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

Executive summary

• Finished 2024 in line with expectations, with stable occupancy and early signs of recovery in lease pricing, positioning for a recovery in apartment leasing in 2025 and beyond.

• CEO transition planned for April 1, 2025, with Brad Hill assuming the role and Eric Bolton becoming Executive Chairman.

• Leadership team has strong tenure and experience, supporting confidence in execution and long-term strategy.

• Acquired a 386-unit Dallas property and disposed of two communities for $85M, realizing a $55M gain.

• Seven communities under development (2,312 units), with $374.3M in funding remaining; completed two developments in Q4.

Financial highlights

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

• Q4 2024 rental and other property revenues were $549.8M; full-year 2024 revenues were $2.19B.

• Same-store revenue down 0.2% for Q4 and up 0.5% for the full year; average physical occupancy at 95.6%.

• Net debt to EBITDA at 4x; 95% of debt fixed with 7.3 years average maturity at 3.8% effective rate.

• NOI yields on new developments in lease-up significantly above original expectations, averaging 6.3%.

Outlook and guidance

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

• 2025 full-year guidance: diluted EPS $5.51–$5.83 (midpoint $5.67), Core AFFO per share $7.63–$7.95 (midpoint $7.79).

• Same-store revenue growth midpoint of 0.4% for 2025; effective rent growth of 0.2% at midpoint.

• Occupancy expected to average 95.3%–95.9% in 2025; same-store NOI projected to decline 1.15% at midpoint.

• New lease pricing expected at -1.5% for 2025, turning slightly positive in late Q2/Q3 before moderating.