Mid-America Apartment Communities to Redeem All Outstanding Shares of Its 8.50% Series I Preferred Stock
Mid-America Apartment Communities, Inc. (NYSE: MAA) announced its intention to redeem all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock on October 1, 2026. The redemption price will be $50 per share plus unpaid dividends for that date. This action is part of a capital structure initiative aimed at simplifying MAA's financial obligations and eliminating the accounting complexities tied to these preferred shares. The Series I Shares were originally issued by Post Properties, Inc., which was acquired by MAA in 2016. To fund this redemption, MAA plans to use proceeds from an equity offering under its ATM program with a forward sale price of $130 per share. The company expects the transaction to be accretive to Core FFO (funds from operations) due to savings on preferred dividends outweighing any dilution effects. This move is expected to streamline MAA's capital structure and retire legacy preferred equity, aligning with its strategy as a REIT focused on apartment communities in key U.S. regions.
Tickers: $MAA
Topics: capital structure equity issuance redemption announcement