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Sep 30
MAA Q3 2025 Earnings Report
MAA reported its third quarter 2025 earnings, with Core FFO results aligning with expectations despite market challenges, and strong resident retention. The company also expanded its development pipeline through recent acquisitions.
Key Takeaways
Mid-America Apartment Communities, Inc. (MAA) delivered Core FFO results in line with expectations for the third quarter of 2025, despite elevated supply, economic uncertainties, and slower job growth. The company achieved new and renewal pricing above last year's levels and sequential improvement in blended rates. Resident retention remained strong with turnover at a record low. MAA also expanded its development pipeline with acquisitions in Kansas City and Scottsdale, Arizona.
Core FFO per share diluted was $2.16, aligning with expectations for the quarter.
Effective blended lease rate growth was 0.3%, with renewal lease rate growth at 4.5% and new lease rate growth at -5.2%.
Average physical occupancy for the Same Store portfolio was 95.6%, with average effective rent per unit at $1,693.
MAA acquired a 318-unit multifamily apartment community in Kansas City and land parcels in Kansas City and Phoenix for future development, leveraging a strong balance sheet.
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, reflecting a revised outlook. The company expects Core FFO for Q4 2025 to be in the range of $2.17 to $2.29 per diluted share, with a midpoint of $2.23.
Positive Outlook
- Core FFO per Share - diluted midpoint revised to $8.74 from $8.77, indicating continued strong performance.
- Core AFFO per Share - diluted midpoint revised to $7.76 from $7.79, showing resilience in cash flow.
- Same Store NOI growth guidance midpoint revised to -1.35% from -1.15%, indicating a slight improvement in the lower end of the range.
- Anticipated acceleration of the recovery cycle in the coming year, driven by solid demand and lower new deliveries.
- Leveraging a strong balance sheet to accelerate growth and expand the development pipeline.
Challenges Ahead
- Earnings per common share - diluted midpoint revised downwards to $4.24 from $5.37.
- Property revenue growth guidance midpoint revised downwards to -0.05% from 0.10%.
- Property operating expense growth guidance midpoint revised to 2.20% from 2.25%, indicating slightly higher expenses.
- Continued elevated supply and economic uncertainties are expected to persist.
- Slower job growth remains a factor impacting market conditions.