Brad Hill, president and CEO of MAA (NYSE: MAA), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Hill discussed how MAA faced familiar headwinds in the third quarter, including weaker consumer confidence, slower job growth, and broader economic uncertainty, which primarily pressured new lease rate performance during the peak spring and summer leasing season.
Despite softer-than-expected new lease rates, other aspects of the business performed well. New lease rates, retention, and occupancy are all tracking ahead of the previous year, and with multifamily supply expected to decline 30%–35% in the coming year, MAA anticipates improving new lease rate growth as 2026 progresses.
Hill commented on how the REIT emphasizes the importance of financial flexibility, supported by an A– credit rating and a strong balance sheet with 4.2x leverage. With optimal leverage closer to 4.5–5.0x, MAA has capacity to add $1.0 billion to $1.5 billion of leverage, largely to fund development. Its development pipeline has expanded significantly, from roughly $300 million a few years ago to nearly $1.0 billion to $1.2 billion, with additional projects planned if conditions allow.
Long term, MAA remains focused on Sunbelt markets where favorable demographics, migration trends, and pro-business environments are driving sustained demand. Population growth among 20–39-year-olds is expected to remain positive in these core markets through 2033, reinforcing confidence in MAA’s long-term strategy.