MID AMERICA APARTMENT COMMUNITIES INC.

Where It Passes

Where It Falls Short

• Efficiency0% pass✗ 11▾

  All 8 investors flag MAA's efficiency

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)3.7%

  ✗Buffett> 10%

  ROIC - WACC-6.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.19x -> 0.18x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 8▾

  MAA overvalued: all 8 models price fair value below $117.89 (median $62.03)

  Graham fair value$64.19

  ✗Graham-83.7% margin vs $117.89

  Lynch fair value$43.60

  ✗Lynch-170.4% margin vs $117.89

  Greenblatt fair value$46.81

  ✗Greenblatt-151.9% margin vs $117.89

  Dreman fair value$64.90

  ✗Dreman-81.6% margin vs $117.89

  Pabrai fair value$86.12

  ✗Pabrai-36.9% margin vs $117.89

  Akre fair value$59.88

  ✗Akre-96.9% margin vs $117.89

  Marks fair value$55.20

  ✗Marks-113.6% margin vs $117.89

  Templeton fair value$69.21

  ✗Templeton-70.3% margin vs $117.89
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag MAA's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.11, IC: 2.9x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.11

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.11

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.11

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.9x, D/EBITDA=4.6x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.11

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1050; #3329/4210 (top 79.1%)

  ✗AsnessTop 30% of eligible cross-section
• Profitability19% pass✓ 10✗ 25▾

  13 of 16 flag MAA's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)14/26 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)24/26 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)9.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)26.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)2.70

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.5%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE7.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.3%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.73%

  ✓PiotroskiROA > 0

  ROA Change YoY4.47% -> 3.73% (delta: -0.73%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=9.00%, ROA=3.73%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue18.1%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity7.3%

  ✗Dreman> 12%

  Margin of SafetyP/FFO=12.9x

  ✓PabraiP/FFO < 15

  Return on Equity8.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-81.6% (IV=$64.90 vs Price=$117.89)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity7.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR11.5% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+2.77%; #2454/6340 (top 38.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+7.34%; #2190/5226 (top 41.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0062; #568/5884 (top 9.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR11.5% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years9/9 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation31% pass✓ 5✗ 20▾

  9 of 13 flag MAA's valuation — Lynch, Greenblatt, Dreman +6 more

  Price / FFO per Share12.9x

  ✓Graham<= 15x✗Dreman< 12x✓Ackman<= 25

  Basic earnings-growth PEG (dividends excluded)2.70

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.3%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)12.8x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=31.2x, OE Yield=7.8%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/FFO or FFO YieldP/FFO=12.9x, FFO Yield=7.6%

  ✓PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=31.2x, P/B=2.4x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-81.6% (IV=$64.90 vs Price=$117.89)

  ✗Marks>= 20% below intrinsic value

  Price / EPS31.2x

  ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price vs. Trailing Low101% of trailing low ($117.21)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Price / Book Value per Share2.4x

  ✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization+2.77%; #2454/6340 (top 38.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.3769; #3367/6449 (top 52.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS31.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.53

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.43x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-5.6%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1587; #3998/5247 (top 76.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-8.66%; #3357/6202 (top 54.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Cash Flow33% pass✓ 3✗ 4▾

  4 of 6 flag MAA's cash flow — Buffett, Dreman, Neff +1 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Operating Cash Flow$1.1B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=9.00%, ROA=3.73%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)12.8x

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency22/22 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth38% pass✓ 5✗ 8▾

  5 of 8 flag MAA's growth — Graham, Lynch, Dreman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)2.70

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.5%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth2.0%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR11.5% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR5.7%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR11.5% over 5 years

  ✓Neff7%-20% annualized
• Verdicts38% pass✓ 5✗ 8▾

  Split decision: 8 FAIL · 5 PASS · 3 NEUTRAL

  Overall verdict

  ✓GrahamPASS (3/7)✗BuffettFAIL (0/9)✗LynchFAIL (3/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/10)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)