Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Mid-America Apartment Communities's
Operating Income
for the
three
months ended in Mar. 2026 was €127 Mil. Mid-America Apartment Communities's Interest Expense for the
three
months ended in Mar. 2026 was €-44 Mil.
Mid-America Apartment Communities's interest coverage for the quarter that ended in Mar. 2026 was 2.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Mid-America Apartment Communities's Interest Coverage or its related term are showing as below:
FRA:M2K'
s Interest Coverage Range Over the Past 10 Years
Min: 2.31 Med: 2.76 Max: 4.62
Current: 3.17
FRA:M2K's Interest Coverage is ranked better than 51% of 702
companies
in the REITs industry
Industry Median: 3.125
vs FRA:M2K: 3.17
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Mid-America Apartment Communities Interest Coverage Related Terms
Mid-America Apartment Communities Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:M2K vs SUI, INVH, ESS: Interest Coverage Comparison
For the REIT - Residential subindustry, Mid-America Apartment Communities's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mid-America Apartment Communities Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Mid-America Apartment Communities's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mid-America Apartment Communities's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mid-America Apartment Communities (FRA:M2K) has a Interest Coverage of 2.86 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mid-America Apartment Communities and its competitors. This is near median its historical median of 2.76. Over the past decade, Mid-America Apartment Communities' Interest Coverage has ranged from 2.31 to 4.62. According to the industry distribution chart, Mid-America Apartment Communities ranks #344 out of 702 companies in the REITs industry, placing it in the top 49%.
Is Mid-America Apartment Communities' Interest Coverage too high?
Mid-America Apartment Communities' current Interest Coverage of 2.86 is near median its 10-year median of 2.76. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 4.62. The REITs industry median Interest Coverage is 3.13. Mid-America Apartment Communities' value of 2.86 is 8.5% below this industry median. Based on the distribution chart, Mid-America Apartment Communities ranks #344 out of 702 companies in the REITs industry, which is above the industry midpoint. Overall, Mid-America Apartment Communities has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mid-America Apartment Communities' Interest Coverage compare to SUI and INVH?
According to the REITs industry distribution chart, Mid-America Apartment Communities ranks #344 out of 702 companies for Interest Coverage. This puts Mid-America Apartment Communities in the upper half of its industry. The industry median Interest Coverage is 3.13. Mid-America Apartment Communities' value of 2.86 is 8.5% below this benchmark. Historically, Mid-America Apartment Communities' own Interest Coverage has ranged from 2.31 to 4.62 over the past decade. While the company's 10-year median is 2.76 vs. the industry median of 3.13, Mid-America Apartment Communities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.13, based on 702 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mid-America Apartment Communities's current Interest Coverage of 2.86 is 8.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mid-America Apartment Communities and its competitors. For the REITs industry, the median Interest Coverage is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mid-America Apartment Communities's current Interest Coverage is 2.86, which is near median its own 10-year median of 2.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mid-America Apartment Communities stock overvalued right now?
Based on GuruFocus' analysis, Mid-America Apartment Communities (FRA:M2K) is currently considered Fairly Valued. The stock's GF Value™ is €126.05, compared to a current price of €123.50 — trading 2% below its estimated fair value. The current Interest Coverage is 2.86, which is near median its 10-year median of 2.76 and 8.5% below the REITs industry median of 3.13. Mid-America Apartment Communities' overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Mid-America Apartment Communities (FRA:M2K), the current Interest Coverage is 2.86 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mid-America Apartment Communities (FRA:M2K) Overvalued in 2026?
Based on GuruFocus' analysis, Mid-America Apartment Communities stock appears to be undervalued.
The current stock price of €123.50 is trading 2% below its estimated GF Value™ of €126.05.
GuruFocus considers Mid-America Apartment Communities to be Fairly Valued.
Key valuation signals for FRA:M2K:
Interest Coverage: 2.86 (near median its 10-year median of 2.76)
GF Value™: €126.05 vs. price of €123.50 (2% below fair value)
Industry Position: 8.5% below the REITs median (#344 of 702)
No single metric tells the full story. See the FRA:M2K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mid-America Apartment Communities Business Description
Mid-America Apartment Communities Inc is a multifamily-focused, self-administered and self-managed real estate investment trust. The company owns, operates, acquires and selectively develops apartment communities located in the Southeast, Southwest and Mid-Atlantic regions of the U.S. Its business objectives are to generate a sustainable, stable and increasing cash flow that will fund its dividends and distributions through all parts of the real estate investment cycle. It operates in two segments, Same Store and Non-Same Store and Other. The majority of the revenue is derived from Same Store segment.
73GF Score
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