Mid America Apartment Communities Inc. Q1 2026 results

This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MAA. We encourage you to refer to the forward-looking statements section in yesterday's earnings release and our 34 Act filings with the SEC, which describe risk factors that may impact future results. A presentation of the most directly comparable GAAP financial measures as well as reconciliations of the differences between non-GAAP and comparable GAAP measures can be found in our earnings release and supplemental financial data. Our earnings release and supplement are currently available on the For Investors page of our website at www.maac.com.

In an attempt to complete our call within one hour due to other earnings calls today, we will limit questions to one per analyst. Supported by our continued strong renewal performance, blended lease over lease pricing improved 140 basis points from the fourth quarter. The projects we expect to start this year will deliver in 2028 and 2029 during what we believe will be a more favorable supply-demand environment. Our high-growth markets continue to offer attractive long-term appeal for employers, households, and investors.

With positive absorption, stable demand, and market-level occupancies improving, we are optimistic we will continue to build momentum through the spring and summer, supporting improved new lease pricing as the year progresses. For the first quarter, same-store NOI beat our expectations with inline same-store revenue combining with lower same-store expenses to drive the favorability. Renewal lease over lease growth improved 70 basis points sequentially from the fourth quarter, driving blended lease over lease growth up 140 basis points from the fourth quarter. We achieved rent increases of $104 above non-upgraded units on average unit level spend of $7,349, representing a cash-on-cash return of approximately 17%.