MAA · 8-K · 20260828PR372238

Capital Return Program

MID AMERICA APARTMENT COMMUNITIES INC. · 2026-08-28 · Importance 40 · Surprise 42 · In source text

MAA will redeem all outstanding 8.50% Series I preferred shares on October 1, 2026, for $50.00 per share plus accrued dividends; the shares will receive a final quarterly dividend of $1.0625 per share on September 30, 2026. MAA intends to fund the redemption with proceeds from settlement of a forward sale agreement under its ATM equity offering program, initially priced at $130.00 per share and subject to customary adjustments. Management expects preferred-dividend savings to exceed dilution from the common shares issued, making the transaction accretive to Core FFO per share; it is also intended to retire legacy preferred equity and simplify the capital structure.

Key facts

• The forward sale agreement has an initial forward sale price of $130.00 per share, subject to customary adjustments. source
• MAA intends to fund the redemption with proceeds received upon settlement of a forward sale agreement entered into under its ATM equity offering program, as the original Series I terms require the redemption price to be funded with proceeds from the sale of other capital stock. source
• MAA expects the transaction to be accretive to Core FFO per share because preferred dividend savings are expected to exceed dilution associated with common shares issued in connection with the redemption. source

Impact estimates