Earnings call transcript: MAA posts mixed Q3 2026 results as guidance dips

Mid-America Apartment Communities (MAA) posted mixed results for the third quarter of 2026, with earnings per share (EPS) falling short of expectations while revenue slightly exceeded forecasts. The apartment landlord reported EPS of $0.72, below the $0.77 forecast, while revenue of $560.13 million surpassed the $558.7 million estimate.

Core funds from operations (FFO) met management's expectations at $2.10 per diluted share, but full-year guidance was reduced by $0.04 to $8.49 per share. Same-store revenue and net operating income (NOI) guidance were both revised lower.

The company attributed the mixed results to weaker new lease pricing, which pressured same-store results. However, renewal pricing remained strong, with year-over-year improvements accelerating in the third quarter. Occupancy rates held steady at 95.3% in the second and third quarters, with management expecting a gradual rise to around 95.5% in the fourth quarter.

Revenue for the quarter was $560.13 million, up slightly from the $558.7 million forecast. EPS was $0.72, missing the $0.77 consensus estimate by $0.05, or about 6.5%. Same-store revenue growth was revised to a negative 0.25%, and same-store NOI growth to a negative 1.25%. Same-store expense growth was revised to 1.4%, and effective rent growth was revised to a negative 0.1%.

MAA's combined cash and revolver capacity stood at $661 million as of September 30. Despite the mixed results, the company's core FFO aligned with management's expectations. The stock showed a muted response after the report, trading at $116.55, down 0.17% from the previous close of $116.75. MAA's stock has declined nearly 12% year-to-date, but its beta of 0.73 indicates lower volatility compared to the broader market.

InvestingPro analysis suggests MAA is slightly undervalued at current levels, placing it among stocks with potential upside. The modest revenue beat and stable core FFO likely offset some concern about the EPS miss and the lower guidance, but the cut to the full-year outlook and cautious same-store trends tempered enthusiasm. Management remains encouraged by the underlying drivers of recovery, citing strong demand absorbing elevated supply.

They also highlighted future opportunities, such as a community-wide Wi-Fi rollout, which could generate about $5 million in revenue across the portfolio.