Mid-America Apartment Communities to Redeem All Outstanding Shares of Its 8.50% Series I Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Mid-America Apartment Communities (NYSE: MAA) will redeem for cash all outstanding 8.50% Series I Cumulative Redeemable Preferred Stock on October 1, 2026 at $50.00 per share plus unpaid accrued dividends for that date. Dividends will cease to accrue and the shares will no longer be outstanding after the redemption date, with holders retaining only the right to receive the redemption price.

MAA will also pay the full quarterly dividend of $1.0625 per share on September 30, 2026 to holders of record on September 15, 2026. According to MAA, the redemption will be funded from proceeds of a forward sale agreement under its ATM equity program, with an initial forward sale price of $130.00 per share, and is expected to simplify its capital structure and be accretive to Core FFO per share.

Positive

• Full redemption of 8.50% Series I preferred at $50.00 per share on October 1, 2026
• Quarterly dividend honored $1.0625 per Series I share, payable September 30, 2026
• Funding via ATM forward equity initial forward sale price of $130.00 per share
• Expected Core FFO accretion preferred dividend savings expected to exceed dilution, according to MAA
• Capital structure simplification retirement of legacy Post preferred and removal of embedded derivative

Negative

• Common equity issuance dilution redemption funding requires issuing additional common shares under ATM forward sale
• Loss of preferred income Series I dividends cease after October 1, 2026 redemption

News Explained

The preferred redemption requires common-stock issuance, creating potential ownership dilution whose size remains undisclosed.

MAA has announced a future October 1, 2026 redemption of its Series I preferred shares, funded through required common-stock issuance; that issuance can reduce existing common holders’ percentage ownership.

The release does not state the number of common shares to be issued or the total redemption cost, so it establishes the dilution mechanism but not its size.

MAA also says the redemption will eliminate the embedded derivative associated with the Series I Shares and related accounting complexity.

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GERMANTOWN, Tenn., Aug. 28, 2026 /PRNewswire/ -- /PR Newswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), announced today that it will redeem for cash all of the outstanding shares of MAA's 8.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Shares, on October 1, 2026.

MAA will pay a redemption price for the Series I Shares of $50.00 per share plus unpaid accrued dividends for October 1, 2026. Dividends on the Series I Shares will cease to accrue, and the Series I Shares will no longer be deemed outstanding, from and after the redemption date. All rights of the holders of the Series I Shares, except the right to receive the redemption price without interest, will cease on and after the redemption date.

Prior to the redemption date, MAA will pay the full quarterly dividend on the Series I Shares of $1.0625 per share on September 30, 2026, to holders of Series I Shares on September 15, 2026, which is the record date for such dividend.

All Series I Shares are held in book-entry form through The Depository Trust Company (DTC). Series I Shares held in book-entry form through DTC will be redeemed, including payment of the redemption price, according to DTC's procedures.

The Series I Shares were originally issued by Post Properties, Inc., or Post, in 1996 and were converted into MAA Series I Shares in connection with MAA's acquisition of Post in December 2016. Under the terms of the original Series I Shares, the redemption price must be funded with proceeds from the sale of other capital stock. To satisfy this requirement, MAA intends to fund the redemption with proceeds received upon settlement of a forward sale agreement entered into under its ATM equity offering program. The agreement has an initial forward sale price of $130.00 per share, subject to customary adjustments. MAA views the preferred redemption and the required common equity issuance as a targeted capital structure initiative rather than a traditional capital raising transaction. The transaction is expected to be accretive to Core FFO per share because the preferred dividend savings are expected to exceed the dilution associated with the common shares issued in connection with the redemption. The redemption will retire legacy preferred equity, simplify MAA's capital structure and eliminate the embedded derivative associated with the Series I Shares and its related accounting complexity.

About MAA
MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of June 30, 2026, MAA had ownership interest in 104,698 apartment units, including communities in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.

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SOURCE MAA

FAQ

What is Mid-America Apartment Communities (NYSE: MAA) doing with its 8.50% Series I preferred stock on October 1, 2026?

MAA will redeem all outstanding 8.50% Series I Cumulative Redeemable Preferred Stock for cash on October 1, 2026. Holders will receive $50.00 per share plus unpaid accrued dividends for that date, and all other rights will cease after the redemption, according to MAA.

What redemption price will MAA (NYSE: MAA) pay for the 8.50% Series I preferred shares?

MAA will pay a redemption price of $50.00 per 8.50% Series I preferred share, plus unpaid accrued dividends for October 1, 2026. According to MAA, dividends will stop accruing and the shares will no longer be outstanding after that redemption date.

When is the final dividend payment on MAA’s 8.50% Series I preferred stock and who is eligible?

The final quarterly dividend of $1.0625 per Series I share will be paid on September 30, 2026. According to MAA, holders of record on September 15, 2026 will receive this dividend before the shares are redeemed on October 1, 2026.

How will Mid-America Apartment Communities fund the redemption of its Series I preferred stock?

MAA intends to fund the Series I preferred redemption with proceeds from settling a forward sale agreement under its ATM equity offering program. According to MAA, the agreement has an initial forward sale price of $130.00 per share, subject to customary adjustments.

What impact does the Series I preferred redemption have on MAA’s Core FFO per share?

According to MAA, the transaction is expected to be accretive to Core FFO per share. The company expects preferred dividend savings to exceed dilution from the common shares issued in connection with funding the redemption through its ATM forward sale agreement.

How will the redemption of the 8.50% Series I preferred shares affect MAA’s capital structure?

MAA states the redemption will retire legacy preferred equity originally issued by Post Properties and later converted to MAA shares. According to MAA, this will simplify its capital structure and eliminate the embedded derivative associated with the Series I Shares and related accounting complexity.

What happens to MAA’s 8.50% Series I preferred dividends and shareholder rights after October 1, 2026?

After the October 1, 2026 redemption date, dividends on the Series I Shares will cease to accrue and the shares will no longer be deemed outstanding. According to MAA, holder rights end except for receiving the redemption price without interest.