 31, 2023.
The primary drivers of the change were as follows (dollars in thousands): Primary drivers of cash inflow (outflow) during the year ended December 31, Increase (Decrease) 2025 2024 in Net Cash Net proceeds from (payments of) commercial paper $ 426,000 $ (245,000 ) $ 671,000 Proceeds from notes payable 397,416 1,091,646 (694,230 ) Repurchase of common shares (27,235 ) — (27,235 ) Dividends paid on common shares (709,024 ) (686,900 ) (22,124 ) Acquisition of noncontrolling interests (26,786 ) — (26,786 ) The increase in cash inflows related to the net proceeds from (payments of) commercial paper resulted from the increase in net borrowings of $426.0 million under our commercial paper program during the year ended December 31, 2025 as compared to the decrease in net borrowings of $245.0 million under our commercial paper program during the year ended December 31, 2024 .
As of December 31, 2024, there was no outstanding balance under the revolving credit facility, while $4.5 million of capacity was used to support outstanding letters of credit.
The revolving credit facility has a maturity date in January 2030 with an option to extend for two additional six-month periods. As of December 31, 2025, there was no outstanding balance under the revolving credit facility, while $5.0 million of capacity was used to support outstanding letters of credit.
We believe average effective rent per unit is a helpful measurement in evaluating average pricing; however, it does not represent actual rental revenue collected per unit. For the year ended December 31, 2024, average physical occupancy for our Same Store segment was 95.5%, as compared to 95.6% for the year ended December 31, 2023.
Leasing concessions represent discounts to the current market rate. We believe average effective rent per unit is a helpful measurement in evaluating average pricing; however, it does not represent actual rental revenue collected per unit.
During the year ended December 31, 2023, we disposed of one land parcel, resulting in the recognition of a negligible gain on sale of non-depreciable real estate assets. Other non-operating (income) expense for the year ended December 31, 2024 was $1.7 million of income, as compared to $31.2 million of income for the year ended December 31, 2023.
Other non-operating expense (income) for the year ended December 31, 2025 was $47.2 million of expense as compared to $1.7 million of income for the year ended December 31, 2024.
The following table reflects our property operating expenses by segment for the years ended December 31, 2024 and 2023 (dollars in thousands): December 31, 2024 December 31, 2023 Increase % Increase Same Store $ 763,659 $ 735,286 $ 28,373 3.9 % Non-Same Store and Other 56,433 32,855 23,578 71.8 % Total $ 820,092 $ 768,141 $ 51,951 6.8 % The increase in property operating expenses for our Same Store segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily driven by increases in personnel expense of $7.6 million, real estate tax expense of $5.3 million, utilities expense of $4.6 million, office operations expense of $4.6 million, insurance expense of $2.4 million, and marketing expense of $2.3 million.
The following table reflects our property operating expenses by segment for the years ended December 31, 2025 and 2024 (dollars in thousands): December 31, 2025 December 31, 2024 Increase (decrease) % Change Same Store $ 772,898 $ 757,841 $ 15,057 2.0 % Non-Same Store and Other 64,909 62,251 2,658 4.3 % Total $ 837,807 $ 820,092 $ 17,715 2.2 % The increase in property operating expenses for our Same Store segment for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily driven by increases in personnel expense of $7.2 million, utilities expense of $5.3 million, building repair and maintenance expense of $2.5 million, and marketing expense of $1.5 million, partially offset by a decrease in property tax expense of $2.2 million.
MAA has registered under the Securities Act the 3,075,552 shares of its common stock that, as of December 31, 2024, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.
MAA has registered under the Securities Act the 2,941,839 shares of its common stock that, as of December 31, 2025, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets. 38 As previously discussed in this Annual Report on Form 10-K, MAA has established an ATM program enabling MAA to sell shares of its common stock into the existing market at current market prices from time to time to or through the sales agents under the ATM program.
The increase in cash outflows for development costs was primarily driven by increased development activity, including financing a third-party’s development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina, during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The decrease in cash outflows for development costs was primarily driven by decreased development activity during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
For more information regarding our debt capital resources, see Note 5 to the consolidated financial statements included in this Annual Report on Form 10-K. Equity As of December 31, 2024, MAA owned 116,883,421 OP Units, comprising a 97.4% limited partnership interest in MAALP, while the remaining 3,075,552 outstanding OP Units were held by limited partners of MAALP other than MAA.
Equity As of December 31, 2025, MAA owned 116,878,077 OP Units, comprising a 97.5% limited partnership interest in MAALP, while the remaining 2,941,839 outstanding OP Units were held by limited partners of MAALP other than MAA.
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 the commercial paper program.
The notes have an effective interest rate of 5.053%. The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe use our best efforts to have our debt instruments mature across multiple years, which we believe limits our exposure to interest rate changes in any one year. We do not enter into derivative instruments for trading or other speculative purposes. As of December 31, 2024, 95.0% of our outstanding debt was subject to fixed rates.
Biggest changeWe use our best efforts to have our debt instruments mature across multiple years, which we believe limits our exposure to interest rate changes in any one year. We do not enter into derivative instruments for trading or other speculative purposes. As of December 31, 2025, 87.5% of our outstanding debt was subject to fixed rates.
As of December 31, 2024, 21.2% of our total market capitalization consisted of debt borrowings. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs.
As of December 31, 2025, 24.5% of our total market capitalization consisted of debt borrowings. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs.

Other MAA 10-K year-over-year comparisons