The company's portfolio strategy is to maintain diversity of markets, submarkets, product types and price points in the Southeast, Southwest and Mid-Atlantic regions of the U.S. This diversity helps to mitigate exposure to economic issues, including supply and demand factors, in any one geographic market or area.

The Company did not acquire or dispose of any multifamily apartment communities or land parcels during the three months ended March 31, 2024. This indicates a pause in portfolio expansion or restructuring activities during this period.

As of March 31, 2024, the company had five development communities under construction, totaling 1,970 apartment units once complete. Total expected costs for the five development projects are $647.3 million, of which $445.6 million had been incurred through March 31, 2024.

MAA's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2024 to ensure that information required to be disclosed by MAA in its Exchange Act filings is accurately recorded, processed, summarized and reported.

There was no change to MAA's internal control over financial reporting, within the meaning of Exchange Act Rules 13a-15 and 15d-15, that occurred during the quarter ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, MAA's internal control over financial reporting.

The Company believes the RealPage Litigation is without merit as it pertains to the Company and plans to vigorously defend the RealPage Litigation. On April 10, 2023, the Joint Panel on Multidistrict Litigation issued an order centralizing the cases in the Middle District of Tennessee for coordinated or consolidated pretrial proceedings.

There have been no material changes to the risk factors that were discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 9, 2024.

The company acknowledges that overall borrowing costs remain at elevated levels and expects this trend to continue. As of March 31, 2024, they had $235.0 million of variable rate debt outstanding under their commercial paper program. This continued exposure to elevated interest rates will be a result of additional variable rate borrowings or refinancing activities.

The company notes that inflationary pressures have driven higher operating expenses, primarily in real estate taxes and insurance expenses. This trend may continue going forward.

Demand for apartments in our markets was solid during the first quarter of 2024, as evidenced by stable occupancy, high leasing traffic, low resident turnover and strong collections performance.

The company continues to monitor pressures surrounding housing supply, inflation trends and general economic conditions. A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent growth on new leases and renewals.

With continued solid demand and the resulting steady absorption of the new supply pipeline, we continue to believe that the decline in new supply deliveries expected late this year and into 2025 will fuel a strong and quick rebound in rent performance.

For the three months ended March 31, 2024, average physical occupancy for our Same Store segment was 95.3%, as compared to 95.5% for the three months ended March 31, 2023.

Average effective rent per unit for our Same Store segment increased from the prior year, up 1.5% for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

The increase in property operating expenses for our Same Store segment for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 was primarily driven by increases in real estate tax expense of $3.4 million, personnel expense of $1.8 million, office operations expense of $1.5 million, insurance expense of $1.1 million, and utilities expense of $1.0 million.

The Company accounts for its investments in the technology-focused limited partnerships on a three month lag due to the timing the limited partnerships' financial information is made available to the Company. As of March 31, 2024 and December 31, 2023, the Company's investments in the limited partnerships were $55.1 million and $46.5 million, respectively

As of March 31, 2024, the Company was committed to make additional capital contributions totaling $32.8 million if and when called by the general partners of the limited partnerships.

Two of the technology-focused limited partnerships that are accounted for as investments in unconsolidated affiliates distributed publicly traded marketable equity securities to the Company and the other limited partners.

In January 2024, MAALP publicly issued $350.0 million in aggregate principal amount of unsecured senior notes due March 2034 with a coupon rate of 5.000% per annum and at an issue price of 99.019%.

The proceeds from the sale of the notes were used to repay borrowings on the commercial paper program.

During the three months ended March 31, 2024 and 2023, MAA did not sell any shares of common stock under its ATM program.

Compliance costs associated with numerous federal, state and local laws and regulations.

Impact of climate change on our properties or operations.

Extreme weather and natural disasters.

We continue to monitor pressures surrounding housing supply, inflation trends and general economic conditions. A worsening of the current environment could contribute to uncertain rent collections going forward, suppress demand for apartments and could drive lower rent growth on new leases and renewals.

During the three months ended March 31, 2024, we experienced inflationary pressures that drove higher operating expenses, primarily in real estate taxes and insurance expenses.

Access to the financial markets remains available for high-credit rated borrowers, such as ourselves.