Mid-America Apartment Communities Reports $523.9M Net Income, 2% Revenue Growth for Fiscal Year 2024

Mid-America Apartment Communities, Inc. (MAA) reported a net income of $523.9 million for the fiscal year ending December 31, 2024, a decrease of 4.6% from $549.1 million in 2023. The company's total revenue increased by 2.0% to $2.19 billion, driven primarily by a 44.7% surge in the Non-Same Store and Other segment, which includes recently acquired and developed properties. The Same Store segment, which consists of properties that have been stabilized for at least 12 months, saw a modest revenue increase of 0.5%, attributed to a slight rise in average effective rent per unit, which reached $1,688.

In terms of operational metrics, MAA maintained an average physical occupancy rate of 95.5% across its Same Store segment, slightly down from 95.6% in the previous year. The company reported a resident turnover rate of 42.0%, a decrease from 44.9% in 2023, indicating improved resident retention. MAA's portfolio consisted of 293 apartment communities as of December 31, 2024, with seven additional communities under development, reflecting the company's ongoing commitment to growth and geographic diversification across 16 states and the District of Columbia.

Strategically, MAA continued to expand its footprint through acquisitions, having acquired three multifamily communities for approximately $271 million and three land parcels for future development at a cost of $30 million during the year. The company also reported $313.9 million in development costs, completing three projects and financing a third-party development in Charlotte, North Carolina. MAA's focus on technology and operational efficiencies has led to enhancements in resident services, including online leasing and smart home technology installations, which have contributed to increased resident satisfaction and rental rates.

Financially, MAA's total debt stood at $4.98 billion as of December 31, 2024, with a net debt to Adjusted EBITDAre ratio of 4.0x, up from 3.6x the previous year. The company reported an increase in interest expense to $168.5 million, reflecting higher average outstanding debt and interest rates. MAA's liquidity position remains strong, with $1.0 billion in unrestricted cash and available capacity under its revolving credit facility, which positions the company well for future investments and operational needs.

Looking ahead, MAA anticipates continued demand for multifamily housing, driven by economic factors such as job growth and population increases. However, the company is mindful of potential challenges, including inflationary pressures on operating expenses and the impact of rising interest rates on borrowing costs. MAA expects to navigate these challenges while maintaining its focus on delivering value to shareholders through strategic acquisitions, development projects, and effective property management.