MID AMERICA APARTMENT COMMUNITIES INC.

Mid-America Apartment Communities, Inc. (MAA) is a multifamily-focused, self-administered and self-managed real estate investment trust (REIT) that owns, operates, acquires, and selectively develops apartment communities primarily located in the Southeast, Southwest, and Mid-Atlantic regions of the U.S. As of December 31, 2025, the company maintained full or partial ownership of 302 ¹ apartment communities totaling 103,083 ² units across 16 states and the District of Columbia, including 301 ³ consolidated communities with 102,814 ⁴ units and one unconsolidated joint venture property with 269 ⁵ units. The portfolio is concentrated in the Sunbelt, with approximately 70% ⁶ of apartment units located in Florida, Georgia, North Carolina, and Texas markets. MAA is an S&P 500 ⁷ company and structures its business as an umbrella partnership REIT (UPREIT), with Mid-America Apartments, L.P. (the Operating Partnership) holding substantially all assets directly or indirectly, and MAA acting as the sole general partner owning 116,878,077 ⁸ OP Units, representing a 97.5% ⁹ partnership interest as of December 31, 2025.

The filing identifies that MAA faces competition from other apartment communities, single-family rental housing, manufactured housing, condominiums, and the new and existing home markets, with competition for new residents generally intense across all markets. Competitors include insurance companies, pension and investment funds, public and private real estate companies, investment companies, and other public and private apartment REITs, some of which may have greater resources, greater ability to utilize leverage, or lower capital costs. MAA believes its competitive advantages include a fully integrated organization with property management, development, redevelopment, acquisition, marketing, sales, and financing expertise; scalable operating and support systems including automated systems; access to a wide variety of debt and equity capital sources; geographic diversification with a presence in 39 ¹⁰ defined markets across the Southeast, Southwest, and Mid-Atlantic regions; and a significant presence in many major markets that allows local operating expertise and the ability to offer varying location, product type, and price options.

MAA generates revenue primarily through the operation of multifamily apartment communities, collecting rental income from residents under leases that are generally for a term of approximately one year ¹¹. The business model is centered on generating sustainable, stable, and increasing cash flow to fund dividends and distributions through all parts of the real estate investment cycle. Revenue is predominantly recurring in nature from residential rental operations, supplemented by income from retail components at 35 ¹² of the company's apartment communities. The company utilizes technology to provide services desired by residents and create efficiencies, including a web-based resident portal for online leasing applications, leases, and renewals, as well as virtual touring and self-guided tour options for prospective residents.

The company's portfolio is managed through two operating segments: Same Store and Non-Same Store and Other. The Same Store segment, which represents the core stabilized portfolio, comprised 278 ¹³ communities with 96,568 ¹⁴ units as of December 31, 2025, achieving an average physical occupancy of 95.6% ¹⁵ and an average effective rent per unit of $1,690 ¹⁶ for the year ended December 31, 2025. The Non-Same Store and Other segment includes recently acquired, developed, or repositioned properties not yet stabilized, as well as properties held for sale, and comprised the remaining communities. The company also has a development pipeline of eight ¹⁷ multifamily projects under development as of December 31, 2025, totaling 2,522 ¹⁸ units, with 660 ¹⁹ units completed and total costs to date of $625,612,000 ²⁰ against budgeted costs of $932,000,000 ²¹. Additionally, MAA owns retail components at 35 ²² of its apartment communities and holds land for future development.

During the year ended December 31, 2025, MAA acquired one multifamily community, MAA ONE28 ²³ in Kansas City, MO-KS, with 318 ²⁴ units in August 2025, and acquired three land parcels: MAA Point Hope ²⁵ in Charleston, SC (18.7 ²⁶ acres in June 2025), MAA ONE28 II ²⁷ in Kansas City, MO-KS (0.9 ²⁸ acres in October 2025), and MAA One Scottsdale ²⁹ in Phoenix, AZ (3.2 ³⁰ acres in October 2025). The company disposed of two ³¹ multifamily communities totaling 576 ³² units during the year. MAA completed one development project, MAA Nixie ³³ in Raleigh/Durham, NC, with 406 ³⁴ units and total development costs of $142,841,000 ³⁵ ($352,000 ³⁶ per unit) in the third quarter of 2025. The company incurred $272,000,000 ³⁷ in total development costs during the year. On the capital front, MAA repurchased 206,916 ³⁸ shares of its common stock during the three months ended December 31, 2025, at an average price of $131.61 ³⁹ per share, under a 4.0 million share repurchase program authorized in December 2015, leaving 3,793,084 ⁴⁰ shares available for future repurchase. MAA did not sell any shares under its at-the-market (ATM) equity offering program during the year, and 4.0 million ⁴¹ shares remained issuable under the ATM program as of December 31, 2025.

For the fiscal year ended December 31, 2025, total revenues were $2,247,000,000 ⁴², compared to $2,183,000,000 ⁴³ in the prior year. Net income attributable to MAA common shareholders was $478,000,000 ⁴⁴, and diluted earnings per share (EPS) was $4.09 ⁴⁵, compared to net income of $504,000,000 ⁴⁶ and diluted EPS of $4.34 ⁴⁷ in 2024. The company's total debt stood at $5,400,000,000 ⁴⁸ as of December 31, 2025, representing 30.2% ⁴⁹ of adjusted total assets, while the net debt to Adjusted EBITDAre ratio was 4.3x ⁵⁰. MAA paid total distributions of $6.06 ⁵¹ per share of common stock to its shareholders for the year, which was above the 90% ⁵² REIT distribution requirement. The company employed 2,507 ⁵³ associates as of December 31, 2025.

MAA's external growth strategy focuses on acquiring existing apartment communities, utilizing its internal development team to develop new communities, and partnering with select developers through pre-purchase transactions where MAA will own the property completely after stabilization. As of December 31, 2025, the company had eight ⁵⁴ development projects under construction representing 2,522 ⁵⁵ units with budgeted costs of $932,000,000 ⁵⁶. The development pipeline includes projects expected to complete from the first quarter of 2026 through the third quarter of 2028, with estimated costs per unit ranging from $271,000 ⁵⁷ to $482,000 ⁵⁸. Specific projects include MAA Breakwater ⁵⁹ in Tampa, FL (495 ⁶⁰ units, $197,500,000 ⁶¹ budget, expected 1st Quarter 2026), Modera Liberty Row ⁶² in Charlotte, NC (239 ⁶³ units, $112,000,000 ⁶⁴ budget, expected 1st Quarter 2026), MAA Plaza Midwood ⁶⁵ in Charlotte, NC (302 ⁶⁶ units, $101,500,000 ⁶⁷ budget, expected 3rd Quarter 2026), Modera Chandler ⁶⁸ in Phoenix, AZ (345 ⁶⁹ units, $117,500,000 ⁷⁰ budget, expected 4th Quarter 2026), MAA Milepost 35 II ⁷¹ in Denver, CO (219 ⁷² units, $78,000,000 ⁷³ budget, expected 4th Quarter 2026), MAA Rove ⁷⁴ in Richmond, VA (306 ⁷⁵ units, $99,500,000 ⁷⁶ budget, expected 3rd Quarter 2027), MAA Point Hope ⁷⁷ in Charleston, SC (336 ⁷⁸ units, $91,000,000 ⁷⁹ budget, expected 1st Quarter 2028), and MAA One Scottsdale ⁸⁰ in Phoenix, AZ (280 ⁸¹ units, $135,000,000 ⁸² budget, expected 3rd Quarter 2028). The company also has land held for future development and may pursue additional opportunities as they arise.

MAA's property redevelopment and repositioning programs represent another growth vector. During the year ended December 31, 2025, the company renovated the kitchens and bathrooms of 5,995 ⁸³ apartment units at an average cost of $6,080 ⁸⁴ per unit, achieving average rental rate increases of 7.0% ⁸⁵ above the normal market rate for similar but non-renovated units. The smart home technology initiative, which includes unit entry locks, mobile control of lights and thermostat, and leak monitoring, had been installed in over 96,000 ⁸⁶ units across the portfolio as of December 31, 2025, providing an increase in average effective rent per unit of approximately $25 ⁸⁷ per month since the initiative began in the first quarter of 2019. Separately, the company continued its WiFi retrofit program, spending $7,800,000 ⁸⁸ during the year, and its property repositioning program to upgrade amenity and common areas, spending $12,100,000 ⁸⁹ during the year. These initiatives are designed to support additional rent growth and enhance the competitive position of the portfolio.

The filing discusses margin and cost management primarily through operational efficiency initiatives. Management's goal is to generate return on investment by controlling operating expenses, maintaining high occupancy levels, and reinvesting in the income-producing capacity of each community. Steps taken include implementing programs to control expenses through investment in cost-saving initiatives, analyzing individual asset productivity to identify best practices, and managing lease expirations to align with peak leasing traffic patterns. The company also focuses on expense control through technology investments that drive operating efficiencies.MAA's capital allocation strategy is centered on maintaining a balanced approach between debt and equity funding. The company targets total debt, net of cash held, to a range of approximately 30% ⁹⁰ to 36% ⁹¹ of adjusted total assets, and targets the ratio of net debt to Adjusted EBITDAre to a range of 4.5x ⁹² to 5.5x ⁹³. As of December 31, 2025, total debt was 30.2% ⁹⁴ of adjusted total assets and the net debt to Adjusted EBITDAre ratio was 4.3x ⁹⁵. The company plans to continue using unsecured debt to take advantage of lower cost of capital and flexibility. MAA has a 4.0 million ⁹⁶ share repurchase program authorized in December 2015, under which 206,916 ⁹⁷ shares have been repurchased as of December 31, 2025, leaving 3,793,084 ⁹⁸ shares available. The company also has an ATM program allowing issuance of up to 4.0 million ⁹⁹ shares, with no shares sold during 2025. MAA paid total distributions of $6.06 ¹⁰⁰ per common share for the year ended December 31, 2025, which was above the 90% ¹⁰¹ REIT distribution requirement. The company incurred $272,000,000 ¹⁰² in development costs during 2025 and spent $7,800,000 ¹⁰³ on the WiFi retrofit program and $12,100,000 ¹⁰⁴ on the property repositioning program.

Management has identified several headwinds and constraints to the growth plan. Unfavorable market and economic conditions, including inflation, labor market conditions, job losses, unemployment levels, personal debt levels, downturns in the housing market, and stock market volatility, could adversely affect occupancy levels, rental rates, and property values. The company faces substantial competition from other apartment communities and alternative housing options, including single-family rental housing, manufactured housing, condominiums, and the new and existing home markets. Rising interest rates present a significant constraint, as higher interest expense on variable-rate debt or when refinancing maturing fixed-rate debt could materially affect results of operations and cash flows. The company also faces risks related to development and construction, including potential delays in obtaining permits, cost overruns, labor shortages, and supply chain disruptions. Additionally, the enactment of rent control or rent stabilization laws in the areas in which MAA operates could limit the ability to charge market rents or increase rents.

Geographic concentration is a notable constraint, as approximately 41.2% ¹⁰⁵ of the portfolio (based on completed apartment units) is located in the top five markets: Atlanta, Georgia; Dallas, Texas; Austin, Texas; Charlotte, North Carolina; and Orlando, Florida. Overall operations are concentrated in the Southeast, Southwest, and Mid-Atlantic regions, making performance disproportionately influenced by job growth and unemployment in these areas. The company also faces risks from extreme weather and natural disasters, as many communities are located in areas vulnerable to floods, tornados, hurricanes, earthquakes, wildfires, and major winter storms, the likelihood or frequency of which could increase due to climate change. Regulatory risks include compliance with numerous federal, state, and local laws, including landlord-tenant laws, employment laws, privacy laws, environmental laws, zoning laws, and building codes, with noncompliance potentially exposing the company to liability and significant unanticipated expenditures.

MAA's business is concentrated in the multifamily sector, making results vulnerable to a downturn in demand for apartment housing, with approximately 41.2% ¹⁰⁶ of units located in just five markets (Atlanta, Dallas, Austin, Charlotte, and Orlando). The company faces substantial competition from other apartment communities and alternative housing options, which could adversely affect occupancy and rental rates. Rising interest rates present a material risk, as higher borrowing costs on variable-rate debt or when refinancing maturing fixed-rate debt could increase interest expense and reduce funds available for distribution; total debt stood at $5,400,000,000 ¹⁰⁷ as of December 31, 2025. The company is subject to risks from development and construction activities, with eight ¹⁰⁸ projects under development representing $932,000,000 ¹⁰⁹ in budgeted costs, exposing MAA to potential cost overruns, delays, and lower-than-expected yields. Legal proceedings, including antitrust lawsuits related to the use of RealPage's revenue management software, could result in material liability, substantial costs, and diversion of management attention. Additionally, the company's ability to maintain its REIT status depends on satisfying complex tax rules, including distributing at least 90% ¹¹⁰ of REIT taxable income annually, and failure to qualify would subject MAA to corporate income tax and significantly reduce funds available for distribution.

Management's message emphasizes the company's primary business objectives of generating sustainable, stable, and increasing cash flow to fund dividends and distributions through all parts of the real estate investment cycle. The strategic priorities for the period ahead include effectively operating existing properties with intense property and asset management focus, utilizing technology to provide services desired by residents and create efficiencies, taking an opportunistic approach to buying, developing, selling, and renovating apartment communities, diversifying the portfolio across markets, submarkets, product type, and price points to minimize operating performance volatility, offering attractive work environments and career development opportunities to attract and retain talent, and actively managing the balance sheet and capital structure. Management's forward-looking statements include expectations regarding property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity, other capital expenditures, capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate, and other economic expectations. The filing notes that MAA paid total distributions of $6.06 ¹¹¹ per share of common stock for the year ended December 31, 2025, which was above the 90% ¹¹² REIT distribution requirement, and that the company's net debt to Adjusted EBITDAre ratio was 4.3x ¹¹³ as of December 31, 2025, within the targeted range of 4.5x to 5.5x.