MAA · 10-Q · 2026Q3 · Full report

Interest Expense Increase

MID AMERICA APARTMENT COMMUNITIES INC. · 2026-10-29 · Importance 30 · Surprise 40

Interest expense increased 18.0% to $54.6 million in the third quarter of 2026, up $8.3 million year over year, primarily because average outstanding debt increased and the effective interest rate rose 7 basis points. For the first nine months, interest expense increased $22.6 million to $159.2 million, driven by higher average debt, a 5-basis-point increase in the effective rate, and lower capitalized interest. The higher interest expense contributed to the year-over-year declines in quarterly and nine-month Core FFO of $9.0 million and $28.4 million, respectively.

Key facts

• MAA interest expense was $54.6 million for the three months ended September 30, 2026, an increase of $8.3 million from 2025, primarily due to higher average debt and a 7-basis-point increase in the effective interest rate.
• MAA interest expense was $159.2 million for the nine months ended September 30, 2026, an increase of $22.6 million from 2025, primarily due to higher average debt, a 5-basis-point increase in effective interest rate and decreased capitalized interest.