Mid-America Apartment Communities (MAA) risk factors: FY2025 10-K

1. Unfavorable market and economic conditions could adversely affect occupancy levels, rental revenues and the value of our properties.
2. Failure to generate sufficient cash flow could limit our ability to make payments on our debt and to make distributions.
3. We are dependent on a concentration of our investments in a single asset class, making our results of operations more vulnerable to a downturn or slowdown in the multifamily sector or other economic factors.
4. Our operations are concentrated in the Southeast, Southwest and Mid-Atlantic regions of the U.S.; we are subject to general economic conditions in the regions in which we operate.
5. Substantial competition may adversely affect our revenues and limit our acquisition and development opportunities.
6. Failure to succeed in new markets may have adverse consequences on our performance.
7. Environmental problems are possible and can be costly.
8. Our business and operations are subject to physical and transition risks related to climate change.
9. Operations from new acquisitions, development projects, redevelopment activities, and platform initiatives may fail to perform as expected.reworded
10. Our implementation of long-standing succession planning could have adverse effects.
11. We are subject to certain risks associated with selling apartment communities, which could limit our operational and financial flexibility.
12. Development and construction risks could impact our profitability.
13. Increasing real estate taxes, utilities and insurance premiums, as well as changes in the terms and conditions of our insurance policies, may negatively impact operating results.
14. Short-term leases expose us to the effects of declining market rents, and we may be unable to renew leases or relet units as leases expire.
15. We rely on information technology systems in our operations, and any breach or security failure of those systems could materially adversely affect our business, financial condition, results of operations and reputation.
16. A failure to keep pace with developments in technology could impair our operations or competitive position.new
17. Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties.
18. Legal proceedings that we become involved in from time to time could adversely affect our business.
19. Extreme weather or natural disasters may cause significant damage to our properties.
20. Our financial condition, results of operations and cash flows could be materially adversely affected by factors relating to disease outbreaks and other public health events.
21. Acts of violence could decrease the value of our assets and could have an adverse effect on our business and results of operations.

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1. Our substantial indebtedness could adversely affect our financial condition and results of operations.
2. We may be unable to renew, repay or refinance our outstanding debt, which could negatively impact our financial condition and results of operations.
3. Rising interest rates could adversely affect our results of operations and cash flows.Interest rates
4. We may incur additional debt in the future, which may adversely impact our financial condition.
5. The restrictive terms of certain of our indebtedness may cause acceleration of debt payments.
6. A downgrade in our credit ratings could have a material adverse effect on our business, financial condition and results of operations.
7. Financing may not be available and could be dilutive.

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1. MAA’s ownership limit restricts the transferability of its capital stock.
2. Future offerings of debt or equity securities, which may rank senior to MAA’s stock, may adversely affect the market price of MAA’s stock.
3. The form, timing and amount of dividend distributions in future periods may vary and be impacted by economic and other considerations.
4. Provisions of MAA’s charter and Tennessee law may limit the ability of a third party to acquire control of MAA.

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1. Third-party expectations relating to environmental, social and governance factors may impose additional costs and expose us to new risks.
2. Market interest rates may have an adverse effect on the market value of MAA’s common stock.Interest rates
3. Changes in market conditions or a failure to meet the market’s expectations with regard to our results of operations and cash distributions could adversely affect the market price of MAA’s common stock.

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1. The Operating Partnership’s existing unitholders have limited approval rights, which may prevent the Operating Partnership’s sole general partner, MAA, from completing a change of control transaction that may be in the best interests of all unitholders of the Operating Partnership and all shareholders of MAA.
2. In certain circumstances, certain of the Operating Partnership’s unitholders must approve the Operating Partnership’s sale of certain properties contributed by the unitholders.
3. MAA, its officers and directors have substantial influence over the Operating Partnership’s affairs.
4. Insufficient cash flow from operations or a decline in the market price of MAA’s common stock may reduce the amount of cash available to the Operating Partnership to meet its obligations.

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1. Failure to qualify as a REIT would cause us to be taxed as a corporation, which would significantly reduce funds available for distribution to shareholders.
2. The Operating Partnership may fail to be treated as a partnership for federal income tax purposes.
3. Certain dispositions of property by us may generate prohibited transaction income, resulting in a 100% penalty tax on any gain attributable to the disposition.
4. Legislative or regulatory income tax changes related to REITs could materially and adversely affect us.

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