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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 001-12762 (Mid-America Apartment Communities, Inc.)

Commission File Number: 333-190028-01 (Mid-America Apartments, L.P.)

MID-AMERICA APARTMENT COMMUNITIES, INC.

MID-AMERICA APARTMENTS, L.P.

(Exact name of registrant as specified in its charter)

 

Tennessee (Mid-America Apartment Communities, Inc.)

62-1543819

Tennessee (Mid-America Apartments, L.P.)

62-1543816

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

6815 Poplar Ave., Suite 500, Germantown, TN 38138

(Address of principal executive offices) (Zip Code)

(901) 682-6600

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share (Mid-America Apartment Communities, Inc.)

MAA

New York Stock Exchange

8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share (Mid-America Apartment Communities, Inc.)

MAA*I

New York Stock Exchange

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Mid-America Apartment Communities, Inc.

Yes ☒

No ☐

Mid-America Apartments, L.P.

Yes ☒

No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Mid-America Apartment Communities, Inc.

Yes ☒

No ☐

Mid-America Apartments, L.P.

Yes ☒

No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Mid-America Apartment Communities, Inc.

 

 

 

Large accelerated filer

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company

Emerging growth company

 

Mid-America Apartments, L.P.

 

 

 

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Mid-America Apartment Communities, Inc. ☐

Mid-America Apartments, L.P. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Mid-America Apartment Communities, Inc.

Yes ☐

No

Mid-America Apartments, L.P.

Yes ☐

No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

 

Mid-America Apartment Communities, Inc.

Number of Shares Outstanding at

Class

October 28, 2024

Common Stock, $0.01 par value

116,880,291

 

 


 

MID-AMERICA APARTMENT COMMUNITIES, INC.

MID-AMERICA APARTMENTS, L.P.

 

TABLE OF CONTENTS

 

 

 

 

Page

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements.

5

 

Mid-America Apartment Communities, Inc.

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023.

5

 

 

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023.

6

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023.

7

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023.

8

 

Mid-America Apartments, L.P.

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023.

9

 

 

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023.

10

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023.

11

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023.

12

 

Notes to Condensed Consolidated Financial Statements.

13

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

41

Item 4.

Controls and Procedures.

41

 

 

 

 

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings.

42

Item 1A.

Risk Factors.

42

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

42

Item 3.

Defaults Upon Senior Securities.

42

Item 4.

Mine Safety Disclosures.

42

Item 5.

Other Information.

43

Item 6.

Exhibits.

44

 

Signatures.

45

 

2


 

Explanatory Note

This report combines the Quarterly Reports on Form 10-Q for the quarter ended September 30, 2024 of Mid-America Apartment Communities, Inc., a Tennessee corporation, and Mid-America Apartments, L.P., a Tennessee limited partnership, of which Mid-America Apartment Communities, Inc. is the sole general partner. Mid-America Apartment Communities, Inc. and its 97.4% owned subsidiary, Mid-America Apartments, L.P., are both required to file quarterly reports under the Securities Exchange Act of 1934, as amended.

Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, all references in this report to “we,” “us,” “our,” or the “Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references in this report to the “Operating Partnership” or “MAALP” refer to Mid-America Apartments, L.P. together with its consolidated subsidiaries. “Common stock” refers to the common stock of MAA, “preferred stock” refers to the preferred stock of MAA, and “shareholders” refers to the holders of shares of MAA’s common stock or preferred stock, as applicable. The common units of limited partnership interest in the Operating Partnership are referred to as “OP Units” and the holders of the OP Units are referred to as “common unitholders.”

As of September 30, 2024, MAA owned 116,880,291 OP Units (97.4% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership’s sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

We believe combining the periodic reports of MAA and the Operating Partnership, including the notes to the condensed consolidated financial statements, into this report results in the following benefits:

 

enhances investors’ understanding of MAA and the Operating Partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;
eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure in this report applies to both MAA and the Operating Partnership; and
creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. The management of the Company is comprised of individuals who are officers of MAA and employees of the Operating Partnership. We believe it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an umbrella partnership REIT, or UPREIT. MAA’s interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA’s percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA’s only material asset is its ownership of limited partnership interests in the Operating Partnership (other than cash held by MAA from time to time); therefore, MAA’s primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership from time to time. The Operating Partnership holds, directly or indirectly, all of the real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentation of MAA’s shareholders’ equity and the Operating Partnership’s capital are the principal areas of difference between the condensed consolidated financial statements of MAA and those of the Operating Partnership. MAA’s shareholders’ equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interests, treasury shares, accumulated other comprehensive income or loss and redeemable common stock. The Operating Partnership’s capital may include common capital and preferred capital of the general partner (MAA), limited partners’ common capital and preferred capital, noncontrolling interests, accumulated other comprehensive income or loss and redeemable common units. Holders of OP Units (other than MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

3


 

In order to highlight the material differences between MAA and the Operating Partnership, this Quarterly Report on Form 10-Q includes sections that separately present and discuss areas that are materially different between MAA and the Operating Partnership, including:

the condensed consolidated financial statements in Part 1, Item 1 of this report;
certain accompanying notes to the condensed consolidated financial statements, including Note 2 - Earnings per Common Share of MAA and Note 3 - Earnings per OP Unit of MAALP; Note 4 - MAA Equity and Note 5 - MAALP Capital; and Note 8 - Shareholders’ Equity of MAA and Note 9 - Partners’ Capital of MAALP;
the controls and procedures in Part 1, Item 4 of this report; and
the certifications included as Exhibits 31 and 32 to this report.

In the sections that combine disclosures for MAA and the Operating Partnership, this Quarterly Report on Form 10-Q refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership (directly or indirectly through one of its subsidiaries) is generally the entity that enters into contracts, holds assets and issues debt, management believes this presentation is appropriate for the reasons set forth above and because we operate the business through the Operating Partnership. MAA, the Operating Partnership and its subsidiaries operate as one consolidated business, but MAA, the Operating Partnership and each of its subsidiaries are separate, distinct legal entities.

4


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except per share data)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

Land

 

$

2,085,464

 

 

$

2,031,403

 

Buildings and improvements and other

 

 

13,956,601

 

 

 

13,515,949

 

Development and capital improvements in progress

 

 

499,619

 

 

 

385,405

 

 

 

16,541,684

 

 

 

15,932,757

 

Less: Accumulated depreciation

 

 

(5,217,893

)

 

 

(4,864,690

)

 

 

11,323,791

 

 

 

11,068,067

 

Undeveloped land

 

 

73,861

 

 

 

73,861

 

Investment in real estate joint venture

 

 

41,693

 

 

 

41,977

 

Real estate assets, net

 

 

11,439,345

 

 

 

11,183,905

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

50,232

 

 

 

41,314

 

Restricted cash

 

 

13,829

 

 

 

13,777

 

Other assets

 

 

237,525

 

 

 

245,507

 

Assets held for sale

 

 

15,321

 

 

 

 

Total assets

 

$

11,756,252

 

 

$

11,484,503

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Unsecured notes payable

 

$

4,515,733

 

 

$

4,180,084

 

Secured notes payable

 

 

360,235

 

 

 

360,141

 

Accrued expenses and other liabilities

 

 

726,172

 

 

 

645,156

 

Total liabilities

 

 

5,602,140

 

 

 

5,185,381

 

 

 

 

 

 

 

 

Redeemable common stock

 

 

22,518

 

 

 

19,167

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 20,000,000 shares authorized;
   
8.50% Series I Cumulative Redeemable Shares, liquidation preference $50.00
   per share,
867,846 shares issued and outstanding as of September 30, 2024
   and December 31, 2023, respectively

 

 

9

 

 

 

9

 

Common stock, $0.01 par value per share, 145,000,000 shares authorized;
   
116,880,291 and 116,694,124 shares issued and outstanding as of
   September 30, 2024 and December 31, 2023, respectively
(1)

 

 

1,166

 

 

 

1,168

 

Additional paid-in capital

 

 

7,413,674

 

 

 

7,399,921

 

Accumulated distributions in excess of net income

 

 

(1,458,816

)

 

 

(1,298,263

)

Accumulated other comprehensive loss

 

 

(7,359

)

 

 

(8,764

)

Total MAA shareholders’ equity

 

 

5,948,674

 

 

 

6,094,071

 

Noncontrolling interests - OP Units

 

 

155,562

 

 

 

163,128

 

Total Company’s shareholders’ equity

 

 

6,104,236

 

 

 

6,257,199

 

Noncontrolling interests - consolidated real estate entities

 

 

27,358

 

 

 

22,756

 

Total equity

 

 

6,131,594

 

 

 

6,279,955

 

Total liabilities and equity

 

$

11,756,252

 

 

$

11,484,503

 

(1)
Number of shares issued and outstanding represents total shares of common stock regardless of classification on the Condensed Consolidated Balance Sheets. The number of shares classified as redeemable common stock on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 are 141,710 and 142,546, respectively.

See accompanying notes to condensed consolidated financial statements.

5


 

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except per share data)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenues

 

$

551,126

 

 

$

542,042

 

 

$

1,641,183

 

 

$

1,606,221

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses, excluding real estate taxes and insurance

 

 

134,475

 

 

 

122,660

 

 

 

378,887

 

 

 

347,868

 

Real estate taxes and insurance

 

 

77,086

 

 

 

76,563

 

 

 

236,272

 

 

 

228,491

 

Depreciation and amortization

 

 

146,722

 

 

 

146,702

 

 

 

434,764

 

 

 

424,175

 

Total property operating expenses

 

 

358,283

 

 

 

345,925

 

 

 

1,049,923

 

 

 

1,000,534

 

Property management expenses

 

 

17,265

 

 

 

16,298

 

 

 

54,461

 

 

 

50,317

 

General and administrative expenses

 

 

12,728

 

 

 

13,524

 

 

 

42,444

 

 

 

43,329

 

Interest expense

 

 

42,726

 

 

 

36,651

 

 

 

124,352

 

 

 

110,655

 

Loss on sale of depreciable real estate assets

 

 

 

 

 

75

 

 

 

25

 

 

 

61

 

Gain on sale of non-depreciable real estate assets

 

 

 

 

 

 

 

 

 

 

(54

)

Other non-operating expense (income)

 

 

1,678

 

 

 

16,493

 

 

 

(2,604

)

 

 

(3,966

)

Income before income tax (expense) benefit

 

 

118,446

 

 

 

113,076

 

 

 

372,582

 

 

 

405,345

 

Income tax (expense) benefit

 

 

(670

)

 

 

209

 

 

 

(3,485

)

 

 

(3,596

)

Income from continuing operations before real estate joint venture activity

 

 

117,776

 

 

 

113,285

 

 

 

369,097

 

 

 

401,749

 

Income from real estate joint venture

 

 

454

 

 

 

447

 

 

 

1,405

 

 

 

1,214

 

Net income

 

 

118,230

 

 

 

113,732

 

 

 

370,502

 

 

 

402,963

 

Net income attributable to noncontrolling interests

 

 

3,035

 

 

 

3,000

 

 

 

9,605

 

 

 

10,633

 

Net income available for shareholders

 

 

115,195

 

 

 

110,732

 

 

 

360,897

 

 

 

392,330

 

Dividends to MAA Series I preferred shareholders

 

 

922

 

 

 

922

 

 

 

2,766

 

 

 

2,766

 

Net income available for MAA common shareholders

 

$

114,273

 

 

$

109,810

 

 

$

358,131

 

 

$

389,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for MAA common shareholders

 

$

0.98

 

 

$

0.94

 

 

$

3.07

 

 

$

3.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for MAA common shareholders

 

$

0.98

 

 

$

0.94

 

 

$

3.07

 

 

$

3.34

 

 

See accompanying notes to condensed consolidated financial statements.

6


 

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

118,230

 

 

$

113,732

 

 

$

370,502

 

 

$

402,963

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment for net losses reclassified to net income from
   derivative instruments

 

 

428

 

 

 

279

 

 

 

1,448

 

 

 

835

 

Total comprehensive income

 

 

118,658

 

 

 

114,011

 

 

 

371,950

 

 

 

403,798

 

Comprehensive income attributable to
   noncontrolling interests

 

 

(3,047

)

 

 

(3,009

)

 

 

(9,648

)

 

 

(10,660

)

Comprehensive income attributable to MAA

 

$

115,611

 

 

$

111,002

 

 

$

362,302

 

 

$

393,138

 

 

See accompanying notes to condensed consolidated financial statements.

7


 

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

 

 

Nine months ended September 30,

 

Cash flows from operating activities:

 

2024

 

 

2023

 

Net income

 

$

370,502

 

 

$

402,963

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

435,342

 

 

 

424,797

 

Loss on sale of depreciable real estate assets

 

 

25

 

 

 

61

 

Gain on sale of non-depreciable real estate assets

 

 

 

 

 

(54

)

Gain on consolidation of third-party development

 

 

(11,033

)

 

 

 

Loss on embedded derivative in preferred shares

 

 

14,451

 

 

 

1,863

 

Stock compensation expense

 

 

12,396

 

 

 

12,296

 

Amortization of debt issuance costs, discounts and premiums

 

 

4,568

 

 

 

4,537

 

Gain on investments

 

 

(3,666

)

 

 

(745

)

Net change in operating accounts and other operating activities

 

 

36,580

 

 

 

26,538

 

Net cash provided by operating activities

 

 

859,165

 

 

 

872,256

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of real estate and other assets

 

 

(189,104

)

 

 

(12,450

)

Capital improvements and other

 

 

(235,856

)

 

 

(261,069

)

Development costs

 

 

(255,216

)

 

 

(151,145

)

Distributions from real estate joint venture

 

 

284

 

 

 

Contributions to affiliates

 

 

(1,874

)

 

 

(7,505

)

Proceeds from sale of marketable equity securities

 

 

9,975

 

 

 

 

Proceeds from real estate asset dispositions

 

 

 

 

 

2,948

 

Net proceeds from insurance recoveries

 

 

20,203

 

 

 

680

 

Net cash used in investing activities

 

 

(651,588

)

 

 

(428,541

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Net payments of commercial paper

 

 

(5,000

)

 

 

(20,000

)

Proceeds from notes payable

 

 

744,551

 

 

 

 

Principal payments on notes payable

 

 

(400,000

)

 

 

(3,861

)

Payment of deferred financing costs

 

 

(7,150

)

 

 

 

Distributions to noncontrolling interests

 

 

(13,739

)

 

 

(13,266

)

Dividends paid on common shares

 

 

(515,085

)

 

 

(488,354

)

Dividends paid on preferred shares

 

 

(2,766

)

 

 

(2,766

)

Proceeds from issuances of common shares

 

 

955

 

 

 

204,743

 

Net change in other financing activities

 

 

(373

)

 

 

(5,945

)

Net cash used in financing activities

 

 

(198,607

)

 

 

(329,449

)

 

 

 

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

 

8,970

 

 

 

114,266

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

55,091

 

 

 

61,071

 

Cash, cash equivalents and restricted cash, end of period

 

$

64,061

 

 

$

175,337

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:

Reconciliation of cash, cash equivalents and restricted cash at period end:

 

 

 

 

 

 

Cash and cash equivalents

 

$

50,232

 

 

$

161,897

 

Restricted cash

 

 

13,829

 

 

 

13,440

 

Total cash, cash equivalents and restricted cash

 

$

64,061

 

 

$

175,337

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

Interest paid

 

$

126,502

 

 

$

105,640

 

Income taxes paid

 

 

3,273

 

 

 

3,824

 

Non-cash transactions:

 

 

 

 

 

 

Distributions on common shares/units declared and accrued

 

$

176,335

 

 

$

167,768

 

Accrued construction in progress

 

 

39,047

 

 

 

26,519

 

Interest capitalized

 

 

12,188

 

 

 

9,065

 

Conversion of OP Units to shares of common stock

 

 

3,529

 

 

 

894

 

See accompanying notes to condensed consolidated financial statements.

8


 

Mid-America Apartments, L.P.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

Land

 

$

2,085,464

 

 

$

2,031,403

 

Buildings and improvements and other

 

 

13,956,601

 

 

 

13,515,949

 

Development and capital improvements in progress

 

 

499,619

 

 

 

385,405

 

 

 

16,541,684

 

 

 

15,932,757

 

Less: Accumulated depreciation

 

 

(5,217,893

)

 

 

(4,864,690

)

 

 

11,323,791

 

 

 

11,068,067

 

Undeveloped land

 

 

73,861

 

 

 

73,861

 

Investment in real estate joint venture

 

 

41,693

 

 

 

41,977

 

Real estate assets, net

 

 

11,439,345

 

 

 

11,183,905

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

50,232

 

 

 

41,314

 

Restricted cash

 

 

13,829

 

 

 

13,777

 

Other assets

 

 

237,525

 

 

 

245,507

 

Assets held for sale

 

 

15,321

 

 

 

 

Total assets

 

$

11,756,252

 

 

$

11,484,503

 

 

 

 

 

 

 

 

Liabilities and capital

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Unsecured notes payable

 

$

4,515,733

 

 

$

4,180,084

 

Secured notes payable

 

 

360,235

 

 

 

360,141

 

Accrued expenses and other liabilities

 

 

726,172

 

 

 

645,156

 

Due to general partner

 

 

19

 

 

 

19

 

Total liabilities

 

 

5,602,159

 

 

 

5,185,400

 

 

 

 

 

 

 

 

Redeemable common units

 

 

22,518

 

 

 

19,167

 

 

 

 

 

 

 

 

Operating Partnership capital:

 

 

 

 

 

 

Preferred units, 8.50% Series I Cumulative Redeemable Units, 867,846 preferred units
   outstanding as of September 30, 2024 and December 31, 2023, respectively

 

 

66,840

 

 

 

66,840

 

General partner, 116,880,291 and 116,694,124 OP Units outstanding as of September 30,
   2024 and December 31, 2023, respectively
(1)

 

 

5,889,309

 

 

 

6,036,154

 

Limited partners, 3,075,552 and 3,143,972 OP Units outstanding as of September 30, 2024
   and December 31, 2023, respectively
(1)

 

 

155,562

 

 

 

163,128

 

Accumulated other comprehensive loss

 

 

(7,494

)

 

 

(8,942

)

Total operating partners’ capital

 

 

6,104,217

 

 

 

6,257,180

 

Noncontrolling interests - consolidated real estate entities

 

 

27,358

 

 

 

22,756

 

Total equity

 

 

6,131,575

 

 

 

6,279,936

 

Total liabilities and equity

 

$

11,756,252

 

 

$

11,484,503

 

(1)
Number of units outstanding represents total OP Units regardless of classification on the Condensed Consolidated Balance Sheets. The number of units classified as redeemable common units on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 are 141,710 and 142,546, respectively.

See accompanying notes to condensed consolidated financial statements.

9


 

Mid-America Apartments, L.P.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except per unit data)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenues

 

$

551,126

 

 

$

542,042

 

 

$

1,641,183

 

 

$

1,606,221

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses, excluding real estate taxes and insurance

 

 

134,475

 

 

 

122,660

 

 

 

378,887

 

 

 

347,868

 

Real estate taxes and insurance

 

 

77,086

 

 

 

76,563

 

 

 

236,272

 

 

 

228,491

 

Depreciation and amortization

 

 

146,722

 

 

 

146,702

 

 

 

434,764

 

 

 

424,175

 

Total property operating expenses

 

 

358,283

 

 

 

345,925

 

 

 

1,049,923

 

 

 

1,000,534

 

Property management expenses

 

 

17,265

 

 

 

16,298

 

 

 

54,461

 

 

 

50,317

 

General and administrative expenses

 

 

12,728

 

 

 

13,524

 

 

 

42,444

 

 

 

43,329

 

Interest expense

 

 

42,726

 

 

 

36,651

 

 

 

124,352

 

 

 

110,655

 

Loss on sale of depreciable real estate assets

 

 

 

 

 

75

 

 

 

25

 

 

 

61

 

Gain on sale of non-depreciable real estate assets

 

 

 

 

 

 

 

 

 

 

(54

)

Other non-operating expense (income)

 

 

1,678

 

 

 

16,493

 

 

 

(2,604

)

 

 

(3,966

)

Income before income tax (expense) benefit

 

 

118,446

 

 

 

113,076

 

 

 

372,582

 

 

 

405,345

 

Income tax (expense) benefit

 

 

(670

)

 

 

209

 

 

 

(3,485

)

 

 

(3,596

)

Income from continuing operations before real estate joint venture activity

 

 

117,776

 

 

 

113,285

 

 

 

369,097

 

 

 

401,749

 

Income from real estate joint venture

 

 

454

 

 

 

447

 

 

 

1,405

 

 

 

1,214

 

Net income

 

 

118,230

 

 

 

113,732

 

 

 

370,502

 

 

 

402,963

 

Distributions to MAALP Series I preferred unitholders

 

 

922

 

 

 

922

 

 

 

2,766

 

 

 

2,766

 

Net income available for MAALP common unitholders

 

$

117,308

 

 

$

112,810

 

 

$

367,736

 

 

$

400,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common unit - basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for MAALP common unitholders

 

$

0.98

 

 

$

0.94

 

 

$

3.07

 

 

$

3.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common unit - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for MAALP common unitholders

 

$

0.98

 

 

$

0.94

 

 

$

3.07

 

 

$

3.34

 

 

See accompanying notes to condensed consolidated financial statements.

10


 

Mid-America Apartments, L.P.

 

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

118,230

 

 

$

113,732

 

 

$

370,502

 

 

$

402,963

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment for net losses reclassified to net income from
   derivative instruments

 

 

428

 

 

 

279

 

 

 

1,448

 

 

 

835

 

Comprehensive income attributable to MAALP

 

$

118,658

 

 

$

114,011

 

 

$

371,950

 

 

$

403,798

 

 

See accompanying notes to condensed consolidated financial statements.

11


 

Mid-America Apartments, L.P.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

 

 

Nine months ended September 30,

 

Cash flows from operating activities:

 

2024

 

 

2023

 

Net income

 

$

370,502

 

 

$

402,963

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

435,342

 

 

 

424,797

 

Loss on sale of depreciable real estate assets

 

 

25

 

 

 

61

 

Gain on sale of non-depreciable real estate assets

 

 

 

 

 

(54

)

Gain on consolidation of third-party development

 

 

(11,033

)

 

 

 

Loss on embedded derivative in preferred shares

 

 

14,451

 

 

 

1,863

 

Stock compensation expense

 

 

12,396

 

 

 

12,296

 

Amortization of debt issuance costs, discounts and premiums

 

 

4,568

 

 

 

4,537

 

Gain on investments

 

 

(3,666

)

 

 

(745

)

Net change in operating accounts and other operating activities

 

 

36,580

 

 

 

26,538

 

Net cash provided by operating activities

 

 

859,165