MAA(US:MAA) ZACKSยท2025-05-01 17:45Core Insights - Mid-America Apartment Communities (MAA) reported first-quarter 2025 core funds from operations (FFO) per share of $2.20, exceeding the Zacks Consensus Estimate of $2.16 but down 0.9% year over year from $2.22 [1] - Rental and other property revenues for the first quarter were $549.3 million, slightly missing the Zacks Consensus Estimate of $551.3 million, but up 1.04% from the previous year [2] - The company experienced strong demand for apartment housing, leading to high occupancy rates and reduced delinquency, with a same-store blended lease pricing increase of 160 basis points sequentially [3] Financial Performance - The same-store portfolio's revenues increased by 0.1% year over year, while the average effective rent per unit declined by 0.6% [4] - Property operating expenses for the same-store portfolio rose by 1.2% year over year, resulting in a 0.6% decrease in net operating income (NOI) [4] - The average physical occupancy for the same-store portfolio was 95.6%, up 30 basis points from the prior year [5] Lease Rates and Turnover - MAA's same-store effective blended lease rate declined by 0.5%, with new lease rates dropping by 6.3% and renewal lease rates increasing by 4.5% [6] - Resident turnover in the same-store portfolio remained low at 41.5% on a trailing 12-month basis, attributed to record-low move-outs related to single-family home purchases [5] Portfolio Activity - In March 2025, MAA sold two multifamily properties in Columbia, SC, for approximately $83 million, realizing net gains of about $72 million [7] - As of March 31, 2025, MAA had seven communities under development with expected costs of $851.5 million, alongside four recently completed and three recently acquired communities in lease-up costing $657.3 million [7] Balance Sheet Position - MAA ended the first quarter of 2025 with cash and cash equivalents of $55.8 million, an increase from $43 million at the end of 2024 [8] - The company had a strong balance sheet with $1.0 billion in combined cash and capacity under its unsecured revolving credit facility, and a net debt/adjusted EBITDAre ratio of 4 times [8][9] 2025 Guidance - MAA projects second-quarter 2025 core FFO per share in the range of $2.05 to $2.21, with a full-year 2025 core FFO per share expected between $8.61 and $8.93 [11] - The company anticipates same-store property revenue growth of -0.35% to 1.15% and operating expense growth of 2.45% to 3.95%, leading to same-store NOI growth between -2.15% and -0.15% [12]