Mid-America Apartment Communities, Inc. (MAA) priced a $400 million offering of 4.650% senior unsecured notes due January 15, 2033. The notes were priced at 99.354% of principal, reflecting strong demand from investors.
The company will use the net proceeds to repay outstanding borrowings under its unsecured commercial paper program and to fund general corporate purposes, including potential debt repayment, acquisition, development, and redevelopment of apartment communities.
The offering is part of MAA’s strategy to strengthen its balance sheet by reducing short‑term debt exposure and securing longer‑term, fixed‑rate financing. The company’s net debt to EBITDA was 4.2x at the end of Q3 2025, and it had $814.7 million in cash and borrowing capacity.
MAA reported Q3 2025 net income of $98.6 million, down 13.7% year‑over‑year, and diluted EPS of $0.84, below the $0.98 reported in the same period last year. Core FFO per share for the quarter was $2.16, in line with guidance. The company lowered its full‑year 2025 guidance for earnings per share and property revenue growth due to increased apartment supply and softer rental markets.
Management said the financing will help manage short‑term debt exposure and provide capital for growth opportunities in the Sunbelt markets, where the company focuses on apartment communities in the Southeast, Southwest, and Mid‑Atlantic regions. MAA also increased its unsecured revolving credit facility to $1.5 billion, further enhancing liquidity.
The company operates primarily in two segments: Same Store and Non‑Same Store and Other. The offering does not affect the company’s segment performance but supports its broader strategy to capitalize on demand in Sunbelt markets while navigating supply pressures.
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