#USA #Germantown #Mid-America #shareholder update #Redeemable Stock

Major Announcement by MAA on Preferred Stock Redemption

In a significant development for shareholders and investors, Mid-America Apartment Communities, Inc. (MAA), a leading real estate investment trust based in Germantown, Tennessee, has revealed plans to redeem all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock. This announcement, made on August 28, 2026, signals an important step in the company's ongoing efforts to streamline its capital structure and enhance shareholder value.

Details of the Redemption

The redemption of the Series I preferred shares will take place on October 1, 2026. MAA has pledged to pay a redemption price of $50.00 per share, along with any unpaid accrued dividends for that specific date. After this redemption date, dividends on the Series I shares will stop accruing, and these shares will no longer hold any standing as outstanding shares. All rights attached to these shares, except for the right to receive the redemption price, will be voided post-redemption.

To ensure that shareholders receive their dues, MAA will distribute the final quarterly dividend of $1.0625 per share on September 30, 2026, for shareholders registered as of the record date on September 15, 2026. It is important to note that these Series I shares are held in book-entry form through The Depository Trust Company (DTC), and the redemption process will be executed per DTC's established procedures.

Historical Context of the Series I Shares

The Series I shares were initially issued by Post Properties, Inc. back in 1996 and subsequently transitioned into MAA Series I shares during MAA's acquisition of Post in December 2016. Interestingly, the original issuance terms mandate that the redemption price must be funded through the sale of alternative capital stock. MAA plans to fulfill this requirement through proceeds obtained from a forward sale agreement, which is part of its At-the-Market (ATM) equity offering program. The initial forward sale price is set at $130.00 per share and will be subject to customary adjustments.

Strategic Rationale Behind the Redemption

MAA views this preferred share redemption as a targeted initiative to enhance its capital structure rather than a mere capital raising operation. This strategy is expected to positively impact the company’s Core Funds From Operations (FFO) per share. The anticipated savings from the redeemed preferred dividends are expected to outweigh any potential dilution resulting from the common shares issued as part of this transaction.

Moreover, this move is poised to eliminate legacy preferred equity from the balance sheet and ease the accounting complexities tied to the Series I shares. By taking these steps, MAA aims to present a cleaner and more straightforward financial structure, which could be instrumental in driving future growth and raising investor confidence.

About Mid-America Apartment Communities

As a member of the S&P 500, Mid-America Apartment Communities focuses on delivering superior investment performance by managing, acquiring, developing, and redeveloping high-quality apartment communities primarily located in the Southeast, Southwest, and Mid-Atlantic regions of the United States. By June 30, 2026, MAA owned interests in 104,698 apartment units, with additional communities currently in the pipeline across 16 states and the District of Columbia. For more information, investors can visit MAA’s official website or contact their Investor Relations department directly.

As MAA moves forward with its plans for redemption, the upcoming months will be crucial for shareholders and investors alike, promoting a more stable investment environment while aligning with MAA’s long-term strategic objectives.