MAA(MAA) - 2024 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2024, net income available for MAA common shareholders was $101.0 million, a 30.2$144.8 million for the same period in 2023[98][104]. - For the six months ended June 30, 2024, net income available for MAA common shareholders was $243.9 million, a 12.8$530.872 million, a decrease from $567.831 million for the twelve months ended December 31, 2023[127]. - EBITDA for the twelve months ended June 30, 2024, was$1.267 billion, compared to $1.287 billion for the twelve months ended December 31, 2023, reflecting a decrease of approximately 1.0$1.256 billion, slightly down from $1.262 billion for the twelve months ended December 31, 2023[127]. Revenue and Occupancy - Total revenue for the three months ended June 30, 2024, increased by 2.1$546.4 million, driven by a 0.7% increase in Same Store segment revenues[98][105]. - Same Store segment revenues increased by 1.0% for the six months ended June 30, 2024, primarily due to a 1.0% growth in average effective rent per unit[111]. - Average effective rent per unit for the Same Store segment increased by 0.5% compared to the prior year, contributing to revenue growth[99][105]. - Average physical occupancy for the Same Store segment remained stable at 95.5%, consistent with the same period in 2023[100]. - The Non-Same Store and Other segment saw a revenue increase of 45.1%, primarily from completed development communities and recently acquired properties[105]. Expenses - Property operating expenses for the Same Store segment increased by 3.7% to $193.3 million, primarily due to higher personnel and insurance expenses[106]. - Property operating expenses for the six months ended June 30, 2024 totaled$403.6 million, an increase of 7.0% compared to $377.1 million for the same period in 2023[112]. - Depreciation and amortization expense for the three months ended June 30, 2024, was$145.0 million, an increase of $6.1 million from the previous year[107]. - Depreciation and amortization expense for the six months ended June 30, 2024 was$288.0 million, an increase of $10.6 million compared to the same period in 2023[113]. - Interest expense for the six months ended June 30, 2024 was$81.6 million, an increase of $7.6 million compared to the same period in 2023[114]. - Property management expenses for the six months ended June 30, 2024 were$37.2 million, an increase of $3.2 million compared to the same period in 2023[114]. Cash Flow and Debt - Net cash provided by operating activities was$549.6 million for the six months ended June 30, 2024, a decrease of $4.5 million compared to the same period in 2023[131]. - Net cash used in investing activities was$329.8 million for the six months ended June 30, 2024, an increase of $37.0 million compared to the same period in 2023[132]. - Total debt as of June 30, 2024, was$4.701 billion, up from $4.540 billion as of December 31, 2023[126]. - Net debt as of June 30, 2024, was$4.638 billion, an increase from $4.499 billion as of December 31, 2023[126]. - The company had$1.0 billion of combined unrestricted cash and cash equivalents and available capacity under its revolving credit facility as of June 30, 2024[130]. - The increase in unsecured notes payable was primarily driven by cash requirements to fund acquisition and development activities[128]. - As of June 30, 2024, total unsecured debt amounted to $4,340.66 million, with a weighted average effective rate of 3.7$4,700.86 million, with a weighted average effective rate of 3.8%[134]. - MAALP had $316.0 million of borrowings outstanding under the unsecured commercial paper program as of June 30, 2024[137]. - The company has a borrowing capacity of$1.25 billion under an unsecured revolving credit facility, which can be expanded to $2.0 billion[137]. - As of June 30, 2024, MAALP had$392.8 million of outstanding debt and debt service obligations due in the year ending December 31, 2024[143]. Development and Future Outlook - MAA owned and operated 291 apartment communities as of June 30, 2024, with seven development communities under construction[92]. - Demand for apartments remained strong, supported by job growth and population increases, although potential economic pressures could impact future rent collections[102]. - Total expected costs for seven development projects under construction are $866.3 million, with$537.9 million incurred through June 30, 2024[145]. - MAALP expects to pay quarterly dividends at an annual rate of $5.88 per share of common stock during the year ending December 31, 2024[146]. - The dividend rate increased to$2.9400 per share during the six months ended June 30, 2024, compared to $2.8000 per share during the same period in 2023[133]. - The company has committed to make additional capital contributions totaling up to$32.4 million to technology-focused limited partnerships[143]. - As of June 30, 2024, 93.3% of outstanding debt was subject to fixed rates, minimizing interest rate fluctuation risks[150]. - MAALP issued $350.0 million in unsecured senior notes in January 2024, with an effective interest rate of 5.123%[138].