MAA (M2K) Q3 2026 Earnings Report

The call was cautiously positive. Management reported strong renewals, record-low turnover, healthy delinquency and resident financial-health metrics, improving October and pre-leasing trends, positive absorption, attractive redevelopment and development returns, and a positive earn-in into 2027. However, the recovery was delayed by approximately one quarter, full-year core FFO and same-store NOI guidance were reduced, new lease pricing remained negative, and high-supply markets continued to require concessions. The positive operating trends and breadth of initiatives outweighed the acknowledged near-term pressures.

MAA lowered its full-year core FFO guidance by $0.04-$8.49 per diluted share and established a revised range of $8.43-$8.55, reduced its full-year same-store revenue growth midpoint by 35 basis points to negative 0.25%, effective rent growth midpoint by 20 basis points to negative 0.1%, average physical occupancy midpoint by 10 basis points to 95.4%, and same-store expense growth midpoint by 35 basis points to 1.4%, resulting in a same-store NOI growth midpoint of negative 1.25%; full-year overhead was lowered by $1.5 million, total development costs are expected to be approximately $320 million, and fourth-quarter core FFO is expected to be $2.12-$2.24 per diluted share, or $2.18 at the midpoint. Management expects fourth-quarter occupancy to be closer to the 95.5% range, give or take, renewal lease-over-lease rates to remain in the 5%-plus range, and new lease pricing to show probably half of the typical 300-plus basis point moderation from the third quarter’s about negative 6% level; it also expects a slightly positive earn-in heading into 2027, occupancy to be something similar, if not a little bit better, CapEx interest to be a little lower than this year and a small headwind in 2027, and Wi-Fi revenue run rates of close to $2 million for the current group and closer to $3 million for the additional 38 properties.