Mid-America Apartment Communities, Inc. BofA NY Global Real Estate Conference 2026

Yeah. Well, thank you. Appreciate everyone being here, appreciate the time. It's been a great conference. We enjoy the building. It's been well-received. What I thought I'd do is just give a few opening comments and just jump right into questions. For those of you who aren't as familiar with MAA and our story, just a quick update or background. MAA is a $22 billion S&P 500 multifamily REIT. We have about 105,000 apartment units, predominantly across the Sun Belt region of the U.S. We are located in 16 different states, and our exclusive focus really is on multifamily in what we call high growth, high demand region of the country. Generally, that overlaps quite well with the Sun Belt markets throughout the Southeast. If you look at our markets, what's characterized them historically has been significant outperformance on demand metrics.

Whether you're looking at household formation, population growth, migration trends, job growth, wage growth, our markets have consistently outperformed other regions of the country on all of those demand factors, and that continues to be the case today. Certainly, our markets, particularly if you look at the last three years, has faced more supply pressure than other parts of the country, as we've seen really a record level of deliveries in the Sun Belt region, really across the country, but in particular in the Sun Belt region. But as we sit here today, that supply pressure is moderating. So we're really encouraged by what we're seeing there. We continue to work our way through that supply overhang.

Definitely our new lease rate performance continues to be impacted by that new supply that's coming into the market or is into the market, but a lot of those lease-up communities are leasing up, and so we are seeing some better performance. Finally, after three years of excess supply, we are seeing those new deliveries trend down below long-term averages. Based on what we've seen in terms of new deliveries for the last three years being below long-term averages or new starts for the last three years being below long-term averages, we do expect the trajectory of supply to be more muted as we go forward for the next three to five years. If we look at our markets from a market perspective, certainly some of our high supply markets, as I mentioned, are still under pressure.

If you think Phoenix, Jacksonville, Charlotte, Raleigh, Nashville, Austin, those markets continue to face supply pressure, but we are making our way through that. I will hit on one of those markets here in just a second. We are also encouraged by some strength that we are seeing in our mid-tier markets. If you were to rank all of our markets from top to bottom in terms of performance, you will see the top 10 or so of our markets are all mid-tier markets, and those are markets where we have seen less supply pressure or those markets peaked in supply pressure before other markets did. We are seeing pretty good performance out of those markets. Then if you look below the line in terms of our average performance, what you will see is all of those markets are high supply markets. We continue to see pressure in those.

But the good news is, if you look at a high supply market like in Austin, even though that market has seen the highest supply in the country, we do continue to see good performance, relative performance out of that market. Now, if you look at our blended performance just over the past year, we are up about 300 to 500 basis points in blended performance year-over-year. So while it is still negative and it is still at the bottom of our list, we are seeing some stronger performance in that market. Again, as the supply pressures continue to be absorbed and dissipate across our portfolio, we would expect to see similar performance in terms of trends across our portfolios.

Yep. Absolutely. We did put out on page 33, if you have a package in front of you. I'd say in general what we're seeing so far in the third quarter, consistent with our comments on the earnings call. We are seeing and expect to continue to see less of a seasonal slowdown in the third and fourth quarter than what we saw last year. If you look at our blended results quarter to date in third quarter, we're seeing that at this point. Tying back to my comments I made a moment ago with us still dealing with supply pressure in some of these high supply markets. Our new lease rate performance is probably a little weaker than what we had hoped in the third quarter, but we are seeing some strength on the renewal side.

If you look at our renewal rates, the third quarter is consistent with what we saw in the second quarter. It's also up about 70 basis points year over year, and our retention rates continue to improve. If you look out into the fourth quarter, as we sit here today, we have over 60% of our renewal decisions have already been made. And we continue to see improvement in the retention rates, and the renewal rates are improving. We're up to about 5.5% in the fourth quarter, which again is about 70 or 80 basis points better than last year. So continued strength on the renewal side. The other thing I'll mention about third quarter performance, we have seen a build in occupancy every month through the quarter. So August occupancy was better than July and September occupancy. Average daily occupancy will be better than what we saw in August.

We've continued to build occupancy as we've gone through the quarter.

But can you help us think about it maybe in terms of what those actual dollars are between the- Yeah minus 5.7 and the plus five and The spread between on a new and a renewal lease on a dollar amount is about $180.

So that spread in a dollar value is not quite as big as you would think. If you think about that from the position of a renewing resident, what we are asking them to do is to pay about $90 more than what they are currently paying. From a resident perspective, we do a lot of focus on customer service. What we have found is if we continue to take care of that resident, provide good maintenance, a good experience for them, and really not give them a reason to leave, then they generally will not leave from us. That $90 rent increase that we are asking them to give is about $1,000 a year, so it is very reasonable.