Mid-America Apartment's Q2 FFO Beats Estimates, Rent Declines

Mid-America Apartment Communities MAA, commonly known as MAA, reported second-quarter 2025 core funds from operations (FFO) per share of $2.15, which surpassed the Zacks Consensus Estimate of $2.14. However, the reported figure fell 3.15% year over year from $2.22.

MAA has experienced a fall in same-store revenues, with average effective rent per unit declining year over year. However, the REIT witnessed low levels of resident turnover.

Amid this, MAA stock has declined 1.20% during the after-market hours yesterday.

Rental and other property revenues of $549.9 million for the second quarter missed the Zacks Consensus Estimate by 0.4%. However, the reported figure was 0.6% higher than the year-ago quarter’s tally.

MAA’s Q2 in Detail

The same-store portfolio’s revenues fell 0.3% on a year-over-year basis. MAA experienced a decline of 0.5% in the average effective rent per unit. The same-store portfolio’s property operating expenses rose 3.8% on a year-over-year basis. As a result, the same-store portfolio’s net operating income (NOI) fell 2.6%.

The average physical occupancy for the same-store portfolio in the second quarter was 95.4%. Our estimate for the same was 95.7%.

As of June 30, 2025, resident turnover in the same-store portfolio remained historically low at 41.0%. This stemmed from record-low levels of move-outs related to buying single-family homes (11.0%). 

During the second quarter, MAA's same-store effective blended lease rate growth was 0.5%, with the effective new lease rate dropping 4.8%, while the effective renewal lease rate grew 4.7%.

MAA’s Portfolio Activity

In June 2025, MAA closed on the acquisition of a land parcel in Charleston, SC, through its pre-purchase development program and started construction on a 336-unit multifamily apartment community.

As of June 30, 2025, MAA had eight communities under development, with total expected costs of $942.5 million. Moreover, MAA had four recently completed development communities and two recently acquired communities in lease-up with a total cost to date of $573.9 million.

MAA’s Balance Sheet Position

MAA exited the second quarter of 2025 with cash and cash equivalents of $54.5 million, up from $43 million recorded as of Dec. 31, 2024. 

As of June 30, 2025, MAA had a strong balance sheet with $1.0 billion in combined cash and capacity available under its unsecured revolving credit facility. It had a net debt/adjusted EBITDAre ratio of 4 times.

As of the same date, the total debt outstanding was $5 billion. Its total debt average years to maturity was 6.7 years.

MAA’s 2025 Guidance

MAA projects a third-quarter 2025 core FFO per share in the band of $2.08-$2.24, with $2.16 at the midpoint. The Zacks Consensus Estimate of $2.17 lies within the range.

This residential REIT revised its projections and now expects 2025 core FFO per share in the range of $8.65-$8.89 compared with $8.61-$8.93 guided earlier, with the midpoint remaining unchanged at $8.77. The Zacks Consensus Estimate for the same is currently pegged at $8.76 and lies within the range. 

For 2025, management anticipates same-store property revenue growth of -0.20% to 0.40%, with the revised midpoint now at 0.10% compared with 0.40% growth projected earlier. Operating expense growth is expected in the range of 1.75% to 2.75%, with the midpoint declining to 2.25% from 3.20% growth expected earlier. As a result, the same-store NOI is anticipated to decline between 1.90% and 0.40%, with the midpoint remaining unchanged at a fall of 1.15%. 

MAA currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise

Mid-America Apartment Communities, Inc. price-consensus-eps-surprise-chart | Mid-America Apartment Communities, Inc. Quote

Performance of Another Residential REIT

AvalonBay Communities AVB reported second-quarter 2025 core FFO per share of $2.82, beating the Zacks Consensus Estimate of $2.80. The figure also climbed 1.8% from the prior-year quarter’s tally. AvalonBay’s quarterly performance reflects favorable same-store residential revenue and operating expense performance. AvalonBay has revised its full-year 2025 outlook, reflecting higher same-store NOI, offset by the delayed occupancies' impact on development NOI. AVB’s total revenues in the quarter came in at $760.2 million, missing the Zacks Consensus Estimate by just 0.2%. However, the figure increased 4.7% on a year-over-year basis.

An Upcoming Earnings Release

We now look forward to the earnings release of another residential REIT — Equity Residential EQR — which is slated to report on Aug. 4.

The Zacks Consensus Estimate for Equity Residential’s second-quarter 2025 normalized FFO per share stands at 99 cents, indicating a 2.1% increase year over year. The consensus mark for Equity Residential’s second quarter revenues is $769.26 million, implying a 4.8% increase year over year. EQR currently has a Zacks Rank #2 (Buy).

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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