Mid-America Apartment Communities Reports Mixed Q3 Results, Revenue Growth and Increased Expenses

Mid-America Apartment Communities, Inc. (MAA) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023.

For the three months ended September 30, 2024, MAA's rental and other property revenues increased to $551.1 million, a 1.7% rise from $542.0 million in Q3 2023. Net income for the same period was $118.2 million, up from $113.7 million, while net income available for MAA common shareholders rose to $114.3 million from $109.8 million. Earnings per common share (EPS) for Q3 2024 was $0.98, compared to $0.94 in Q3 2023. However, for the nine months ended September 30, 2024, net income decreased to $370.5 million from $403.0 million in the prior year, with adjusted net income available for common shareholders also declining to $358.1 million from $389.6 million.

The company’s total revenue for the nine months increased by 2.2% to $1.64 billion, driven by a significant 46.3% increase in revenues from the Non-Same Store and Other segment. However, property operating expenses rose by 6.7% to $615.2 million, primarily due to increased costs in the Non-Same Store segment.

MAA's total assets as of September 30, 2024, were $11.76 billion, up from $11.48 billion at the end of 2023. Total liabilities increased to $5.60 billion from $5.19 billion, while total equity decreased to $6.13 billion from $6.28 billion. The company reported a net cash increase of $8.97 million for the nine months, a significant drop from $114.3 million in the same period last year.

Strategically, MAA has been active in acquisitions, purchasing several properties in 2024, including a 310-unit community in Orlando for $84 million and a 386-unit community in Dallas for $106 million. The company also financed a 239-unit multifamily community in Charlotte, North Carolina, with an initial funding of $70.5 million. As of September 30, 2024, MAA owned and operated 293 apartment communities and had eight development projects under construction, totaling 2,762 units.

In terms of financing, MAA's total outstanding debt was $4.88 billion, with a significant portion in unsecured senior notes. The company issued $350 million in senior notes in January 2024 and $400 million in May 2024, while retiring $400 million of notes at maturity in June 2024.

Overall, MAA's performance reflects a combination of revenue growth in certain segments and increased operating expenses, alongside strategic acquisitions and ongoing development projects.