Mid-America Apartment Communities reported fourth-quarter core funds from operations of $2.23 per diluted share, narrowly surpassing consensus expectations of $2.22 and matching the prior year’s quarterly core FFO. Total diluted FFO came in at $1.79, down from $2.21 a year earlier, while diluted earnings per common share fell to $0.48 from $1.42. Quarterly revenues for the same-store portfolio edged down 0.1% year-over-year, reflecting a 0.3% decline in average effective rent per unit to $1,687, partially offset by a 0.7% reduction in operating expenses. Despite weaker same-store net operating income, management highlighted that blended pricing trends have improved by 40 basis points versus last year, setting the stage for modest revenue growth in 2026.

Occupancy across the same-store portfolio remained resilient at 95.7% for the quarter, virtually unchanged from 95.6% in the prior year, while overall resident turnover held at a decade-low 40.2%. Effective blended lease rates improved sequentially, with fourth-quarter blended lease rate declines narrowing to 1.7% from 2.1% in Q3. Renewal lease rates rose 4.7%, demonstrating strong resident retention against an environment of elevated new-supply deliveries. Initial lease-up activity at the recently completed 374-unit community in Raleigh reached stabilization, and management expects tightening market conditions will support recovery in new-lease pricing throughout 2026.

During the quarter, the company’s operating partnership raised $400.0 million of unsecured senior notes due 2033 at a coupon of 4.650%, with proceeds used to repay maturing debt and commercial paper borrowings. The revolving credit facility was amended to expand capacity to $1.5 billion, extend the maturity to January 2030 and adjust pricing to SOFR plus a 0.725% spread. Total liquidity stood at approximately $879 million of cash and available revolver capacity as of December 31, 2025. Additionally, the company repurchased 0.2 million common shares for $27 million, reinforcing its commitment to capital return within its fixed-charge coverage targets.

As of year-end, MAA had eight development projects underway totaling 2,522 units with capital costs of $932 million, of which $625.6 million has been invested to date and $306.4 million remains. These projects are scheduled to deliver between 2026 and 2028. Lease-up communities encompass three properties with 1,109 units, currently 65.7% leased at a cost to date of $326.5 million; two are expected to stabilize by Q2 2026 and one by Q3 2026. Strategic land acquisitions during the fourth quarter included parcels in Kansas City, Phoenix and Northern Virginia, collectively supporting the development of over 600 future units through 2028.