Tennessee-based Mid-America Apartment Communities, Inc. (MAA) is a real estate investment trust (REIT) that owns, manages, acquires, develops, and redevelops quality apartment communities primarily in the Southeast, Southwest, and Mid-Atlantic regions of the United States. Valued at a market cap of almost $17.6 billion, the company is expected to release its fiscal Q4 earnings results on Wednesday, Feb. 5.
Ahead of this event, analysts expect the REIT to report an FFO of $2.24 per share, down nearly 3.5% from $2.32 per share in the year-ago quarter. The company has surpassed Wall Street's FFO estimates in three of the last four quarters while missing on another occasion. Its core FFO of $2.21 per share in the previous quarter outpaced the consensus estimates by 1.4%.
For fiscal 2024, analysts expect MAA to report an EPS of $8.89, down 3.1% from $9.17 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow marginally year-over-year to $8.93.
Shares of Mid-America Apartment have gained 13.3% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 22% rise but outpacing the Real Estate Select Sector SPDR Fund’s (XLRE) marginal return over the same time frame.
Shares of MAA marginally fell the day following its Q3 earnings release, despite the company delivering a better-than-expected Q3 core FFO of $2.21 and revenue of $551.1 million on Oct. 30. An increase in same-store portfolio property operating expenses and flat year-over-year same-store portfolio revenues might have overshadowed the positives and led to its downward stock movement.
Nonetheless, the management remained optimistic about the calendar year 2025. They expect a meaningful decline in the amount of new supply impacting the company’s portfolio and project to enter a new multi-year cycle with demand outpacing supply.
Wall Street analysts are moderately optimistic about Mid-America Apartment’s stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a “Moderate Buy,” 12 indicate “Hold,” and three suggest a “Strong Sell.” This configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
The average price target for MAA is $165.26, which indicates a modest 10% potential upside from the current levels.
