Earnings summary
Mid America Apartment Communities Inc. Q3 2025 results
Reported 2025-10-30View full transcript
Snapshot
Mid America Apartment Communities Inc. reported $554M of revenue in Q3 2025, up 0.6% year over year, with diluted EPS of $0.84 and an operating margin of 27.2%.
- Revenue
- $554M
- YoY growth
- +0.6%
- Diluted EPS
- $0.84
- Operating margin
- 27.2%
$554M
Revenue
+0.6%
YoY growth
$0.84
Diluted EPS
27.2%
Operating margin
01 Key takeaways
What management said
- •This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MAA.
- •We encourage you to refer to the Forward-Looking Statements section in yesterday's earnings release and our 34 Act filings with the SEC, which describe risk factors that may impact future results.
- •A presentation of the most directly comparable GAAP financial measures, as well as reconciliations of the differences between non-GAAP and comparable GAAP measures, can be found in our earnings release and Supplemental Financial Data.
- •Our earnings release and supplement are currently available on the For Investors page of our website at www.maac.com.
- •As highlighted in our earnings release, our third quarter core FFO results met our expectations, reinforcing the resilience of our platform and strategy.
- •While the broader economic environment has introduced some challenges, including slower job growth and tempered pricing power in new leases, we are still seeing recovery.
- •Our diversified presence across high-growth markets and more affordable price point provides access to a broader segment of the rental market that is financially strong, supporting continued strong collections.
- •Improving leasing conditions also bolster our redevelopment pipeline, offering residents a newly renovated unit at a more affordable price as compared to the higher-priced new multifamily supply.
- •After capturing additional scale and efficiencies from the Phase Two development, we are also advancing our development pipeline and securing additional attractive long-term investment opportunities.
- •In today's equity-constrained environment, our access to capital and development expertise remain competitive advantages.
- •Following quarter end, we acquired land, plans, and permits for a shovel-ready project in Scottsdale, Arizona, scheduled to begin construction in the fourth quarter.
- •With a 30-year track record of delivering through economic cycles, we remain confident in our ability to execute during this transition.
What went well
- •Core FFO of $2.16 per diluted share, in line with the midpoint of Q3 guidance.
- •Year-over-year improvements across new, renewal, and blended lease rates: new lease -5.2% (improved ~20 bps versus Q3 2024), renewal +4.5% (up 40 bps), blended +0.3% (up 50 bps).
- •Average physical occupancy improved sequentially to 95.6% (up 20 bps from Q2); 60-day exposure of 6.1%, 30 bps better than prior year, positioning for stable occupancy.
- •Strong collections continued with net delinquency at just 0.3% of billed rents; record level of lease-ups being absorbed with occupancy up 450 bps over the past five quarters.
- •Completed 2,090 interior unit upgrades with $99 rent increases above non-upgraded units and a cash-on-cash return in excess of 20% (an acceleration in both volume and rent growth from Q2).
- •Mid-tier Mid-Atlantic markets (Richmond, DC area, Savannah, Charleston, Greenville) outperformed, and Atlanta and Dallas-Fort Worth showed sequential blended pricing improvement and outperformed the same-store portfolio.
What went wrong
- •Continued lack of traction in pushing new lease rates, attributed to broad economic uncertainty and slower job growth (downward revision to job growth numbers), with new lease at -5.2%.
- •Full-year guidance lowered primarily due to the lower recovery trajectory on new lease rents.
- •Same-store NOI guidance reduced to -1.35%; effective rent growth midpoint lowered to -0.4% and total same-store revenue to -0.05%.
- •Austin continued to work through record supply pressure resulting in weak new lease pricing, and Nashville faced significant pricing pressure.
- •Leasing velocity on lease-up portfolio a little behind original expectations; stabilization date for Val Vista in Phoenix pushed one quarter, with four remaining lease-up properties at 66.1% combined occupancy.
- •Concessions in Q3 ticked up a little from Q2, with about 55%-60% of comps offering specials; new lease rates performed below expectations even as occupancy and renewals met projections.
Guidance changes
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Performance breakdown
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Earnings call themes & trends
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