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The call conveyed cautious optimism: operations showed clear strengths (occupancy at 95.5%, low delinquencies, expense control, sequential improvement in lease pricing, strong renovation economics, solid liquidity and a sizable development pipeline). However, persistent supply pressure in several markets (notably Austin and Charlotte), elevated concessions in lease-ups, a negative blended new-lease read in Q1 (-0.3%), and some timing-related reductions to development starts are notable headwinds. On balance, management sees improving momentum (absorption > deliveries, supply down ~40% YoY, better 60-day exposure) and has the balance sheet and capital allocation flexibility to support recovery.
MAA said it is reaffirming the midpoint of its full-year same‑store and core FFO guidance while tightening the core FFO range, reporting Q1 core FFO of $2.13 per diluted share ($0.02 ahead of guidance) and providing near‑term core FFO guidance of $2.00–$2.12 per diluted share ($2.06 midpoint); full‑year blended lease‑over‑lease guidance is 1.0%–1.5% (Q1 was -0.3%) with management modeling roughly 1.3%–1.8% blended for the last three quarters as new‑lease pricing accelerates into July, renewal growth expected to remain in the 5%+ range, and seasonal moderation thereafter. Operational and balance‑sheet metrics tied to the outlook include average physical occupancy of 95.5% (Q1 and April), 60‑day exposure of 8.3% (20 bps better YoY), net delinquency ~0.3% of billings, development spend trimmed to ~$350M for the year (down from $400M and up from $315M in 2025) with $623M in the pipeline (≈$234M remaining to fund over three years) and >4,300 owned/controlled future units, four expected 2026 construction starts including a 286‑unit Kansas City project, nearly $840M of cash+revolver capacity, net debt/EBITDA of 4.5x, average debt life 6.1 years at a 3.9% effective rate (including $200M 7‑yr bonds issued at ~4.6%), and active capital returns (558k shares repurchased for $73M at a $130.46 average).
Reported core FFO of $2.13 per diluted share for Q1, $0.02 above guidance; same-store expenses were favorable to guidance by $0.015 per share and non-same-store NOI was favorable by $0.01 per share, reflecting disciplined expense management and timing benefits.
Average physical occupancy was 95.5% for the quarter (95.5% in April as well); net delinquency remained low at 0.3% of billings, in line with recent quarters, indicating strong collections and resident payment behavior.
Blended lease-over-lease pricing improved 140 basis points sequentially from Q4; new lease-over-lease growth improved 110 basis points sequentially and renewal lease-over-lease growth improved 70 basis points sequentially, signaling sequential improvement in pricing trends after Q1 negative blended performance.
First-quarter absorption exceeded new supply deliveries in the company's footprint; regional new deliveries are down ~40% year-over-year, and 60-day exposure improved to 8.3%, 20 basis points better than April 2025, supporting a constructive outlook for further pricing recovery.
Owned/controlled land sites represent over 4,300 units of future growth; development pipeline stood at $623 million at quarter end with ~$234 million remaining to be funded over the next 3 years; started construction on first project (286 units) in April and now expect to start 4 projects this year.
Completed 1,386 interior unit upgrades in Q1 (vs ~1,100 in Q1 2025), achieving average rent lifts of $104 above non-upgraded units on an average unit spend of $7,349 — a cash-on-cash return of ~17%; renovated units lease faster (about 9 days quicker).
Combined cash and borrowing capacity under the revolving credit facility of nearly $840 million; net debt-to-EBITDA was 4.5x; outstanding debt average maturity 6.1 years at an effective rate of 3.9%; completed $200 million 7-year bond issuance at ~4.6% and used proceeds to repay short-term borrowings.
Repurchased 558,000 shares for $73 million at a weighted average price of $130.46, taking advantage of public market pricing dislocation while maintaining a balanced capital allocation approach (development, buybacks, balance sheet protection).
Good morning, ladies and gentlemen, and welcome to the MAA First Quarter 2026 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded today, April 30, 2026. [Operator Instructions]. I will now turn the call over to Andrew Schaeffer, Senior Vice President, Treasurer and Director of Capital Markets at MAA for opening comments.
Thank you, Regina, and good morning, everyone. This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MAA. Members of the management team participating on the call this morning are Brad Hill, Tim Argo, Clay holder and Rob DelPriore. Before we begin with prepared comments this morning, I want to point out that as part of this discussion, company management will be making forward-looking statements. Actual results may differ materially from our projections. 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. During this call, we will also discuss certain non-GAAP financial measures and 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.
A copy of our prepared comments and an audio recording of this call will also be available on our website later today...