Earnings summary
Mid America Apartment Communities Inc. Q4 2025 results
Reported 2026-02-05View full transcript
Snapshot
Mid America Apartment Communities Inc. reported $556M of revenue in Q4 2025, up 1.0% year over year, with diluted EPS of $0.48 and an operating margin of 28.4%.
- Revenue
- $556M
- YoY growth
- +1.0%
- Diluted EPS
- $0.48
- Operating margin
- 28.4%
$556M
Revenue
+1.0%
YoY growth
$0.48
Diluted EPS
28.4%
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 1934 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.
- •In an attempt to complete our call within one hour due to other earnings calls today, we will limit questions to one per analyst.
- •With occupancy up 10 basis points and same-store blended lease-over-lease performance 40 basis points stronger year-over-year, the recovery in fundamentals is underway.
- •While uncertainty remains in the broader economy, the level of uncertainty appears lower than what we navigated in 2025, supported by expectations for sustained GDP growth.
- •Against this improving backdrop, we anticipate demand across our markets to remain solid and broad-based, supported by stable job growth, continued immigration, healthy wage gains, and record levels of resident retention.
- •Building on this foundation, our long-term earnings growth will benefit from numerous strategic investments we're making.
- •Our residents value our communities and the exceptional service our teams provide, reflected in record retention levels, strong renewal rates, and sector-leading resident Google scores, averaging 4.7 out of five for the year.
- •Persistent single-family affordability challenges, combined with favorable demographic trends, continue to support renter demand and keep move-outs to purchase a home near historical lows.
- •As a result, we're expanding our capital investments in these areas by more than 10% in 2026.
What went well
- •Core FFO of $2.23 per diluted share met the midpoint of Q4 guidance; full-year 2025 Core FFO of $8.74 per share.
- •Blended lease rates improved 40 bps versus Q4 2024, supported by a 50 bps renewal improvement and flat new lease rates; recovery in fundamentals described as underway with four straight quarters of year-over-year blended improvement.
- •Average physical occupancy of 95.7%, a 10 bps improvement from both Q4 2024 and Q3 2025; strong collections with net delinquency at just 0.3% of billings.
- •Interior unit upgrades of 1,227 in Q4 (5,995 for the full year) at $95 above non-upgraded units and a 19% cash-on-cash return; renovated units leased on average 11 days faster.
- •Common-area and amenity repositioning over 70% repriced at six projects with average NOI yield above 10% and rent growth far exceeding peer MAA properties.
- •Mid-tier markets (Charleston, Greenville, Richmond, DC area) outperformed, and Atlanta, Dallas, and Denver showed the largest year-over-year Q4 blended pricing improvement among top 20 markets.
What went wrong
- •New lease growth remained muted (flat versus Q4 2024) due to moderating but still elevated supply combined with normal Q4 seasonal slowdown.
- •Same-store revenues were $0.01 unfavorable in Q4 due to other revenues and pricing.
- •2026 same-store NOI is projected to decline 0.75% at the midpoint, with revenue growth of just 0.55% and expenses growing 2.65%.
- •Austin remained the weakest market on pricing, working through 25% of inventory delivered cumulatively over the last four years.
- •Elevated concessions and longer lease-up periods pushed full earnings contribution from lease-up properties out about a year; three remaining lease-up properties had combined occupancy of 65.7%.
- •Winter Storm Fern impacted about 70% of the portfolio and slowed traffic for several days; Wi-Fi retrofit projects were slowed by vendor and equipment delivery delays (live on 14 of 23 started in 2025).
Guidance changes
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Performance breakdown
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Earnings call themes & trends
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