Mid-America Apartment Communities said it will redeem all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock on Oct. 1, 2026, paying $50.00 a share plus unpaid accrued dividends for that date.
Before the redemption, MAA will pay the full quarterly dividend of $1.0625 per share on Sept. 30, 2026, to holders of record on Sept. 15, 2026. After the redemption date, the Series I shares will stop accruing dividends and will no longer be outstanding.
The preferred shares were originally issued by Post Properties in 1996 and were converted into MAA Series I shares in December 2016 when MAA acquired Post. MAA said the redemption price must be funded with proceeds from the sale of other capital stock, and it plans to use proceeds from a forward sale agreement under its ATM equity offering program.
That forward sale agreement carries an initial price of $130.00 per share, subject to adjustments. MAA said the move is expected to be accretive to Core FFO per share because the dividend savings on the preferred stock should exceed dilution from the common shares issued to fund the redemption.
The transaction will eliminate the legacy preferred equity and remove the embedded derivative tied to the Series I shares. Today the company's shares have moved 0.61% to a price of $129.58. Check out the company's full 8-K submission here.
