Dive Brief:

• MAA announced Tuesday that Brad Hill will replace Eric Bolton as CEO of the Memphis-based REIT effective April 1, 2025.
• Hill, who joined MAA in 2010 and has over 21 years of real estate experience, is currently serving as MAA's president and chief investment officer with oversight of the company's transactions, new development and property operations. He will also be nominated to serve on the REIT’s board of directors.
• Bolton, who will continue to serve as chairman of the board of directors, led MAA, the second largest apartment owner in the country, for 23 years.

Dive Insight:

While Bolton had led MAA for more than two decades, the announcement on Tuesday was still unexpected to some industry analysts.

“Last night's CEO transition announcement took us by surprise — not that the baton would never be handed over, but retiring CEO Eric Bolton showed no signs of slowing down,” Alexander Goldfarb, managing director and senior research analyst for investment bank and financial services company Piper Sandler, said in a recent report.

To highlight Bolton’s success, Goldfarb pointed to a 1,729% total return for MAA’s stock since he became CEO in October 2001. In comparison, the SNL Apartment Index produced returns of 856%, REITs generated 686% and S&P 500 gained 807% in the same timeframe, according to Goldfarb. 

“Further, MAA went from a small regional REIT to now one of the major apartment players, still retaining its genteel Southern team-based culture,” Goldfarb wrote. “This transformation shows how the Sun Belt no longer plays second fiddle to the Coastal markets. Even more telling of the respect the South commands is [Arlington, Virginia-based AvalonBay Communities] and [Chicago-based Equity Residential], now selling down their coastal urban exposure to expand into the Sun Belt. Not a bad legacy.”

In addition, Bolton piloted MAA through the Global Financial Crisis and two major mergers — with Birmingham, Alabama-based REIT Colonial Properties Trust in 2013 and Atlanta-based REIT Post Properties in 2016.  

“MAA experienced tremendous success thanks to Eric's clear and unwavering vision executed by a talented and dedicated team of associates,” Alan B. Graf Jr., lead independent director for MAA, said in the press release.

Furthermore, Graf said that MAA had invested in a continuous succession planning process and considered various factors, including input from independent advisors and potential external candidates, as it looked for a successor to Bolton.

“We have closely observed Brad's growth, capabilities, character and leadership style over the past several years,” Graf said. “We are very pleased to have a successor to Eric of such caliber and are confident in Brad's ability to lead our team in continuing to create value for our investors, residents, associates and communities.”

Bolton expressed similar sentiments. “I am pleased that Brad will succeed me as I step back from the CEO role and focus on providing strategic support and counsel to Brad and our Board. Brad's experience, capabilities and ambition for the business ideally position him to lead MAA forward through the next era of opportunity,” Bolton said in the press release.

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