MAA · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

MID AMERICA APARTMENT COMMUNITIES INC. · 2026-10-29 · Importance 66 · Surprise 40

MAA said borrowing costs remained elevated relative to its existing fixed-rate debt portfolio and expected that trend to continue as of September 30, 2026. It had $1.2 billion of variable-rate debt outstanding: $750.0 million under its commercial paper program, $350.0 million under its term loan program, and $110.0 million under its revolving credit facility. Interest expense for the nine months ended September 30, 2026 increased $22.6 million, or more than 10% year over year, primarily due to higher average debt, a 5-basis-point increase in the effective interest rate, and lower capitalized interest; management noted future borrowing could expose the company to higher interest costs.

Key facts

• As of September 30, 2026, MAA had $4.3 billion of fixed-rate senior notes outstanding with an average maturity of 5.7 years and a 4.0% weighted average effective rate.
• As of September 30, 2026, MAA had $1.2 billion of variable rate debt outstanding: $750.0 million under its commercial paper program, $350.0 million under its term loan program, and $110.0 million under its revolving credit facility.
• As of September 30, 2026, MAA had $750.0 million of commercial paper outstanding with an average maturity of 0.1 years and a 4.1% weighted average effective rate.
• In February 2026, MAA issued $200.0 million of unsecured senior notes due January 2033 with a 4.650% annual coupon.
• As of September 30, 2026, MAA had $350.0 million of variable-rate term loans outstanding with an average maturity of 0.1 years and a 4.5% weighted average effective rate.
• As of September 30, 2026, MAA had $110.0 million of variable-rate revolving credit facility borrowings with an average maturity of 0.1 years and a 4.4% weighted average effective rate.
• MAA had $23.2 million of interest payments on fixed-rate debt obligations payable in the year ending December 31, 2026.
• As of September 30, 2026, MAA's total debt had a weighted average effective rate of 4.1% and average years to maturity of 5.6.