Valued at a market cap of $16.5 billion, Mid-America Apartment Communities, Inc. (MAA) is a real estate investment trust (REIT) headquartered in Germantown, Tennessee. The company owns, acquires, develops, and manages high-quality multifamily apartment communities, primarily in the Southeastern, Southwestern, and Mid-Atlantic regions of the U.S.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and MAA fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - residential industry. The company’s strength lies in its focus on high-demand, growth markets, which give it favorable demographics and strong occupancy trends. It benefits from a well-diversified portfolio, a solid balance sheet, and consistent dividend performance.
This residential REIT has dipped 18.8% from its 52-week high of $173.38, reached on Mar. 4. Shares of MAA have declined 5.4% over the past three months, underperforming the Residential REIT ETF’s (HAUS) 2.9% loss during the same time frame.
In the longer term, MAA has fallen 14.4% over the past 52 weeks, lagging behind HAUS' 12.9% downtick over the same time period. Moreover, on a YTD basis, shares of MAA are down 8.9%, compared to HAUS’ 5.6% drop.
To confirm its bearish trend, MAA has been trading below its 200-day and 50-day moving averages since late May, with slight fluctuations.
MAA delivered mixed Q2 results on Jul. 30, and its shares plunged 4.3% in the following trading session. The company’s rental and other property revenues increased marginally year-over-year to $549.9 million, but fell short of analyst expectations by a small margin. This revenue miss might have weighed on investor sentiment. However, while its core FFO of $2.15 declined 3.2% from the same period last year, it topped the consensus estimates by a penny.
MAA has outperformed its rival, AvalonBay Communities, Inc. (AVB), which declined 16.3% over the past 52 weeks and 12.3% on a YTD basis.
Despite MAA’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 27 analysts covering it, and the mean price target of $158.58 suggests a 12.6% premium to its current price levels.
