Here’s Why Mid-America Apartment Communities (MAA) Fell in Q2

Core Viewpoint - The Carillon Scout Mid Cap Fund's second quarter 2025 investor letter highlights the performance of the Russell Midcap Index and discusses the potential of Mid-America Apartment Communities, Inc. (NYSE:MAA) amidst market fluctuations and concerns regarding rent growth in the Sunbelt region [1][2][3]. Group 1: Fund Performance - The Russell Midcap Index experienced positive returns in the second quarter of 2025 despite a significant sell-off at the beginning of April due to the liberation Day tariff announcement [1]. - The delay in collecting additional tariffs allowed trading partners more time to negotiate better terms, positively impacting market conditions [1]. Group 2: Company Overview - Mid-America Apartment Communities, Inc. (MAA) - Mid-America Apartment Communities, Inc. (NYSE:MAA) is a real estate investment trust (REIT) that owns and operates apartment communities, with a market capitalization of $17.455 billion as of September 09, 2025 [2]. - The stock had a one-month return of 5.09% but lost 11.07% of its value over the last 52 weeks, closing at $145.43 per share [2]. Group 3: Market Concerns and Outlook - Rent growth in the Sunbelt region has been stagnant due to new supply deliveries depressing pricing, alongside concerns about population declines from deportations and legal actions affecting pricing strategies [3]. - The Carillon Scout Mid Cap Fund believes these concerns are overblown and anticipates an improvement in rent pricing as the market has moved past the peak of new supply [3]. Group 4: Hedge Fund Interest - At the end of the second quarter, 36 hedge fund portfolios held shares of Mid-America Apartment Communities, Inc. (NYSE:MAA), an increase from 31 in the previous quarter [4]. - Despite acknowledging the potential of MAA as an investment, the fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4].