Loading...
•
Jun 30
MAA Q2 2025 Earnings Report
MAA reported its operating results for the second quarter of 2025, with Core FFO exceeding expectations and strong performance in its diversified portfolio.
Key Takeaways
MAA delivered strong second-quarter results, with Core FFO per share of $2.15, exceeding expectations. The company experienced record demand for rental housing in its markets, leading to a 0.5% effective blended lease rate growth and robust renewal pricing. Average physical occupancy remained strong at 95.4%, and the company's development pipeline is nearing $1 billion, positioning it for future revenue and earnings growth.
Second quarter Core FFO per share was $2.15, surpassing expectations.
Effective blended lease rate growth for the quarter was 0.5%, driven by strong renewal pricing of 4.7%.
Average physical occupancy for the Same Store portfolio stood at 95.4%.
The development pipeline is nearing $1 billion, with 8 projects under construction and 6 lease-up communities.
MAA
MAA
MAA Revenue by Segment
Revenue by Segment
Total Same Store Revenue
CapyFin.comNon-Same Store and Other Revenue
CapyFin.com Forward Guidance
MAA has updated its full-year 2025 guidance for Earnings per diluted common share, Core FFO per diluted Share, and Core AFFO per diluted Share, with Core FFO and Core AFFO midpoints remaining consistent with previous guidance. The company expects third-quarter 2025 Core FFO to be in the range of $2.08 to $2.24 per diluted share.
Positive Outlook
- Revised Core FFO per Share - diluted midpoint for full year 2025 remains at $8.77.
- Revised Core AFFO per Share - diluted midpoint for full year 2025 remains at $7.79.
- Expected Q3 2025 Core FFO per diluted Share midpoint is $2.16, showing slight sequential improvement.
- Same Store NOI is expected to contribute positively to Q3 2025 Core FFO.
- Development, Lease-up and Other Non-Same Store NOI are expected to contribute positively to Q3 2025 Core FFO.
Challenges Ahead
- Revised Earnings per common share - diluted for full year 2025 decreased to a midpoint of $5.37 from $5.67.
- Revised Property revenue growth for Same Store Portfolio for full year 2025 decreased to a midpoint of 0.10% from 0.40%.
- Revised Property operating expense growth for Same Store Portfolio for full year 2025 decreased to a midpoint of 2.25% from 3.20%.
- Revised NOI growth for Same Store Portfolio for full year 2025 remains at a midpoint of -1.15%.
- Total overhead and Interest expense and Other non-operating income (expense) are expected to slightly negatively impact Q3 2025 Core FFO.