Earnings summary
Mid America Apartment Communities Inc. Q1 2026 results
Reported 2026-04-30View full transcript
Snapshot
Mid America Apartment Communities Inc. reported $554M of revenue in Q1 2026, up 0.8% year over year, with diluted EPS of $1.06 and an operating margin of 26.6%.
- Revenue
- $554M
- YoY growth
- +0.8%
- Diluted EPS
- $1.06
- Operating margin
- 26.6%
$554M
Revenue
+0.8%
YoY growth
$1.06
Diluted EPS
26.6%
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.
- •In an attempt to complete our call within one hour due to other earnings calls today, we will limit questions to one per analyst.
- •Supported by our continued strong renewal performance, blended lease over lease pricing improved 140 basis points from the fourth quarter.
- •The projects we expect to start this year will deliver in 2028 and 2029 during what we believe will be a more favorable supply-demand environment.
- •Our high-growth markets continue to offer attractive long-term appeal for employers, households, and investors.
- •With positive absorption, stable demand, and market-level occupancies improving, we are optimistic we will continue to build momentum through the spring and summer, supporting improved new lease pricing as the year progresses.
- •For the first quarter, same-store NOI beat our expectations with inline same-store revenue combining with lower same-store expenses to drive the favorability.
- •Renewal lease over lease growth improved 70 basis points sequentially from the fourth quarter, driving blended lease over lease growth up 140 basis points from the fourth quarter.
- •We achieved rent increases of $104 above non-upgraded units on average unit level spend of $7,349, representing a cash-on-cash return of approximately 17%.
What went well
- •Core FFO of $2.13 per diluted share came in $0.02 ahead of Q1 guidance; favorability included same-store expenses $0.015 favorable and non-same-store NOI $0.01 favorable, partly offset by $0.005 unfavorable interest expense.
- •Same-store NOI beat expectations as in-line same-store revenue combined with lower same-store expenses; repair and maintenance, personnel, and marketing costs were all below expectations.
- •Blended lease-over-lease pricing improved 140 bps from Q4, with new lease up 110 bps sequentially and renewal up 70 bps; year-over-year blended improvement was achieved for five consecutive quarters.
- •Average physical occupancy held strong at 95.5% for the quarter and 95.5% in April; 60-day exposure of 8.3% was 20 bps better than April 2025.
- •Strong collections continued with net delinquency at just 0.3% of billed rents, in line with the last several quarters.
- •Q1 absorption exceeded new supply deliveries in the footprint, with three largest NOI markets (Atlanta, Dallas, Orlando) all outperforming the portfolio in blended pricing.
What went wrong
- •New lease pricing remained under pressure due to elevated but moderating new supply combined with macro-level economic uncertainty; Q1 blended pricing was negative at -0.3%.
- •February new lease pricing stalled out, bringing Q1 new lease pricing a little below expectations before recovering in March.
- •Austin remained a challenge particularly on the new lease pricing side; Charlotte and Savannah also faced challenges from heavy supply pressure, with Charlotte seen as more of a 2027 recovery story.
- •Elevated concessions remained on certain lease-up properties, with up to eight weeks free on certain floor plans; five lease-up properties had combined occupancy of 68.3%.
- •Development spend for the year was reduced by $50 million to $350 million due to a couple-month delay in project starts; expected starts cut to four from five-to-seven.
Guidance changes
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Performance breakdown
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Earnings call themes & trends
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