Group 1: Financial Performance - Mid-America Apartment Communities (MAA) reported quarterly funds from operations (FFO) of $2.20 per share, exceeding the Zacks Consensus Estimate of $2.16 per share, but down from $2.22 per share a year ago, representing an FFO surprise of 1.85% [1] - The company posted revenues of $549.3 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.36%, compared to year-ago revenues of $543.62 million [2] - Over the last four quarters, the company has surpassed consensus FFO estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Mid-America Apartment Communities shares have increased approximately 1.9% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] - The current consensus FFO estimate for the coming quarter is $2.18 on revenues of $555.56 million, and for the current fiscal year, it is $8.79 on revenues of $2.23 billion [7] - The estimate revisions trend for Mid-America Apartment Communities is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The REIT and Equity Trust - Residential industry is currently in the bottom 42% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

| | | | | Total | Development | | | --- | --- | --- | --- | --- | --- | --- | | | Same | Non-Same | | Completed | Units | | | | Store | Store | Lease-up | Communities | Delivered | Total | | Atlanta, GA | 11,434 | — | 340 | 11,774 | — | 11,774 | | Dallas, TX | 9,755 | 362 | 386 | 10,503 | — | 10,503 | | Austin, TX | 6,795 | 384 | — | 7,179 | — | 7,179 | | Charlotte, NC | 5,995 | 352 | — | 6,347 | — | 6,347 | | Orlando, FL | 5,907 | — | 310 | 6,217 | — | 6,217 | | Raleigh/Durham, NC | 5,350 | — | 306 | 5,656 ...

Core Insights - Mid-America Apartment Communities, Inc. (MAA) reported strong operating results for Q1 2025, with Core FFO slightly exceeding expectations and Same Store operating performance showing robust demand for apartment housing [3][15][26] - The company declared its 125th consecutive quarterly common dividend, reflecting a commitment to returning value to shareholders [14] Financial Performance - Earnings per diluted common share increased to $1.54 in Q1 2025 from $1.22 in Q1 2024 [2][26] - Funds from operations (FFO) per diluted share decreased to $2.21 from $2.41 year-over-year, while Core FFO per diluted share slightly declined to $2.20 from $2.22 [2][26] - Total rental and other property revenues for Q1 2025 were $549.3 million, compared to $543.6 million in Q1 2024 [26] Same Store Operating Results - Same Store revenues grew by 0.1%, while expenses increased by 1.2%, leading to a net operating income (NOI) decline of 0.6% [5][6] - Average effective rent per unit in Same Store properties was $1,690, with an average physical occupancy rate of 95.6% [6][8] - Same Store net effective lease pricing showed a decline of 0.5%, with new lease rates down 6.3% but renewal lease rates up 4.5% [6][8] Development and Lease-up Activity - MAA had seven communities under development as of March 31, 2025, with total expected costs of $851.5 million [7][8] - The company funded approximately $67 million for current and planned projects during Q1 2025 [8] - Two lease-up projects are expected to stabilize in Q2 2025, with four in Q3 2025 and one in Q2 2026 [9] Disposition Activity - In March 2025, MAA exited the Columbia, South Carolina market, selling two multifamily properties for approximately $83 million, resulting in net gains of about $72 million [10] Balance Sheet and Financing - As of March 31, 2025, MAA had $1.0 billion in cash and available capacity under its unsecured revolving credit facility [11] - Total debt was reported at $5.0 billion, with a total debt to adjusted total assets ratio of 29.1% [12][28] - The average effective interest rate on total debt was 3.8%, with 93.9% of the debt being fixed rate [12] 2025 Guidance - MAA maintained its guidance for 2025, expecting earnings per diluted common share in the range of $5.51 to $5.83 and Core FFO per diluted share between $8.61 and $8.93 [17][18] - The company anticipates Core FFO for Q2 2025 to be in the range of $2.05 to $2.21 per diluted share [18]

Core Viewpoint - Mid-America Apartment Communities (MAA) is a real estate investment trust (REIT) focused on owning, operating, and acquiring apartment communities in the southeastern, southwestern, and mid-Atlantic regions of the United States. The company is set to report its first-quarter 2025 results on April 30, after market close [1]. Group 1: Recent Performance and Market Conditions - In the last reported quarter, MAA's core FFO per share was $2.23, slightly missing the Zacks Consensus Estimate of $2.24. This was influenced by a record level of new supply deliveries, although strong demand provided some support [2]. - The first quarter of 2025 saw strong apartment demand, with over 138,000 market-rate apartment units absorbed nationally, marking the highest first-quarter demand on record in over three decades. Annual absorption reached nearly 708,000 units, matching the early 2022 demand boom [3]. - Demand exceeded supply in the year-ending first quarter of 2025, with nearly 577,000 units delivered, just shy of the previous quarter's record of about 589,000 units. A decline in annual supply volume is forecasted, indicating a potential peak in the construction cycle [4]. Group 2: Occupancy and Rent Trends - Occupancy rose to 95.2% in March, the highest since October 2022, indicating that the rental market is not materially oversupplied. Effective rents increased by 0.75% in March and 1.1% year-over-year, the highest 12-month growth since June 2023, with an average effective rent of $1,848 [5]. - The recovery in rent growth is uneven across regions, with the Midwest and Rust Belt leading annual rent gains, while high-supply Sun Belt metros like Austin and Phoenix experienced rent cuts but showed monthly rent growth in March [6]. Group 3: Factors Influencing MAA's Performance - MAA's diverse Sunbelt portfolio is expected to benefit from solid demand, driven by a pro-business environment, lower taxes, and job growth in less dense cities [7]. - The company has implemented three internal investment programs aimed at capturing rent growth potential and boosting earnings: interior redevelopment, property repositioning, and Smart Home installations [8]. - Elevated supply in several Sunbelt markets may have constrained MAA's ability to raise rents or improve occupancy, while high interest rates are increasing borrowing costs, potentially affecting acquisition and development strategies [9]. Group 4: Projections and Estimates - The Zacks Consensus Estimate for MAA's quarterly revenues is $552.49 million, suggesting a 1.63% rise from the previous year. However, same-store property net operating income is expected to fall by 0.5% year-over-year, with an average physical occupancy projected at 95.5% [13]. - MAA projected first-quarter 2025 core FFO per share in the range of $2.08-$2.24, with a midpoint of $2.16, indicating a year-over-year decline of 2.7% [14]. - The company's activities have not sufficiently instilled confidence among analysts, as the Zacks Consensus Estimate for core FFO per share has been revised down to $2.16 [14].

I rate Mid-America Apartment Communities, Inc. (NYSE: MAA ) a Buy, for growth and income investors interested in the long term, buy and hold real estate investment trusts (REITs). The recent decline in price caused by tariff negotiations presents an opportunity to David A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative inv ...

Mid-America Apartment Communities (MAA) shares rallied 5.3% in the last trading session to close at $157.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.1% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This real estate investment trust is expect ...

Core Viewpoint - Current stock market sell-offs present challenges but also opportunities for investors to acquire high-quality dividend stocks at lower prices, enhancing passive income generation [1] Group 1: Johnson & Johnson - Johnson & Johnson's stock has declined over 14%, increasing its dividend yield to 3.8%, significantly above the S&P 500's yield of 1.5% [3] - The company holds a AAA bond rating and has a market capitalization exceeding $350 billion, with only $12 billion in net debt against $37 billion in total debt, supported by $25 billion in cash and marketable securities [4] - Johnson & Johnson generated approximately $20 billion in free cash flow last year, covering its dividend outlay of $11.8 billion, and has invested $17.2 billion in R&D and $32 billion in growth opportunities [5] Group 2: Starbucks - Starbucks' stock has dropped over 30%, raising its dividend yield to 3.1%, above its historical average of around 2% [6] - The company faces challenges such as potential tariff impacts on coffee costs and slowed growth, prompting a new CEO to lead a turnaround [7] - Despite these challenges, Starbucks generated over $6 billion in cash last fiscal year, with $2.7 billion in capital spending and $2.6 billion in dividends, maintaining a strong balance sheet with nearly $4 billion in cash and equivalents [8] Group 3: Mid-America Apartment Communities - Mid-America Apartment Communities' stock has fallen nearly 14%, resulting in a dividend yield of 4.1%, with a consistent record of dividend payments since 1994 [9] - The company anticipates improved market conditions as new apartment supply peaks, which should accelerate rent growth later this year and into 2026 [10] - Mid-America has initiated new development projects despite industry headwinds, positioning itself for future growth [10] Group 4: Investment Opportunities - Johnson & Johnson, Starbucks, and Mid-America Apartment Communities are highlighted as high-quality dividend stocks, making the recent stock price declines an attractive opportunity for investors seeking to enhance passive income [11]

GERMANTOWN, Tenn., April 2, 2025 /PRNewswire/ -- MAA (NYSE: MAA) announced today that the Company expects to release its first quarter 2025 results on Wednesday, April 30, 2025, after market close and will hold a conference call on Thursday, May 1, 2025, at 9:00 a.m. Central Time. During the conference call, company officers will review first quarter performance and conduct a question-and-answer session.The conference call-in number is (800) 715-9871 (Domestic) or +1 (646) 307-1963 (International).  The Con ...

Core Viewpoint - Mid-America Apartment (MAA) has shown strong performance with an 8.4% increase in shares this year, surpassing the industry's growth of 3.2% [1] Company Overview - MAA benefits from a diversified portfolio focused on the Sun Belt region, with redevelopment initiatives and technological advancements expected to enhance margins [2] - The company has a solid balance sheet, characterized by low leverage and significant cash availability, which supports growth opportunities despite challenges in the rental market [7] Growth Potential - MAA's portfolio is well-positioned to capitalize on favorable operating conditions in the Sunbelt, driven by employment growth and population migration towards business-friendly, low-tax areas [4] - The company is projected to maintain high occupancy levels, with an expected average physical occupancy of 95.8% by 2025 [4] Investment Initiatives - MAA is focused on three internal investment initiatives: interior redevelopments, property repositioning, and Smart Home technology installations, having redeveloped 5,665 apartment homes in 2024 [5] - As of December 31, 2024, MAA's repositioning program includes two active projects nearing a net operating income (NOI) yield of 10% [6] Dividend Sustainability - MAA has increased its dividend seven times in the past five years, with a five-year annualized growth rate of 10.70%, and maintains a lower payout ratio compared to the industry [9] - The company is expected to sustain its dividend distribution backed by healthy operating fundamentals [9] Challenges - The rental market faces challenges with elevated supply volumes in some Sunbelt markets, which may pressure rent growth [10] - Competition from various housing alternatives could impact MAA's ability to raise rents or increase occupancy [11] - High interest rates remain a concern, with a projected 10.8% year-over-year increase in interest expenses for 2025, alongside a total debt of $5 billion as of December 31, 2024 [12] Market Outlook - Recent estimate revisions indicate a cautious outlook for MAA, with the Zacks Consensus Estimate for 2025 core funds from operations (FFO) per share revised downward to $8.81 [13]

Our Purpose: To make the world smarter, happier, and richer. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. ...