With a market cap of $18.6 billion, Mid-America Apartment Communities, Inc. (MAA) is a leading real estate investment trust (REIT) that owns, operates, acquires, and develops high-quality apartment communities across high-growth markets in the Southeast, Southwest, and Mid-Atlantic regions of the U.S. As of September 30, 2024, MAA held ownership interests in over 104,000 apartment units across 16 states and the District of Columbia.
MAA is expected to release its fiscal Q1 2025 earnings results after the market closes on Wednesday, Apr. 30. Ahead of this event, analysts project the REIT to report a core FFO of $2.16 per share, a 2.7% decrease from $2.22 per share in the year-ago quarter. It has exceeded Wall Street’s core FFO expectations in two of the past four quarters while missing on two other occasions.
For fiscal 2025, analysts forecast the Germantown, Tennessee-based company to report a core FFO of $8.80 per share, a marginal decline from $8.88 per share in fiscal 2024. However, core FFO is anticipated to grow 3.9% year-over-year to $9.14 per share in fiscal 2026.
Mid-America Apartment Communities has gained 25.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 6% rise and the Real Estate Select Sector SPDR Fund's (XLRE) 10.9% return over the same time frame.
Despite reporting weaker-than-expected Q4 2024 core FFO of $2.23 and revenue of $549.8 million on Feb. 5, MAA’s shares rose 1.3% the next day. MAA’s 2025 core FFO guidance of $8.61 per share - $8.93 per share, with a midpoint of $8.77, was in line with analyst expectations. The company highlighted a peak in new supply deliveries, suggesting tighter market conditions and potential rent growth in 2025. Additionally, low resident turnover and successful Smart Home technology installations, which boosted rents by $25 per unit, supported investor confidence.
Analysts' consensus view on MAA stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, 12 suggest a "Strong Buy," two give a "Moderate Buy," 10 recommend a "Hold," and three advise "Strong Sell." As of writing, MAA is trading below the average analyst price target of $168.15.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
