The company will settle the redemption using proceeds from a forward sale agreement under its existing ATM equity offering program. This specific funding method satisfies original issuance terms established by Post Properties in 1996, which required redemption capital to be sourced from the sale of other capital stock. MAA management expects the transaction to be accretive to Core FFO per share, as the savings from eliminating preferred dividends will outweigh the dilution caused by the new common share issuance.
MAA to Retire Series I Preferred Stock in Capital Structure Overhaul
Mid-America Apartment Communities plans to redeem all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock on October 1, 2026. The Germantown-based real estate investment trust will pay $50.00 per share plus accrued dividends, a move intended to simplify the firm's balance sheet and reduce accounting complexity.
Investors holding shares as of the September 15 record date will receive a final quarterly dividend of $1.0625 per share on September 30. Following the October 1 redemption, all rights associated with the Series I shares will cease, and the securities will be delisted. By retiring this legacy equity, MAA removes an embedded derivative that has complicated the firm's financial reporting since the 2016 acquisition of Post Properties. The company currently manages over 104,000 apartment units across 16 states and the District of Columbia.
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