Mid-America Apartment Communities (MAA) Q4 2024 earnings summary

Executive summary

• Finished 2024 in line with expectations, positioning well for a recovery in apartment leasing in 2025 and beyond.

• CEO succession planned for April 1, 2025, with Brad Hill to become President and CEO, supported by a seasoned leadership team.

• Early signs of recovery in lease-over-lease pricing and moderating supply pressures, especially as new construction starts have dropped sharply since 2022.

• Portfolio is well-positioned to benefit from job and population growth, and high single-family housing costs in core markets.

• Reported Q4 2024 diluted EPS of $1.42, up from $1.37 in Q4 2023; full-year 2024 diluted EPS was $4.49, down from $4.71 in 2023.

Financial highlights

• Core FFO for Q4 2024 was $2.23 per share, and $8.88 per share for the full year, both in line with guidance.

• Same-store revenue down 0.2% for Q4 and up 0.5% for the full year; same-store NOI projected to decline 1.15% in 2025.

• Q4 2024 rental and other property revenues were $549.8M, up from $542.2M in Q4 2023; full-year 2024 revenues were $2.19B, up from $2.15B.

• Average physical occupancy for Q4 was 95.6%, up 10 bps sequentially; resident turnover at a historic low of 42.0%.

• Ended Q4 with over $1 billion in cash and borrowing capacity; net debt to EBITDA at 4x.

Outlook and guidance

• 2025 Core FFO projected at $8.61–$8.93 per share, midpoint $8.77.

• Same-store revenue growth midpoint of 0.4% for 2025, with blended rental pricing expectation of 1.7%.

• Effective rent growth for 2025 expected at 0.2% midpoint; occupancy to average 95.6%.

• Same-store operating expenses projected to grow 3.2% at midpoint.

• 2025 Same Store Portfolio guidance: property revenue growth -0.35% to 1.15%, NOI growth -2.15% to -0.15%.