Borrowings

12 Months Ended

Dec. 31, 2022

Notes To Financial Statements [Abstract]

Borrowings

5.Borrowings

The following table summarizes the Company’s outstanding debt as of December 31, 2022 and December 31, 2021 (dollars in thousands):

							As of December 31, 2022
Unsecured debt	December 31, 2022			December 31, 2021			Weighted Average Effective Rate			Weighted Average Contract Maturity
Variable rate commercial paper program	$	20,000		$	—			4.7	%	1/3/2023
Fixed rate senior notes	$	4,050,000		$	4,175,000			3.4	%	5/14/2029
Debt issuance costs, discounts, premiums and fair market value adjustments		(19,090	)		(23,625	)
Total unsecured debt	$	4,050,910		$	4,151,375			3.4	%
Secured debt
Fixed rate property mortgages	$	367,154		$	368,555			4.4	%	10/27/2048
Debt issuance costs		(3,161	)		(3,240	)
Total secured debt	$	363,993		$	365,315			4.4	%
Total outstanding debt	$	4,414,903		$	4,516,690			3.4	%

Unsecured Revolving Credit Facility

In July 2022, MAALP amended its unsecured revolving credit facility, increasing its borrowing capacity to $1.25 billion with an option to expand to $2.0 billion. The revolving credit facility bears interest at an adjusted Secured Overnight Financing Rate plus a spread of 0.70% to 1.40% based on an investment grade pricing grid. The revolving credit facility has a maturity date in October 2026 with an option to extend for two additional six-month periods. As of December 31, 2022, there was no outstanding balance under the revolving credit facility, while $4.3 million of capacity was used to support outstanding letters of credit.

Unsecured Commercial Paper

MAALP has established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days. In September 2022, MAALP amended its commercial paper program to increase the maximum aggregate principal amount of notes that may be outstanding from time to time under the program from $500.0 million to $625.0 million. As of December 31, 2022, MAALP had $20.0 million outstanding under the commercial paper program. For the year ended December 31, 2022, the average daily borrowings outstanding under the commercial paper program were $34.9 million.

Unsecured Senior Notes

As of December 31, 2022, MAALP had $4.1 billion of publicly issued unsecured senior notes outstanding. The unsecured senior notes had maturities at issuance ranging from 5 to 30 years, with a weighted average maturity in 2029.

In September 2022, MAALP retired the remaining $125.0 million portion of its publicly issued unsecured senior notes due in December 2022.

In July 2021, MAALP retired a $72.8 million tranche of privately placed unsecured senior notes at maturity.

In August 2021, MAALP publicly issued $300 million in aggregate principal amount of unsecured senior notes maturing in 2026 with interest payable semi-annually and a coupon rate of 1.100% per annum, or the 2026 Notes. MAALP also publicly issued $300 million in aggregate principal amount of unsecured senior notes maturing 2051 with interest payable semi-annually in arrears and a coupon rate of 2.875% per annum, or the 2051 Notes. Both the 2026 Notes and 2051 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other unsecured senior indebtedness of MAALP. The combined net proceeds of the offerings were $590.0 million, after deducting the combined original issue discounts and underwriting commissions totaling $10.0 million.

In September 2021, MAALP retired $149.3 million of privately placed unsecured senior notes and $125.0 million of publicly issued unsecured senior notes. MAALP incurred $13.4 million in prepayment penalties and write-offs of unamortized costs resulting from the debt retirements during the year ended December 31, 2021. These costs are included in “Other non-operating expense (income)” in the accompanying Consolidated Statements of Operations.

Secured Property Mortgages

As of December 31, 2022, MAALP had $367.2 million of fixed rate conventional property mortgages with a weighted average maturity in 2048.

In February 2021, MAALP retired a $118.6 million mortgage associated with eight apartment communities.

Schedule of Maturities

The following table includes scheduled principal repayments of MAALP’s outstanding borrowings as of December 31, 2022, as well as the amortization of debt issuance costs, discounts, premiums and fair market value adjustments (in thousands):

	Maturities		Amortization			Total
2023	$	370,000	$	(491	)	$	369,509
2024		400,000		(1,158	)		398,842
2025		403,861		(2,110	)		401,751
2026		300,000		(2,798	)		297,202
2027		600,000		(3,452	)		596,548
Thereafter		2,363,293		(12,242	)		2,351,051
Total	$	4,437,154	$	(22,251	)	$	4,414,903