Headquartered in Germantown, Tennessee, Mid-America Apartment Communities, Inc. (MAA) is a globally recognized real estate investment trust (REIT) with a market cap of $16.5 billion. It specializes in acquiring, developing, redeveloping, and managing multifamily homes across the Southeastern, southwestern, and mid-Atlantic regions of the United States. The company is set to announce its Q2 earnings for fiscal 2024 after the market closes on Wednesday, Jul. 31.
Ahead of the event, analysts expect Mid-America Apartment Communities to report an FFO of $2.20 per share, down 3.5% from $2.28 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing one other occasion.
Amid challenges from new supply introductions in various markets, the REIT reported an FFO of 2.22 per share in the recent quarter, a decline of 2.6% from the previous year's quarter, and failed to surpass the consensus estimate marginally.
Looking forward, Wall Street anticipates Mid-America Apartment Communities to achieve an FFO of $8.88 per share in fiscal 2024, reflecting a 3.2% decrease from $9.17 in fiscal year 2023. However, its FFO is projected to inch up 2.5% annually to $9.10 in fiscal 2025.
MAA stock has plunged 9.5% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 25.8% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 3.5% returns during the same period.
Despite its grim price performance, MAA benefited from stable occupancy rates, high leasing activity, low resident turnover, and strong rent collections as it entered the busy summer leasing season in Q1. The stock rose marginally following the Q1 earnings release on May 1. Although the company exceeded its revenue estimate, it fell short of meeting its FFO consensus.
Moreover, Mid-America Apartment Communities utilizes a portfolio approach that targets high-growth primary and secondary markets, aiming to achieve strong risk-adjusted performance across market cycles. Supported by disciplined capital allocation, a robust balance sheet, a technology-driven operational platform, and a seasoned team of real estate experts, MAA consistently delivers superior long-term investment results for its shareholders.
MAA has a consensus “Moderate Buy” rating overall. Among the 24 analysts covering the stock, seven recommend a "Strong Buy," one suggests a “Moderate Buy,” 13 give it a "Hold," one says “Moderate Sell,” and the remaining two analysts advise a "Strong Sell."
Furthermore, the average analyst price target for Mid-America Apartment Communities is $141.66, indicating a marginal potential upside from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
