MAA reports $2.11 per share in FFO and cuts annual outlook to $8.43–$8.55
Key Facts
Mid-America Apartment Communities, known as MAA, on October 28 reported third-quarter results for the period ended September 30, 2026, with diluted FFO of $2.11 per share versus $2.14 in the same period a year earlier. Core FFO, which the company said came in line with its expectations, was $2.10 per share compared with $2.16 a year ago. According to Zacks, quarterly FFO of $2.1 per share matched the consensus estimate, but the company’s statement distinguishes between the two measures and puts Core FFO at $2.10. The chief executive said the company built occupancy during the quarter and maintained expense-management discipline. The results come as the company lowered its annual Core FFO outlook range, signaling pressure on revenue and pricing trends for the rest of the year.
In same-store portfolio operations, renewal lease pricing rose 5.3% year over year, up 80 basis points from its level a year earlier. But the portfolio’s blended effective rent growth was just 0.4% during the quarter, reflecting a divergence between renewals by existing tenants and overall pricing achieved across the portfolio. Management said year-over-year improvement in new-tenant pricing came about a quarter later than expected. It added that higher interest rates and the delayed improvement affected blended pricing and occupancy. By contrast, the company said new-tenant lease pricing in October improved from September, against the usual seasonal pattern, and blended pricing accelerated by more than 100 basis points year over year.
Tenant-retention data showed low move-outs in the same-store portfolio, with tenant turnover at 39.6% through September 30. Move-outs associated with single-family home purchases reached a quarterly record low of 10.1% during the quarter. These figures highlight one aspect of residential portfolio performance alongside the improvement in lease renewals. MAA completed initial leasing at the Val Vista communities in the Phoenix market and Breakwater in Tampa. It also completed development of the Milepost II project in Denver and began construction of residential communities in Northern Virginia and Nashville, as well as an expansion in Kansas City. At the end of September, the company had ownership interests in 105,136 apartment units across 16 states, including communities under development.
On financing, MAA’s operating partnership borrowed an additional $250 million during the quarter under a delayed-draw term loan facility. The outstanding balance under the facility was $350 million on September 30. This comes against the backdrop of quarterly results that combined stronger growth in renewal pricing, limited growth in blended effective rent, and a reduction in the annual same-store property revenue outlook. The company revised its same-store revenue growth range to a decline of between 0.40% and 0.10% in fiscal 2026, from a previous range extending from a 0.20% decline to a 0.40% increase. The revision puts expected revenue in a contraction range for the year, according to the figures announced by the company.
MAA cut its fiscal 2026 Core FFO outlook to $8.43–$8.55 per share, from a previous range of $8.41–$8.65, and set the new range midpoint at $8.49. For the fourth quarter, the company expects Core FFO of between $2.12 and $2.24 per share, with a midpoint of $2.18. The company will hold a call to discuss third-quarter results on October 29, 2026, at 9:00 a.m. Central Time. MAA shares closed at $118.75 on October 27, before the results were announced. October’s development in rental pricing comes after management said year-over-year improvement in new-tenant leases was about a quarter later than expected, while its updated annual outlook still reflects a lower range for Core FFO and same-store portfolio revenue.