MAA is a multifamily-focused, self-administered, and self-managed real estate investment trust (REIT) that primarily owns, operates, acquires, and selectively develops apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the U.S. **[0000950170-24-013275_maa-20231231.htm:9]**. The company's main business activity involves leasing multifamily residential apartments to residents under operating leases, typically on a monthly basis with terms of approximately one year or less **[0000950170-24-013275_maa-20231231.htm:130]**. MAA's revenues are primarily derived from rental activities, with additional income from non-lease reimbursable property revenues and other non-lease property revenues **[0000950170-24-013275_maa-20231231.htm:130]** **[0000950170-24-089308_maa-20240630.htm:17]**.

1. **Multifamily Residential Leasing** - Provides leasing of apartment units to residents, generating rental revenues through operating leases typically on a monthly basis with terms of approximately one year or less.
2. **Non-Lease Reimbursable Property Revenues** - Generates income from utility reimbursements and other similar non-lease related activities.
3. **Other Non-Lease Property Revenues** - Earns revenue from nonrefundable fees and commissions related to property management.

cc9e21ac8fdfe9457c5e4ebbd877e35f106a6a8908f2ff64270ff814cdb4f250

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Weighted Average Remaining Lease Term (Years) | 33  **[0000950170-24-119555_maa-20240930.htm:32]**  | 33  **[0000950170-23-015283_maa-20230331.htm:30]**  | 33  **[0000950170-23-035158_maa-20230630.htm:31]**  | 33  **[0000950170-23-055620_maa-20230930.htm:31]**  | 34  **[0000950170-24-013275_maa-20231231.htm:147]**  | 34  **[0000950170-24-052131_maa-20240331.htm:28]**  | 34  **[0000950170-24-089308_maa-20240630.htm:32]**  | 34  **[0000950170-24-119555_maa-20240930.htm:32]**  |
| Weighted Average Discount Rate (%) | 4.5  **[0000950170-23-002778_maa-20221231.htm:137]**  | 4.5  **[0000950170-23-015283_maa-20230331.htm:30]**  | 4.5  **[0000950170-23-035158_maa-20230630.htm:31]**  | 4.5  **[0000950170-23-055620_maa-20230930.htm:31]**  | 4.5  **[0000950170-24-013275_maa-20231231.htm:147]**  | 4.5  **[0000950170-24-052131_maa-20240331.htm:28]**  | 4.5  **[0000950170-24-089308_maa-20240630.htm:32]**  | 4.5  **[0000950170-24-119555_maa-20240930.htm:32]**  |
| Number of Apartment Communities Owned and Operated | 290  **[0000950170-23-002778_maa-20221231.htm:113]**  | 290  **[0000950170-23-015283_maa-20230331.htm:31]**  | 290  **[0000950170-23-035158_maa-20230630.htm:32]**  | 290  **[0000950170-23-055620_maa-20230930.htm:32]**  | 290  **[0001193125-24-036138_d501408ds3asr.htm:8]**  | 290  **[0000950170-24-052131_maa-20240331.htm:14]**  | 291  **[0000950170-24-089308_maa-20240630.htm:14]**  | 293  **[0000950170-24-119555_maa-20240930.htm:14]**  |
| Number of Development Communities Under Construction | 6  **[0000950170-23-002778_maa-20221231.htm:27]**  | 6  **[0000950170-23-014824_maa-ex99_1.htm:2]**  | 6  **[0000950170-23-034730_maa-ex99_1.htm:2]**  | 5  **[0000950170-23-055196_maa-ex99_1.htm:2]**  | 5  **[0000950170-24-012216_maa-ex99_1.htm:3]**  | 5  **[0000950170-24-052131_maa-20240331.htm:32]**  | 7  **[0000950170-24-088601_maa-ex99_1.htm:3]**  | 8  **[0000950170-24-119008_maa-ex99_1.htm:2]**  |

9a05db31c3370252322541ec7fdf38ef6ccc193603d4ccd445bdc96c88205ac2

009bd6dca162b1638e71da46099a29696890a4ca0025220d68fc778923f8183b

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **Same Store Segment** | N/A     | **505.505**  **[0000950170-23-035158_maa-20230630.htm:34]**  | **510.879**  **[0000950170-23-055620_maa-20230930.htm:34]**  | N/A     | **519.629**  **[0000950170-24-052131_maa-20240331.htm:30]**  | **521.54**  **[0000950170-24-089308_maa-20240630.htm:35]** **[0000950170-24-089308_maa-20240630.htm:41]**  | **523.5**  **[0000950170-24-119555_maa-20240930.htm:35]**  |
| **Non-Same Store and Other Segment** | N/A     | **29.641**  **[0000950170-23-035158_maa-20230630.htm:34]**  | **31.163**  **[0000950170-23-055620_maa-20230930.htm:34]**  | N/A     | **23.993**  **[0000950170-24-052131_maa-20240331.htm:30]**  | **24.90**  **[0000950170-24-089308_maa-20240630.htm:35]** **[0000950170-24-089308_maa-20240630.htm:41]**  | **27.6**  **[0000950170-24-119555_maa-20240930.htm:41]**  |
| **Total Rental and Other Property Revenues** | N/A     | **535.146**  **[0000950170-23-035158_maa-20230630.htm:34]**  | **542.042**  **[0000950170-23-055620_maa-20230930.htm:34]**  | N/A     | **543.622**  **[0000950170-24-052131_maa-20240331.htm:30]**  | **546.44**  **[0000950170-24-089308_maa-20240630.htm:35]** **[0000950170-24-089308_maa-20240630.htm:41]**  | **551.1**  **[0000950170-24-119555_maa-20240930.htm:7]**  |

29372c74f776bdeed07a30e2c41f9a51c8876a512b2e672affd42e4ad1f9f5ed

1. With your guidance indicating a $0.04 dilution to core FFO from refinancing activities  **[MAA_3372667_7]**  and a $0.05 drag from developments not yet stabilized  **[MAA_3372667_38]** , how do you plan to mitigate these headwinds to maintain shareholder returns in 2024?

2. Given the expectation of refinancing $400 million of bonds maturing in June 2024 at an interest rate north of 5%, up from the current rate of 4%  **[MAA_3372667_7]** **[MAA_3372667_37]** , how will this impact your overall cost of capital and investment strategy moving forward?

3. You've mentioned that transaction volumes remain tepid and that pricing expectations from sellers are still in the low 5% cap rate range  **[MAA_3372667_2]** **[MAA_3372667_13]** ; how confident are you in achieving your acquisition guidance of $350 million to $450 million  **[MAA_3372667_7]** , and what adjustments will you make if cap rates don't adjust upward as anticipated?

4. With increased competition from new supply leading to pressure on new lease pricing and increased concessions in key markets like Charlotte and Raleigh  **[MAA_3372667_3]** **[MAA_3372667_27]** , what specific strategies are you implementing to sustain occupancy and rental growth in these challenging environments?

5. Considering the delays in your planned development starts due to permitting issues and expectations of construction costs coming down later in the year  **[MAA_3372667_2]** , how confident are you in commencing 3 to 4 projects this year as revised, and what contingencies are in place if these challenges persist?

043a20827a270ecd90b34f4e09b6124662811c9c01cfa2787eb4b0ec973fa704

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | December 2015  **[0000950170-24-119555_maa-20240930.htm:59]**   |
| End Date/Duration        | N/A                |
| Total additional amount  | N/A                |
| Remaining authorization amount | 4,000,000 shares  **[0000950170-24-119555_maa-20240930.htm:59]**  |
| Details                  | Enhance shareholder value; no shares repurchased yet  **[0000950170-23-002778_maa-20221231.htm:50]** **[0000950170-24-013275_maa-20231231.htm:56]** **[0000950170-22-001423_maa-20211231.htm:52]**  |

23eaf18a7a9266080a225f958c58f656c5f8688cf1349cb8dc8271abb9d77cd8

Number of apartment communities owned and operated (count)

Number of apartment communities that included retail components (count)

Number of development communities under construction (count)

Number of apartment units once complete in these development communities (count)

Number of states in which MAA operates (count)

Number of defined markets in which MAA operates (count)

Number of submarkets in which MAA operates (count)

Average physical occupancy for our Same Store segment (percentage)

Change in average effective rent per unit for our Same Store segment (percentage)

c5ffbb5c39e2a18f67b3915e4a45fed2401d7bb074e2881dcbbcb00f2865cbd7

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

1671a75ad32c31025fe167e293c7a5875616d94dbf0d237f5f0b95ad0a2dbd05

08839ba9299a9c482371dea4fff30086567cad810d133cf3e5feee8157387e47

Weighted Average Remaining Lease Term (Years)

Weighted Average Discount Rate (%)

Number of Apartment Communities Owned and Operated

Number of Development Communities Under Construction

8e6fcd20a897e26ddf8c7cd36b4f2e82983c1044db47dde2986714007ed88ef8

Same Store

- Rental Revenues

- Other Property Revenues

Non-Same Store and Other

Large Market Same Store

Secondary Market Same Store

Management Fee Income

Total Revenue

295c8d52cc0ef3bcd9bc5da74ab26788731f237c108ff3a0f64bddc3fc84ee14

| Name                | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|---------------------|--------------------------------------------------------------------------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| H. Eric Bolton, Jr. | Chairman of the Board of Directors, CEO (transitioning to Executive Chairman) | 1994                | Joined MAA in **1994** as Vice President of Development. Promoted to COO in **February 1996**, President in **December 1996**, CEO in **October 2001**, and Chairman in **September 2002**. Will retire as CEO on March 31, 2025, and transition to Executive Chairman on April 1, 2025  **[0001140361-24-018668_ny20021713x1_def14a.htm:35]** **[0001140361-24-018668_ny20021713x1_def14a.htm:24]** **[0000950170-24-135004_maa-ex99_1.htm:0]** **[0000950170-24-135004_maa-20241210.htm:1]** **[0001140361-23-015626_ny20006766x1_def14a.htm:29]** .                                      |
| Albert M. Campbell, III | Executive Vice President and CFO (retired)                               | 1998                | Joined MAA in **1998**, initially responsible for external reporting and forecasting. Became CFO in **January 2010**. Retired as EVP and CFO effective **March 31, 2024**, and will remain as a Senior Advisor to the CEO through **December 31, 2024**  **[0001140361-24-018668_ny20021713x1_def14a.htm:35]** .                                                                                  |
| A. Clay Holder      | Senior Vice President and Chief Accounting Officer                        | N/A                 | Serves as Senior Vice President and Chief Accounting Officer at MAA. Involved in signing various reports and certifications for the company, including those filed on **February 9, 2024**, **February 14, 2024**, and **October 31, 2024**  **[0000950170-24-013275_maa-20231231.htm:98]** **[0001193125-24-036138_d501408ds3asr.htm:46]** **[0000950170-24-119555_maa-ex31_2.htm:0]** .                                                                                     |
| Robert J. DelPriore | Executive Vice President and Chief Administrative Officer                 | August 2013         | Joined MAA in **August 2013** as Executive Vice President and General Counsel. Developed the company's internal Legal Department and later added responsibilities for the Commercial Division and Enterprise Risk Management. Promoted to EVP and CAO in early 2022  **[0001140361-24-018668_ny20021713x1_def14a.htm:35]** **[0001140361-23-015626_ny20006766x1_def14a.htm:47]** .                                                               |
| A. Bradley Hill     | President and Chief Investment Officer (becoming President and CEO)       | 2010                | Joined MAA in **2010** as Vice President and Director of New Development. Promoted to Senior VP and Director of Multifamily Investing in **2014**, EVP and Director of Multifamily Investing in **2016**, and EVP and CIO in **2021**. Will become President and CEO on April 1, 2025  **[0000950170-24-135004_maa-ex99_1.htm:0]** **[MAA_3401501_0]** .                                               |
| Timothy Argo        | Executive Vice President and Chief Strategy & Analysis Officer            | June 2002           | Joined MAA in **June 2002**, initially responsible for underwriting acquisition opportunities. Promoted to Senior VP, Chief Financial Planning Officer in 2017, and EVP, CSAO in 2022. Responsible for asset management, strategy development and execution, and value creation  **[0001140361-24-018668_ny20021713x1_def14a.htm:35]** .                                                        |

19433da0c223dbf4c413901b13b05761c691957474b3732aa6af06891638d3f2

f1ce55f980413cba77743db3aa984011bf852c303c0136b22ddb3a558f8c8095

**Annual guidance for FY 2024:**
- **Core FFO Guidance**: $8.88 per share  **[MAA_3405117_6]**  (no prior guidance)  
- **Same-Store NOI Growth Guidance**: 1.3%  **[MAA_3405117_6]**  (no prior guidance)  
- **Same-Store Revenue Growth Guidance**: 0.5%  **[MAA_3405117_6]**  (no prior guidance)  
- **Effective Rent Growth Guidance**: 0.35%  **[MAA_3405117_6]**  (no prior guidance)  
- **Property Operating Expense Growth Guidance**: 3.75%  **[MAA_3405117_6]**  (no prior guidance)  
- **Real Estate Tax Expense Growth Guidance**: 2%  **[MAA_3405117_6]**  (no prior guidance)  
- **Storm Cleanup Costs**: $0.08 to $0.09 per share  **[MAA_3405117_6]**  (no prior guidance)  
- **Development Pipeline Funding**: $368 million  **[MAA_3405117_6]**  (no prior guidance)

f9e4a85cf07a0333ed0668eaf3e18a3ac058e2b98ab8ff47c5b6c2c74ea221c7

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2012  **[0000950170-24-013275_maa-20231231.htm:102]**    | Present  | Current auditor   |

7df66970d614534ad6fed666f498a4e3b58eacaf898bc464403e9897489d5bae

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue (Q3 2024): $551.126 million (+2% YoY)  **[0000950170-23-055620_maa-20230930.htm:10]** **[0000950170-23-055620_maa-20230930.htm:7]** **[0000950170-24-119555_maa-20240930.htm:10]** **[0000950170-24-119555_maa-20240930.htm:7]**   
- Non-Same Store & Other (Q3 2024): $27.593 million (**-11%** YoY)  **[0000950170-23-055620_maa-20230930.htm:34]** **[0000950170-24-119555_maa-20240930.htm:35]**   
- Cost of Goods Sold (Q3 2024): $134.475 million (**+10%** YoY)  **[0000950170-23-055620_maa-20230930.htm:10]** **[0000950170-23-055620_maa-20230930.htm:7]** **[0000950170-24-119555_maa-20240930.htm:10]** **[0000950170-24-119555_maa-20240930.htm:7]**   
- SG&A (Q3 2024): $12.728 million (**-6%** YoY)  **[0000950170-23-055620_maa-20230930.htm:10]** **[0000950170-23-055620_maa-20230930.htm:7]** **[0000950170-24-119555_maa-20240930.htm:10]** **[0000950170-24-119555_maa-20240930.htm:7]**   
- Operating Income (Q3 2024): $118.446 million (**+55%** YoY)  **[0000950170-23-055620_maa-20230930.htm:10]** **[0000950170-23-055620_maa-20230930.htm:7]** **[0000950170-24-119555_maa-20240930.htm:10]** **[0000950170-24-119555_maa-20240930.htm:7]**   

b7d15078e142dcd4e4e1a8c42a2436af620713c60c63f5b33e853beee8b0be8a

72972b84fb83c0ec4fd486231dc074ab488cf6a74fb581f49553278521b61728

| Year | Amount Due (in billions) | Debt Type              | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|----------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 0.490                        | Commercial Paper           | 5.1                  | 10.0% = (0.490 / 4.876) * 100  **[0000950170-24-119555_maa-20240930.htm:51]** **[0000950170-24-119555_maa-20240930.htm:26]**                                           |
| 2025     | 0.399                        | Fixed Rate Senior Notes    | 4.2                  | 8.2% = (0.399 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| 2026     | 0.299                        | Fixed Rate Senior Notes    | 1.2                  | 6.1% = (0.299 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| 2027     | 0.598                        | Fixed Rate Senior Notes    | 3.7                  | 12.3% = (0.598 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                            |
| 2028     | 0.398                        | Fixed Rate Senior Notes    | 4.2                  | 8.2% = (0.398 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| 2029     | 0.557                        | Fixed Rate Senior Notes    | 3.7                  | 11.4% = (0.557 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                            |
| 2030     | 0.298                        | Fixed Rate Senior Notes    | 3.1                  | 6.1% = (0.298 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| 2031     | 0.446                        | Fixed Rate Senior Notes    | 1.8                  | 9.1% = (0.446 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| 2032     | 0.395                        | Fixed Rate Senior Notes    | 5.4                  | 8.1% = (0.395 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |
| Thereafter | 0.637                      | Fixed Rate Senior Notes    | 4.2                  | 13.1% = (0.637 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                            |
| Thereafter | 0.360                      | Secured Property Mortgages | 4.4                  | 7.4% = (0.360 / 4.876) * 100 **[0000950170-24-119555_maa-20240930.htm:51]**                                             |

044f4bff3a51cc0b7ebdaae4b6bb302d5f0a9584ab2655e1bdf41cc54ed7b0f9

508eea3acbd4a3bf981ffa8e5372c9ca34f90cb5669943aeaaddad4d2adc6ead

1. **2025 Rent Growth Outlook**  
   **Q:** How will supply impact market rent growth in 2025?  
   **A:** Supply peaked in mid-2022 and is moderating by about **20% in 2025** compared to 2024.  **[MAA_3405117_11]**  We expect normal seasonality and stronger new lease pricing next year, particularly as demand picks up in the spring.  **[MAA_3405117_11]** 

2. **Market Performance: Austin and Atlanta**  
   **Q:** How are high-supply markets like Austin affecting lease rates?  
   **A:** Austin and Atlanta face elevated supply pressures, impacting new lease rates.  **[MAA_3405117_16]**  Excluding Austin, our Q3 new lease pricing would have been **up 10 basis points** from Q2.  **[MAA_3405117_16]**  We anticipate improvement in these markets as supply moderates next year.  **[MAA_3405117_16]** 

3. **Leverage and Capital Allocation**  
   **Q:** Will you use leverage to grow and reach target metrics?  
   **A:** We're leaning into debt financing due to our current cost of equity.  **[MAA_3405117_14]**  As conditions change, we may shift towards equity, but for now, we're utilizing our balance sheet capacity to pursue growth opportunities.  **[MAA_3405117_14]** 

4. **Acquisition Strategy**  
   **Q:** What are you looking for in acquisition opportunities?  
   **A:** We're focusing on **brand-new properties just finishing construction**, often entering initial lease-up.  **[MAA_3405117_18]**  Our ability to **close all cash** provides a competitive edge, enabling us to achieve **compelling returns** with stabilized NOI yields around **5.9%**.  **[MAA_3405117_18]** 

5. **Development Pipeline Expansion**  
   **Q:** How large could your development pipeline grow near term?  
   **A:** We're aiming to build our pipeline to **$1 billion to $1.2 billion**, starting **3 to 4 projects a year** over a three-year period.  **[MAA_3405117_18]**  With strong operating fundamentals expected in 2026 and 2027, it's an ideal time to ramp up.  **[MAA_3405117_18]** 

6. **Absorption Trends and Demand**  
   **Q:** Do you expect elevated absorption levels to continue?  
   **A:** Yes, in Q3 we absorbed more units than were delivered for the first time since Q1 2022.  **[MAA_3405117_12]**  Demand remains strong due to job growth, household formation, and low turnover, and we expect this to hold up in 2025.  **[MAA_3405117_12]** 

7. **Occupancy and Rent Strategy**  
   **Q:** How are occupancy trends affecting your revenue strategy?  
   **A:** Occupancy increased to **95.4%** in Q3 due to strong absorption.  **[MAA_3405117_32]**  We balance pricing and occupancy at the market level, aiming for stable occupancy while pushing pricing where possible.  **[MAA_3405117_32]** 

8. **Concessions Impact on Lease Rates**  
   **Q:** How are concessions affecting new lease rates?  
   **A:** Concessions in Q3 were consistent with Q2, typically **half a month to a month** in stabilized submarkets.  **[MAA_3405117_13]**  In high-supply areas like Austin and Atlanta, concessions can be up to **three months**.  **[MAA_3405117_13]** 

9. **Bad Debt Levels Normalizing**  
   **Q:** Are you back to pre-COVID bad debt levels?  
   **A:** Yes, we're currently at about **40 basis points** net delinquency, similar to pre-COVID levels of **30 to 40 basis points**.  **[MAA_3405117_29]** 

10. **Other Income Opportunities**  
    **Q:** Will other income sources like Wi-Fi impact revenue growth?  
    **A:** Yes, we're rolling out property-wide Wi-Fi at four properties, expected to add **$1 million** when fully deployed.  **[MAA_3405117_23]**  We plan to expand to **20 to 25 properties** in 2025, providing additional revenue.  **[MAA_3405117_23]** 

11. **Hurricane and Storm Costs**  
    **Q:** Will you include larger storm-related expenses in your guidance?  
    **A:** We'll include some assumed storm costs in our 2025 guidance but not at the levels experienced this year.  **[MAA_3405117_24]**  Historically, such costs have totaled around **$9 to $10 million**.  **[MAA_3405117_24]** 

12. **Return to Office Impact**  
    **Q:** Have return-to-office mandates affected urban leasing patterns?  
    **A:** We haven't seen any material changes in traffic or leasing patterns in urban locations due to return-to-office policies.  **[MAA_3405117_21]** 

13. **Immigration as a Demand Factor**  
    **Q:** Is immigration a key variable in demand trends?  
    **A:** Immigration trends have less impact on our markets and resident profile.  **[MAA_3405117_31]**  Our residents have average incomes over **$80,000**, and we're not significantly influenced by changes in immigration.  **[MAA_3405117_31]** 

14. **Leasing Spreads and Earn-In**  
    **Q:** With new lease spreads down, can we expect positive spreads by spring?  
    **A:** We anticipate better new lease performance in 2025 than in 2024.  **[MAA_3405117_26]**  Our earn-in is slightly negative, around **20 to 30 basis points**, but we expect improvements as supply moderates.  **[MAA_3405117_26]** 

15. **Acquisitions: Lease-Up Properties**  
    **Q:** Will you continue acquiring properties in lease-up?  
    **A:** Yes, we'll continue focusing on acquiring brand-new properties in their initial lease-up.  **[MAA_3405117_34]**  Our ability to execute all-cash transactions allows us to achieve higher returns during this phase.  **[MAA_3405117_34]** 

16. **Occupancy vs. Rent Growth**  
    **Q:** When does incremental occupancy become less valuable than rent growth?  
    **A:** We aim for a balance, maintaining occupancy around **95.4%** while pushing pricing where market conditions allow.  **[MAA_3405117_32]**  We focus on exposure levels and adjust strategies at the property level.  **[MAA_3405117_32]** 

65c3db521c4439d17cf06c11736378fd8610bb00e9c7ab825040ce5ea5069c12

- **Strong demand drivers** such as job growth, population growth, and migration trends remain positive in MAA's markets, with **400,000 new jobs expected in 2024**. Additionally, the cost of homeownership is **50–60% higher than rents**, pushing more demand into multifamily rentals. **Move-outs to buy a home are down 20% year-over-year**.  **[MAA_3372667_17]**
- **Supply pressures are expected to moderate**, with peak new supply deliveries occurring now and easing by Q4. MAA anticipates **new lease pricing to improve in Q2 and Q3**, supported by stronger leasing traffic in the summer and normal seasonal patterns. Prior year comparisons become easier, further supporting improved performance.  **[MAA_3372667_9]**
- MAA sees **attractive acquisition opportunities** emerging later this year into 2025, as merchant builders struggle with lease-ups. Acquiring these properties provides a **more attractive long-term investment return**, especially on an after-CapEx basis, than share buybacks. The company is also investing in **new technology initiatives** that offer the opportunity for **meaningful margin expansion** over the next few years, creating significant value.  **[MAA_3372667_35]**

a3e5e2e7dd5028e6e7a39144f9be98b62ba95539b9f3d2c6350bd7e38fd49f5d

- MAA expects new lease pricing to remain negative until **2025**, indicating prolonged pressure on rental rates due to high supply levels.  **[MAA_3372667_10]**
- Planned acquisitions are expected to be **dilutive** to Core FFO in **2024**, and MAA is comfortable increasing leverage up to **4.5% to 5%**, potentially increasing financial risk.  **[MAA_3372667_16]** **[MAA_3372667_8]**
- High supply levels in key markets like **Austin** are expected to cause prolonged challenges due to oversupply, negatively impacting MAA's performance in these markets.  **[MAA_3372667_15]**

6c17aab00a9d6dbe4d74be7fc01da99cffd635b77376c0f25497f878d40c907a

- **Significant decline in new lease rates in heavily supplied markets, particularly in Austin where new lease rates are down in the high negative single digits, around negative 5% for October.**  **[MAA_3362391_23]**
- **Pressure on mid-tier assets (B+, A-) in larger markets with more new supply, narrowing the rent gap between these assets and newer developments, which could impact rent growth and occupancy.**  **[MAA_3362391_9]**
- **Operational challenges in Atlanta due to unique factors such as supply pressure, earlier operational issues (winter storm, fire), and fraud concerns leading to increased write-offs and weaker occupancy and pricing compared to other markets.**  **[MAA_3362391_17]**

5634da7943da2c76f38ace29354ba876e78be92da6a3c4fd9e1fe7ef4988da6d

1. **Rental Rate Outlook**  
   **Q:** Will lower rental rates persist, or is recovery expected?  
   **A:** Management expects rental rates to remain in the current range for a few months, with negative new lease rates around **-4% to -5%**.  **[MAA_3362391_8]** **[MAA_3362391_10]** **[MAA_3362391_12]**  They anticipate an acceleration in new lease rates in spring 2024 as normal seasonality returns.  **[MAA_3362391_10]** **[MAA_3362391_12]**  Renewal rates remain strong at **4% to 5%**, and turnover rates are expected to stay low.  **[MAA_3362391_8]** **[MAA_3362391_10]** 

2. **Impact of Supply and Interest Rates**  
   **Q:** How are supply and higher rates affecting rental rates?  
   **A:** Aggressive pricing by merchant builders, driven by higher interest rates, has led to quicker moderation in new lease pricing.  **[MAA_3362391_10]** **[MAA_3362391_11]** **[MAA_3362391_17]**  Developers are rushing to lease up properties before year-end, causing competitive pricing practices.  **[MAA_3362391_17]** **[MAA_3362391_21]**  Management doesn't expect conditions to worsen materially and anticipates improvement in the back half of 2024.  **[MAA_3362391_10]** **[MAA_3362391_22]** 

3. **Acquisition Strategy and Yields**  
   **Q:** What metrics drive your acquisition decisions?  
   **A:** Management prioritizes acquiring assets with stabilized yields comparable to their cost of capital, around **5.5%**.  **[MAA_3362391_13]**  The recent Phoenix acquisition matches this yield, with expectations to increase it by **100 to 200 basis points** through operational efficiencies and revenue management.  **[MAA_3362391_13]** **[MAA_3362391_14]** 

4. **October Rent Growth Figures**  
   **Q:** What are the October rent growth numbers?  
   **A:** In October, blended rent growth is around **0%**, with new lease rates at **-5.3%** and renewals at **4.4%**.  **[MAA_3362391_14]** 

5. **Turnover Rates**  
   **Q:** How are you maintaining low turnover rates?  
   **A:** Turnover rates remain near historically low levels, declining **40 basis points**, due to reduced move-outs to buy homes amid higher interest rates.  **[MAA_3362391_20]**  Move-outs due to rent increases were half of last year's.  **[MAA_3362391_20]** 

6. **Atlanta Market Challenges**  
   **Q:** What's affecting performance in Atlanta?  
   **A:** Atlanta faces unique issues including supply pressure, prior weather-related damages, and fraud concerns.  **[MAA_3362391_15]**  Occupancy improved by **40 basis points from Q2 to Q3**.  **[MAA_3362391_15]**  Fraud issues are being addressed, leading to better revenue quality and reduced delinquencies.  **[MAA_3362391_15]** 

7. **Expense Outlook**  
   **Q:** Do you expect changes in operating expenses?  
   **A:** Management anticipates moderation in operating expenses, including personnel and maintenance costs.  **[MAA_3362391_23]**  Property tax growth, currently around **6%**, is also expected to moderate as valuations taper.  **[MAA_3362391_23]** 

8. **Rising Interest Rates Impact**  
   **Q:** How are rising rates impacting leasing and landlord behavior?  
   **A:** Higher interest rates have caused merchant builders to aggressively price lease-ups to stabilize quickly, intensifying competition.  **[MAA_3362391_17]** **[MAA_3362391_21]**  This pressure is expected to persist for a few quarters but should improve as supply pressures ease.  **[MAA_3362391_21]** **[MAA_3362391_22]** 

176e834001881971deaba80516d775cf8da7e6bbd54f4d29ad307cd74293a8dd

1. **Same-Store Revenue Guidance**  
   **Q:** What affects high and low ends of revenue guidance?  
   **A:** Higher new lease rates due to strong demand could push us to the high end, while lower new lease rates might result in the low end. We assume blended rent growth of **1%** for the full year, with renewals at **4.5% to 5%** and new leases at around **negative 3% to 3.25%**.  **[MAA_3372667_8]** 

2. **Lease Rate Growth Timing**  
   **Q:** When will lease rate growth turn positive?  
   **A:** We expect new lease pricing likely won't turn positive until **2025**. It may get close to flat in the middle of this year but typically turns negative in the back half. Improvement should start to appear in 2025 as supply pressures moderate.  **[MAA_3372667_10]** 

3. **Impact of Supply on Rent**  
   **Q:** What's the outlook for rents in weakest markets?  
   **A:** In markets like **Austin**, which face high supply, rent growth may struggle through **2024** and improve in **2025** as supply is absorbed. Strong job growth in these markets helps mitigate the impact.  **[MAA_3372667_14]** **[MAA_3372667_15]** 

4. **Acquisition Plans and Leverage**  
   **Q:** How high can leverage go for acquisitions?  
   **A:** We're comfortable increasing leverage up to **4.5% to 5%**, translating to a total buying power of roughly **$1.5 billion** for acquisitions if the right opportunities arise.  **[MAA_3372667_16]** 

5. **Renewal vs New Rent Rates**  
   **Q:** Why is there an 8% spread between renewal and new rents?  
   **A:** The gap, with renewals at **5%** and new lease rates down **3%**, is slightly wider than historical norms but consistent with seasonal patterns. Tenants value the cost and convenience of staying, and our customer service contributes to higher renewal rates. We expect the gap to narrow as new lease rates improve.  **[MAA_3372667_24]** 

6. **Demand and Job Growth Assumptions**  
   **Q:** What's driving demand in guidance?  
   **A:** Steady job growth, with an assumption of about **400,000 new jobs** in our markets for **2024**, along with migration trends and limited single-family home affordability, support demand. Early indications show job growth holding up well.  **[MAA_3372667_17]** 

7. **Expense Pressures**  
   **Q:** Which expenses are under pressure?  
   **A:** Uncontrollable expenses like real estate taxes are projected to grow **4.8%**, and insurance is expected to increase by **15-16%**. Controllable expenses are moderating, with repair and maintenance being the biggest driver among them.  **[MAA_3372667_26]** 

8. **Potential for Share Buybacks**  
   **Q:** Will you consider share buybacks?  
   **A:** While we focus on acquisitions and investment opportunities that support earnings growth and dividends, we have a buyback program authorized and wouldn't hesitate to use it if conditions warrant, especially if there's significant dislocation between public and private pricing.  **[MAA_3372667_35]** 

9. **Development Starts and Yields**  
   **Q:** What are expected yields on development starts?  
   **A:** We plan to start **3 to 4** developments this year, targeting stabilized yields in the **mid-6%** range. We're working to reduce construction costs and have seen **5-6%** reductions on some projects, supporting our yield goals.  **[MAA_3372667_18]** **[MAA_3372667_23]** 

10. **January Effect on Rents**  
    **Q:** Why did rents recover in January?  
    **A:** Post-holiday season, leasing traffic typically picks up as people are more willing to move. Additionally, developer lease-up aggressiveness eased after year-end, contributing to improved rental rates in January.  **[MAA_3372667_21]** **[MAA_3372667_22]** 

6152a243ffb021ee52eb4ed53df74c145bb9b96d54206b8fefdc668c742e7dab

- **MAA is experiencing historically low resident turnover rates, which remain low despite new supply entering the market.**  **[MAA_3362391_20]**
- **Strong demand fundamentals continue to support healthy absorption rates, underpinned by solid employment markets, low turnover, strong collections, wage growth, and positive migration trends.**  **[MAA_3362391_24]**
- **The company remains confident in the long-term prospects of its key markets, such as Atlanta, due to strong job growth drivers and demand dynamics.**  **[MAA_3362391_17]**

4ec78daae35719beec6c45d1d87aa21810667c0b716ad028d4a321d3e7ab4042

Mid-America Apartment Communities Inc (MAA)

Financials