Sunbelt Resi Field Trip Takeaways

Research evidence excerpt

Sunbelt Resi Field Trip Takeaways

Goldman Sachs Americas Real Estate: REITs

n Target pipeline level: $1B–$1.2B to sustain earnings contribution

n AFFO contribution from current lease-up/in-development pipeline: ~$0.10/share

o Timing: ~2029–2030 (full stabilization required for full year contribution)

o Prior pipeline (delivered 2–3 years ago) contributing ~$0.09–0.10/share, but

running ~1 year late due to higher-than-underwritten concession usage

o Rents achieved are on target — concessions are the drag; once they burn off,

could expect 8–10% effective rent pop

o 2026 deliveries ~$600M — near-term headwind on interest and opex before

stabilization benefit

n Lease-up cadence tracking in line with re-underwritten expectations (not initial

underwrite); Breakwater (Tampa) outperforming

n Atlanta cap rates: 4.5–5%, recent trades below 5 cap

n Redevelopment (unit-level): avg $6,800 spend in Atlanta last year, ~29%

cash-on-cash return

n Repositioning (common areas only): MAA Buckhead and Piedmont Park property

cited as examples with similar returns

n Atlanta was 4th top market for redevelopment last year

Operating Platform & Technology

n Smart Home: deployed across entire MAA portfolio

n Ubiquitous WiFi: piloted in select properties, measurably improved renewals; cost

below third-party market rate

o Rolling out portfolio-wide — multi-year process; Denver last/low priority due

to local regulations capping charge-above-market

o Operational/back-of-house benefits warrant rollout even in low-revenue

markets

n Reimagined operating platform: shifting office teams from generalist to specialist

roles within workflow

o Goal: higher associate satisfaction → better resident experience

o Piloted in 3 markets; broader rollout pending refinement

MAA property tour