Item 1. Financial Statements.

Mid-America Apartment Communities, Inc.

Condensed Consolida****ted Balance Sheets

(Unaudited)

(Dollars in thousands, except per share data)

		March 31, 2025				December 31, 2024
Assets
Real estate assets:
Land		$	2,096,912			$	2,096,912
Buildings and improvements and other			14,286,757				14,160,799
Development and capital improvements in progress			485,254				470,282
			16,868,923				16,727,993
Less: Accumulated depreciation			(5,478,208	)			(5,327,584	)
			11,390,715				11,400,409
Undeveloped land			73,359				73,359
Investment in real estate joint venture			41,790				41,650
Real estate assets, net			11,505,864				11,515,418
Cash and cash equivalents			55,776				43,018
Restricted cash			13,678				13,743
Other assets			236,639				232,426
Assets held for sale			—				7,764
Total assets		$	11,811,957			$	11,812,369
Liabilities and equity
Liabilities:
Unsecured notes payable		$	4,681,868			$	4,620,690
Secured notes payable			360,298				360,267
Accrued expenses and other liabilities			611,896				683,748
Total liabilities			5,654,062				5,664,705
Redeemable common stock			24,425				22,230
Shareholders’ equity:
Preferred stock, $0.01 par value per share, 20,000,000 shares authorized;8.50% Series I Cumulative Redeemable Shares, liquidation preference $50.00per share, 867,846 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively			9				9
Common stock, $0.01 par value per share, 145,000,000 shares authorized;116,916,381 and 116,883,421 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively (1)			1,166				1,166
Additional paid-in capital			7,422,913				7,417,453
Accumulated distributions in excess of net income			(1,467,858	)			(1,469,557	)
Accumulated other comprehensive loss			(6,522	)			(6,940	)
Total MAA shareholders’ equity			5,949,708				5,942,131
Noncontrolling interests - OP Units			154,810				155,409
Total Company’s shareholders’ equity			6,104,518				6,097,540
Noncontrolling interests - consolidated real estate entities			28,952				27,894
Total equity			6,133,470				6,125,434
Total liabilities and equity		$	11,811,957			$	11,812,369

(1)

Number of shares issued and outstanding represents total shares of common stock regardless of classification on the Condensed Consolidated Balance Sheets. The number of shares classified as redeemable common stock on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 are 145,754 and 143,822, respectively.

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated S****tatements of Operations

(Unaudited)

(Dollars in thousands, except per share data)

		Three months ended March 31,
		2025				2024
Revenues:
Rental and other property revenues		$	549,295			$	543,622
Expenses:
Operating expenses, excluding real estate taxes and insurance			124,955				118,199
Real estate taxes and insurance			76,398				79,603
Depreciation and amortization			152,350				143,020
Total property operating expenses			353,703				340,822
Property management expenses			20,578				19,995
General and administrative expenses			15,619				17,045
Interest expense			45,161				40,361
(Gain) loss on sale of depreciable real estate assets			(71,911	)			2
Other non-operating income			(834	)			(23,526	)
Income before income tax expense			186,979				148,923
Income tax expense			(1,038	)			(1,795	)
Income from continuing operations before real estate joint venture activity			185,941				147,128
Income from real estate joint venture			465				482
Net income			186,406				147,610
Net income attributable to noncontrolling interests			4,733				3,861
Net income available for shareholders			181,673				143,749
Dividends to MAA Series I preferred shareholders			922				922
Net income available for MAA common shareholders		$	180,751			$	142,827
Earnings per common share - basic:
Net income available for MAA common shareholders		$	1.55			$	1.22
Earnings per common share - diluted:
Net income available for MAA common shareholders		$	1.54			$	1.22

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statem****ents of Comprehensive Income

(Unaudited)

(Dollars in thousands)

		Three months ended March 31,
		2025				2024
Net income		$	186,406			$	147,610
Other comprehensive income:
Adjustment for net losses reclassified to net income from derivative instruments			429				517
Total comprehensive income			186,835				148,127
Less: Comprehensive income attributable to noncontrolling interests			(4,744	)			(3,877	)
Comprehensive income attributable to MAA		$	182,091			$	144,250

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated S****tatements of Cash Flows

(Unaudited)

(Dollars in thousands)

		Three months ended March 31,
Cash flows from operating activities:		2025				2024
Net income		$	186,406			$	147,610
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			152,520				143,258
(Gain) loss on sale of depreciable real estate assets			(71,911	)			2
Loss (gain) on embedded derivative in preferred shares			410				(13,092	)
Stock compensation expense			5,261				5,869
Amortization of debt issuance costs, discounts and premiums			1,616				1,529
Gain on investments			(810	)			(5,172	)
Net change in operating accounts and other operating activities			(76,874	)			(79,747	)
Net cash provided by operating activities			196,618				200,257
Cash flows from investing activities:
Purchases of real estate and other assets			—				(20	)
Capital improvements and other			(72,636	)			(52,101	)
Development costs			(66,222	)			(45,512	)
Distributions from real estate joint venture			—				100
Contributions to affiliates			(3,675	)			(750	)
Proceeds from real estate asset dispositions			81,128				—
Net proceeds from insurance recoveries			—				5,271
Net cash used in investing activities			(61,405	)			(93,012	)
Cash flows from financing activities:
Net proceeds from (payments of) commercial paper			60,000				(260,000	)
Proceeds from notes payable			—				346,567
Payment of deferred financing costs			—				(3,450	)
Distributions to noncontrolling interests			(4,660	)			(4,621	)
Dividends paid on common shares			(177,107	)			(171,570	)
Dividends paid on preferred shares			(922	)			(922	)
Proceeds from issuances of common shares			375				303
Net change in other financing activities			(206	)			(567	)
Net cash used in financing activities			(122,520	)			(94,260	)
Net increase in cash, cash equivalents and restricted cash			12,693				12,985
Cash, cash equivalents and restricted cash, beginning of period			56,761				55,091
Cash, cash equivalents and restricted cash, end of period		$	69,454			$	68,076

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash at period end:
Cash and cash equivalents		$	55,776			$	54,601
Restricted cash			13,678				13,475
Total cash, cash equivalents and restricted cash		$	69,454			$	68,076
Supplemental information:
Interest paid		$	52,393			$	32,785
Non-cash transactions:
Distributions on common shares/units declared and accrued		$	181,765			$	176,195
Accrued construction in progress			34,599				28,643
Interest capitalized			5,105				3,416
Conversion of OP Units to shares of common stock			759				594

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolida****ted Balance Sheets

(Unaudited)

(Dollars in thousands)

		March 31, 2025				December 31, 2024
Assets
Real estate assets:
Land		$	2,096,912			$	2,096,912
Buildings and improvements and other			14,286,757				14,160,799
Development and capital improvements in progress			485,254				470,282
			16,868,923				16,727,993
Less: Accumulated depreciation			(5,478,208	)			(5,327,584	)
			11,390,715				11,400,409
Undeveloped land			73,359				73,359
Investment in real estate joint venture			41,790				41,650
Real estate assets, net			11,505,864				11,515,418
Cash and cash equivalents			55,776				43,018
Restricted cash			13,678				13,743
Other assets			236,639				232,426
Assets held for sale			—				7,764
Total assets		$	11,811,957			$	11,812,369
Liabilities and capital
Liabilities:
Unsecured notes payable		$	4,681,868			$	4,620,690
Secured notes payable			360,298				360,267
Accrued expenses and other liabilities			611,896				683,748
Due to general partner			19				19
Total liabilities			5,654,081				5,664,724
Redeemable common units			24,425				22,230
Operating Partnership capital:
Preferred units, 8.50% Series I Cumulative Redeemable Units, 867,846 preferred units outstanding as of March 31, 2025 and December 31, 2024, respectively			66,840				66,840
General partner, 116,916,381 and 116,883,421 OP Units outstanding as of March 31, 2025 and December 31, 2024, respectively (1)			5,889,484				5,882,336
Limited partners, 3,060,552 and 3,075,552 OP Units outstanding as of March 31, 2025 and December 31, 2024, respectively (1)			154,810				155,409
Accumulated other comprehensive loss			(6,635	)			(7,064	)
Total operating partners’ capital			6,104,499				6,097,521
Noncontrolling interests - consolidated real estate entities			28,952				27,894
Total equity			6,133,451				6,125,415
Total liabilities and equity		$	11,811,957			$	11,812,369

(1) Number of units outstanding represents total OP Units regardless of classification on the Condensed Consolidated Balance Sheets. The number of units classified as redeemable common units on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 are 145,754 and 143,822, respectively.

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated S****tatements of Operations

(Unaudited)

(Dollars in thousands, except per unit data)

		Three months ended March 31,
		2025				2024
Revenues:
Rental and other property revenues		$	549,295			$	543,622
Expenses:
Operating expenses, excluding real estate taxes and insurance			124,955				118,199
Real estate taxes and insurance			76,398				79,603
Depreciation and amortization			152,350				143,020
Total property operating expenses			353,703				340,822
Property management expenses			20,578				19,995
General and administrative expenses			15,619				17,045
Interest expense			45,161				40,361
(Gain) loss on sale of depreciable real estate assets			(71,911	)			2
Other non-operating income			(834	)			(23,526	)
Income before income tax expense			186,979				148,923
Income tax expense			(1,038	)			(1,795	)
Income from continuing operations before real estate joint venture activity			185,941				147,128
Income from real estate joint venture			465				482
Net income			186,406				147,610
Distributions to MAALP Series I preferred unitholders			922				922
Net income available for MAALP common unitholders		$	185,484			$	146,688
Earnings per common unit - basic:
Net income available for MAALP common unitholders		$	1.55			$	1.22
Earnings per common unit - diluted:
Net income available for MAALP common unitholders		$	1.54			$	1.22

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated Statem****ents of Comprehensive Income

(Unaudited)

(Dollars in thousands)

		Three months ended March 31,
		2025				2024
Net income		$	186,406			$	147,610
Other comprehensive income:
Adjustment for net losses reclassified to net income from derivative instruments			429				517
Comprehensive income attributable to MAALP		$	186,835			$	148,127

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated S****tatements of Cash Flows

(Unaudited)

(Dollars in thousands)

		Three months ended March 31,
Cash flows from operating activities:		2025				2024
Net income		$	186,406			$	147,610
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			152,520				143,258
(Gain) loss on sale of depreciable real estate assets			(71,911	)			2
Loss (gain) on embedded derivative in preferred shares			410				(13,092	)
Stock compensation expense			5,261				5,869
Amortization of debt issuance costs, discounts and premiums			1,616				1,529
Gain on investments			(810	)			(5,172	)
Net change in operating accounts and other operating activities			(76,874	)			(79,747	)
Net cash provided by operating activities			196,618				200,257
Cash flows from investing activities:
Purchases of real estate and other assets			—				(20	)
Capital improvements and other			(72,636	)			(52,101	)
Development costs			(66,222	)			(45,512	)
Distributions from real estate joint venture			—				100
Contributions to affiliates			(3,675	)			(750	)
Proceeds from real estate asset dispositions			81,128				—
Net proceeds from insurance recoveries			—				5,271
Net cash used in investing activities			(61,405	)			(93,012	)
Cash flows from financing activities:
Net proceeds from (payments of) commercial paper			60,000				(260,000	)
Proceeds from notes payable			—				346,567
Payment of deferred financing costs			—				(3,450	)
Distributions paid on common units			(181,767	)			(176,191	)
Distributions paid on preferred units			(922	)			(922	)
Proceeds from issuances of common units			375				303
Net change in other financing activities			(206	)			(567	)
Net cash used in financing activities			(122,520	)			(94,260	)
Net increase in cash, cash equivalents and restricted cash			12,693				12,985
Cash, cash equivalents and restricted cash, beginning of period			56,761				55,091
Cash, cash equivalents and restricted cash, end of period		$	69,454			$	68,076

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash at period end:
Cash and cash equivalents		$	55,776			$	54,601
Restricted cash			13,678				13,475
Total cash, cash equivalents and restricted cash		$	69,454			$	68,076
Supplemental information:
Interest paid		$	52,393			$	32,785
Non-cash transactions:
Distributions on common units declared and accrued		$	181,765			$	176,195
Accrued construction in progress			34,599				28,643
Interest capitalized			5,105				3,416

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

Notes to Condensed Consoli****dated Financial Statements

(Unaudited)

1. Organization and Summary of Significant Accounting Policies

Unless the context otherwise requires, all references to the “Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references to “MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, the references to the “Operating Partnership” or “MAALP” refer to Mid-America Apartments, L.P., together with its consolidated subsidiaries. “Common stock” refers to the common stock of MAA, “preferred stock” refers to the preferred stock of MAA, and “shareholders” refers to the holders of shares of MAA’s common stock or preferred stock, as applicable. The common units of limited partnership interests in the Operating Partnership are referred to as “OP Units,” and the holders of the OP Units are referred to as “common unitholders.”

As of March 31, 2025, MAA owned 116,916,381 OP Units (or 97.4% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership’s sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

Management believes combining the notes to the condensed consolidated financial statements of MAA and the Operating Partnership results in the following benefits:

enhances a readers’ understanding of MAA and the Operating Partnership by enabling the reader to view the business as a whole in the same manner that management views and operates the business;

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MAA and the Operating Partnership; and

creates time and cost efficiencies through the preparation of one combined set of notes instead of two separate sets.

MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. The management of the Company is comprised of individuals who are officers of MAA and employees of the Operating Partnership. Management believes it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an umbrella partnership REIT, or UPREIT. MAA’s interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA’s percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA’s only material asset is its ownership of limited partnership interests in the Operating Partnership (other than cash held by MAA from time to time); therefore, MAA’s primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership from time to time. The Operating Partnership holds, directly or indirectly, all of the Company’s real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the business through the Operating Partnership’s operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentations of MAA’s shareholders’ equity and the Operating Partnership’s capital are the principal areas of difference between the condensed consolidated financial statements of MAA and those of the Operating Partnership. MAA’s shareholders’ equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interests, treasury shares, accumulated other comprehensive income or loss and redeemable common stock. The Operating Partnership’s capital may include common capital and preferred capital of the general partner (MAA), limited partners’ common capital and preferred capital, noncontrolling interests, accumulated other comprehensive income or loss and redeemable common units. Holders of OP Units (other than MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

Organization of Mid-America Apartment Communities, Inc.

The Company owns, operates, acquires and selectively develops apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the U.S. As of March 31, 2025, the Company owned and operated 291 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries and had an ownership interest in one apartment community through an unconsolidated real estate joint venture. As of March 31, 2025, the Company also had seven development communities under construction, totaling 2,312 apartment units once complete, and development costs of $546.5 million had been incurred through March 31, 2025. The Company expects to complete two of these developments in 2025, four in 2026 and one in 2027. As of March 31, 2025, 35 of the Company’s apartment communities included retail components. The Company’s apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of March 31, 2025.

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared by the Company’s management in accordance with U.S. generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC. The condensed consolidated financial statements of MAA presented herein include the accounts of MAA, the Operating Partnership and all other subsidiaries in which MAA has a controlling financial interest. MAA owns, directly or indirectly, approximately 80% to 100% of all consolidated subsidiaries, including the Operating Partnership. In management’s opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included, and all such adjustments were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company invests in entities that may qualify as variable interest entities, or VIEs, and MAALP is considered a VIE. A VIE is a legal entity in which the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack the power to direct the activities of a legal entity as well as the obligation to absorb its expected losses or the right to receive its expected residual returns. The Company consolidates all VIEs for which it is the primary beneficiary and uses the equity method to account for investments that qualify as VIEs but for which it is not the primary beneficiary. In determining whether the Company is the primary beneficiary of a VIE, management considers both qualitative and quantitative factors, including, but not limited to, those activities that most significantly impact the VIE’s economic performance and which party controls such activities. MAALP is classified as a VIE because the limited partners lack substantive kick-out rights and substantive participating rights, and the Company has concluded it is the primary beneficiary of MAALP. The Company uses the equity method of accounting for its investments in entities for which the Company exercises significant influence but does not have the ability to exercise control. The factors considered in determining whether the Company has the ability to exercise significant influence or control include ownership of voting interests and participatory rights of investors (see “Investments in Unconsolidated Affiliates” below).

Noncontrolling Interests

As of March 31, 2025, the Company had two types of noncontrolling interests with respect to its consolidated subsidiaries: (1) noncontrolling interests related to the common unitholders of its Operating Partnership; and (2) noncontrolling interests related to its consolidated real estate entities. The noncontrolling interests relating to the limited partnership interests in the Operating Partnership are owned by the holders of the Class A OP Units. MAA is the sole general partner of the Operating Partnership and holds all of the outstanding Class B OP Units. Net income (after allocations to preferred ownership interests) is allocated to MAA and the noncontrolling interests based on their respective ownership percentages of the Operating Partnership. Issuance of additional Class A OP Units or Class B OP Units changes the ownership percentage of both the noncontrolling interests and MAA. The issuance of Class B OP Units generally occurs when MAA issues common stock and the issuance proceeds are contributed to the Operating Partnership in exchange for Class B OP Units equal to the number of shares of MAA’s common stock issued. At each reporting period, the allocation between total MAA shareholders’ equity and noncontrolling interests is adjusted to account for the change in the respective percentage ownership of the underlying equity of the Operating Partnership. MAA’s Board of Directors established economic rights in respect to each Class A OP Unit that were equivalent to the economic rights in respect to each share of MAA common stock. See Note 9 for additional details.

The noncontrolling interests relating to the Company’s consolidated real estate entities are owned by private real estate companies that are generally responsible for the development, construction and lease-up of the apartment communities that are owned through the consolidated real estate entities with a noncontrolling interest. The entities were determined to be VIE’s with the Company designated as the primary beneficiary. As a result, the accounts of the entities are consolidated by the Company. As of March 31, 2025, the consolidated assets of the Company’s consolidated real estate entities with a noncontrolling interest were $463.8 million, and consolidated liabilities were $20.8 million, net of eliminations. As of December 31, 2024, the consolidated assets of the Company’s consolidated real estate entities with a noncontrolling interest were $432.2 million, and consolidated liabilities were $27.1 million, net of eliminations.

Investments in Unconsolidated Affiliates

The Company uses the equity method to account for its investments in a real estate joint venture, as well as six technology-focused limited partnerships that each qualify as a VIE. Management determined the Company is not the primary beneficiary in any of these investments but does have the ability to exert significant influence over the operations and financial policies of the real estate joint venture and considers its investments in the limited partnerships to be more than minor. The Company’s investment in the real estate joint venture was $41.8 million and $41.7 million as of March 31, 2025 and December 31, 2024, respectively, and is included in “Investment in real estate joint venture” in the accompanying Condensed Consolidated Balance Sheets.

The Company accounts for its investments in the technology-focused limited partnerships on a three month lag due to the timing the limited partnerships’ financial information is made available to the Company. As of March 31, 2025 and December 31, 2024, the Company’s investments in the limited partnerships were $67.6 million and $62.2 million, respectively, and are included in “Other assets” in the accompanying Condensed Consolidated Balance Sheets with any related earnings, including unrealized gains and losses on the underlying investments of the limited partnerships which are recorded at the estimated fair value, recognized in “Other non-operating income” in the accompanying Condensed Consolidated Statements of Operations. During the three months ended March 31, 2025 and 2024, the Company recognized $1.7 million and $8.1 million of income, respectively, from its investments in the limited partnerships. As of March 31, 2025, the Company was committed to make additional capital contributions totaling $26.9 million if and when called by the general partners of the limited partnerships.

Marketable Equity Securities

The Company’s investment in marketable equity securities is measured at fair value based on the quoted share price of the securities and is included in “Other assets” in the accompanying Condensed Consolidated Balance Sheets, with any related gains and losses, including realized and unrealized gains and losses, recognized in “Other non-operating income” in the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2025 and December 31, 2024, the Company’s investment in the marketable equity securities was $2.3 million and $3.3 million, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized $1.0 million and $3.0 million of expense, respectively, from its investment in marketable equity securities.

Revenue Recognition

The Company primarily leases multifamily residential apartments to residents under operating leases generally due on a monthly basis with terms of approximately one year or less. Rental revenues are recognized in accordance with Accounting Standards Codification (“ASC”) Topic 842, Leases, using a method that represents a straight-line basis over the term of the lease. In addition, in circumstances where a lease incentive is provided to residents, the incentive is recognized as a reduction of rental revenues on a straight-line basis over the reasonably assured lease term. Rental revenues represent approximately 94% of the Company’s total revenues and include gross rents charged less adjustments for concessions and bad debt. Approximately 5% of the Company’s total revenues represent reimbursable property revenues from its residents for utility reimbursements, which are generally recognized and due on a monthly basis as residents obtain control of the service over the term of the lease. The remaining 1% of the Company’s total revenues represents other non-lease property revenues primarily driven by nonrefundable fees and commissions, which are recognized when earned.

In accordance with ASC Topic 842, rental revenues and reimbursable property revenues meet the criteria to be aggregated into a single lease component and are reported on a combined basis in the line item “Rental revenues,” as presented in the disaggregation of the Company’s revenues in Note 11. Other non-lease property revenues are accounted for in accordance with ASC Topic 606, Revenue from Contracts with Customers, which requires revenue recognized outside of the scope of ASC Topic 842 to be recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Other non-lease property revenues are reported in the line item “Other property revenues,” as presented in the disaggregation of the Company’s revenues in Note 11.

Leases

The Company is the lessee under certain ground, office, equipment and other operational leases, all of which are accounted for as operating leases in accordance with ASC Topic 842. The Company recognizes a right-of-use asset for the right to use the underlying asset for all leases where the Company is the lessee with terms of more than 12 months, and a related lease liability for the obligation to make lease payments. Expenses related to leases determined to be operating leases are recognized on a straight-line basis. As of March 31, 2025 and December 31, 2024, right-of-use assets recorded within “Other assets” totaled $39.9 million and $40.5 million, respectively, and related lease liabilities recorded within “Accrued expenses and other liabilities” totaled $25.7 million and $26.1 million, respectively, in the Condensed Consolidated Balance Sheets. Lease expense recognized for the three months ended March 31, 2025 and 2024 was immaterial to the Company. Cash paid for amounts included in the measurement of operating lease liabilities during the three months ended March 31, 2025 and 2024 was also immaterial. See Note 10 for additional disclosures regarding leases.

Fair Value Measurements

The Company applies the guidance in ASC Topic 820, Fair Value Measurements and Disclosures, to the valuation of acquired real estate assets recorded at fair value, to its impairment valuation analysis of real estate assets and to its valuation and disclosure of the fair value of financial instruments, which primarily consists of marketable equity securities, indebtedness and derivative instruments. Fair value disclosures required under ASC Topic 820 for the Company’s financial instruments as well as the Company’s derivative accounting policies are summarized in Note 7 utilizing the following hierarchy:

Level 1 - Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the assets or liability.

Certain long-lived assets are recorded at fair value when they are acquired or initially consolidated. The inputs associated with the valuation of long-lived assets are generally included in Level 2 of the fair value hierarchy.

2. Earnings per Common Share of MAA

Basic earnings per share is computed using the two-class method by dividing net income available to MAA common shareholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis with diluted earnings per share being the more dilutive of the treasury stock or two-class methods. OP Units are included in dilutive earnings per share calculations when the units are dilutive to earnings per share.

For the three months ended March 31, 2025 and 2024, MAA’s diluted earnings per share was computed using the treasury stock method as presented below (dollars and shares in thousands, except per share amounts):

		Three months ended March 31,
		2025				2024
Calculation of Earnings per common share - basic
Net income		$	186,406			$	147,610
Net income attributable to noncontrolling interests			(4,733	)			(3,861	)
Unvested restricted shares (allocation of earnings)			(96	)			(62	)
Dividends to MAA Series I preferred shareholders			(922	)			(922	)
Net income available for MAA common shareholders, adjusted		$	180,655			$	142,765
Weighted average common shares - basic			116,840				116,668
Earnings per common share - basic		$	1.55			$	1.22
Calculation of Earnings per common share - diluted
Net income		$	186,406			$	147,610
Net income attributable to noncontrolling interests (1)			(4,733	)			(3,861	)
Dividends to MAA Series I preferred shareholders			(922	)			(922	)
Net income available for MAA common shareholders, adjusted		$	180,751			$	142,827
Weighted average common shares - basic			116,840				116,668
Effect of dilutive securities			252				112
Weighted average common shares - diluted			117,092				116,780
Earnings per common share - diluted		$	1.54			$	1.22

(1)

For the three months ended March 31, 2025 and 2024, 3.1 million OP Units and their related income are not included in the diluted earnings per share calculations as they are not dilutive.

3. Earnings per OP Unit of MAALP

Basic earnings per common unit is computed using the two-class method by dividing net income available for common unitholders by the weighted average number of OP Units outstanding during the period. All outstanding unvested restricted unit awards contain rights to non-forfeitable distributions and participate in undistributed earnings with common unitholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common unit. Diluted earnings per common unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units. Both the unvested restricted unit awards and other potentially dilutive common units, and the related impact to earnings, are considered when calculating earnings per common unit on a diluted basis with diluted earnings per common unit being the more dilutive of the treasury stock or two-class methods.

For the three months ended March 31, 2025 and 2024, MAALP’s diluted earnings per common unit was computed using the treasury stock method as presented below (dollars and units in thousands, except per unit amounts):

		Three months ended March 31,
		2025				2024
Calculation of Earnings per common unit - basic
Net income		$	186,406			$	147,610
Unvested restricted units (allocation of earnings)			(96	)			(62	)
Distributions to MAALP Series I preferred unitholders			(922	)			(922	)
Net income available for MAALP common unitholders, adjusted		$	185,388			$	146,626
Weighted average common units - basic			119,913				119,806
Earnings per common unit - basic		$	1.55			$	1.22
Calculation of Earnings per common unit - diluted
Net income		$	186,406			$	147,610
Distributions to MAALP Series I preferred unitholders			(922	)			(922	)
Net income available for MAALP common unitholders, adjusted		$	185,484			$	146,688
Weighted average common units - basic			119,913				119,806
Effect of dilutive securities			252				112
Weighted average common units - diluted			120,165				119,918
Earnings per common unit - diluted		$	1.54			$	1.22

4. MAA Equity

Changes in MAA’s total equity and its components for the three months ended March 31, 2025 and 2024 were as follows (dollars in thousands):

		Mid-America Apartment Communities, Inc. Shareholders’ Equity
		Preferred Stock				Common Stock				Additional Paid-In Capital				Accumulated Distributions in Excess of Net Income				Accumulated Other Comprehensive Loss				Noncontrolling Interests - Operating Partnership				Noncontrolling Interests - Consolidated Real Estate Entities				Total Equity
EQUITY BALANCE DECEMBER 31, 2024		$	9			$	1,166			$	7,417,453			$	(1,469,557	)		$	(6,940	)		$	155,409			$	27,894			$	6,125,434
Net income			—				—				—				181,673				—				4,733				—				186,406
Other comprehensive income - derivative instruments			—				—				—				—				418				11				—				429
Issuance and registration of common shares			—				—				157				—				—				—				—				157
Shares repurchased and retired			—				—				(1,302	)			—				—				—				—				(1,302	)
Exercise of stock options			—								38				—				—				—				—				38
Shares issued in exchange for common units			—				—				759				—				—				(759	)			—				—
Redeemable stock fair market value adjustment			—				—				—				(1,895	)			—				—				—				(1,895	)
Adjustment for noncontrolling interests in Operating Partnership			—				—				(53	)			—				—				53				—				—
Amortization of unearned compensation			—				—				5,861				—				—				—				—				5,861
Dividends on preferred stock			—				—				—				(922	)			—				—				—				(922	)
Dividends on common stock ($1.5150 per share)			—				—				—				(177,157	)			—				—				—				(177,157	)
Distributions on noncontrolling interests units ($1.5150 per unit)			—				—				—				—				—				(4,637	)			—				(4,637	)
Contribution from noncontrolling interest			—				—				—				—				—				—				1,058				1,058
EQUITY BALANCE MARCH 31, 2025		$	9			$	1,166			$	7,422,913			$	(1,467,858	)		$	(6,522	)		$	154,810			$	28,952			$	6,133,470

		Mid-America Apartment Communities, Inc. Shareholders’ Equity
		Preferred Stock				Common Stock				Additional Paid-In Capital				Accumulated Distributions in Excess of Net Income				Accumulated Other Comprehensive Loss				Noncontrolling Interests - Operating Partnership				Noncontrolling Interests - Consolidated Real Estate Entities				Total Equity
EQUITY BALANCE DECEMBER 31, 2023		$	9			$	1,168			$	7,399,921			$	(1,298,263	)		$	(8,764	)		$	163,128			$	22,756			$	6,279,955
Net income			—				—				—				143,749				—				3,861				—				147,610
Other comprehensive income - derivative instruments			—				—				—				—				501				16				—				517
Issuance and registration of common shares			—				—				93				—				—				—				—				93
Shares repurchased and retired			—				—				(842	)			—				—				—				—				(842	)
Shares issued in exchange for common units			—				—				594				—				—				(594	)			—				—
Redeemable stock fair market value adjustment			—				—				—				402				—				—				—				402
Adjustment for noncontrolling interests in Operating Partnership			—				—				(102	)			—				—				102				—				—
Amortization of unearned compensation			—				—				6,525				—				—				—				—				6,525
Dividends on preferred stock			—				—				—				(922	)			—				—				—				(922	)
Dividends on common stock ($1.4700 per share)			—				—				—				(171,620	)			—				—				—				(171,620	)
Distributions on noncontrolling interests units ($1.4700 per unit)			—				—				—				—				—				(4,604	)			—				(4,604	)
Contribution from noncontrolling interest			—				—				—				—				—				—				276				276
EQUITY BALANCE MARCH 31, 2024		$	9			$	1,168			$	7,406,189			$	(1,326,654	)		$	(8,263	)		$	161,909			$	23,032			$	6,257,390

5. MAALP Capital

Changes in MAALP’s total capital and its components for the three months ended March 31, 2025 and 2024 were as follows (dollars in thousands):

		Mid-America Apartments, L.P. Unitholders’ Capital
		General Partner				Limited Partners				Preferred Units				Accumulated Other Comprehensive Loss				Noncontrolling Interests - Consolidated Real Estate Entities				Total Partnership Capital
CAPITAL BALANCE DECEMBER 31, 2024		$	5,882,336			$	155,409			$	66,840			$	(7,064	)		$	27,894			$	6,125,415
Net income			180,751				4,733				922				—				—				186,406
Other comprehensive income - derivative instruments			—				—				—				429				—				429
Issuance of units			157				—				—				—				—				157
Units repurchased and retired			(1,302	)			—				—				—				—				(1,302	)
Exercise of unit options			38				—				—				—				—				38
General partner units issued in exchange for limited partner units			759				(759	)			—				—				—				—
Redeemable units fair market value adjustment			(1,895	)			—				—				—				—				(1,895	)
Adjustment for limited partners’ capital at redemption value			(64	)			64				—				—				—				—
Amortization of unearned compensation			5,861				—				—				—				—				5,861
Distributions to preferred unitholders			—				—				(922	)			—				—				(922	)
Distributions to common unitholders ($1.5150 per unit)			(177,157	)			(4,637	)			—				—				—				(181,794	)
Contribution from noncontrolling interest			—				—				—				—				1,058				1,058
CAPITAL BALANCE MARCH 31, 2025		$	5,889,484			$	154,810			$	66,840			$	(6,635	)		$	28,952			$	6,133,451

		Mid-America Apartments, L.P. Unitholders’ Capital
		General Partner				Limited Partners				Preferred Units				Accumulated Other Comprehensive Loss				Noncontrolling Interests - Consolidated Real Estate Entities				Total Partnership Capital
CAPITAL BALANCE DECEMBER 31, 2023		$	6,036,154			$	163,128			$	66,840			$	(8,942	)		$	22,756			$	6,279,936
Net income			142,827				3,861				922				—				—				147,610
Other comprehensive income - derivative instruments			—				—				—				517				—				517
Issuance of units			93				—				—				—				—				93
Units repurchased and retired			(842	)			—				—				—				—				(842	)
General partner units issued in exchange for limited partner units			594				(594	)			—				—				—				—
Redeemable units fair market value adjustment			402				—				—				—				—				402
Adjustment for limited partners’ capital at redemption value			(118	)			118				—				—				—				—
Amortization of unearned compensation			6,525				—				—				—				—				6,525
Distributions to preferred unitholders			—				—				(922	)			—				—				(922	)
Distributions to common unitholders ($1.4700 per unit)			(171,620	)			(4,604	)			—				—				—				(176,224	)
Contribution from noncontrolling interest			—				—				—				—				276				276
CAPITAL BALANCE MARCH 31, 2024		$	6,014,015			$	161,909			$	66,840			$	(8,425	)		$	23,032			$	6,257,371

6. Borrowings

The following table summarizes the Company’s outstanding debt as of March 31, 2025 (dollars in thousands):

		Balance				Weighted Average Effective Rate				Weighted Average Contract Maturity
Unsecured debt
Fixed rate senior notes		$	4,400,000				3.7	%		5/9/2031
Variable rate commercial paper program			310,000				4.6	%		4/4/2025
Debt issuance costs, discounts and premiums			(28,132	)
Total unsecured debt		$	4,681,868				3.8	%
Secured debt
Fixed rate property mortgages		$	363,293				4.4	%		1/26/2049
Debt issuance costs			(2,995	)
Total secured debt		$	360,298				4.4	%
Total outstanding debt		$	5,042,166				3.8	%

Unsecured Revolving Credit Facility

MAALP has entered into an unsecured revolving credit facility, with a borrowing capacity of $1.25 billion and an option to expand to $2.0 billion. The revolving credit facility bears interest at an adjusted Secured Overnight Financing Rate plus a spread of 0.70% to 1.40% based on an investment grade pricing grid. The revolving credit facility has a maturity date in October 2026 with an option to extend for two additional six-month periods. As of March 31, 2025, there was no outstanding balance under the revolving credit facility, while $4.5 million of capacity was used to support outstanding letters of credit.

Unsecured Commercial Paper

MAALP has established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $625.0 million. As of March 31, 2025, MAALP had $310.0 million of borrowings outstanding under the commercial paper program. For the three months ended March 31, 2025, the average daily borrowings outstanding under the commercial paper program were $322.4 million.

Unsecured Senior Notes

As of March 31, 2025, MAALP had $4.4 billion of publicly issued unsecured senior notes outstanding. The unsecured senior notes had maturities at issuance ranging from 5 to 30 years, with a weighted average maturity in 2031.

Secured Property Mortgages

As of March 31, 2025, MAALP had $363.3 million of fixed rate conventional property mortgages with a weighted average maturity in 2049.

Upcoming Debt Obligations

As of March 31, 2025, MAALP’s debt obligations over the next 12 months consist of approximately $710 million of principal obligations, including $310.0 million of commercial paper borrowings due April 2025 and $400.0 million of unsecured senior notes due November 2025.

7. Financial Instruments and Derivatives

Financial Instruments Not Carried at Fair Value

Cash and cash equivalents, restricted cash and accrued expenses and other liabilities are carried at amounts that reasonably approximate their fair value due to their short term nature.

Fixed rate notes payable as of March 31, 2025 and December 31, 2024 totaled $4.7 billion for each time period and had estimated fair values of $4.4 billion for each time period (excluding prepayment penalties). The fair values of fixed rate debt are determined by using the present value of future cash outflows discounted with the applicable current market rate plus a credit spread. The carrying values of variable rate debt as of March 31, 2025 and December 31, 2024 totaled $310.0 million and $250.0 million, respectively, and the variable rate debt had estimated fair values of $310.0 million and $250.0 million as of March 31, 2025 and December 31, 2024, respectively. The fair values of variable rate debt is determined using the stated variable rate plus the current market credit spread. The variable rates reset at various maturities typically less than 30 days, and management concluded these rates reasonably estimate current market rates.

Financial Instruments Measured at Fair Value on a Recurring Basis

As of March 31, 2025, the Company had one outstanding series of cumulative redeemable preferred stock, which is referred to as the MAA Series I preferred stock (see Note 8). The Company has recognized a derivative asset related to the redemption feature embedded in the MAA Series I preferred stock. The derivative asset is valued using widely accepted valuation techniques, including a discounted cash flow analysis in which the perpetual value of the preferred shares is compared to the value of the preferred shares assuming the call option is exercised, with the value of the bifurcated call option as the difference between the two values. The analysis reflects the contractual terms of the redeemable preferred shares, which are redeemable at the Company’s option beginning on October 1, 2026 at the redemption price of $50.00 per share. The Company may use various inputs in the analysis, including risk adjusted yields of relevant MAALP bond issuances and yields and spreads of relevant indices, estimated yields on preferred stock instruments from REITs with similar credit ratings as MAA, treasury rates and trading data available of prices of the preferred shares, to determine the fair value of the bifurcated call option.

The redemption feature embedded in the MAA Series I preferred stock is reported as a derivative asset in “Other assets” in the accompanying Condensed Consolidated Balance Sheets and is adjusted to its fair value at each reporting date, with a corresponding non-cash adjustment to “Other non-operating income” in the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2025 and December 31, 2024, the fair value of the embedded derivative was $12.7 million and $13.2 million, respectively.

The Company has determined the majority of the inputs used to value its outstanding debt and its embedded derivative fall within Level 2 of the fair value hierarchy, and as a result, the fair value valuations of its debt and embedded derivative held as of March 31, 2025 and December 31, 2024 were classified as Level 2 in the fair value hierarchy. The fair value of the Company’s marketable equity securities discussed in Note 1 is based on quoted market prices and are classified as Level 1 in the fair value hierarchy.

Terminated Cash Flow Hedges of Interest

As of March 31, 2025, the Company had $6.6 million recorded in “Accumulated other comprehensive loss,” or AOCL, related to realized losses associated with terminated interest rate swaps that were designated as cash flow hedging instruments prior to their termination. The realized losses associated with the terminated interest rate swaps are reclassified to interest expense as interest payments are made on the Company’s debt and will continue to be reclassified to interest expense until the debt’s maturity. During the next 12 months, the Company estimates an additional $1.6 million will be reclassified to earnings as an increase to “Interest expense.”

Tabular Disclosure of the Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The tables below present the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (dollars in thousands):

				Net Loss Reclassified from AOCL into Interest Expense
		Location of Loss Reclassified		Three months ended March 31,
Derivatives in Cash Flow Hedging Relationships		from AOCL into Income		2025				2024
Terminated interest rate swaps		Interest expense		$	(429	)		$	(517	)

				(Loss) Gain Recognized in Earnings on Derivative
		Location of (Loss) Gain Recognized		Three months ended March 31,
Derivative Not Designated as Hedging Instrument		in Earnings on Derivative		2025				2024
Preferred stock embedded derivative		Other non-operating income		$	(410	)		$	13,092

8. Shareholders’ Equity of MAA

As of March 31, 2025, 116,916,381 shares of common stock of MAA and 3,060,552 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of 119,976,933 common shares and units. As of March 31, 2024, 116,728,052 shares of common stock of MAA and 3,132,552 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of 119,860,604 common shares and units.

Preferred Stock

As of March 31, 2025, MAA had one outstanding series of cumulative redeemable preferred stock, which has the following characteristics:

Description		Outstanding Shares				Liquidation Preference**(1)**				Optional Redemption Date		Redemption Price**(2)**				Stated Dividend Yield				Approximate Dividend Rate
MAA Series I			867,846			$	50.00			10/1/2026		$	50.00				8.50	%		$	4.25

(1)

The total liquidation preference for the outstanding preferred stock is $43.4 million.

(2)

The redemption price is the price at which the preferred stock is redeemable, at MAA’s option, for cash.

See Note 7 for details of the valuation of the derivative asset related to the redemption feature embedded in the MAA Series I preferred stock.

At-the-Market Share Offering Program

MAA has entered into an at-the-market equity offering program, or ATM program, enabling MAA to sell shares of its common stock into the existing market at current market prices from time to time to or through the sales agents under the program. Pursuant to the ATM program, MAA from time to time may also enter into forward sale agreements and sell shares of its common stock pursuant to these agreements. Through the ATM program, MAA may issue up to an aggregate of 4.0 million shares of its common stock, at such times as determined by MAA. MAA has no obligation to issue shares through the ATM program. During the three months ended March 31, 2025 and 2024, MAA did not sell any shares of common stock under its ATM program. As of March 31, 2025, 4.0 million shares of MAA’s common stock remained issuable under the ATM program.

9. Partners’ Capital of MAALP

Common units of limited partnership interests in MAALP are represented by OP Units. As of March 31, 2025, there were 119,976,933 OP Units outstanding, 116,916,381, or 97.4%, of which represent Class B OP Units (common units issued to or held by MAALP’s general partner or any of its subsidiaries), which were owned by MAA, MAALP’s general partner. The remaining 3,060,552 OP Units were Class A OP Units owned by Class A limited partners. As of March 31, 2024, there were 119,860,604 OP Units outstanding, 116,728,052, or 97.4%, of which were owned by MAA and 3,132,552 of which were owned by the Class A limited partners.

MAA, as the sole general partner of MAALP, has full, complete and exclusive discretion to manage and control the business of MAALP subject to the restrictions specifically contained within MAALP’s agreement of limited partnership, or the Partnership Agreement. Unless otherwise stated in the Partnership Agreement, this power includes, but is not limited to, acquiring, leasing or disposing of any real property; constructing buildings and making other improvements to properties owned; borrowing money, modifying or extinguishing current borrowings, issuing evidence of indebtedness and securing such indebtedness by mortgage, deed of trust, pledge or other lien on MAALP’s assets; and distribution of MAALP’s cash or other assets in accordance with the Partnership Agreement. MAA can generally, at its sole discretion, issue and redeem OP Units and determine the consideration to be received or the redemption price to be paid, as applicable. The general partner may delegate these and other powers granted to it if the general partner remains in supervision of the designee.

Under the Partnership Agreement, MAALP may issue Class A OP Units and Class B OP Units. Class A OP Units are any OP Units other than Class B OP Units, while Class B OP Units are those issued to or held by MAALP’s general partner or any of its subsidiaries. In general, the limited partners do not have the power to participate in the management or control of MAALP’s business except in limited circumstances, including changes in the general partner and protective rights if the general partner acts outside of the provisions provided in the Partnership Agreement. The transferability of Class A OP Units is also limited by the Partnership Agreement.

Net income of MAALP (after allocations to preferred ownership interests) is allocated to the general partner and limited partners based on their respective ownership percentages of MAALP. Issuance or redemption of additional Class A OP Units or Class B OP Units changes the relative ownership percentage of the partners. The issuance of Class B OP Units generally occurs when MAA issues common stock and the proceeds from that issuance are contributed to MAALP in exchange for the issuance to MAA of a number of OP Units equal to the number of shares of common stock issued. Likewise, if MAA repurchases or redeems outstanding shares of common stock, MAALP generally redeems an equal number of Class B OP Units with similar terms held by MAA for a redemption price equal to the purchase price of those shares of common stock. At each reporting period, the allocation between general partner capital and limited partner capital is adjusted to account for the change in the respective percentage ownership of the underlying capital of MAALP. Holders of the Class A OP Units may require MAA to redeem their Class A OP Units, in which case MAA may, at its option, pay the redemption price either in cash (in an amount per Class A OP Unit equal, in general, to the average closing price of MAA’s common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA common stock (subject to adjustment under specified circumstances) for each Class A OP Unit so redeemed.

As of March 31, 2025, a total of 3,060,552 Class A OP Units were outstanding and redeemable for 3,060,552 shares of MAA common stock, with an approximate value of $512.9 million, based on the closing price of MAA’s common stock on March 31, 2025 of $167.58 per share. As of March 31, 2024, a total of 3,132,552 Class A OP Units were outstanding and redeemable for 3,132,552 shares of MAA common stock, with an approximate value of $412.2 million, based on the closing price of MAA’s common stock on March 31, 2024 of $131.58 per share. MAALP pays the same per unit distributions in respect to the OP Units as the per share dividends MAA pays in respect to its common stock.

As of March 31, 2025, MAALP had one outstanding series of cumulative redeemable preferred units, or the MAALP Series I preferred units. The MAALP Series I preferred units have the same characteristics as the MAA Series I preferred stock described in Note 8. As of March 31, 2025, 867,846 units of the MAALP Series I preferred units were outstanding and owned by MAA. See Note 7 for details of the valuation of the derivative asset related to the redemption feature embedded in the MAALP Series I preferred units.

10. Commitments and Contingencies

Leases

The Company’s operating leases include a ground lease expiring in 2074 related to one of its apartment communities and an office lease expiring in 2028 related to its corporate headquarters. Both leases contain stated rent increases that are generally intended to compensate for the impact of inflation. The Company also has other commitments related to negligible office and equipment operating leases. As of March 31, 2025, the Company’s operating leases had a weighted average remaining lease term of approximately 35 years and a weighted average discount rate of approximately 4.6%.

The table below reconciles undiscounted cash flows for each of the first five years and total of the remaining years to the right-of-use lease liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2025 (in thousands):

		Operating Leases
2025		$	2,293
2026			3,093
2027			3,131
2028			1,709
2029			815
Thereafter			54,856
Total minimum lease payments			65,897
Net present value adjustments			(40,225	)
Right-of-use lease liabilities		$	25,672

Legal Proceedings

In late 2022 and early 2023, 28 putative class action lawsuits were filed against RealPage, Inc., along with over 50 of the largest owners and operators of apartment communities in the country, including the Company (the “RealPage Litigation”), alleging that RealPage and lessors of multifamily residential real estate conspired to artificially inflate the prices of multifamily residential real estate above competitive levels through the use of RealPage’s revenue management software. The plaintiffs are seeking monetary damages and attorneys’ fees and costs and injunctive relief. The Company believes the RealPage Litigation is without merit as it pertains to the Company and plans to vigorously defend the RealPage Litigation. On April 10, 2023, the Joint Panel on Multidistrict Litigation issued an order centralizing the cases in the U.S. District Court for the Middle District of Tennessee for coordinated or consolidated pretrial proceedings. Another lawsuit alleging violations of the District of Columbia’s antitrust laws and seeking similar relief was filed in the Superior Court of the District of Columbia in November 2023 by the District of Columbia against RealPage, Inc. and a number of large apartment community owners and operators, including the Company. The Company believes there are defenses, both factual and legal, to the allegations in these various proceedings and the Company plans to vigorously defend itself. As these proceedings are in the early stages, it is not possible for the Company to predict any outcome or estimate the amount of loss, if any, which could be associated with any adverse decision. While the Company does not believe that any of these proceedings will have a material adverse effect on its financial condition, the Company cannot give assurance that the proceedings will not have a material effect on its results of operations.

The Company is subject to various other legal proceedings and claims that arise in the ordinary course of its business operations. While the resolution of these matters cannot be predicted with certainty, management does not currently believe that these matters, either individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows in the event of a negative outcome. Matters that arise out of allegations of bodily injury, property damage and employment practices are generally covered by insurance.

As of March 31, 2025 and December 31, 2024, the Company’s accrual for loss contingencies relating to unresolved legal matters, including the cost to defend, was $8.6 million and $11.1 million in the aggregate, respectively. The loss contingencies are presented in “Accrued expenses and other liabilities” in the accompanying Condensed Consolidated Balance Sheets.

11. Segment Information

As of March 31, 2025, the Company owned and operated 291 multifamily apartment communities (which does not include development communities under construction) in 16 different states from which it derived all significant sources of earnings and operating cash flows. The Company views each consolidated apartment community as an operating segment. The Company’s chief operating decision maker, which is the Company’s Chief Executive Officer, evaluates performance and determines resource allocations of each of the apartment communities on a Same Store and Non-Same Store and Other basis, as well as an individual apartment community basis. The Company has aggregated its operating segments into two reportable segments as management believes the apartment communities in each reportable segment generally have similar economic characteristics, facilities, services and residents.

The following reflects the two reportable segments for the Company:

Same Store includes communities that the Company has owned and have been stabilized for at least a full 12 months as of the first day of the calendar year.

Non-Same Store and Other includes recently acquired communities, communities being developed or in lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. Also included in Non-Same Store and Other are non-multifamily activities and expenses related to severe weather events, including hurricanes and winter storms.

On the first day of each calendar year, the Company determines the composition of its Same Store and Non-Same Store and Other reportable segments for that year as well as adjusts the previous year, which allows the Company to evaluate full period-over-period operating comparisons. Communities previously in development or lease-up are added to the Same Store segment on the first day of the calendar year after the community has been owned and stabilized for at least a full 12 months. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.

The chief operating decision maker utilizes net operating income, or NOI, in evaluating the performance of the operating segments. Total NOI represents total property revenues less total property operating expenses, excluding depreciation and amortization, for all properties held during the period regardless of their status as held for sale. Management believes that NOI is a helpful tool in evaluating the operating performance of the segments because it measures the core operations of property performance by excluding corporate level expenses and other items not directly related to property operating performance.

Revenues and NOI for each reportable segment for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

		Three months ended March 31,
		2025				2024
Revenues:
Same Store
Rental revenues		$	515,407			$	515,850
Other property revenues			3,418				2,683
Total Same Store revenues			518,825				518,533
Non-Same Store and Other
Rental revenues			30,224				23,966
Other property revenues			246				1,123
Total Non-Same Store and Other revenues			30,470				25,089
Total rental and other property revenues		$	549,295			$	543,622
Expenses:
Same Store
Real estate taxes		$	63,335			$	67,867
Personnel			41,584				39,472
Utilities			33,911				32,184
Building repair and maintenance			22,442				21,664
Office operations			9,569				8,441
Insurance			8,437				8,163
Marketing			6,752				6,098
Total Same Store expenses			186,030				183,889
Non-Same Store and Other
Total Non-Same Store and Other expenses			15,323				13,913
Total property operating expenses, excluding depreciation and amortization		$	201,353			$	197,802
Net Operating Income:
Same Store NOI		$	332,795			$	334,644
Non-Same Store and Other NOI			15,147				11,176
Total NOI			347,942				345,820
Depreciation and amortization			(152,350	)			(143,020	)
Property management expenses			(20,578	)			(19,995	)
General and administrative expenses			(15,619	)			(17,045	)
Interest expense			(45,161	)			(40,361	)
Gain (loss) on sale of depreciable real estate assets			71,911				(2	)
Other non-operating income			834				23,526
Income tax expense			(1,038	)			(1,795	)
Income from real estate joint venture			465				482
Net income attributable to noncontrolling interests			(4,733	)			(3,861	)
Dividends to MAA Series I preferred shareholders			(922	)			(922	)
Net income available for MAA common shareholders		$	180,751			$	142,827

Assets for each reportable segment as of March 31, 2025 and December 31, 2024 were as follows (in thousands):

		March 31, 2025				December 31, 2024
Assets:
Same Store		$	9,770,291			$	9,840,140
Non-Same Store and Other			1,870,560				1,814,597
Corporate			171,106				157,632
Total assets		$	11,811,957			$	11,812,369

12. Real Estate Acquisitions and Dispositions

Acquisitions

During the three months ended March 31, 2025 and 2024, the Company did not acquire any multifamily apartment communities or land parcels.

Dispositions

In March 2025, the Company closed on the dispositions of a 336-unit and a 240-unit multifamily apartment community located in Columbia, South Carolina for net proceeds of approximately $81 million, resulting in gain on the sale of depreciable real estate assets of approximately $72 million. During the three months ended March 31, 2024, the Company did not dispose of any multifamily apartment communities.

During the three months ended March 31, 2025 and 2024, the Company did not dispose of any land parcels.