Mid-America Apartment's Q4 FFO Beats Estimates, Revenues Grow Y/Y

Mid-America Apartment Communities MAA, commonly known as MAA, reported fourth-quarter 2025 core funds from operations (FFO) per share of $2.23, which surpassed the Zacks Consensus Estimate of $2.22. The figure remained unchanged from the prior year period.

Results reflect higher occupancy and same-store effective blended lease rate growth year over year. The same-store portfolio’s net operating income (NOI) and average effective rent per unit fell, undermining the performance.

Rental and other property revenues of $555.6 million for the fourth quarter marginally missed the Zacks Consensus Estimate of $557.8 million. The reported figure was 1% higher than the year-ago quarter’s tally.

For full-year 2025, core FFO per share came in at $8.74, higher than the Zacks Consensus Estimate of $8.72 and lower than the prior-year tally of $8.88. The rental and other property revenues increased marginally to $2.21 billion, in line with the consensus mark.

MAA’s Q4 in Detail

The same-store portfolio’s revenues fell 0.1% on a year-over-year basis. The same-store portfolio’s property operating expenses rose 0.7% on a year-over-year basis. As a result, the same-store portfolio’s NOI fell 0.5%. MAA experienced a decline of 0.3% in the average effective rent per unit.

The average physical occupancy for the same-store portfolio in the fourth quarter was 95.7%, an improvement of 10 basis points (bps) over the prior-year period. Our estimate was in line with the same at 95.7%.

As of Dec. 31, 2025, resident turnover in the same-store portfolio remained historically low at 40.2%. This stemmed from low levels of move-outs related to buying single-family homes (11.1/%).

During the fourth quarter, MAA's same-store effective blended lease rate growth was negative 1.7%, improving 40 bps from the prior-year period. The effective new lease rate dropped 8.1%, while the effective renewal lease rate grew 4.7%.

MAA’s Portfolio Activity

In January 2026, MAA acquired a land parcel in Northern Virginia through its pre-purchase development program. The company plans to develop a 287-unit multifamily apartment community at the property to begin in the second half of 2026.

In October 2025, MAA acquired a land parcel in the Kansas City market, adjacent to the acquired community, for the future development of a phase II multi-family expansion. In the same month, MAA purchased a land parcel in Phoenix, AZ, and began construction on a 280-unit multi-family apartment community.

As of Dec. 31, 2025, MAA had eight communities under development, with total expected costs of $306.4 million. During the fourth quarter, MAA completed the initial lease-up of MAA Vale in Raleigh, NC.

MAA’s Balance Sheet Position

MAA exited the fourth quarter of 2025 with cash and cash equivalents of $60.3 million, up from $32.2 million recorded as of Sept. 30, 2025.

As of Dec. 31, 2025, MAA had a strong balance sheet with $879.2 million in combined cash and capacity available under its unsecured revolving credit facility. In October 2025, the company increased its borrowing capacity to $1.5 billion, with an option to expand it to $2 billion.

As of Dec. 31, 2025, MAA had a net debt/adjusted EBITDAre ratio of 4.3 times, and the total debt outstanding was $5.41 billion. Its total debt average years to maturity was 6.4 years.

MAA’s 2026 Guidance

MAA projects a first-quarter 2026 core FFO per share in the band of $2.05-$2.17, with $2.11 at the midpoint. The Zacks Consensus Estimate of $2.16 lies within the range.

This residential REIT expects its 2026 core FFO per share to be in the range of $8.35-$8.71, with the midpoint being $8.53. The Zacks Consensus Estimate for the same is currently pegged at $8.67 and lies within the range.

For 2026, management anticipates same-store property revenue growth of negative 0.20% to 1.30% and operating expense growth of 1.90% to 3.40%. As a result, same-store NOI growth is expected to be between negative 1.70% and 0.30%. Average physical occupancy for the same-store portfolio is guided in the range of 95.3%-95.9%, with the midpoint being 95.60%.

MAA currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise

Mid-America Apartment Communities, Inc. price-consensus-eps-surprise-chart | Mid-America Apartment Communities, Inc. Quote

Performance of Other Residential REITs

Essex Property Trust Inc. ESS reported fourth-quarter 2025 core FFO per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably to the FFO of $3.92 per share a year ago.

Results reflected favorable growth in same-property NOI and higher occupancy. Higher interest expenses partly acted as a dampener.

AvalonBay Communities AVB reported fourth-quarter 2025 core FFO per share of $2.85, surpassing the Zacks Consensus Estimate of $2.84. The figure increased 1.8% from the prior-year quarter’s tally of $2.80.

Results reflected higher same-store NOI and occupancy growth year over year. Higher interest expenses undermined the performance to an extent.  AVB hiked its dividend per share.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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