Mid-America Apartment Communities (MAA) investor relations material

Market overview and performance

• Portfolio consists of 105,000 apartment units across 16 Sun Belt states, focusing on high-growth, high-demand regions.

• Sun Belt markets have historically outperformed in demand metrics like population and job growth.

• Recent years saw record supply, especially in high-supply markets like Austin and Charlotte, but supply pressure is now moderating.

• Mid-tier markets are currently outperforming high-supply markets, with top 10 performers all in mid-tier regions.

• Blended performance in high-supply markets like Austin is improving, with year-over-year gains of 300–500 basis points, though still negative.

Operating trends and leasing dynamics

• Third quarter shows less seasonal slowdown than last year, with renewal rates up 70–80 basis points year-over-year.

• Retention rates and renewal rates are improving, with fourth quarter renewal rates at 5.5%.

• Occupancy has increased each month through the third quarter.

• The spread between new and renewal leases is about $180, with renewals typically asking for a $90 increase.

• Customer service focus is credited for high retention rates.

Market-specific insights and supply trends

• Orlando, Dallas, and Austin are showing strong momentum as supply pressures ease.

• Concession usage remains stable, with fewer units in lease-up and declining prevalence of concessions.

• Demand fundamentals like migration and job growth remain robust, with migration increasing in Q2.

• Denver is the only market with relatively weaker demand, but supply is declining there.

• Atlanta fundamentals are solid, with supply impact largely absorbed.