Mid-America Apartment Communities, Inc. (NYSE: MAA) announced it will redeem all outstanding shares of its 8.50% Series I Cumulative Redeemable Preferred Stock on Oct. 1, 2026, at a price of $50.00 per share plus unpaid accrued dividends.

Dividends on the Series I Shares will cease to accrue after the redemption date, and the shares will no longer be considered outstanding. Prior to redemption, MAA will pay a full quarterly dividend of $1.0625 per share on Sept. 30, 2026, to holders of record as of Sept. 15, 2026.

The Series I Shares were originally issued by Post Properties, Inc. in 1996 and were converted into MAA Series I Shares when MAA acquired Post in December 2016. Under the original terms of the shares, the redemption price must be funded through proceeds from the sale of other capital stock.

To meet this requirement, MAA plans to fund the redemption using proceeds from a forward sale agreement entered into under its ATM equity offering program, at an initial forward sale price of $130.00 per share, subject to customary adjustments. All Series I Shares are held in book-entry form through The Depository Trust Company and will be redeemed according to DTC's procedures.

MAA said the transaction is expected to be accretive to Core FFO per share, as preferred dividend savings are anticipated to exceed dilution from the associated common share issuance. The redemption will also eliminate an embedded derivative tied to the Series I Shares and its related accounting complexity, according to the company's statement.