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Rental and other property revenues rose 1% year over year to $560.13 million, exceeding the $557.98 million consensus mark, driven by increased contributions from non-same-store and lease-up communities. Occupancy gains and improving renewal lease pricing during the quarter supported performance.
MAA's Newer Communities Support Revenue Growth
Non-same-store community revenues increased to $28.95 million from $25.99 million in the year-ago quarter. Revenues from lease-up and development communities rose to $4.82 million from $0.62 million, providing another lift to the top line.
Total multifamily portfolio revenues reached $552.84 million, up from $547.62 million. However, total property NOI edged down marginally to $337.86 million from $338.31 million, reflecting weaker performance at established communities despite contributions from newer assets.
Mid-America Apartment's Same-Store NOI Declines
Same-store revenues fell marginally year over year to $519.07 million, while property operating expenses rose 2% to $203.03 million. Same-store NOI dropped 1.8% to $316.04 million from $321.88 million a year ago.
Utilities costs increased 5.3%, building repairs and maintenance expenses climbed 4.8%, and marketing costs surged 14.3%. These increases more than offset lower insurance and property tax expenses. Average effective rent per unit slipped marginally to $1,691, while average physical occupancy eased to 95.3% from 95.6%.
MAA's Leasing Trends Remain Mixed
Effective blended lease-rate growth was 0.4%, improving 10 basis points year over year. Renewal lease rates increased 5.3%, representing an 80-basis-point improvement, but effective new-lease rates declined 6%.
Resident turnover stayed historically low at 39.6%. Move-outs tied to residents buying single-family homes accounted for just 10.1% during the quarter, supporting resident retention.
Management noted that new-resident pricing improved in October compared with September, counter to the usual seasonal pattern. October also marked the year's first year-over-year improvement in new-resident lease-over-lease pricing, while blended pricing accelerated by more than 100 basis points year over year.
Mid-America Apartment Expands Its Development Pipeline
MAA ended September with eight projects under development, encompassing 2,236 apartment units. Expected development costs totaled $760 million, including $395.58 million incurred and $364.42 million remaining. During the quarter, it began construction in Northern Virginia and Nashville and a second-phase expansion in Kansas City.
Four lease-up communities contained 1,166 units and were 77.6% occupied at quarter-end. The company completed the initial lease-up of MAA Val Vista in Phoenix and MAA Breakwater in Tampa. Two of its four current lease-up projects are expected to stabilize in the fourth quarter of 2026, with the others scheduled for 2027.
MAA Maintains Liquidity While Debt Costs Rise
MAA finished September with $660.70 million in combined cash and borrowing availability. Total debt stood at $5.84 billion, carrying an average effective interest rate of 4.1%. Fixed-rate borrowings comprised 79.3% of debt, while net debt to adjusted EBITDAre increased to 4.7 times from 4.5 times at the previous quarter end.
Consolidated interest expense rose 18% year over year to $54.63 million. During the quarter, the operating partnership borrowed another $250 million through its delayed-draw term loan, bringing the outstanding balance to $350 million. MAA also repurchased 0.4 million shares for $50 million.
Mid-America Apartment Lowers Its 2026 FFO Outlook
The company trimmed full-year core FFO guidance to $8.43-$8.55 per share from $8.41-$8.65. The revised midpoint of $8.49 is below the previous $8.53 and the Zacks Consensus Estimate of $8.51.
MAA also reduced its same-store property revenue outlook to negative 0.4% to negative 0.1%, compared with the previous range of negative 0.2% to positive 0.4%. Same-store NOI is now expected to fall 0.8%-1.7% versus the earlier decline of 0.1%-1.7%.
For the fourth quarter, management anticipates core FFO of $2.12-$2.24 per share, with a $2.18 midpoint compared with the $2.20 consensus mark.
Essex Property Trust, Inc. (ESS - Free Report) reported third-quarter 2026 core funds from operations (FFO) of $4.00 per share, missing the Zacks Consensus Estimate of $4.01. Core FFO grew marginally from $3.97 a year ago. Results reflected rising cost pressures, with total expenses increasing 5.4%, outpacing revenue growth.
Invitation Homes Inc. (INVH - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of 48 cents, meeting the Zacks Consensus Estimate. This compares to FFO of 47 cents a year ago. Homebuilding revenues and higher same-store revenues supported growth, while same-store NOI advanced 1.1%.
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's Q3 FFO Meets Estimates, Revenues Beat as Occupancy Gains
Key Takeaways
Mid-America Apartment Communities, Inc. (MAA - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of $2.10, matching the Zacks Consensus Estimate. The metric declined 2.8% from a year earlier.
Rental and other property revenues rose 1% year over year to $560.13 million, exceeding the $557.98 million consensus mark, driven by increased contributions from non-same-store and lease-up communities. Occupancy gains and improving renewal lease pricing during the quarter supported performance.
MAA's Newer Communities Support Revenue Growth
Non-same-store community revenues increased to $28.95 million from $25.99 million in the year-ago quarter. Revenues from lease-up and development communities rose to $4.82 million from $0.62 million, providing another lift to the top line.
Total multifamily portfolio revenues reached $552.84 million, up from $547.62 million. However, total property NOI edged down marginally to $337.86 million from $338.31 million, reflecting weaker performance at established communities despite contributions from newer assets.
Mid-America Apartment's Same-Store NOI Declines
Same-store revenues fell marginally year over year to $519.07 million, while property operating expenses rose 2% to $203.03 million. Same-store NOI dropped 1.8% to $316.04 million from $321.88 million a year ago.
Utilities costs increased 5.3%, building repairs and maintenance expenses climbed 4.8%, and marketing costs surged 14.3%. These increases more than offset lower insurance and property tax expenses. Average effective rent per unit slipped marginally to $1,691, while average physical occupancy eased to 95.3% from 95.6%.
MAA's Leasing Trends Remain Mixed
Effective blended lease-rate growth was 0.4%, improving 10 basis points year over year. Renewal lease rates increased 5.3%, representing an 80-basis-point improvement, but effective new-lease rates declined 6%.
Resident turnover stayed historically low at 39.6%. Move-outs tied to residents buying single-family homes accounted for just 10.1% during the quarter, supporting resident retention.
Management noted that new-resident pricing improved in October compared with September, counter to the usual seasonal pattern. October also marked the year's first year-over-year improvement in new-resident lease-over-lease pricing, while blended pricing accelerated by more than 100 basis points year over year.
Mid-America Apartment Expands Its Development Pipeline
MAA ended September with eight projects under development, encompassing 2,236 apartment units. Expected development costs totaled $760 million, including $395.58 million incurred and $364.42 million remaining. During the quarter, it began construction in Northern Virginia and Nashville and a second-phase expansion in Kansas City.
Four lease-up communities contained 1,166 units and were 77.6% occupied at quarter-end. The company completed the initial lease-up of MAA Val Vista in Phoenix and MAA Breakwater in Tampa. Two of its four current lease-up projects are expected to stabilize in the fourth quarter of 2026, with the others scheduled for 2027.
MAA Maintains Liquidity While Debt Costs Rise
MAA finished September with $660.70 million in combined cash and borrowing availability. Total debt stood at $5.84 billion, carrying an average effective interest rate of 4.1%. Fixed-rate borrowings comprised 79.3% of debt, while net debt to adjusted EBITDAre increased to 4.7 times from 4.5 times at the previous quarter end.
Consolidated interest expense rose 18% year over year to $54.63 million. During the quarter, the operating partnership borrowed another $250 million through its delayed-draw term loan, bringing the outstanding balance to $350 million. MAA also repurchased 0.4 million shares for $50 million.
Mid-America Apartment Lowers Its 2026 FFO Outlook
The company trimmed full-year core FFO guidance to $8.43-$8.55 per share from $8.41-$8.65. The revised midpoint of $8.49 is below the previous $8.53 and the Zacks Consensus Estimate of $8.51.
MAA also reduced its same-store property revenue outlook to negative 0.4% to negative 0.1%, compared with the previous range of negative 0.2% to positive 0.4%. Same-store NOI is now expected to fall 0.8%-1.7% versus the earlier decline of 0.1%-1.7%.
For the fourth quarter, management anticipates core FFO of $2.12-$2.24 per share, with a $2.18 midpoint compared with the $2.20 consensus mark.
MAA’s Zacks Rank
Currently, MAA carries a Zacks Rank #4 (Sell).
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
Essex Property Trust, Inc. (ESS - Free Report) reported third-quarter 2026 core funds from operations (FFO) of $4.00 per share, missing the Zacks Consensus Estimate of $4.01. Core FFO grew marginally from $3.97 a year ago. Results reflected rising cost pressures, with total expenses increasing 5.4%, outpacing revenue growth.
Invitation Homes Inc. (INVH - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of 48 cents, meeting the Zacks Consensus Estimate. This compares to FFO of 47 cents a year ago. Homebuilding revenues and higher same-store revenues supported growth, while same-store NOI advanced 1.1%.
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.