Mid-America Apartment Earnings Rise as Property Growth Stalls

The Tip Desk · July 30, 2026 · 2 min read

Blended lease-rate growth improved to 0.7% as new-lease pricing gained momentum.

Mid-America Apartment Communities (MAA), the apartment real-estate investment trust, reported a 13% rise in second-quarter diluted earnings to $1.04 a share, even as its main cash-flow measures weakened.

Core funds from operations fell 3.3% from a year earlier to $2.08 a share and declined from $2.13 in the first quarter. Core adjusted funds from operations dropped 4.3% to $1.77 a share. The divergence reflected limited property-income growth and rising borrowing costs.

Rental and other property revenue increased 1% to $555.1 million, while total net operating income edged up 0.3% to $336.4 million. Net income available to common shareholders rose 12.7% to $120.8 million. Interest expense climbed 17.8% to $53.1 million and increased 3.4% from the first quarter.

Same Store revenue declined 0.3% as expenses rose 0.8%, pushing Same Store NOI down 1%. Average effective rent per unit slipped 0.2%. Total NOI fell 3.4% sequentially, with the Same Store decline partly offset by growth from Non-Same Store and Other properties.

Lease pricing strengthened during the quarter. New-lease rates remained down 5.3%, while renewal rates rose 5.2% and average physical occupancy was 95.3%. Resident turnover held at a historically low 39.6%, and move-outs to purchase single-family homes accounted for 10.9% of departures.

Mid-America kept its full-year Core FFO midpoint at $8.53 a share and narrowed the range to $8.41 to $8.65. The company cut its diluted-EPS midpoint by 26 cents to $4.08 and lowered its Same Store NOI-growth midpoint to negative 0.9%. Third-quarter Core FFO guidance is $2.04 to $2.16 a share, with the midpoint slightly above the second-quarter result.

The company repurchased 0.4 million shares for $50 million during the quarter as development activity expanded. Five lease-up properties totaling 1,759 units were 74.4% occupied at quarter-end, while total debt rose to $5.69 billion and net debt increased to 4.5 times adjusted EBITDAre.