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Mid-America Apartment's Q3 FFO & Revenues Lag Estimates, Rent Declines
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Key Takeaways
MAA's Q3 core FFO per share of $2.16 missed estimates and declined 2.3% year over year.
Same-store revenues fell 0.3% as effective rent slipped, though occupancy stayed strong at 95.6%.
MAA expanded in Kansas City and Phoenix, while boosting credit capacity to $1.5 billion in October.
Mid-America Apartment Communities (MAA - Free Report) , commonly known as MAA, reported third-quarter 2025 core funds from operations (FFO) per share of $2.16, which missed the Zacks Consensus Estimate of $2.17. Moreover, the reported figure fell 2.3% year over year.
MAA has experienced a fall in same-store revenues, with average effective rent per unit declining year over year. However, the REIT witnessed low levels of resident turnover.
Rental and other property revenues of $554.4 million for the third quarter missed the Zacks Consensus Estimate of $556.1 million. However, the reported figure was marginally higher than the year-ago quarter’s tally.
MAA’s Q3 in Detail
The same-store portfolio’s revenues fell 0.3% on a year-over-year basis. MAA experienced a decline of 0.4% in the average effective rent per unit. The same-store portfolio’s property operating expenses rose 2.3% on a year-over-year basis. As a result, the same-store portfolio’s net operating income (NOI) fell 1.8%.
The average physical occupancy for the same-store portfolio in the third quarter was 95.6%. Our estimate for the same was 95.5%.
As of Sept. 30, 2025, resident turnover in the same-store portfolio remained historically low at 40.2%. This stemmed from record-low levels of move-outs related to buying single-family homes (10.8/%).
During the third quarter, MAA's same-store effective blended lease rate growth was 0.3%, with the effective new lease rate dropping 5.2%, while the effective renewal lease rate grew 4.5%.
MAA’s Portfolio Activity
In August 2025, MAA closed on acquiring a stabilized multi-family apartment community comprising 318 units, built in 2024, in the Kansas City market. In October 2025, MAA acquired a land parcel adjacent to the acquired community for the future development of a phase II multi-family expansion.
During October 2025, MAA purchased a land parcel in Phoenix, AZ, with a plan to begin construction on a 280-unit multi-family apartment community in the fourth quarter of 2025.
As of Sept.30, 2025, MAA had seven communities under development, with total expected costs of $797 million. Moreover, during the third quarter, MAA completed the development of one community and leased up three communities.
MAA’s Balance Sheet Position
MAA exited the third quarter of 2025 with cash and cash equivalents of $32.2 million, down from $54.5 million recorded as of June 30, 2025.
As of Sept. 30, 2025, MAA had a strong balance sheet with $814.7 million in combined cash and capacity available under its unsecured revolving credit facility. In October 2025, the company increased its borrowing capacity to $1.5 billion, with an option to expand it to $2 billion through an amendment to its unsecured revolving credit facility.
As of Sept. 30, 2025, MAA had a net debt/adjusted EBITDAre ratio of 4.2 times, and the total debt outstanding was $5.2 billion. Its total debt average years to maturity was 6.3 years.
MAA’s 2025 Guidance
This residential REIT revised its projections and now expects 2025 core FFO per share in the range of $8.68-$8.80 compared with $8.65-$8.89 guided earlier, with the midpoint being reduced to $8.74. The Zacks Consensus Estimate for the same is currently pegged at $8.75, which lies within the range.
For 2025, management anticipates same-store property revenue growth of -0.25% to 0.15%, with the revised midpoint now at -0.05% compared with 0.10% growth projected earlier. Operating expense growth is expected in the range of 1.80%-2.60%, with the midpoint declining to 2.20% from 2.25% growth expected earlier. As a result, the same-store NOI is anticipated to decrease between 1.90% and 0.40%, with the midpoint remaining unchanged at a drop of 1.15%.
Equity Residential (EQR - Free Report) reported third-quarter 2025 normalized FFO per share of $1.02, meeting the Zacks Consensus Estimate. The figure also climbed 4.1% from the prior-year quarter’s tally.
Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.
UDR Inc. (UDR - Free Report) reported a third-quarter 2025 FFO as adjusted (FFOA) per share of 65 cents, which outpaced the Zacks Consensus Estimate of 63 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.
The results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. The company raised its 2025 FFOA midpoint per share guidance.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Mid-America Apartment's Q3 FFO & Revenues Lag Estimates, Rent Declines
Key Takeaways
Mid-America Apartment Communities (MAA - Free Report) , commonly known as MAA, reported third-quarter 2025 core funds from operations (FFO) per share of $2.16, which missed the Zacks Consensus Estimate of $2.17. Moreover, the reported figure fell 2.3% year over year.
MAA has experienced a fall in same-store revenues, with average effective rent per unit declining year over year. However, the REIT witnessed low levels of resident turnover.
Rental and other property revenues of $554.4 million for the third quarter missed the Zacks Consensus Estimate of $556.1 million. However, the reported figure was marginally higher than the year-ago quarter’s tally.
MAA’s Q3 in Detail
The same-store portfolio’s revenues fell 0.3% on a year-over-year basis. MAA experienced a decline of 0.4% in the average effective rent per unit. The same-store portfolio’s property operating expenses rose 2.3% on a year-over-year basis. As a result, the same-store portfolio’s net operating income (NOI) fell 1.8%.
The average physical occupancy for the same-store portfolio in the third quarter was 95.6%. Our estimate for the same was 95.5%.
As of Sept. 30, 2025, resident turnover in the same-store portfolio remained historically low at 40.2%. This stemmed from record-low levels of move-outs related to buying single-family homes (10.8/%).
During the third quarter, MAA's same-store effective blended lease rate growth was 0.3%, with the effective new lease rate dropping 5.2%, while the effective renewal lease rate grew 4.5%.
MAA’s Portfolio Activity
In August 2025, MAA closed on acquiring a stabilized multi-family apartment community comprising 318 units, built in 2024, in the Kansas City market. In October 2025, MAA acquired a land parcel adjacent to the acquired community for the future development of a phase II multi-family expansion.
During October 2025, MAA purchased a land parcel in Phoenix, AZ, with a plan to begin construction on a 280-unit multi-family apartment community in the fourth quarter of 2025.
As of Sept.30, 2025, MAA had seven communities under development, with total expected costs of $797 million. Moreover, during the third quarter, MAA completed the development of one community and leased up three communities.
MAA’s Balance Sheet Position
MAA exited the third quarter of 2025 with cash and cash equivalents of $32.2 million, down from $54.5 million recorded as of June 30, 2025.
As of Sept. 30, 2025, MAA had a strong balance sheet with $814.7 million in combined cash and capacity available under its unsecured revolving credit facility. In October 2025, the company increased its borrowing capacity to $1.5 billion, with an option to expand it to $2 billion through an amendment to its unsecured revolving credit facility.
As of Sept. 30, 2025, MAA had a net debt/adjusted EBITDAre ratio of 4.2 times, and the total debt outstanding was $5.2 billion. Its total debt average years to maturity was 6.3 years.
MAA’s 2025 Guidance
This residential REIT revised its projections and now expects 2025 core FFO per share in the range of $8.68-$8.80 compared with $8.65-$8.89 guided earlier, with the midpoint being reduced to $8.74. The Zacks Consensus Estimate for the same is currently pegged at $8.75, which lies within the range.
For 2025, management anticipates same-store property revenue growth of -0.25% to 0.15%, with the revised midpoint now at -0.05% compared with 0.10% growth projected earlier. Operating expense growth is expected in the range of 1.80%-2.60%, with the midpoint declining to 2.20% from 2.25% growth expected earlier. As a result, the same-store NOI is anticipated to decrease between 1.90% and 0.40%, with the midpoint remaining unchanged at a drop of 1.15%.
MAA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. price-consensus-eps-surprise-chart | Mid-America Apartment Communities, Inc. Quote
Performance of Other Residential REITs
Equity Residential (EQR - Free Report) reported third-quarter 2025 normalized FFO per share of $1.02, meeting the Zacks Consensus Estimate. The figure also climbed 4.1% from the prior-year quarter’s tally.
Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.
UDR Inc. (UDR - Free Report) reported a third-quarter 2025 FFO as adjusted (FFOA) per share of 65 cents, which outpaced the Zacks Consensus Estimate of 63 cents. This also compares favorably with the prior-year quarter’s reported figure of 62 cents.
The results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. The company raised its 2025 FFOA midpoint per share guidance.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.