(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

This report combines the Quarterly Reports on Form 10-Q for the quarter ended ~~June 30, 2021~~March 31, 2022 of Mid-America Apartment Communities, Inc., a Tennessee corporation, and Mid-America Apartments, L.P., a Tennessee limited partnership, of which Mid-America Apartment Communities, Inc. is the sole general partner. Mid-America Apartment Communities, Inc. and its ~~96.9%~~97.3% owned subsidiary, Mid-America Apartments, L.P., are both required to file quarterly reports under the Securities Exchange Act of 1934, as amended.

Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, all references in this report to “we,” “us,” “our,” or the “Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references in this report to the “Operating Partnership” or “MAALP” refer to Mid-America Apartments, L.P., together with its consolidated subsidiaries. “Common stock” refers to the common stock of MAA, “preferred stock” refers to the preferred stock of MAA, and “shareholders” refers to the holders of shares of MAA’s common stock or preferred stock, as applicable. The common units of limited partnership interest in the Operating Partnership are referred to as “OP Units” and the holders of the OP Units are referred to as “common ~~unitholders”.~~unitholders.”

As of ~~June 30, 2021,~~March 31, 2022, MAA owned ~~114,919,922~~115,337,466 OP Units ~~(96.9%~~(97.3% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership’s sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

We believe combining the periodic reports of MAA and the Operating Partnership, including the notes to the condensed consolidated financial statements, into this report results in the following benefits:

MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. We believe it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an umbrella partnership REIT, or UPREIT. MAA’s interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA’s percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA’s only material asset is its ownership of limited partnership interests in the Operating Partnership (other than cash held by MAA from time to time); therefore, MAA’s primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating ~~Partnership.~~Partnership from time to time. The Operating Partnership holds, directly or indirectly, all of the real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentation of MAA’s shareholders’ equity and the Operating Partnership’s capital are the principal areas of difference between the condensed consolidated financial statements of MAA and those of the Operating Partnership. MAA’s shareholders’ equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interests, treasury shares, accumulated other comprehensive income or loss and redeemable common stock. The Operating Partnership’s capital may include common capital and preferred capital of the general partner (MAA), limited partners’ common capital and preferred capital, noncontrolling interests, accumulated other comprehensive income or loss and redeemable common units. Holders of OP Units (other than MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

In order to highlight the material differences between MAA and the Operating Partnership, this Quarterly Report on Form 10-Q includes sections that separately present and discuss areas that are materially different between MAA and the Operating Partnership, including:

In the sections that combine disclosures for MAA and the Operating Partnership, this Quarterly Report on Form 10-Q refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership (directly or indirectly through one of its subsidiaries) is generally the entity that enters into contracts, holds assets and issues debt, management believes this presentation is appropriate for the reasons set forth above and because we operate the business through the Operating Partnership. MAA, the Operating Partnership and its subsidiaries operate as one consolidated business, but MAA, the Operating Partnership and each of its subsidiaries are separate, distinct legal entities.

June 30, 2021

December 31, 2020

Assets

Real estate assets:

Land

$
1,987,412

$
1,929,181

Buildings and improvements and other

12,246,988

12,065,244

Development and capital improvements in progress

295,645

283,477

14,530,045

14,277,902

Less: Accumulated depreciation

(3,625,627
)

(3,415,105
)

10,904,418

10,862,797

Undeveloped land

35,050

60,993

Investment in real estate joint venture

42,933

43,325

Real estate assets, net

10,982,401

10,967,115

Cash and cash equivalents

31,881

25,198

Restricted cash

11,123

10,417

Other assets

216,715

192,061

Total assets

$
11,242,120

$
11,194,791

Liabilities and equity

Liabilities:

Unsecured notes payable

$
4,187,292

$
4,077,373

Secured notes payable

365,945

485,339

Accrued expenses and other liabilities

546,524

528,274

Total liabilities

5,099,761

5,090,986

Redeemable common stock

21,692

15,397

Shareholders’ equity:

Preferred stock, $0.01 par value per share, 20,000,000 shares authorized;
   8.50% Series I Cumulative Redeemable Shares, liquidation preference $50.00
   per share, 867,846 shares issued and outstanding as of June 30, 2021
   and December 31, 2020, respectively

9

9

Common stock, $0.01 par value per share, 145,000,000 shares authorized;
   114,919,922 and 114,373,727 shares issued and outstanding as of
   June 30, 2021 and December 31, 2020, respectively ⁽¹⁾

1,147

1,141

Additional paid-in capital

7,201,885

7,176,793

Accumulated distributions in excess of net income

(1,272,694
)

(1,294,182
)
Accumulated other comprehensive loss

(11,632
)

(12,128
)
Total MAA shareholders’ equity

5,918,715

5,871,633

Noncontrolling interests - OP Units

185,340

206,927

Total Company’s shareholders’ equity

6,104,055

6,078,560

Noncontrolling interests - consolidated real estate entities

16,612

9,848

Total equity

6,120,667

6,088,408

Total liabilities and equity

$
11,242,120

$
11,194,791

(1)

Number of shares issued and outstanding represents total shares of common stock regardless of classification on the Condensed Consolidated Balance Sheets. The number of shares classified as redeemable common stock on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 are 128,224and 131,559, respectively.

⁽¹⁾

Number of shares issued and outstanding represent total shares of common stock regardless of classification on the Condensed Consolidated Balance Sheets. The number of shares classified as redeemable common stock on the Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 are 128,799~~and 121,534, respectively.~~

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except per share data)


	Three months ended March 31,
	2022			2021
Revenues:
Rental and other property revenues	$	476,078		$	425,005
Expenses:
Operating expenses, excluding real estate taxes and insurance		101,117			95,961
Real estate taxes and insurance		68,303			66,507
Depreciation and amortization		133,738			131,503
Total property operating expenses		303,158			293,971
Property management expenses		16,537			12,939
General and administrative expenses		16,323			12,979
Interest expense		39,121			39,672
Loss on sale of depreciable real estate assets		1			0
Gain on sale of non-depreciable real estate assets		(23	)		0
Other non-operating (income) expense		(10,795	)		15,913
Income before income tax expense		111,756			49,531
Income tax benefit (expense)		1,442			(999	)
Income from continuing operations before real estate joint venture activity		113,198			48,532
Income from real estate joint venture		379			332
Net income		113,577			48,864
Net income attributable to noncontrolling interests		2,775			1,671
Net income available for shareholders		110,802			47,193
Dividends to MAA Series I preferred shareholders		922			922
Net income available for MAA common shareholders	$	109,880		$	46,271

Earnings per common share - basic:
Net income available for MAA common shareholders	$	0.95		$	0.40

Earnings per common share - diluted:
Net income available for MAA common shareholders	$	0.95		$	0.40

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Revenues:

Rental and other property revenues

$
436,927

$
413,026

$
861,932

$
831,124

Expenses:

Operating expenses, excluding real estate taxes and insurance

101,751

95,555

197,712

186,923

Real estate taxes and insurance

67,010

61,916

133,517

123,720

Depreciation and amortization

131,824

127,190

263,327

253,578

Total property operating expenses

300,585

284,661

594,556

564,221

Property management expenses

13,752

11,730

26,691

26,373

General and administrative expenses

13,114

10,557

26,093

23,821

Interest expense

38,867

42,118

78,539

85,600

(Gain) loss on sale of depreciable real estate assets

(134,828
)

(2
)

(134,828
)

27

(Gain) loss on sale of non-depreciable real estate assets

(32
)

(5
)

(32
)

371

Other non-operating (income) expense

(20,126
)

(14,643
)

(4,213
)

13,889

Income before income tax expense

225,595

78,610

275,126

116,822

Income tax expense

(2,045
)

(1,200
)

(3,044
)

(1,867
)
Income from continuing operations before real estate joint venture activity

223,550

77,410

272,082

114,955

Income from real estate joint venture

325

318

657

725

Net income

223,875

77,728

272,739

115,680

Net income attributable to noncontrolling interests

7,397

2,666

9,068

3,970

Net income available for shareholders

216,478

75,062

263,671

111,710

Dividends to MAA Series I preferred shareholders

922

922

1,844

1,844

Net income available for MAA common shareholders

$
215,556

$
74,140

$
261,827

$
109,866

Earnings per common share - basic:

Net income available for MAA common shareholders

$
1.88

$
0.65

$
2.29

$
0.96

Earnings per common share - diluted:

Net income available for MAA common shareholders

$
1.88

$
0.65

$
2.28

$
0.96

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)


	Three months ended June 30,						Six months ended June 30,						Three months ended March 31,
	2021			2020			2021			2020			2022			2021
Net income	$	223,875		$	77,728		$	272,739		$	115,680		$	113,577		$	48,864
Other comprehensive income:
Adjustment for net losses reclassified to net income from derivative instruments		278			278			557			531			279			279
Total comprehensive income		224,153			78,006			273,296			116,211			113,856			49,143
Less: Comprehensive income attributable to noncontrolling interests		(7,448	)		(2,675	)		(9,129	)		(3,988	)		(2,782	)		(1,681	)
Comprehensive income attributable to MAA	$	216,705		$	75,331		$	264,167		$	112,223		$	111,074		$	47,462

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

Six months ended June 30,

Cash flows from operating activities:

2021

2020

Net income

$
272,739

$
115,680

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

263,912

254,105

(Gain) loss on sale of depreciable real estate assets

(134,828
)

27

(Gain) loss on sale of non-depreciable real estate assets

(32
)

371

Loss on embedded derivative in preferred shares

1,940

15,945

Stock compensation expense

9,212

8,150

Amortization of debt issuance costs, discounts and premiums

2,674

2,290

Net change in operating accounts and other operating activities

(18,299
)

(6,953
)
Net cash provided by operating activities

397,318

389,615

Cash flows from investing activities:

Purchases of real estate and other assets

(46,028
)

(5,004
)
Capital improvements, development and other

(247,544
)

(191,850
)
Distributions from real estate joint venture

392

84

Contributions to affiliates

(1,114
)

(1,725
)
Proceeds from disposition of real estate assets

161,756

660

Net cash used in investing activities

(132,538
)

(197,835
)

Cash flows from financing activities:

Proceeds from revolving credit facility

—

180,000

Repayments of revolving credit facility

—

(180,000
)
Net proceeds from commercial paper

108,000

20,000

Principal payments on notes payable

(119,481
)

(3,483
)
Payment of deferred financing costs

—

(31
)
Distributions to noncontrolling interests

(8,302
)

(8,126
)
Dividends paid on common shares

(234,591
)

(228,618
)
Dividends paid on preferred shares

(1,844
)

(1,844
)
Net change in other financing activities

(1,173
)

(4,625
)
Net cash used in financing activities

(257,391
)

(226,727
)

Net increase (decrease) in cash, cash equivalents and restricted cash

7,389

(34,947
)
Cash, cash equivalents and restricted cash, beginning of period

35,615

70,541

Cash, cash equivalents and restricted cash, end of period

$
43,004

$
35,594


	Three months ended March 31,
Cash flows from operating activities:	2022			2021
Net income	$	113,577		$	48,864
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		133,986			131,820
Loss on sale of depreciable real estate assets		1			0
Gain on sale of non-depreciable real estate assets		(23	)		0
(Gain) loss on embedded derivative in preferred shares		(11,896	)		15,108
Stock compensation expense		6,640			5,369
Amortization of debt issuance costs, discounts and premiums		1,510			1,344
Loss (gain) on investments		10,233			(1,622	)
Net change in operating accounts and other operating activities		(74,405	)		(52,772	)
Net cash provided by operating activities		179,623			148,111

Cash flows from investing activities:
Purchases of real estate and other assets		(5,232	)		0
Capital improvements and other		(38,212	)		(49,220	)
Development costs		(42,780	)		(64,291	)
Distributions from real estate joint venture		95			114
Contributions to affiliates		(7,500	)		0
Proceeds from real estate asset dispositions and insurance recoveries		10,097			898
Net cash used in investing activities		(83,532	)		(112,499	)

Cash flows from financing activities:
Net proceeds from commercial paper		20,000			213,000
Principal payments on notes payable		(343	)		(119,154	)
Distributions to noncontrolling interests		(3,484	)		(4,159	)
Dividends paid on common shares		(125,432	)		(117,242	)
Dividends paid on preferred shares		(922	)		(922	)
Acquisition of noncontrolling interests		(43,070	)		0
Net change in other financing activities		(814	)		625
Net cash used in financing activities		(154,065	)		(27,852	)

Net (decrease) increase in cash, cash equivalents and restricted cash		(57,974	)		7,760
Cash, cash equivalents and restricted cash, beginning of period		130,598			35,615
Cash, cash equivalents and restricted cash, end of period	$	72,624		$	43,375

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:


Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	31,881	$	19,667	$	60,371	$	32,620
Restricted cash		11,123		15,927		12,253		10,755
Total cash, cash equivalents and restricted cash	$	43,004	$	35,594	$	72,624	$	43,375

Supplemental disclosure of cash flow information:
Supplemental information:
Interest paid	$	81,122	$	84,623	$	30,427	$	26,998
Income taxes paid		2,474		120		0		81

Supplemental disclosure of noncash investing and financing activities:
Non-cash transactions:
Conversion of OP Units to shares of common stock	$	22,164	$	450	$	193	$	232
Accrued construction in progress		30,771		18,991		38,191		32,781
Interest capitalized		5,333		3,019		1,836		2,550

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except unit data)


	June 30, 2021			December 31, 2020			March 31, 2022			December 31, 2021
Assets
Real estate assets:
Land	$	1,987,412		$	1,929,181		$	1,978,661		$	1,977,813
Buildings and improvements and other		12,246,988			12,065,244			12,589,537			12,454,439
Development and capital improvements in progress		295,645			283,477			215,055			247,970
		14,530,045			14,277,902			14,783,253			14,680,222
Less: Accumulated depreciation		(3,625,627	)		(3,415,105	)		(3,981,778	)		(3,848,161	)
		10,904,418			10,862,797			10,801,475			10,832,061
Undeveloped land		35,050			60,993			29,279			24,015
Investment in real estate joint venture		42,933			43,325			42,732			42,827
Real estate assets, net		10,982,401			10,967,115			10,873,486			10,898,903

Cash and cash equivalents		31,881			25,198			60,371			54,302
Restricted cash		11,123			10,417			12,253			76,296
Other assets		216,715			192,061			252,965			255,681
Total assets	$	11,242,120		$	11,194,791		$	11,199,075		$	11,285,182

Liabilities and capital
Liabilities:
Unsecured notes payable	$	4,187,292		$	4,077,373		$	4,172,513		$	4,151,375
Secured notes payable		365,945			485,339			364,992			365,315
Accrued expenses and other liabilities		546,524			528,274			531,351			584,400
Due to general partner		19			19			19			19
Total liabilities		5,099,780			5,091,005			5,068,875			5,101,109

Redeemable common units		21,692			15,397			26,857			30,185

Operating Partnership capital:
Preferred units, 867,846 preferred units outstanding as of June 30, 2021 and December 31, 2020, respectively		66,840			66,840
General partner, 114,919,922 and 114,373,727 OP Units outstanding as of June 30, 2021 and December 31, 2020, respectively ⁽¹⁾		5,863,795			5,817,270
Limited partners, 3,618,955 and 4,057,657 OP Units outstanding as of June 30, 2021 and December 31, 2020, respectively ⁽¹⁾		185,340			206,927
Preferred units, 867,846 preferred units outstanding as of March 31, 2022 and December 31, 2021, respectively								66,840			66,840
General partner, 115,337,466 and 115,336,876 OP Units outstanding as of March 31, 2022 and December 31, 2021, respectively (1)								5,864,191			5,909,700
Limited partners, 3,202,377 and 3,206,118 OP Units outstanding as of March 31, 2022 and December 31, 2021, respectively (1)								163,566			165,116
Accumulated other comprehensive loss		(11,939	)		(12,496	)		(11,103	)		(11,382	)
Total operating partners’ capital		6,104,036			6,078,541			6,083,494			6,130,274
Noncontrolling interests - consolidated real estate entities		16,612			9,848			19,849			23,614
Total equity		6,120,648			6,088,389			6,103,343			6,153,888
Total liabilities and equity	$	11,242,120		$	11,194,791		$	11,199,075		$	11,285,182

(1) Number of units outstanding represents total OP Units regardless of classification on the Condensed Consolidated Balance Sheets. The number of units classified as redeemable common units on the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 are 128,224 and 131,559, respectively.

⁽¹⁾

Number of units outstanding represents total OP Units regardless of classification on the Condensed Consolidated Balance Sheets. The number of units classified as redeemable common units on the Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 are 128,799 and 121,534, respectively.

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except per unit data)


	Three months ended June 30,						Six months ended June 30,						Three months ended March 31,
	2021			2020			2021			2020			2022			2021
Revenues:
Rental and other property revenues	$	436,927		$	413,026		$	861,932		$	831,124		$	476,078		$	425,005
Expenses:
Operating expenses, excluding real estate taxes and insurance		101,751			95,555			197,712			186,923			101,117			95,961
Real estate taxes and insurance		67,010			61,916			133,517			123,720			68,303			66,507
Depreciation and amortization		131,824			127,190			263,327			253,578			133,738			131,503
Total property operating expenses		300,585			284,661			594,556			564,221			303,158			293,971
Property management expenses		13,752			11,730			26,691			26,373			16,537			12,939
General and administrative expenses		13,114			10,557			26,093			23,821			16,323			12,979
Interest expense		38,867			42,118			78,539			85,600			39,121			39,672
(Gain) loss on sale of depreciable real estate assets		(134,828	)		(2	)		(134,828	)		27
(Gain) loss on sale of non-depreciable real estate assets		(32	)		(5	)		(32	)		371
Loss on sale of depreciable real estate assets														1			0
Gain on sale of non-depreciable real estate assets														(23	)		0
Other non-operating (income) expense		(20,126	)		(14,643	)		(4,213	)		13,889			(10,795	)		15,913
Income before income tax expense		225,595			78,610			275,126			116,822			111,756			49,531
Income tax expense		(2,045	)		(1,200	)		(3,044	)		(1,867	)
Income tax benefit (expense)														1,442			(999	)
Income from continuing operations before real estate joint venture activity		223,550			77,410			272,082			114,955			113,198			48,532
Income from real estate joint venture		325			318			657			725			379			332
Net income		223,875			77,728			272,739			115,680			113,577			48,864
Net loss attributable to noncontrolling interests														(293	)		0
Net income available for MAALP unitholders														113,870			48,864
Distributions to MAALP preferred unitholders		922			922			1,844			1,844			922			922
Net income available for MAALP common unitholders	$	222,953		$	76,806		$	270,895		$	113,836		$	112,948		$	47,942

Earnings per common unit - basic:
Net income available for MAALP common unitholders	$	1.88		$	0.65		$	2.29		$	0.96		$	0.95		$	0.40

Earnings per common unit - diluted:
Net income available for MAALP common unitholders	$	1.88		$	0.65		$	2.28		$	0.96		$	0.95		$	0.40

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)


	Three months ended June 30,				Six months ended June 30,				Three months ended March 31,
	2021		2020		2021		2020		2022		2021
Net income	$	223,875	$	77,728	$	272,739	$	115,680	$	113,577	$	48,864
Other comprehensive income:
Adjustment for net losses reclassified to net income from derivative instruments		278		278		557		531		279		279
Total comprehensive income										113,856		49,143
Add: Comprehensive loss attributable to noncontrolling interests										293		0
Comprehensive income attributable to MAALP	$	224,153	$	78,006	$	273,296	$	116,211	$	114,149	$	49,143

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartments, L.P.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)


	Three months ended March 31,
Cash flows from operating activities:	2022			2021
Net income	$	113,577		$	48,864
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		133,986			131,820
Loss on sale of depreciable real estate assets		1			0
Gain on sale of non-depreciable real estate assets		(23	)		0
(Gain) loss on embedded derivative in preferred shares		(11,896	)		15,108
Stock compensation expense		6,640			5,369
Amortization of debt issuance costs, discounts and premiums		1,510			1,344
Loss (gain) on investments		10,233			(1,622	)
Net change in operating accounts and other operating activities		(74,405	)		(52,772	)
Net cash provided by operating activities		179,623			148,111

Cash flows from investing activities:
Purchases of real estate and other assets		(5,232	)		0
Capital improvements and other		(38,212	)		(49,220	)
Development costs		(42,780	)		(64,291	)
Distributions from real estate joint venture		95			114
Contributions to affiliates		(7,500	)		0
Proceeds from real estate asset dispositions and insurance recoveries		10,097			898
Net cash used in investing activities		(83,532	)		(112,499	)

Cash flows from financing activities:
Net proceeds from commercial paper		20,000			213,000
Principal payments on notes payable		(343	)		(119,154	)
Distributions paid on common units		(128,916	)		(121,401	)
Distributions paid on preferred units		(922	)		(922	)
Acquisition of noncontrolling interests		(43,070	)		0
Net change in other financing activities		(814	)		625
Net cash used in financing activities		(154,065	)		(27,852	)

Net (decrease) increase in cash, cash equivalents and restricted cash		(57,974	)		7,760
Cash, cash equivalents and restricted cash, beginning of period		130,598			35,615
Cash, cash equivalents and restricted cash, end of period	$	72,624		$	43,375

Six months ended June 30,

Cash flows from operating activities:

2021

2020

Net income

$
272,739

$
115,680

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

263,912

254,105

(Gain) loss on sale of depreciable real estate assets

(134,828
)

27

(Gain) loss on sale of non-depreciable real estate assets

(32
)

371

Loss on embedded derivative in preferred shares

1,940

15,945

Stock compensation expense

9,212

8,150

Amortization of debt issuance costs, discounts and premiums

2,674

2,290

Net change in operating accounts and other operating activities

(18,299
)

(6,953
)
Net cash provided by operating activities

397,318

389,615

Cash flows from investing activities:

Purchases of real estate and other assets

(46,028
)

(5,004
)
Capital improvements, development and other

(247,544
)

(191,850
)
Distributions from real estate joint venture

392

84

Contributions to affiliates

(1,114
)

(1,725
)
Proceeds from disposition of real estate assets

161,756

660

Net cash used in investing activities

(132,538
)

(197,835
)

Cash flows from financing activities:

Proceeds from revolving credit facility

—

180,000

Repayments of revolving credit facility

—

(180,000
)
Net proceeds from commercial paper

108,000

20,000

Principal payments on notes payable

(119,481
)

(3,483
)
Payment of deferred financing costs

—

(31
)
Distributions paid on common units

(242,893
)

(236,744
)
Distributions paid on preferred units

(1,844
)

(1,844
)
Net change in other financing activities

(1,173
)

(4,625
)
Net cash used in financing activities

(257,391
)

(226,727
)

Net increase (decrease) in cash, cash equivalents and restricted cash

7,389

(34,947
)
Cash, cash equivalents and restricted cash, beginning of period

35,615

70,541

Cash, cash equivalents and restricted cash, end of period

$
43,004

$
35,594

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:


Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	31,881	$	19,667	$	60,371	$	32,620
Restricted cash		11,123		15,927		12,253		10,755
Total cash, cash equivalents and restricted cash	$	43,004	$	35,594	$	72,624	$	43,375

Supplemental disclosure of cash flow information:
Supplemental information:
Interest paid	$	81,122	$	84,623	$	30,427	$	26,998
Income taxes paid		2,474		120		0		81

Supplemental disclosure of noncash investing and financing activities:
Non-cash transactions:
Accrued construction in progress	$	30,771	$	18,991	$	38,191	$	32,781
Interest capitalized		5,333		3,019		1,836		2,550

See accompanying notes to condensed consolidated financial statements.

Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1.~~Basis of Presentation~~ Organization and ~~Principles~~Summary of ~~Consolidation and~~ Significant Accounting Policies

Unless the context otherwise requires, all references to the “Company” refer collectively to Mid-America Apartment Communities, Inc., together with its consolidated subsidiaries, including Mid-America Apartments, L.P. Unless the context otherwise requires, all references to “MAA” refer only to Mid-America Apartment Communities, Inc., and not any of its consolidated subsidiaries. Unless the context otherwise requires, the references to the “Operating Partnership” or “MAALP” refer to Mid-America Apartments, L.P., together with its consolidated subsidiaries. “Common stock” refers to the common stock of MAA and, unless the context otherwise requires, “shareholders” refers to the holders of shares of MAA’s common stock. The common units of limited partnership interests in the Operating Partnership are referred to as “OP Units,” and the holders of the OP Units are referred to as “common unitholders”.

As of ~~June 30, 2021,~~March 31, 2022, MAA owned ~~114,919,922~~115,337,466 OP Units (or ~~96.9%~~97.3% of the total number of OP Units). MAA conducts substantially all of its business and holds substantially all of its assets, directly or indirectly, through the Operating Partnership, and by virtue of its ownership of the OP Units and being the Operating Partnership’s sole general partner, MAA has the ability to control all of the day-to-day operations of the Operating Partnership.

Management believes combining the notes to the condensed consolidated financial statements of MAA and the Operating Partnership results in the following benefits:

•

enhances a readers’ understanding of MAA and the Operating Partnership by enabling the reader to view the business as a whole in the same manner that management views and operates the business;

•

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MAA and the Operating Partnership; and

•

creates time and cost efficiencies through the preparation of one combined set of notes instead of two separate sets.

•

~~enhances a readers’ understanding of MAA and the Operating Partnership by enabling the reader to view the business as a whole in the same manner that management views and operates the business;~~

•

~~eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MAA and the Operating Partnership; and~~

•

~~creates time and cost efficiencies through the preparation of one combined set of notes instead of two separate sets.~~

MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. Management operates MAA and the Operating Partnership as one business. The management of the Company is comprised of individuals who are officers of MAA and employees of the Operating Partnership. Management believes it is important to understand the few differences between MAA and the Operating Partnership in the context of how MAA and the Operating Partnership operate as a consolidated company. MAA and the Operating Partnership are structured as an umbrella partnership REIT, or UPREIT. MAA’s interest in the Operating Partnership entitles MAA to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to MAA’s percentage interest therein and entitles MAA to vote on substantially all matters requiring a vote of the partners. MAA’s only material asset is its ownership of limited partnership interests in the Operating Partnership (other than cash held by MAA from time to time); therefore, MAA’s primary function is acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating ~~Partnership.~~Partnership from time to time. The Operating Partnership holds, directly or indirectly, all of the Company’s real estate assets. Except for net proceeds from public equity issuances by MAA, which are contributed to the Operating Partnership in exchange for limited partnership interests, the Operating Partnership generates the capital required by the business through the Operating Partnership’s operations, direct or indirect incurrence of indebtedness and issuance of OP Units.

The presentations of MAA’s shareholders’ equity and the Operating Partnership’s capital are the principal areas of difference between the condensed consolidated financial statements of MAA and those of the Operating Partnership. MAA’s shareholders’ equity may include shares of preferred stock, shares of common stock, additional paid-in capital, cumulative earnings, cumulative distributions, noncontrolling interests, treasury shares, accumulated other comprehensive income or loss and redeemable common stock. The Operating Partnership’s capital may include common capital and preferred capital of the general partner (MAA), limited partners’ common capital and preferred capital, noncontrolling interests, accumulated other comprehensive income or loss and redeemable common units. Holders of OP Units (other than MAA) may require the Operating Partnership to redeem their OP Units from time to time, in which case the Operating Partnership may, at its option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the New York Stock Exchange, or NYSE, over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed.

Organization of Mid-America Apartment Communities, Inc.

The Company owns, operates, acquires and selectively develops apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of ~~June 30, 2021,~~March 31, 2022, the Company owned and operated ~~296~~292 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries and had

an ownership interest in 1 apartment community through an unconsolidated real estate joint venture. As of ~~June 30, 2021,~~March 31, 2022, the Company also had 8five development communities under construction totaling ~~2,654~~1,759 apartment units once complete. Total expected costs for the ~~eight~~5 development projects are ~~$627.5~~$444.0 million, of which ~~$326.2~~$192.8 million had been incurred through ~~June 30, 2021.~~ March 31, 2022. The Company expects to complete 31 of these developments in

2022, ~~2021,~~ 32 developments in ~~2022~~2023, and 31 ~~developments~~development in ~~2023.~~2024. As of ~~June 30, 2021, 32~~March 31, 2022, 33 of the Company’s apartment communities included retail components. The Company’s apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of ~~June 30, 2021.~~March 31, 2022.

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared by the Company’s management in accordance with United States generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC. The condensed consolidated financial statements of MAA presented herein include the accounts of MAA, the Operating Partnership and all other subsidiaries in which MAA has a controlling financial interest. MAA owns, directly or indirectly, approximately ~~80%~~80% to ~~100%~~100% of all consolidated subsidiaries, including the Operating Partnership. The condensed consolidated financial statements of MAALP presented herein include the accounts of MAALP and all other subsidiaries in which MAALP has a controlling financial interest. MAALP owns, directly or indirectly, 80% to 100% of all consolidated subsidiaries. In management’s opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included, and all such adjustments were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company invests in entities ~~which~~that may qualify as variable interest entities, or VIEs, and MAALP is considered a VIE. A VIE is a legal entity in which the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack the power to direct the activities of a legal entity as well as the obligation to absorb its expected losses or the right to receive its expected residual returns. MAALP is classified as a VIE because the limited partners lack substantive kick-out rights and substantive participating rights. The Company consolidates all VIEs for which it is the primary beneficiary and uses the equity method to account for investments that qualify as VIEs but for which it is not the primary beneficiary. In determining whether the Company is the primary beneficiary of a VIE, management considers both qualitative and quantitative factors, including, but not limited to, those activities that most significantly impact the VIE’s economic performance and which party controls such activities. The Company uses the equity method of accounting for its investments in entities for which the Company exercises significant influence, but does not have the ability to exercise control. The factors considered in determining whether the Company has the ability to exercise control include ownership of voting interests and participatory rights of investors (see “Investments in Unconsolidated Affiliates” below).

Noncontrolling Interests

As of ~~June 30, 2021,~~March 31, 2022, the Company had two types of noncontrolling interests with respect to its consolidated subsidiaries: (1) noncontrolling interests related to the common unitholders of its Operating Partnership; and (2) noncontrolling interests related to its consolidated real estate entities. The noncontrolling interests relating to the limited partnership interests in the Operating Partnership are owned by the holders of the Class A OP Units. MAA is the sole general partner of the Operating Partnership and holds all of the outstanding Class B OP Units. Net income (after allocations to preferred ownership interests) is allocated to MAA and the noncontrolling interests based on their respective ownership percentages of the Operating Partnership. Issuance of additional Class A OP Units or Class B OP Units changes the ownership percentage of both the noncontrolling interests and MAA. The issuance of Class B OP Units generally occurs when MAA issues common stock and the issuance proceeds are contributed to the Operating Partnership in exchange for Class B OP Units equal to the number of shares of MAA’s common stock issued. At each reporting period, the allocation between total MAA shareholders’ equity and noncontrolling interests is adjusted to account for the change in the respective percentage ownership of the underlying equity of the Operating Partnership. MAA’s Board of Directors established economic rights in respect to each Class A OP Unit that were equivalent to the economic rights in respect to each share of MAA common stock. See Note 9 for additional details.

The noncontrolling interests relating to the Company’s ~~five~~four consolidated real estate entities are owned by private real estate companies that are generally responsible for the development, construction and ~~construction~~lease-up of the apartment communities that are owned through the consolidated real estate entities with a noncontrolling interest. The entities were determined to be VIE’s with the Company designated as the primary beneficiary. As a result, the accounts of the entities are consolidated by the Company. As of ~~June 30, 2021,~~March 31, 2022, the consolidated assets ~~and liabilities~~ of the Company’s consolidated real estate entities with a noncontrolling interest were ~~$193.8~~$193.2 million, and ~~$12.8 million, respectively.~~consolidated liabilities were $15.8 million. As of December 31, ~~2020,~~2021, the consolidated assets ~~and liabilities~~ of the Company’s consolidated real estate entities with a noncontrolling interest were ~~$128.9~~$252.8 million, and ~~$8.1~~consolidated liabilities were $15.9 million. During the three months ended March 31, 2022, the Company paid $43.1 million ~~respectively.~~to acquire the noncontrolling interest of one consolidated real estate entity.

Investments in Unconsolidated Affiliates

The Company uses the equity method to account for its investments in a real estate joint venture and ~~two~~three technology-focused limited partnerships that each qualify as a VIE. Management determined the Company is not the primary beneficiary in any of these investments but does have the ability to exert significant influence over the operations and financial policies of the real estate joint

venture and considers its investments in the limited partnerships to be more than minor. The Company’s investment in the real estate joint venture was ~~$42.9~~$42.7 million and ~~$43.3~~$42.8 million as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

~~As of June 30, 2021 and December 31, 2020, the Company’s~~The Company accounts for its investments in the technology-focused limited partnerships on a three month lag due to the timing the limited partnerships’ financial information is made available to the Company. As of March 31, 2022 and December 31, 2021, the Company’s investments in the limited partnerships were ~~$32.0~~$68.5 million and ~~$23.0~~$79.4 million, respectively, and are included in “Other assets” in the accompanying Condensed Consolidated Balance Sheets. The decrease in the Company’s investment in the limited partnerships was driven by the recognition of unrealized losses, which were primarily a result of a decrease in the valuation of an underlying investment that recently became publicly traded. As of ~~June 30, 2021,~~March 31, 2022, the Company was committed ~~until February 2025~~ to make additional capital contributions totaling ~~$19.6~~$33.5 million if and when called by the general partners of the limited partnerships.

~~Fair Value Measurements~~Marketable Equity Securities

~~The Company applies~~During the ~~guidance in Accounting Standards Codification (“ASC”) Topic 820,~~ ~~Fair Value Measurements and Disclosures~~,three months ended March 31, 2022, two of the technology-focused limited partnerships that are accounted for as unconsolidated affiliates distributed publicly traded marketable equity securities to the ~~valuation of real estate assets recorded~~Company and the other limited partners. The Company’s investment in marketable equity securities is measured at fair value ~~to its impairment valuation analysis of real estate assets, to its disclosure~~based on the quoted share price of the ~~fair value~~securities, with any related gains and losses, including unrealized gains and losses, recognized in “Other non-operating (income) expense” in the accompanying Condensed Consolidated Statements of ~~financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 as well as~~Operations. As of March 31, 2022, the Company’s ~~derivative accounting policies are summarized~~investment in ~~Note 7 utilizing~~ the ~~following hierarchy:~~marketable equity securities was $5.0 million.

~~Level 1 - Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.~~

~~Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.~~

~~Level 3 - Unobservable inputs for the assets or liability.~~

Revenue Recognition

The Company primarily leases multifamily residential apartments to residents under operating leases generally due on a monthly basis with terms of approximately one year or less. Rental revenues are recognized in accordance with ASC Topic 842, Leases, using a method that represents a straight-line basis over the term of the lease. In addition, in circumstances where a lease incentive is provided to ~~tenants,~~residents, the incentive is recognized as a reduction of rental revenues on a straight-line basis over the reasonably assured lease term. Rental revenues represent approximately ~~93%~~94% of the Company’s total revenues and include gross rents charged less adjustments for concessions and bad debt. Approximately 6%5% of the Company’s total revenues represent non-lease reimbursable property revenues from its residents for utility reimbursements, which are generally recognized and due on a monthly basis as residents obtain control of the service over the term of the lease. The remaining 1%1% of the Company’s total revenues represents other non-lease property revenues primarily driven by nonrefundable fees and commissions.

In accordance with ASC Topic 842, rental revenues and non-lease reimbursable property revenues meet the criteria to be aggregated into a single lease component and are reported on a combined basis in the line item “Rental ~~revenues”,~~revenues,” as presented in the disaggregation of the Company’s revenues in Note 11. Other non-lease property revenues are accounted for in accordance with ASC Topic 606, Revenue from Contracts with Customers, which requires revenue recognized outside of the scope of ASC Topic 842 to be recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Other non-lease property revenues are reported in the line item “Other property revenues”, as presented in the disaggregation of the Company’s revenues in Note 11.

Leases

~~Leases~~

The Company is the lessee under certain ground, office, equipment and other operational leases, all of which are accounted for as operating leases in accordance with ASC Topic 842. The Company recognizes a right-of-use asset for the right to use the underlying asset for all leases where the Company is the lessee with terms of more than twelve months, and a related lease liability for the obligation to make lease payments. Expenses related to leases determined to be operating leases are recognized on a straight-line basis. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, right-of-use assets recorded within “Other assets” totaled ~~$48.3~~$46.5 million and ~~$49.4~~$47.0 million, respectively, and related lease obligations recorded within “Accrued expenses and other liabilities” totaled ~~$31.1~~$29.9 million and ~~$31.7~~$30.3 million, respectively, in the Condensed Consolidated Balance Sheets. ~~As of June 30, 2021, the Company’s operating leases had a weighted average remaining lease term of approximately 32 years and a weighted average discount rate of approximately 4.4%.~~ Lease expense recognized for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ was immaterial to the Company. Cash paid for amounts included in the measurement of operating lease liabilities during the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ was also immaterial. See Note 10 for additional disclosures regarding leases.

Fair Value Measurements

The Company applies the guidance in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, to the valuation of real estate assets recorded at fair value, to its impairment valuation analysis of real estate assets, to its valuation and disclosure of the fair value of financial instruments, principally marketable equity securities and indebtedness, and to its valuation and disclosure of the fair value of its derivative financial instruments. Fair value disclosures required under ASC Topic 820 as well as the Company’s derivative accounting policies are summarized in Note 7 utilizing the following hierarchy:

Level 1 - Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the assets or liability.

2.Earnings per Common Share of MAA

Basic earnings per share is computed using the two-class method by dividing net income available to MAA common shareholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis with diluted earnings per share being the more dilutive of the treasury stock or two-class methods. OP Units are included in dilutive earnings per share calculations when the units are dilutive to earnings per share.

For the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ MAA’s diluted earnings per share was computed using the treasury stock method as presented below (dollars and shares in thousands, except per share amounts):


	Three months ended March 31,
	2022			2021
Calculation of Earnings per common share - basic
Net income	$	113,577		$	48,864
Net income attributable to noncontrolling interests		(2,775	)		(1,671	)
Unvested restricted stock (allocation of earnings)		(79	)		(54	)
Preferred dividends		(922	)		(922	)
Net income available for MAA common shareholders, adjusted	$	109,801		$	46,217

Weighted average common shares - basic		115,259			114,263
Earnings per common share - basic	$	0.95		$	0.40

Calculation of Earnings per common share - diluted
Net income	$	113,577		$	48,864
Net income attributable to noncontrolling interests (1)		(2,775	)		(1,671	)
Preferred dividends		(922	)		(922	)
Net income available for MAA common shareholders, adjusted	$	109,880		$	46,271

Weighted average common shares - basic		115,259			114,263
Effect of dilutive securities		459			312
Weighted average common shares - diluted		115,718			114,575
Earnings per common share - diluted	$	0.95		$	0.40

(1)

For the three months ended March 31, 2022 and 2021, 3.2 million OP Units and 4.1 million OP Units, respectively, and their related income are not included in the diluted earnings per share calculations as they are not dilutive.

Basic earnings per common unit is computed by dividing net income available for common unitholders by the weighted average number of OP Units outstanding during the period. All outstanding unvested restricted unit awards contain rights to non-forfeitable distributions and participate in undistributed earnings with common unitholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per common unit. Diluted earnings per common unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units. Both the unvested restricted unit awards and other potentially dilutive common units, and the related impact to earnings, are considered when calculating earnings per common unit on a diluted basis with diluted earnings per common unit being the more dilutive of the treasury stock or two-class methods.

Changes in MAA’s total equity and its components for the three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (dollars in thousands):


	Mid-America Apartment Communities, Inc. Shareholders’ Equity
	Preferred Stock		Common Stock		Additional Paid-In Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Loss			Noncontrolling Interests - Operating Partnership			Noncontrolling Interests - Consolidated Real Estate Entities			Total Equity
EQUITY BALANCE DECEMBER 31, 2021	$	9	$	1,151	$	7,230,956		$	(1,255,807	)	$	(11,132	)	$	165,116		$	23,614		$	6,153,907
Net income (loss)		—		—		—			110,802			—			3,068			(293	)		113,577
Other comprehensive income - derivative instruments		—		—		—			—			272			7			—			279
Issuance and registration of common shares		—		—		21			—			—			—			—			21
Shares repurchased and retired		—		—		(3,162	)		—			—			—			—			(3,162	)
Exercise of stock options		—		—		28			—			—			—			—			28
Shares issued in exchange for common units		—		—		193			—			—			(193	)		—			—
Redeemable stock fair market value adjustment		—		—		—			2,533			—			—			—			2,533
Adjustment for noncontrolling interests in Operating Partnership		—		—		953			—			—			(953	)		—			—
Amortization of unearned compensation		—		—		6,928			—			—			—			—			6,928
Dividends on preferred stock		—		—		—			(922	)		—			—			—			(922	)
Dividends on common stock ($1.0875 per share)		—		—		—			(125,433	)		—			—			—			(125,433	)
Dividends on noncontrolling interests units ($1.0875 per share)		—		—		—			—			—			(3,479	)		—			(3,479	)
Acquisition of noncontrolling interest		—		—		(37,443	)		—			—			—			(5,627	)		(43,070	)
Contribution from noncontrolling interest		—		—		—			—			—			—			2,155			2,155
EQUITY BALANCE MARCH 31, 2022	$	9	$	1,151	$	7,198,474		$	(1,268,827	)	$	(10,860	)	$	163,566		$	19,849		$	6,103,362


	Mid-America Apartment Communities, Inc. Shareholders’ Equity
	Preferred Stock		Common Stock		Additional Paid-In Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Loss			Noncontrolling Interests - Operating Partnership			Noncontrolling Interests - Consolidated Real Estate Entities		Total Equity
EQUITY BALANCE DECEMBER 31, 2020	$	9	$	1,141	$	7,176,793		$	(1,294,182	)	$	(12,128	)	$	206,927		$	9,848	$	6,088,408
Net income		—		—		—			47,193			—			1,671			—		48,864
Other comprehensive income - derivative instruments		—		—		—			—			269			10			—		279
Issuance and registration of common shares		—		1		133			—			—			—			—		134
Shares repurchased and retired		—		—		(1,730	)		—			—			—			—		(1,730	)
Exercise of stock options		—		—		1,466			—			—			—			—		1,466
Shares issued in exchange for common units		—		—		232			—			—			(232	)		—		—
Redeemable stock fair market value adjustment		—		—		—			(2,158	)		—			—			—		(2,158	)
Adjustment for noncontrolling interests in Operating Partnership		—		—		(116	)		—			—			116			—		—
Amortization of unearned compensation		—		—		5,993			—			—			—			—		5,993
Dividends on preferred stock		—		—		—			(922	)		—			—			—		(922	)
Dividends on common stock ($1.0250 per share)		—		—		—			(117,278	)		—			—			—		(117,278	)
Dividends on noncontrolling interests units ($1.0250 per share)		—		—		—			—			—			(4,156	)		—		(4,156	)
Contribution from noncontrolling interest		—		—		—			—			—			—			633		633
EQUITY BALANCE MARCH 31, 2021	$	9	$	1,142	$	7,182,771		$	(1,367,347	)	$	(11,859	)	$	204,336		$	10,481	$	6,019,533

~~Changes in MAA’s total equity and its components for the six months ended June 30, 2021 and 2020 were as follows (dollars in thousands):~~

~~Changes in MAALP’s total capital and its components for the six months ended June 30, 2021 and 2020 were as follows (dollars in thousands):~~

~~In May 2019,~~ MAALP has entered into a ~~$1.0~~$1.0 billion unsecured revolving credit facility with a syndicate of banks led by Wells Fargo Bank, National Association, ~~or Wells Fargo,~~ and fourteen other banks, which is referred to as the Credit Facility. The Credit Facility ~~replaced MAALP’s previous unsecured revolving credit facility, and it~~ includes an expansion option up to ~~$1.5~~$1.5 billion. The Credit Facility bears an interest rate of the London Interbank Offered Rate, or LIBOR, plus a spread of ~~0.75%~~0.75% to ~~1.45%~~1.45% based on an investment grade pricing grid. The Credit Facility matures in May 2023 with an option to extend for two additional six-month periods. As of ~~June 30, 2021,~~March 31, 2022, there was 0 outstanding balance under the Credit Facility, while ~~$3.4~~$4.0 million of capacity was used to support outstanding letters of credit. The terms of the Credit Facility allow for the transition to an alternate benchmark interest rate, including the Secured Overnight Financing Rate, to replace any outstanding U.S. dollar (USD) LIBOR borrowings at the time USD LIBOR is no longer published.

~~In May 2019,~~ MAALP has established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of ~~$500.0~~$500.0 million. As of ~~June 30, 2021,~~March 31, 2022, MAALP had ~~$280.0~~$20.0 million outstanding under the commercial paper program. For the three months ended ~~June 30, 2021,~~March 31, 2022, the average daily borrowings outstanding under the commercial paper program were ~~$401.8~~$13.8 million.

As of ~~June 30, 2021,~~March 31, 2022, MAALP had ~~$3.7~~$4.2 billion of publicly issued ~~unsecured senior notes outstanding and $222.0 million of privately placed~~ unsecured senior notes outstanding. The unsecured senior notes had maturities at issuance ranging from 105 to 1230 years, with a weighted average ~~of 5.6 years remaining until~~ maturity ~~as of June 30, 2021.~~in 2029.

As of ~~June 30, 2021,~~March 31, 2022, MAALP had ~~$369.2~~$368.2 million of fixed rate conventional property mortgages with a weighted average ~~interest rate of 4.40% and a weighted average~~ maturity in ~~2048.~~2048.

As of ~~June 30, 2021, 114,919,922~~March 31, 2022, 115,337,466 shares of common stock of MAA and ~~3,618,955~~3,202,377 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of ~~118,538,877~~118,539,843 common shares and units. As of ~~June 30, 2020, 114,365,203~~March 31, 2021, 114,408,949 shares of common stock of MAA and ~~4,058,657~~4,053,106 OP Units (excluding the OP Units held by MAA) were issued and outstanding, representing a total of ~~118,423,860~~118,462,055 common shares and units. Options to purchase ~~963~~463 shares of MAA’s common stock were outstanding as of ~~June 30, 2021,~~March 31, 2022, compared to ~~19,845~~963 outstanding options as of ~~June 30, 2020.~~March 31, 2021. During the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ MAA issued ~~18,882~~350 common shares and ~~918~~18,882 common shares, respectively, related to the exercise of stock options. These exercises resulted in net proceeds ~~of $1.5~~that were negligible during the three months ended March 31, 2022 and $1.5 million ~~and $0.1 million, respectively.~~during the three months ended March 31, 2021.

Assets for each reportable segment as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 were as follows (in thousands):

The following table reflects the ~~Company's~~Company’s acquisition activity for the ~~six~~three months ended ~~June 30, 2021:~~March 31, 2022:


~~Multifamily Development Acquisitions~~ ⁽¹⁾Land Acquisition	Market	~~Units~~ ⁽²⁾Acres		Date Acquired
~~Novel Daybreak~~	~~Salt Lake City, UT~~		~~400~~		~~April 2021~~
~~Novel West Midtown~~	~~Atlanta, GA~~		~~340~~		~~April 2021~~

⁽¹⁾MAA Florida Street Station

~~These pre-purchase multifamily community developments are being developed through joint ventures with a local developer. The Company owns 80% of each joint venture that owns these properties~~.

⁽²⁾

Denver, CO

~~Represents number of units upon completion of the development~~4.

March 2022

~~Land Acquisition~~		~~Market~~		~~Acres~~		~~Date Acquired~~
~~MAA Westshore~~		~~Tampa, FL~~		19		~~June 2021~~

~~The following table reflects the Company's disposition activity for the six months ended June 30, 2021:~~25

~~Multifamily Disposition~~	~~Market~~	~~Units~~		~~Date Sold~~
~~Crosswinds~~	~~Jackson, MS~~		~~360~~	~~June 2021~~
~~Pear Orchard~~	~~Jackson, MS~~		~~389~~	~~June 2021~~
~~Reflection Pointe~~	~~Jackson, MS~~		~~296~~	~~June 2021~~
~~Lakeshore Landing~~	~~Jackson, MS~~		~~196~~	~~June 2021~~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

~~Item 2.~~

~~Management’s Discussion and Analysis of Financial Condition and Results of Operations.~~

The following discussion analyzes the financial condition and results of operations of both MAA and the Operating Partnership, of which MAA is the sole general partner and in which MAA owned a ~~96.9%~~97.3% interest as of ~~June 30, 2021.~~March 31, 2022. MAA conducts all of its business through the Operating Partnership and its various subsidiaries. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.

MAA, an S&P 500 company, is a multifamily-focused, self-administered and self-managed real estate investment trust, or REIT. We own, operate, acquire and selectively develop apartment communities primarily located in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of ~~June 30, 2021,~~March 31, 2022, we owned and operated ~~296~~292 apartment communities (which does not include development communities under construction) through the Operating Partnership and its subsidiaries, and we had an ownership interest in one apartment community through an unconsolidated real estate joint venture and had ~~eight~~five development communities under construction. In addition, as of ~~June 30, 2021, 32~~March 31, 2022, 33 of our apartment communities included retail components. Our apartment communities, including development communities under construction, were located across 16 states and the District of Columbia as of ~~June 30, 2021.~~March 31, 2022.

We report in two segments, Same Store and Non-Same Store and Other. Our Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. Our Non-Same Store and Other segment includes recently acquired communities, communities being developed or in lease-up, communities identified for disposition, communities that have incurred a significant casualty loss and stabilized communities that do not meet the requirements to be Same Store communities. Also included in our Non-Same Store and Other segment are non-multifamily activities. Additional information regarding the composition of our segments is included in Note 11 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

~~Risks Associated with Forward Looking~~Note Regarding Forward-Looking Statements

~~We consider this~~This and other sections of this Quarterly Report on Form 10-Q tomay contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding the potential impact of the ongoing COVID-19 pandemic on our business, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

•

the COVID-19 pandemic and measures taken or that may be taken by federal, state and local governmental authorities to combat the spread of the disease;

•

inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;

•

exposure to risks inherent in investments in a single industry and sector;

•

adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

•

failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;

•

unexpected capital needs;

•

material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors;

•

inability to obtain appropriate insurance coverage at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverage;

•

ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;

•

level and volatility of interest or capitalization rates or capital market conditions;

•

the effect of any rating agency actions on the cost and availability of new debt financing;

•

the effect of the phase-out of the London Interbank Offered Rate, or LIBOR, as a variable rate debt benchmark and the transition to a different benchmark interest rate;

•

significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;

•

ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of the Operating Partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;

•

inability to attract and retain qualified personnel;

•

cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;

•

potential liability for environmental contamination;

•

changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;

•

extreme weather, natural disasters, disease outbreaks and other public health events;

•

impact of climate change on our properties or operations;

•

legal proceedings or class action lawsuits;

•

impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;

•

compliance costs associated with numerous federal, state and local laws and regulations; and

•

other risks identified in this Quarterly Report on Form 10-Q and in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.

•

~~the COVID-19 pandemic and measures taken or that may be taken by federal, state and local governmental authorities to combat the spread of the disease;~~

•

~~exposure to risks inherent in investments in a single industry and sector;~~

•

increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

•

~~failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;~~

•

~~unexpected capital needs;~~

•

~~material changes in operating costs, including real estate taxes, utilities and insurance costs;~~

•

~~inability to obtain appropriate insurance coverage at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverage;~~

•

~~ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;~~

•

~~level and volatility of interest or capitalization rates or capital market conditions;~~

•

~~the effect of any rating agency actions on the cost and availability of new debt financing;~~

•

~~the effect of the phase-out of the London Interbank Offered Rate, or LIBOR, as a variable rate debt benchmark by the end of 2021 and the transition to a different benchmark interest rate;~~

•

our ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of the Operating Partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;

•

~~inability to attract and retain qualified personnel;~~

•

~~cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;~~

•

~~potential liability for environmental contamination;~~

•

~~changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;~~

•

~~extreme weather, natural disasters, disease outbreak and other public health events;~~

•

~~legal proceedings or class action lawsuits;~~

•

~~impact of reputational harm caused by negative press of our actions or policies, whether or not warranted;~~

•

~~compliance costs associated with numerous federal, state and local laws and regulations; and~~

•

~~other risks identified in this Quarterly Report on Form 10-Q and in other reports we file with the Securities and Exchange Commission, or the SEC, or in other documents that we publicly disseminate.~~

New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this Quarterly Report on Form 10-Q to reflect events, circumstances or changes in expectations after the date on which this Quarterly Report on Form 10-Q is filed.

Overview of the Three Months Ended ~~June 30, 2021~~March 31, 2022

For the three months ended ~~June 30, 2021,~~March 31, 2022, net income available for MAA common shareholders was ~~$215.6~~$109.9 million as compared to ~~$74.1~~$46.3 million for the three months ended ~~June 30, 2020.~~March 31, 2021. Results for the three months ended ~~June 30, 2021~~March 31, 2022 included ~~$134.8 million of gain on sale of depreciable real estate assets and $13.2~~$11.9 million of non-cash income related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. Results for the three months ended ~~June 30, 2020~~March 31, 2021 included ~~$11.7~~$15.1 million of non-cash ~~income~~expense related to the embedded derivative in the MAA Series I preferred shares. Revenues for the three months ended ~~June 30, 2021~~March 31, 2022 increased ~~5.8%~~12.0% as compared to the three months ended ~~June 30, 2020,~~March 31, 2021, driven by a ~~4.7%~~12.2% increase in our Same Store segment. Property operating expenses, excluding depreciation and amortization, for the three months ended ~~June 30, 2021~~March 31, 2022 increased by ~~7.2%~~4.3% as compared to the three months ended ~~June 30, 2020,~~March 31, 2021, driven by a ~~6.3%~~4.3% increase in our Same Store segment. The drivers of these changes are discussed ~~below~~ in the “Results of Operations” section.

Trends

During the three months ended ~~June 30, 2021,~~March 31, 2022, revenue growth for our Same Store ~~portfolio was enhanced~~segment continued to be primarily driven by ~~strong~~growth in average effective rent ~~growth achieved on leases going into effect during the quarter and the contribution from rent and fee collection more in line with pre-pandemic levels.~~per unit. The average effective rent per unit ~~for~~in our Same Store ~~portfolio~~segment continued to increase from the prior year, up ~~3.1%~~12.4% for the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended ~~June 30, 2020.~~March 31, 2021. Average effective rent per unit represents the average of gross rent amounts, after the effect of leasing concessions, for occupied apartment units plus prevalent market rates asked for unoccupied apartment units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. We believe average effective rent per unit is a helpful measurement in evaluating average pricing; however, it does not represent actual rental revenue collected per unit.

In addition, for the three months ended ~~June 30, 2021,~~March 31, 2022, average physical occupancy for our Same Store ~~portfolio~~segment was ~~96.4%~~95.9%, as compared to ~~95.4%~~95.7% for the three months ended ~~June 30, 2020.~~March 31, 2021. Average physical occupancy is a measurement of the total number of our apartment units that are occupied by residents, and it represents the average of the daily physical occupancy for the period.

An important part of our portfolio strategy is to maintain diversity of markets, submarkets, product types and price points primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. This diversity tends to mitigate exposure to economic issues in any one geographic market or area. We believe that a well-balanced portfolio, including both urban and suburban locations, with a broad range of monthly rent price points, will perform well in “up” cycles as well as better weather “down” cycles. Through our investment in 36 defined markets, we are diversified across markets, urban and suburban submarkets, and a variety of product types and monthly rent price points.

While the United States economy continues to recover from the effects of the COVID-19 pandemic, demand for apartments during the ~~second~~first quarter of ~~2021~~2022 was very strong, as evidenced by the accelerating rent growth we achieved. Demand for apartments is primarily driven by general economic conditions in our markets and is particularly correlated to job ~~growth. There does remain some disruption from the pandemic,~~growth, population growth, household formation and ~~we cannot predict when a full economic recovery will occur or if the current recovery will be muted or paused by an acceleration of COVID-19 cases.~~in-migration. While our rent growth ~~trends~~ and rent collection trends in the ~~second~~first quarter of ~~2021 continued~~2022 were strong, we continue to ~~improve, a~~monitor pressures surrounding supply chain challenges and inflation trends. A worsening of the current environment could contribute to uncertain rent collections going forward and suppress demand for apartments and would likely drive rent growth on new leases and renewals lower than what we achieved in the three months ended ~~June 30, 2021.~~March 31, 2022. Current elevated supply levels could further affect rent growth for our portfolio particularly for apartment communities located in urban submarkets. To date, properties in suburban submarkets have been somewhat less impacted by supply, primarily because new development has been less prevalent in those submarkets.

Asthough we expect the demand side to continue to ~~move through this uncertain time, we believe that our portfolio strategy of maintaining a diversity of markets, submarkets, product types~~be more impactful in the short term. Supply chain and ~~rent price points will serve the company better~~inflationary pressures would likely drive higher operating expenses, particularly in this environment than a more concentrated portfolio profile. Our focus during this challenging time has been on working with residents who have been financially impacted by the pandemic on rent payment flexibility. At a portfolio level, we have focused on using our pricing system to maintain strong occupancy. As noted above, average physical occupancy for our Same Store portfolio for the three months ended June 30, 2021 was 96.4%, which we believe positions us well to manage through the current environmentpersonnel and ~~hopefully, a further improving economy.~~ repairs and maintenance.

Access to the financial markets remains strong, particularly for ~~high credit~~high-credit rated borrowers. ~~We have shown our ability to efficiently raise capital through the debt market since the beginning of the pandemic and believe we could do the same in the equity market as necessary.~~ However, a prolonged disruption of the markets or a decline in credit and financing conditions could negatively affect our ability to access capital necessary to fund our operations or refinance maturing ~~debt.~~debt in the future. Additionally, rising interest rates could negatively impact our borrowing costs for any variable rate borrowings or refinancing activity.

Results of Operations

Comparison of the three months ended ~~June 30, 2021~~March 31, 2022 to the three months ended ~~June 30, 2020~~March 31, 2021

For the three months ended ~~June 30, 2021,~~March 31, 2022, we achieved net income available for MAA common shareholders of ~~$215.6~~$109.9 million, a ~~190.7%~~137.5% increase as compared to the three months ended ~~June 30, 2020,~~March 31, 2021, and total revenue growth of ~~$23.9~~$51.1 million, representing a ~~5.8%~~12.0% increase in property revenues as compared to the three months ended ~~June 30, 2020.~~March 31, 2021. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended ~~June 30, 2020.~~March 31, 2021.

Property Revenues

The following table reflects our property revenues by segment for the three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (dollars in thousands):


	Three months ended June 30,									Three months ended March 31,
	2021		2020		Increase		% Increase			2022		2021		Increase		% Increase
Same Store	$	417,322	$	398,722	$	18,600		4.7	%	$	454,477	$	405,146	$	49,331		12.2	%
Non-Same Store and Other		19,605		14,304		5,301		37.1	%		21,601		19,859		1,742		8.8	%
Total	$	436,927	$	413,026	$	23,901		5.8	%	$	476,078	$	425,005	$	51,073		12.0	%

The increase in property revenues for our Same Store segment for the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended ~~June 30, 2020~~March 31, 2021 was the primary driver of total property revenue growth. The Same Store segment generated a ~~4.7%~~12.2% increase in revenues for the three months ended ~~June 30, 2021,~~March 31, 2022, primarily the result of average effective rent per unit growth of ~~3.1%~~12.4% as compared to the three months ended ~~June 30, 2020.~~March 31, 2021. The increase in property revenues from the Non-Same Store and Other segment for the three months ended ~~June 30, 2021~~March 31, 2022 as compared to three months ended ~~June 30, 2020~~March 31, 2021 was primarily the result of increased revenues from recently completed development ~~properties.~~ communities.

Property Operating Expenses

Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes and insurance, utilities, landscaping and other operating expenses. The following table reflects our property operating expenses by segment for the three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ (dollars in thousands):

Three months ended June 30,

2021

2020

Increase

% Increase

Same Store

$
160,251

$
150,688

$
9,563

6.3
%
Non-Same Store and Other

8,510

6,783

1,727

25.5
%
Total

$
168,761

$
157,471

$
11,290

7.2
%


	Three months ended March 31,
	2022		2021		Increase		% Increase
Same Store	$	159,835	$	153,206	$	6,629		4.3	%
Non-Same Store and Other		9,585		9,262		323		3.5	%
Total	$	169,420	$	162,468	$	6,952		4.3	%

The increase in property operating expenses for our Same Store segment for the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended ~~June 30, 2020~~March 31, 2021 was primarily driven by increases in ~~insurance~~personnel expense of ~~$2.2~~$1.8 million, ~~real estate tax expense of $2.2 million and~~ building repairs and maintenance of ~~$2.1~~$1.5 million, office operations expense of $1.3 million, utilities expense of $0.9 million and insurance expense of $0.8 million.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended ~~June 30, 2021~~March 31, 2022 was ~~$131.8~~$133.7 million, an increase of ~~$4.6~~$2.2 million as compared to the three months ended ~~June 30, 2020.~~March 31, 2021. The increase was primarily driven by the recognition of depreciation expense associated with our development and ~~redevelopment~~capital spend activities completed after ~~June 30, 2020~~March 31, 2021 in the normal course of business through ~~June 30, 2021.~~March 31, 2022.

Other Income and Expenses

Property management expenses for the three months ended ~~June 30, 2021~~March 31, 2022 were ~~$13.8~~$16.5 million, an increase of ~~$2.0~~$3.6 million as compared to the three months ended ~~June 30, 2020.~~March 31, 2021. General and administrative expenses for the three months ended ~~June 30, 2021~~March 31, 2022 were ~~$13.1~~$16.3 million, an increase ~~of $2.6 million as compared to the three months ended June 30, 2020.~~

~~Interest expense for the three months ended June 30, 2021 was $38.9 million, a decrease~~ of $3.3 million as compared to the three months ended ~~June 30, 2020.~~March 31, 2021.

Interest expense for the three months ended March 31, 2022 was $39.1 million, a decrease of $0.6 million as compared to the three months ended March 31, 2021. The decrease was primarily due to a decrease ~~of 35 basis points~~ in our effective interest rate as well as a decrease in our average daily borrowings outstanding during the three months ended ~~June 30, 2021~~March 31, 2022 as compared to the three months ended June 30, 2020. The decrease in our effective interest rate was primarily due to debt retirements subsequent to the second quarter of 2020 and through June 30, 2021, which were retired with proceeds from debt issuances with lower effective interest rates over the same period.

~~For the~~ ~~three months ended June 30, 2021, we disposed of four apartment communities, resulting in gains on sale of depreciable real estate assets of $134.8 million. We did not dispose of any apartment communities during the~~ ~~three months ended June 30, 2020~~. March 31, 2021.

Other non-operating (income) expense for the three months ended ~~June 30, 2021~~March 31, 2022 was ~~$20.1~~$10.8 million of income ~~an increase of $5.5 million~~ as compared to $15.9 million of expense for the three months ended ~~June 30, 2020.~~March 31, 2021, an increase of $26.7 million. The ~~increase~~$10.8 million in income for the three months ended March 31, 2022 was ~~primarily~~ driven by ~~$13.2~~$11.9 million of non-cash income related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares ~~during~~and $7.6 million in casualty gains from winter storm Uri, partially offset by the recognition of $10.2 million of non-cash expense from investments. The $15.9 million of expense for the three months ended ~~June 30,~~March 31, 2021 compared to the recognition of $11.7 million of non-cash income related to the adjustment of the embedded derivative during the three months ended June 30, 2020. During the three months ended June 30, 2021, we also recognized $6.3 million of non-cash income from unconsolidated limited partnerships in other non-operating (income) expense compared to $5.0 million of non-cash income from an unconsolidated limited partnership during the three months ended June 30, 2020. During the three months ended June 30, 2021, COVID-19 related expenses recognized in other non-operating (income) expense were negligible compared to the recognition of $2.4 million of COVID-19 related expenses during the three months ended June 30, 2020.

~~Comparison of the six months ended June 30, 2021 to the six months ended June 30, 2020~~

For the six months ended June 30, 2021, we achieved net income available for MAA common shareholders of $261.8 million, a 138.3% increase as compared to the six months ended June 30, 2020, and total revenue growth of $30.8 million, representing a 3.7% increase in property revenues as compared to the six months ended June 30, 2020. The following discussion describes the primary drivers of the increase in net income available for MAA common shareholders for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020.

~~Property Revenues~~

~~The following table reflects our property revenues by segment for the six months ended June 30, 2021 and 2020 (dollars in thousands):~~

Six months ended June 30,

2021

2020

Increase

% Increase

Same Store

$
824,359

$
800,092

$
24,267

3.0
%
Non-Same Store and Other

37,573

31,032

6,541

21.1
%
Total

$
861,932

$
831,124

$
30,808

3.7
%

~~The increase in property revenues for our Same Store segment for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020~~ was the primary driver of total property revenue growth. The Same Store segment generated a 3.0% increase in revenues for the six months ended June 30, 2021, primarily the result of average effective rent per unit growth of 2.2% as compared to the six months ended June 30, 2020. The increase in property revenues from the Non-Same Store and Other segment for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 was primarily the result of increased revenues from recently completed development properties.

~~Property Operating Expenses~~

Property operating expenses include costs for property personnel, building repairs and maintenance, real estate taxes and insurance, utilities, landscaping and other operating expenses. The following table reflects our property operating expenses by segment for the six months ended June 30, 2021 and 2020 (dollars in thousands):

Six months ended June 30,

2021

2020

Increase

% Increase

Same Store

$
314,558

$
297,024

$
17,534

5.9
%
Non-Same Store and Other

16,671

13,619

3,052

22.4
%
Total

$
331,229

$
310,643

$
20,586

6.6
%

~~The increase in property operating expenses for our Same Store segment~~ ~~for the six months ended June 30, 2021~~ ~~as compared to the~~ ~~six months ended June 30, 2020~~ ~~was primarily~~ driven by ~~increases in~~ ~~insurance expense of $4.5 million, real estate tax expense of $3.9 million, utility expense of $2.7 million and building repairs and maintenance of $2.6 million.~~

~~Depreciation and Amortization~~

Depreciation and amortization expense for the six months ended June 30, 2021 was $263.3 million, an increase of $9.7 million as compared to the six months ended June 30, 2020. The increase was primarily driven by the recognition of depreciation expense associated with our development and redevelopment activities completed after June 30, 2020 in the normal course of business through June 30, 2021.

~~Other Income and Expenses~~

Property management expenses for the six months ended June 30, 2021 were $26.7 million, an increase of $0.3 million as compared to the six months ended June 30, 2020. General and administrative expenses for the six months ended June 30, 2021 were $26.1 million, an increase of $2.3 million as compared to the six months ended June 30, 2020.

Interest expense for the six months ended June 30, 2021 was $78.5 million, a decrease of $7.1 million as compared to the six months ended June 30, 2020. The decrease was primarily due to a decrease of 33 basis points in our effective interest rate during the six months ended June 30, 2021 as compared to the six months ended June 30, 2020. The decrease in our effective interest rate was primarily due to debt retirements subsequent to the second quarter of 2020 and through June 30, 2021, which were retired with proceeds from debt issuances with lower effective interest rates over the same period.

~~For the~~ ~~six months ended June 30, 2021~~, we disposed of four apartment communities, resulting in gains on sale of depreciable real estate assets of $134.8 million. We did not dispose of any apartment communities during the six months ended June 30, 2020.

Other non-operating (income) expense for the six months ended June 30, 2021 was $4.2 million of income, an increase of $18.1 million as compared to the six months ended June 30, 2020. The increase was primarily driven by $1.9$15.1 million of non-cash expense related to the fair value adjustment of the embedded derivative and $2.1 million in ~~the MAA Series I preferred shares during the six months ended June 30, 2021 compared to~~casualty losses, partially offset by the recognition of $15.9 million of non-cash expense related to the adjustment of the embedded derivative during the six months ended June 30, 2020. During the six months ended June 30, 2021, we also recognized $7.9$1.6 million of non-cash income from unconsolidated limited partnerships in other non-operating (income) expense compared to $4.9 million of non-cash income from an unconsolidated limited partnership during the six months ended June 30, 2020. During the six months ended June 30, 2021, we recognized $0.4 million ~~of COVID-19 related expenses in other non-operating (income) expense compared to~~ ~~$2.6 million~~ ~~of COVID-19 related expenses during the six months ended June 30, 2020.~~investments.

Funds from Operations and Core Funds from Operations

Funds from operations, or FFO, a non-GAAP financial measure, represents net income available for MAA common shareholders (computed in accordance with the United States generally accepted accounting principles, or GAAP) excluding gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling ~~interest~~interests is added back, FFO, when used in this Quarterly Report on Form 10-Q, represents FFO attributable to the Company.

FFO should not be considered as an alternative to net income available for MAA common shareholders, or any other GAAP measurement, as an indicator of operating performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity. Management believes that FFO is helpful to investors in understanding our operating performance, primarily because its calculation excludes depreciation and amortization expense on real estate assets. We believe that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. While our calculation of FFO is in accordance with the National Association of Real Estate Investment Trusts’, or NAREIT’s, definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to such other REITs.

Core FFO represents FFO as adjusted for items that are not considered part of our core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares,, gain or loss on sale of non-depreciable assets, ~~adjustments for gains~~gain or ~~losses from unconsolidated limited partnerships,~~loss on investments, net casualty gain or loss, gain or loss on debt extinguishment, ~~non-routine~~ legal costs and settlements, net, COVID-19 related costs and mark-to-market debt adjustments. While our definition of Core FFO may be similar to others in the industry, our methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to net income available for MAA common shareholders, or any other GAAP measurement, as an indicator of operating ~~performance.~~performance or as an alternative to cash flow from operating, investing and financing activities as a measure of liquidity. We believe that Core FFO is helpful in understanding our core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.~~performance.~~

The following table presents a reconciliation of net income available for MAA common shareholders to FFO and Core FFO for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ as we believe net income available for MAA common shareholders is the most directly comparable GAAP measure (dollars in thousands):


	Three months ended March 31,
	2022			2021
Net income available for MAA common shareholders	$	109,880		$	46,271
Depreciation and amortization of real estate assets		132,010			129,752
Loss on sale of depreciable real estate assets		1			—
Depreciation and amortization of real estate assets of real estate joint venture		154			155
Net income attributable to noncontrolling interests		2,775			1,671
FFO attributable to the Company		244,820			177,849
(Gain) loss from embedded derivative in preferred shares(1)		(11,896	)		15,108
Gain on sale of non-depreciable real estate assets		(23	)		—
Loss (gain) on investments, net of tax(1)(2)		8,077			(1,284	)
Net casualty (gain) loss and other settlement proceeds(3)		(7,712	)		2,355
Loss on debt extinguishment(1)		—			37
Legal costs and settlements, net(1)		537			(16	)
COVID-19 related costs(1)		337			310
Mark-to-market debt adjustments(4)		36			83
Core FFO	$	234,176		$	194,442

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Net income available for MAA common shareholders

$
215,556

$
74,140

$
261,827

$
109,866

Depreciation and amortization of real estate assets

130,031

125,668

259,783

250,514

(Gain) loss on sale of depreciable real estate assets

(134,828
)

(2
)

(134,828
)

27

Depreciation and amortization of real estate assets
of real estate joint venture

154

153

309

305

Net income attributable to noncontrolling interests

7,397

2,666

9,068

3,970

FFO attributable to the Company

218,310

202,625

396,159

364,682

(Gain) loss from embedded derivative in preferred shares⁽¹⁾

(13,168
)

(11,693
)

1,940

15,945

(Gain) loss on sale of non-depreciable real estate assets

(32
)

(5
)

(32
)

371

Gain from unconsolidated limited partnerships, net of tax⁽¹⁾⁽²⁾

(4,962
)

(4,262
)

(6,246
)

(4,185
)
Net casualty (gain) loss and other settlement proceeds⁽³⁾

(595
)

(151
)

1,760

696

Loss (gain) on debt extinguishment⁽¹⁾

—

—

37

(1
)
Non-routine legal costs and settlements⁽¹⁾

—

—

(16
)

40

COVID-19 related costs⁽¹⁾

109

2,411

419

2,607

Mark-to-market debt adjustments⁽⁴⁾

83

(58
)

166

(92
)
Core FFO

$
199,745

$
188,867

$
394,187

$
380,063

(1)

Included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.

(2)

For the three months ended March 31, 2022 and 2021, loss (gain) on investments are presented net of tax benefit of $2.2 million and net of tax expense of $0.3 million, respectively.

(3)

For the three months ended March 31, 2022, we recognized a gain of $7.6 million from the receipt of insurance proceeds that exceeded our casualty losses related to winter storm Uri. The gain is reflected in “Other non-operating (income) expense” in the Consolidated Statements of Operations. For the three months ended March 31, 2021, we incurred $16.9 million in casualty losses related to winter storm Uri (primarily building repairs, landscaping and asset write-offs). The majority of the casualty losses have been reimbursed through insurance coverage. A receivable was recognized in “Other non-operating (income) expense” for the recorded losses that we expected to recover. Additional costs related to the storm that were not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are also reflected in this adjustment. The adjustment is primarily included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.

(4)

Included in “Interest expense” in the Condensed Consolidated Statements of Operations.

⁽¹⁾	~~Included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.~~

⁽²⁾

For the three and six months ended June 30, 2021, $6.3 million and $7.9 million, respectively, of gains from unconsolidated limited partnerships are offset by $1.3 million and $1.7 million, respectively, of income tax expense. For the three and six months ended June 30, 2020, $5.0 million and $4.9 million, respectively, of gains from unconsolidated limited partnerships are offset by $0.7 million of income tax expense.

⁽³⁾

During the six months ended June 30, 2021, we incurred $37.3 million in casualty losses related to winter storm Uri (primarily building repairs, landscaping and asset write-offs). We expect the majority of the storm costs to be reimbursed through insurance coverage. A receivable has been recognized in “Other non-operating (income) expense” for the amount of the recorded losses that we expect to be recovered. Additional costs related to the storm that are not expected to be recovered through insurance coverage, along with other unrelated casualty losses and recoveries, are reflected in this adjustment. The adjustment is primarily included in “Other non-operating (income) expense” in the Condensed Consolidated Statements of Operations.

⁽⁴⁾	~~Included in “Interest expense” in the Condensed Consolidated Statements of Operations.~~

Core FFO for the three months ended ~~June 30, 2021~~March 31, 2022 was ~~$199.7~~$234.2 million, an increase of ~~$10.9~~$39.7 million as compared to the three months ended ~~June 30, 2020,~~March 31, 2021, primarily as a result of an increase in property revenues of ~~$23.9~~$51.1 million partially offset by increases in property operating expenses, excluding depreciation and amortization, of ~~$11.3 million.~~

~~Core FFO for the six months ended June 30, 2021 was $394.2~~$7.0 million, ~~an increase~~property management expenses of ~~$14.1 million as compared to the six months ended June 30, 2020, primarily as a result of an increase in property revenues of $30.8~~$3.6 million and ~~a decrease in interest expense~~general and administrative expenses of ~~$7.1~~$3.3 million. ~~The increases to Core FFO were offset by increases in property operating expenses, excluding depreciation and amortization, of $20.6 million.~~

Liquidity and Capital Resources

Our cash flows from operating, investing and financing activities, as well as general economic and market conditions, are the principal factors affecting our liquidity and capital resources.

We expect that our primary uses of cash will be to fund our ongoing operating needs, to fund our ongoing capital spending requirements, which relate primarily to our development, redevelopment and property repositioning activities, to repay maturing borrowings, to fund the future acquisition of assets and to pay shareholder dividends. We expect to meet our cash requirements through net cash flows from operating activities, existing unrestricted cash and cash equivalents, borrowings under our commercial paper program and our revolving credit facility, the future issuance of debt and equity and the future disposition of assets.

We historically have had positive net cash flows from operating activities. We believe that future net cash flows generated from operating activities, existing unrestricted cash and cash equivalents, borrowing capacity under our current commercial paper program and revolving credit facility, and our ability to issue debt and equity will provide sufficient liquidity to fund the cash requirements for our business over the next 12 months and the foreseeable future.

As of March 31, 2022, we had $1.0 billion of combined unrestricted cash and cash equivalents and available capacity under our revolving credit facility.

Cash Flows from Operating Activities

Net cash provided by operating activities was ~~$397.3~~$179.6 million for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 as compared to ~~$389.6~~$148.1 million for the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. The increase in operating cash flows was primarily driven by our operating performance, partially offset by the timing of cash payments.

Cash Flows from Investing Activities

Net cash used in investing activities was ~~$132.5~~$83.5 million for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 as compared to ~~$197.8~~$112.5 million for the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. The primary drivers of the change were as follows (dollars in thousands):

Primary drivers of cash (outflow) inflow

during the six months ended June 30,

(Decrease) Increase

2021

2020

in Net Cash

Purchases of real estate and other assets

$
(46,028
)

$
(5,004
)

$
(41,024
)
Capital improvements, development and other

(247,544
)

(191,850
)

(55,694
)
Proceeds from disposition of real estate assets

161,756

660

161,096


	Primary drivers of cash (outflow) inflow
	during the three months ended March 31,						(Decrease) Increase
	2022			2021			in Net Cash
Purchases of real estate and other assets	$	(5,232	)	$	—		$	(5,232	)
Capital improvements and other		(38,212	)		(49,220	)		11,008
Development costs		(42,780	)		(64,291	)		21,511
Contributions to affiliates		(7,500	)		—			(7,500	)
Proceeds from real estate asset dispositions and insurance recoveries		10,097			898			9,199

The increase in cash outflows for purchases of real estate and other assets was driven by acquisition activity during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 as compared to the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. The decrease in cash outflows for capital improvements and other was primarily driven by decreased redevelopment capital spend during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021. The decrease in cash outflows for development costs was primarily driven by decreased development spend during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021. The increase in cash outflows for ~~capital improvements, development and other~~contributions to affiliates was ~~primarily~~ driven by ~~increased development and redevelopment capital spend~~an initial investment in a technology-focused limited partnership during the ~~six~~three months ended ~~June 30, 2021 as compared to~~March 31, 2022, while no limited partnership contributions were made during the ~~six~~three months ended ~~June 30, 2020.~~ March 31, 2021. The increase in cash inflows ~~related to~~from proceeds from ~~disposition of~~ real estate ~~assets~~asset dispositions and insurance recoveries was driven by ~~the disposition activity~~insurance reimbursements received for casualty claims related to winter storm Uri during the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022. ~~as compared to the six months ended June 30, 2020.~~

Cash Flows from Financing Activities

Net cash used in financing activities was ~~$257.4~~$154.1 million for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 as compared to ~~$226.7~~$27.9 million for the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. The primary drivers of the change were as follows (dollars in thousands):


	Primary drivers of cash inflow (outflow)
	during the three months ended March 31,						(Decrease) Increase
	2022			2021			in Net Cash
Net change in commercial paper	$	20,000		$	213,000			(193,000	)
Principal payments on notes payable		(343	)		(119,154	)		118,811
Dividends paid on common shares		(125,432	)		(117,242	)		(8,190	)
Acquisition of noncontrolling interests		(43,070	)		—			(43,070	)

Primary drivers of cash inflow (outflow)

during the six months ended June 30,

Increase (Decrease)

2021

2020

in Net Cash

Net change in commercial paper

$
108,000

$
20,000

88,000

Principal payments on notes payable

(119,481
)

(3,483
)

(115,998
)
Dividends paid on common shares

(234,591
)

(228,618
)

(5,973
)

The ~~increase~~decrease in cash inflows related to the net change in commercial paper resulted from the increase in net borrowings of ~~$108.0~~$20.0 million on our commercial paper program during the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, as compared to the increase in net borrowings of ~~$20.0~~$213.0 million on our commercial paper program during the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. The ~~increase~~decrease in cash outflows from principal payments on notes payable primarily resulted from the retirement of $118.6 million of property mortgages during the ~~six~~three months ended ~~June 30, 2021.~~ March 31, 2021. The increase in cash outflows from dividends paid on common shares primarily resulted from the increase in the dividend rate to ~~$2.05~~$1.0875 per share during the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, as compared to the dividend rate of ~~$2.00~~$1.0250 per share during the ~~six~~three months ended March 31, 2021. The increase in cash outflows from the acquisition of noncontrolling interests resulted from the acquisition of the noncontrolling interest of a consolidated real estate entity for $43.1 million during the three months ended March 31, 2022.

Debt

The following schedule reflects our debt outstanding as of March 31, 2022 (dollars in thousands):


	Principal Balance			Average Years to Rate Maturity		Effective Rate
Unsecured debt
Fixed rate senior notes	$	4,175,000			6.9		3.3	%
Variable rate commercial paper		20,000			0.1		0.6	%
Debt issuance costs, discounts, premiums and fair market value adjustments		(22,487	)
Total unsecured debt	$	4,172,513			6.9		3.3	%
Secured debt
Fixed rate property mortgages	$	368,212			26.5		4.4	%
Debt issuance costs		(3,220	)
Total secured debt	$	364,992			26.5		4.4	%
Total outstanding debt	$	4,537,505			8.4		3.4	%
Total fixed rate debt	$	4,517,505			8.5		3.4	%

The following schedule presents the contractual maturity dates of our outstanding debt, net of debt issuance costs, discounts, premiums and fair market value adjustments, as of March 31, 2022 (dollars in thousands):


	Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾		Public Bonds		Secured		Total
2022	$	20,000	$	124,874	$	—	$	144,874
2023		—		349,003		—		349,003
2024		—		398,229		—		398,229
2025		—		397,193		5,071		402,264
2026		—		296,623		—		296,623
2027		—		595,958		—		595,958
2028		—		396,239		—		396,239
2029		—		560,082		—		560,082
2030		—		297,282		—		297,282
2031		—		444,489				444,489
Thereafter		—		292,541		359,921		652,462
Total	$	20,000	$	4,152,513	$	364,992	$	4,537,505

(1)

The $20.0 million maturing in 2022 reflects the principal outstanding under MAALP’s unsecured commercial paper program as of March 31, 2022. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $500.0 million. For the three months ended March 31, 2022, average daily borrowings outstanding under the commercial paper program were $13.8 million.

(2)

There were no borrowings outstanding under MAALP’s $1.0 billion unsecured revolving credit facility as of March 31, 2022. The unsecured revolving credit facility has a maturity date of May 2023 plus two six-month extensions.

The following schedule reflects the interest rate maturities of our outstanding fixed rate debt, net of debt issuance costs, discounts, premiums and fair market value adjustments, as of March 31, 2022 (dollars in thousands):


	Fixed Rate Debt		Effective Rate
2022	$	124,874		3.3	%
2023		349,003		4.2	%
2024		398,229		4.0	%
2025		402,264		4.2	%
2026		296,623		1.2	%
2027		595,958		3.7	%
2028		396,239		4.2	%
2029		560,082		3.7	%
2030		297,282		3.1	%
2031		444,489		1.8	%
Thereafter		652,462		3.8	%
Total	$	4,517,505		3.4	%

Unsecured Revolving Credit Facility & Commercial Paper

MAALP has entered into a $1.0 billion unsecured revolving credit facility with a syndicate of banks led by Wells Fargo Bank, National Association, and fourteen other banks, which we refer to as the Credit Facility. The Credit Facility includes an expansion option up to $1.5 billion. The Credit Facility bears an interest rate of LIBOR plus a spread of 0.75% to 1.45% based on an investment grade pricing grid. The Credit Facility matures in May 2023 with an option to extend for two additional six-month periods. As of March 31, 2022, there was no outstanding balance under the Credit Facility, while $4.0 million of capacity was used to support outstanding letters of credit. The Credit Facility serves as our primary source of short-term liquidity.

Certain tenors of the USD LIBOR (one-week and two-month) ceased publication as of December 31, 2021, and all remaining tenors of the USD LIBOR (one, three, six and 12-month) will cease to be published after June 30, ~~2020.~~2023. Currently, our exposure to the phase-out of LIBOR is limited to the Credit Facility. The terms of the Credit Facility allow for the transition to an alternate benchmark interest rate, including Secured Overnight Financing Rate, to replace any outstanding USD LIBOR borrowings at the time USD LIBOR is no longer published.

~~Equity~~

MAALP has established an unsecured commercial paper program, whereby it can issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate amount outstanding of $500.0 million. As of ~~June 30, 2021,~~March 31, 2022, there was $20.0 million outstanding under the commercial paper program.

Unsecured Senior Notes

As of March 31, 2022, we had $4.2 billion of publicly issued unsecured senior notes outstanding.

Secured Property Mortgages

MAALP maintains secured property mortgages with various life insurance companies. As of March 31, 2022, we had $368.2 million of secured property mortgages outstanding.

For more information regarding our debt capital resources, see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Equity

As of March 31, 2022, MAA owned ~~114,919,922~~115,337,466 OP Units, comprising a ~~96.9%~~97.3% limited partnership interest in MAALP, while the remaining ~~3,618,955~~3,202,377 outstanding OP Units were held by limited partners of MAALP other than MAA. Holders of OP Units (other than MAA) may require us to redeem their OP Units from time to time, in which case we may, at our option, pay the redemption price either in cash (in an amount per OP Unit equal, in general, to the average closing price of MAA’s common stock on the NYSE over a specified period prior to the redemption date) or by delivering one share of MAA’s common stock (subject to adjustment under specified circumstances) for each OP Unit so redeemed. MAA has registered under the Securities Act ~~3,618,955~~the 3,202,377 shares of its common stock that, as of ~~June 30, 2021,~~March 31, 2022, were issuable upon redemption of OP Units, in order for those shares to be sold freely in the public markets.

~~We have~~In August 2021, MAA entered into ~~separate distribution~~two 18-month forward sale agreements with ~~each~~respect to a total of ~~J.P. Morgan Securities LLC, BMO Capital Markets Corp.~~1.1 million shares of its common stock at an initial forward sale price of $190.56 per share, which is net of issuance costs. Under the forward sale agreements, the forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor equal to a specified daily rate less a spread and ~~KeyBanc Capital Markets Inc.~~will be decreased based on amounts related to dividends on MAA’s common stock during the term of the forward sale agreements. No shares had been settled under the forward sale agreements as of March 31, 2022. Subject to certain conditions, we generally have the right to elect cash or net share settlement under the forward sale agreements, although we expect to settle the forward sale agreements entirely by the full physical delivery of shares of MAA’s common stock in exchange for cash proceeds. We intend to use any cash proceeds upon settlement of the forward sale agreements to fund our development and redevelopment activities, among other potential uses.

In November 2021, the Company entered into an equity distribution agreement to establish ana new ATM program, replacing MAA’s previous ATM program and allowing MAA to sell shares of its common stock from time to time to or through its sales agents into the existing market at current market prices, and to enter into separate forward sales agreements to or through ~~negotiated transactions.~~its forward purchasers. Under ~~the~~its current ATM program, MAA has the authority to issue up to an aggregate of 4.0 million shares of its common stock, at such times to be determined by MAA. ~~The ATM program currently has a maturity of September 2021.~~ MAA has no obligation to issue shares through the ATM program.

During the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ MAA did not sell any shares of common stock under its ATM program. As of ~~June 30, 2021, 3.9~~March 31, 2022, there were 4.0 million shares ~~remained issuable~~remaining under the current ATM program.

For more information regarding our equity capital resources, see Note 8 and Note 9 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

~~Debt~~

~~The following schedule reflects our fixed and variable rate~~Material Cash Requirements

As of March 31, 2022, we had $126.1 million in debt ~~outstanding~~obligations maturing in the year ending December 31, 2022 as ~~of June 30, 2021 (dollars in thousands):~~

Principal Balance

Average Years to Rate Maturity

Effective Rate

Unsecured debt

Fixed rate senior notes

$
3,922,000

5.6

3.6
%
Variable rate commercial paper

280,000

0.1

0.2
%
Debt issuance costs, discounts, premiums and fair market value adjustments

(14,708
)

Total unsecured debt

$
4,187,292

5.2

3.4
%
Secured debt

Fixed rate property mortgages

$
369,227

27.2

4.4
%
Debt issuance costs

(3,282
)

Total secured debt

$
365,945

27.2

4.4
%
Total debt

$
4,553,237

7.0

3.5
%
Total fixed rate debt

$
4,273,237

7.4

3.7
%

~~The following schedule presents the contractual maturity dates of our outstanding debt, net of debt issuance costs, discounts, premiums and fair market value adjustments,~~well as ~~of June 30, 2021 (dollars in thousands):~~

Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾

Public Bonds

Other Unsecured

Secured

Total

2021

$
280,000

$
—

$
72,750

$
—

$
352,750

2022

—

249,465

116,903

—

366,368

2023

—

348,497

12,236

—

360,733

2024

—

397,615

19,966

—

417,581

2025

—

396,611

—

6,119

402,730

2026

—

—

—

—

—

2027

—

595,369

—

—

595,369

2028

—

395,782

—

—

395,782

2029

—

561,082

—

—

561,082

2030

—

297,023

—

—

297,023

Thereafter

—

443,993

—

359,826

803,819

Total

$
280,000

$
3,685,437

$
221,855

$
365,945

$
4,553,237

⁽¹⁾

The $280.0 million maturing in 2021 reflects the principal outstanding under MAALP’s unsecured commercial paper program as of June 30, 2021. Under the terms of the program, MAALP may issue up to a maximum aggregate amount outstanding at any time of $500.0 million. For the three months ended June 30, 2021, average daily borrowings outstanding under the commercial paper program were $401.8 million.

⁽²⁾	There were no borrowings outstanding under MAALP’s $1.0 billion unsecured revolving credit facility as of June 30, 2021. The unsecured revolving credit facility has a maturity date of May 2023 plus two six-month extensions.

~~The following schedule reflects the~~ interest ~~rate maturities of our outstanding~~payments on fixed rate debt ~~net~~obligations of ~~debt issuance~~$126.9 million. As of March 31, 2022, we also had obligations to make additional capital contributions to three technology-focused limited partnerships in which we hold equity interests. The capital contributions may be called by the general partners at any time after giving appropriate notice. As of March 31, 2022, we had committed to make additional capital contributions totaling up to $33.5 million if and when called by the general partners of the limited partnerships.

We have other material cash requirements that do not represent contractual obligations, but we expect to incur in the ordinary course of our business.

As of March 31, 2022, we had five development communities under construction totaling 1,759 apartment units once complete. Total expected costs ~~discounts, premiums~~for the five development projects are $444.0 million, of which $192.8 million had been incurred through March 31, 2022. We expect to have additional development projects in the future. In addition, our property development and ~~fair market value adjustments, as of June 30, 2021 (dollars~~repositioning activities are ongoing, and we incur expenditures relating to recurring capital replacements, which typically include scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. For the year ending December 31, 2022, we expect that our total capital expenditures relating to our development activities, our property redevelopment and repositioning activities and recurring capital replacements will be in ~~thousands):~~line with our total capital expenditures for the year ended December 31, 2021.

Fixed Rate Debt

Effective Rate

2021

$
72,750

5.4
%
2022

366,368

3.6
%
2023

360,733

4.2
%
2024

417,581

4.0
%
2025

402,730

4.2
%
2026

—

—

2027

595,369

3.7
%
2028

395,782

4.2
%
2029

561,082

3.7
%
2030

297,023

3.1
%
Thereafter

803,819

3.0
%
Total

$
4,273,237

3.7
%

~~Unsecured Revolving Credit Facility & Commercial Paper~~

~~In May 2019, MAALP closed~~We typically declare cash dividends on MAA’s common stock on a ~~$1.0 billion unsecured revolving credit facility with a syndicate~~quarterly basis, subject to approval by MAA’s Board of ~~banks led by Wells Fargo Bank, National Association, or Wells Fargo,~~Directors. The current annual dividend rate is $4.35 per common share. The timing and ~~fourteen other banks, which we refer to as~~amount of future dividends will depend on actual cash flows from operations, our financial condition, capital requirements, the Credit Facility. The Credit Facility replaced our previous unsecured revolving credit facility and includes an expansion option up to $1.5 billion. The Credit Facility bears an interest rate of LIBOR plus a spread of 0.75% to 1.45% based on an investment grade pricing grid. The Credit Facility matures in May 2023 with an option to extend for two additional six-month periods. As of June 30, 2021, there was no outstanding balanceannual distribution requirements under the ~~Credit Facility, while $3.4 million~~REIT provisions of ~~capacity was used~~the Internal Revenue Code of 1986 and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify our dividend policy from time to ~~support outstanding letters~~time.

For information regarding our material cash requirements as of ~~credit. The Credit Facility serves as our primary source of short-term liquidity.~~

~~After~~ December 31, 2021, ~~certain tenors~~see Item 7 of ~~the U.S. dollar, or USD, LIBOR will cease to be published with all remaining tenors~~Part II of the USD LIBOR ceasing publication after June 30, 2023. Currently, our exposure to the phase-out of LIBOR is limited to the Credit Facility. The terms of the Credit Facility allow for the transition to an alternate benchmark interest rate, including the secured overnight financing rate, or SOFR, to replace any outstanding USD LIBOR borrowings at the time USD LIBOR is no longer published.

In May 2019, MAALP established an unsecured commercial paper program, whereby it can issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate amount outstanding of $500.0 million. As of June 30, 2021, there was $280.0 million outstanding under the commercial paper program.

~~Unsecured Senior Notes~~

~~As of June 30, 2021, we had $3.7 billion of publicly issued unsecured senior notes and $222.0 million of privately placed unsecured senior notes outstanding.~~

~~Secured Property Mortgages~~

We maintain secured property mortgages with various life insurance companies. These mortgages are usually fixed rate and can range from five to 30 years in maturity. As of June 30, 2021, we had $369.2 million of secured property mortgages with a weighted average interest rate of 4.40%.

~~In February 2021, we retired a $118.6 million mortgage associated with eight apartment communities prior to its June 2021 maturity.~~

~~For more information regarding our debt capital resources, see Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.~~

~~Off-Balance Sheet Arrangements~~

As of June 30, 2021 and 2020, we had an ownership interest in a limited liability company that owns one apartment community comprised of 269 units, located in Washington, D.C. We also had ownership interests in two technology-focused limited partnerships as of June 30, 2021. Our interests in these investments are unconsolidated and are recorded using the equity method as we do not have a controlling interest.

As of June 30, 2021 and 2020, we did not have any relationships, including those with unconsolidated entities or financial partnerships, for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not engage in trading activities involving non-exchange traded contracts. As such, we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships. We do not have any relationships or transactions with persons or entities that derive benefits from their non-independent relationships with us or our related parties other than those disclosed in Note 12 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~18, 2021.~~17, 2022.

~~Insurance~~

We carry comprehensive general liability coverage on our apartment communities, with limits of liability we believe are customary within the multifamily apartment industry, to insure against liability claims and related defense costs. We also maintain insurance against the risk of direct physical damage to reimburse us on a replacement cost basis for costs incurred to repair or rebuild any property, including loss of rental income during the reconstruction period.

We renegotiated our insurance programs effective July 1, 2021. We believe that the current property and casualty insurance program in place provides appropriate insurance coverage for financial protection against insurable risks such that any insurable loss experienced that can be reasonably anticipated would not have a significant impact on our liquidity, financial position or results of operations.

Inflation

Our resident leases at our apartment communities allow for adjustments in the rental rate at the time of renewal, which may enable us to seek rent increases. The majority of our leases are for one year or less. The short-term nature of these leases generally serves to reduce our risk to adverse effects of inflation.

Critical Accounting ~~Policies and~~ Estimates

Please refer to our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~18, 2021,~~17, 2022, for discussions of our critical accounting ~~policies.~~estimates. During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, there were no material changes to these policies. For more information on recent accounting pronouncements that could have a material impact on our condensed consolidated financial statements see Note 1 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.estimates.

Item 3.Quantitative and ~~Qualitative~~Qualitative Disclosures About Market Risk.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. Our primary market risk exposure is to changes in interest rates on our borrowings. As of ~~June 30, 2021, 18.6%~~March 31, 2022, 15.5% of our total market capitalization consisted of debt borrowings. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve this objective, we manage our exposure to fluctuations in market interest rates for borrowings through the use of fixed rate debt instruments and from time to time interest rate swaps to effectively fix the interest rate on anticipated future debt transactions. We use our best efforts to have our debt instruments mature across multiple years, which we believe limits our exposure to interest rate changes in any one year. We do not enter into derivative instruments for trading or other speculative purposes. As of ~~June 30, 2021, 93.9%~~March 31, 2022, 99.6% of our outstanding debt was subject to fixed rates. We regularly review interest rate exposure on outstanding borrowings in an effort to minimize the risk of interest rate fluctuations. There have been no material changes in our market risk as disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~18, 2021.~~17, 2022.

Item 4.Controls and Procedures.

Mid-America Apartment Communities, Inc.

(a) Evaluation of Disclosure Controls and Procedures

MAA is required to maintain disclosure controls and procedures, within the meaning of Exchange Act Rules 13a-15 and 15d-15. MAA’s management, with the participation of MAA’s Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of MAA’s disclosure controls and procedures as of ~~June 30, 2021.~~March 31, 2022. Based on that evaluation, MAA’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of ~~June 30, 2021~~March 31, 2022 to ensure that information required to be disclosed by MAA in its Exchange Act filings is accurately recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to MAA’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control over Financial Reporting

There was no change to MAA’s internal control over financial reporting, within the meaning of Exchange Act Rules 13a-15 and 15d-15, that occurred during the quarter ended ~~June 30, 2021~~March 31, 2022 that has materially affected, or is reasonably likely to materially affect, MAA’s internal control over financial reporting.

Mid-America Apartments, L.P.

(a) Evaluation of Disclosure Controls and Procedures

The Operating Partnership is required to maintain disclosure controls and procedures, within the meaning of Exchange Act Rules 13a-15 and 15d-15. Management of the Operating Partnership, with the participation of the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, carried out an evaluation of the effectiveness of the Operating Partnership’s disclosure controls and procedures as of ~~June 30, 2021.~~March 31, 2022. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, concluded that the disclosure controls and procedures were effective as of ~~June 30, 2021~~March 31, 2022 to ensure that information required to be disclosed by the Operating Partnership in its Exchange Act filings is accurately recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer of MAA, as the general partner of the Operating Partnership, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control over Financial Reporting

There was no change to the Operating Partnership’s internal control over financial reporting, within the meaning of Exchange Act Rules 13a-15 and 15d-15, that occurred during the quarter ended ~~June 30, 2021~~March 31, 2022 that has materially affected, or is reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

~~Item 1.~~

~~Legal Proceedings.~~

As disclosed in Note 10 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, we are engaged in certain legal proceedings, and the disclosure set forth in Note 10 relating to legal proceedings is incorporated herein by reference.

~~Item 1A.~~

~~Risk Factors.~~

~~Other than the risk factor set forth below, there~~Item 1A. Risk Factors.

There have been no material changes to the risk factors that were discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~18, 2021.~~

~~Compliance or failure to comply with laws and regulations could have an adverse effect on our operations and the values of our properties~~.17, 2022.

We must own, operate, manage, acquire, develop and redevelop our properties in compliance with numerous federal, state and local laws and regulations. For example, the Americans with Disabilities Act of 1990, the Fair Housing Act of 1988 and other federal, state and local laws generally require that public accommodations be made accessible to disabled persons. Noncompliance could result in the imposition of fines by the government or the award of damages to private litigants. These laws may require us to modify our existing apartment communities. These laws may also restrict renovations by requiring improved access to such buildings by disabled persons or may require us to add other structural features that increase our construction costs. We cannot ascertain the costs of compliance with these laws, which may be substantial.

We do not know whether the legal requirements we are subject to will change or whether new requirements will be imposed. Changes in laws and regulations could require us to make significant unanticipated expenditures and limit our ability to recover increases in operating expenses, impose limitations on our ability to increase rents or charge certain fees, impose limitations on our ability to enforce remedies for the failure to pay rent or otherwise adversely impact our operations. For example, as the eviction moratoria enacted in light of the COVID-19 pandemic begin to lapse, many state and local governments are implementing policies to prevent or delay formal eviction proceedings, and the federal government is urging all states to adopt eviction diversion strategies. In June 2021, the U.S. Justice Department sent a letter to the chief justices of state supreme courts and state court administrators encouraging immediate enactment of eviction diversion policies, including, among others, a requirement for landlords to apply for rental assistance prior to filing for eviction and the extension of pending eviction cases to provide sufficient time for rental assistance applications to be processed, while also recommending creation of more robust eviction diversion programs over the longer term that include a combination of rental assistance, mandatory alternative dispute resolution and access to legal counsel for unrepresented tenants. In addition, we have seen an increase in state and local governments implementing, considering or being urged by tenant advocacy groups to consider rent control or rent stabilization laws and regulations as well as tenants’ rights laws and regulations. Any such future enactments in the markets in which we operate could have a significant adverse impact on our results of operations and the value of our properties.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

~~Item 2.~~

~~Unregistered Sales of Equity Securities and Use of Proceeds.~~

Purchases of Equity Securities

The following table reflects repurchases of shares of MAA’s common stock during the three months ended ~~June 30, 2021:~~March 31, 2022:


Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs (3)
January 1, 2022 - January 31, 2022		14,502	$	218.07		—		4,000,000
February 1, 2022 - February 28, 2022		—	$	—		—		4,000,000
March 1, 2022 - March 31, 2022		—	$	—		—		4,000,000
Total		14,502				—		4,000,000

Period

Total Number of Shares Purchased ⁽¹⁾

Average Price Paid per Share ⁽²⁾

Total Number of Share Purchased as Part of Publicly Announced Plans or Programs

Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs ⁽³⁾

April 1, 2021 - April 30, 2021

49,826

$
146.64

—

4,000,000

May 1, 2021 - May 31, 2021

—

$
—

—

4,000,000

June 1, 2021 - June 30, 2021

42

$
162.90

—

4,000,000

Total

49,868

—

4,000,000

(1)

The shares reflected in this column are shares of MAA’s common stock surrendered by employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted shares under the Second Amended and Restated 2013 Stock Incentive Plan.

⁽¹⁾	The shares reflected in this column are shares of MAA’s common stock surrendered by employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted shares under the Second Amended and Restated 2013 Stock Incentive Plan.

(2)

The price per share is based on the closing price of MAA’s common stock as of the date of determination of the statutory minimum for federal and state tax
obligations.

⁽²⁾	~~The price per share is based on the closing price of MAA’s common stock as of the date of determination of the statutory minimum for federal and state tax obligations.~~

(3)

This column reflects the number of shares of MAA’s common stock that are available for purchase under the 4.0 million share repurchase program
authorized by MAA’s Board of Directors in December 2015.

⁽³⁾	This column reflects the number of shares of MAA’s common stock that are available for purchase under the 4.0 million share repurchase program authorized by MAA’s Board of Directors in December 2015.

Item 3. Defaults Upon Senior Securities.

~~Item 3.~~

~~Defaults Upon Senior Securities.~~

Not applicable.

Item 4. Mine Safety Disclosures.

~~Item 4.~~

~~Mine Safety Disclosures.~~

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

(a)

The following exhibits are filed as part of this report.


~~Item 5.~~Exhibit	~~Other Information.~~

~~Not applicable.~~

~~Item 6.~~E~~xhibits.~~

~~(a)~~Number

~~The following exhibits are filed as part of this report.~~

~~Exhibit~~ ~~Number~~		Exhibit Description


3.1		Composite Charter of Mid-America Apartment Communities, Inc. (Filed as Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K filed on February 24, 2017 and incorporated herein by reference)

3.2		Fourth Amended and Restated Bylaws of Mid-America Apartment Communities, Inc., dated as of March 13, 2018 ~~(filed~~(Filed as Exhibit 3.2(i) to the Registrant’s Current Report on Form 8-K filed on March 14, 2018 and incorporated herein by reference)

3.3		Composite Certificate of Limited Partnership of Mid-America Apartments, L.P. ~~(filed~~(Filed as Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 1, 2019 and incorporated herein by reference)

3.4		Third Amended and Restated Agreement of Limited Partnership of Mid-America Apartments, L.P. dated as of October 1, 2013 ~~(filed~~(Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 2, 2013 and incorporated herein by reference)

3.5		First Amendment to the Third Amended and Restated Agreement of Limited Partnership of Mid-America Apartments, L.P. ~~(filed~~(Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on November 10, 2016 and incorporated herein by reference)

31.1		MAA Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2
~~31.2~~		MAA Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.3		MAALP Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.4		MAALP Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		MAA Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		MAA Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.3		MAALP Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.4		MAALP Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101		Interactive Data Files submitted pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (Inline XBRL)

104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

~~SIGNATURES~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.


			MID-AMERICA APARTMENT COMMUNITIES, INC.

Date:	~~July 29,~~ ~~2021~~	~~By:~~April 28, 2022	By:	/s/ A. Clay Holder
			A. Clay Holder
			Senior Vice President and Chief Accounting Officer
			(Duly Authorized Officer)

~~SIGNATURES~~39

SIGNATURES


			MID-AMERICA APARTMENTS, L.P.
		By:	Mid-America Apartment Communities, Inc., its general partner

Date:	~~July 29, 2021~~April 28, 2022		/s/ A. Clay Holder
			A. Clay Holder
			Senior Vice President and Chief Accounting Officer
			(Duly Authorized Officer)

4240


Tennessee (Mid-America Apartment Communities, Inc.)	62-1543819
Tennessee (Mid-America Apartments, L.P.)	62-1543816
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share (Mid-America Apartment Communities, Inc.)	MAA	New York Stock Exchange
8.50% Series I Cumulative Redeemable Preferred Stock, $.01 par value per share (Mid-America Apartment Communities, Inc.)	MAA*I	New York Stock Exchange


Mid-America Apartment Communities, Inc.	~~YES~~ Yes☒	NO No☐
Mid-America Apartments, L.P.	~~YES~~ Yes☒	NO No☐


Mid-America Apartment Communities, Inc.	~~YES~~ Yes☒	NO No☐
Mid-America Apartments, L.P.	~~YES~~ Yes☒	NO No☐


Mid-America Apartment Communities, Inc.
Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company☐


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Mid-America Apartments, L.P.
Large accelerated filer ☐	~~Emerging growth company~~☐

~~Mid-America Apartments, L.P.~~
~~Large accelerated~~Accelerated filer ☐	~~Accelerated filer~~ ☐	Non-accelerated filer ☒	Smaller reporting company ☐	Emerging growth company ☐


Mid-America Apartment Communities, Inc.	~~YES~~ Yes☐	NO No☒
Mid-America Apartments, L.P.	~~YES~~ Yes☐	NO No☒


Mid-America Apartment Communities, Inc.	Number of Shares Outstanding at
Class	~~July 26, 2021~~April 25, 2022
Common Stock, $0.01 par value	~~114,919,922~~115,427,606


			Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements.		45
	Mid-America Apartment Communities, Inc.
		Condensed Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.	45
		Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	56
		Condensed Consolidated Statements of Comprehensive Income for the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	67
		Condensed Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	78
	Mid-America Apartments, L.P.
		Condensed Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.	89
		Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	910
		Condensed Consolidated Statements of Comprehensive Income for the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	1011
		Condensed Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021.	1112
		Notes to Condensed Consolidated Financial Statements.		1213
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		2726
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.		3735
Item 4.	Controls and Procedures.		3736

PART II – OTHER INFORMATION
Item 1.	Legal Proceedings.		3836
Item 1A.	Risk Factors.		3836
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		3937
Item 3.	Defaults Upon Senior Securities.		3937
Item 4.	Mine Safety Disclosures.		3937
Item 5.	Other Information.		3937
Item 6.	Exhibits.		3938
	Signatures.		4139


	Mid-America Apartments, L.P. Unitholders’ Capital
	Preferred Units			General Partner			Limited Partners			Accumulated Other Comprehensive Loss			Noncontrolling Interests - Consolidated Real Estate Entities			Total Partnership Capital
EQUITY BALANCE DECEMBER 31, 2021	$	66,840		$	5,909,700		$	165,116		$	(11,382	)	$	23,614		$	6,153,888
Net income (loss)		922			109,880			3,068			—			(293	)		113,577
Other comprehensive income - derivative instruments		—			—			—			279			—			279
Issuance of units		—			21			—			—			—			21
Units repurchased and retired		—			(3,162	)		—			—			—			(3,162	)
Exercise of unit options		—			28			—			—			—			28
General partnership units issued in exchange for limited partnership units		—			193			(193	)		—			—			—
Redeemable units fair market value adjustment		—			2,533			—			—			—			2,533
Adjustment for limited partners’ capital at redemption value		—			946			(946	)		—			—			—
Amortization of unearned compensation		—			6,928			—			—			—			6,928
Distributions to preferred unitholders		(922	)		—			—			—			—			(922	)
Distributions to common unitholders ($1.0875 per unit)		—			(125,433	)		(3,479	)		—			—			(128,912	)
Acquisition of noncontrolling interest		—			(37,443	)		—			—			(5,627	)		(43,070	)
Contribution from noncontrolling interest		—			—			—			—			2,155			2,155
EQUITY BALANCE MARCH 31, 2022	$	66,840		$	5,864,191		$	163,566		$	(11,103	)	$	19,849		$	6,103,343


	Balance			Weighted Average Effective Rate			Weighted Average Contract Maturity	Balance			Weighted Average Effective Rate			Weighted Average Contract Maturity
Unsecured debt
Fixed rate senior notes								$	4,175,000			3.3	%	3/4/2029
Variable rate commercial paper program	$	280,000			0.2	%	7/4/2021		20,000			0.6	%	4/3/2022
Fixed rate senior notes		3,922,000			3.6	%	1/27/2027
Debt issuance costs, discounts, premiums and fair market value adjustments		(14,708	)						(22,487	)
Total unsecured debt	$	4,187,292			3.4	%		$	4,172,513			3.3	%
Secured debt
Fixed rate property mortgages	$	369,227			4.4	%	9/9/2048	$	368,212			4.4	%	10/2/2048
Debt issuance costs		(3,282	)						(3,220	)
Total secured debt	$	365,945			4.4	%		$	364,992			4.4	%
Total outstanding debt	$	4,553,237			3.5	%		$	4,537,505			3.4	%


		Net Loss Reclassified from AOCL into Interest Expense
	Location of Loss Reclassified	Three months ended March 31,
Derivatives in Cash Flow Hedging Relationships	from AOCL into Income	2022			2021
Terminated interest rate swaps	Interest expense	$	(279	)	$	(279	)


		Gain (Loss) Recognized in Earnings on Derivative
	Location of Gain (Loss) Recognized	Three months ended March 31,
Derivative Not Designated as Hedging Instrument	in Earnings on Derivative	2022		2021
Preferred stock embedded derivative	Other non-operating (income) expense	$	11,896	$	(15,108	)

Derivatives in Cash Flow Hedging Relationships	Location of Loss Reclassified	Net Loss Reclassified from Accumulated OCL into Interest Expense ⁽¹⁾
Three months ended June 30,	from Accumulated OCL into Income	2021			2020
Terminated interest rate swaps	Interest expense	$	(278	)	$	(278	)
Six months ended June 30,
Terminated interest rate swaps	Interest expense	$	(557	)	$	(531	)


Description	Outstanding Shares		Liquidation Preference(1)		Optional Redemption Date	Redemption Price(2)		Stated Dividend Yield			Approximate Dividend Rate
MAA Series I		867,846	$	50.00	10/1/2026	$	50.00		8.50	%	$	4.25

	Operating Leases
2021	$	1,435
				Operating Leases
2022		2,894		$	2,184
2023		2,885			2,885
2024		2,862			2,862
2025		2,872			2,872
2026					2,920
Thereafter		62,913			59,993
Total minimum lease payments		75,861			73,716
Net present value adjustments		(44,791	)		(43,819	)
Operating lease obligations	$	31,070
Right-of-use lease obligations				$	29,897


	March 31, 2022		December 31, 2021
Assets:
Same Store	$	9,842,471	$	9,907,740
Non-Same Store and Other		1,138,477		1,106,039
Corporate assets		218,127		271,403
Total assets	$	11,199,075	$	11,285,182

	Primary drivers of cash (outflow) inflow
	during the six months ended June 30,						(Decrease) Increase
	2021			2020			in Net Cash
Purchases of real estate and other assets	$	(46,028	)	$	(5,004	)	$	(41,024	)
Capital improvements, development and other		(247,544	)		(191,850	)		(55,694	)
Proceeds from disposition of real estate assets		161,756			660			161,096

	Primary drivers of cash inflow (outflow)
	during the six months ended June 30,						Increase (Decrease)
	2021			2020			in Net Cash
Net change in commercial paper	$	108,000		$	20,000			88,000
Principal payments on notes payable		(119,481	)		(3,483	)		(115,998	)
Dividends paid on common shares		(234,591	)		(228,618	)		(5,973	)

	Commercial Paper & Revolving Credit Facility ⁽¹⁾ ⁽²⁾		Public Bonds		Other Unsecured		Secured		Total
2021	$	280,000	$	—	$	72,750	$	—	$	352,750
2022		—		249,465		116,903		—		366,368
2023		—		348,497		12,236		—		360,733
2024		—		397,615		19,966		—		417,581
2025		—		396,611		—		6,119		402,730
2026		—		—		—		—		—
2027		—		595,369		—		—		595,369
2028		—		395,782		—		—		395,782
2029		—		561,082		—		—		561,082
2030		—		297,023		—		—		297,023
Thereafter		—		443,993		—		359,826		803,819
Total	$	280,000	$	3,685,437	$	221,855	$	365,945	$	4,553,237

Period	Total Number of Shares Purchased ⁽¹⁾		Average Price Paid per Share ⁽²⁾		Total Number of Share Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs ⁽³⁾
April 1, 2021 - April 30, 2021		49,826	$	146.64		—		4,000,000
May 1, 2021 - May 31, 2021		—	$	—		—		4,000,000
June 1, 2021 - June 30, 2021		42	$	162.90		—		4,000,000
Total		49,868				—		4,000,000