Mid-America Apartment Communities Prepares for Q4 Earnings Release
Tennessee’s Mid-America Apartment Communities, Inc. (MAA), a leading real estate investment trust (REIT), specializes in the ownership and management of quality apartment properties across the Southeast, Southwest, and Mid-Atlantic regions of the United States. The company boasts a market capitalization nearing $17.6 billion and is set to release its fiscal Q4 earnings results on Wednesday, February 5.
Anticipated Earnings and Past Performance
Analysts predict that MAA will report Funds from Operations (FFO) of $2.24 per share for the quarter, a decrease of about 3.5% from $2.32 per share recorded in the same quarter last year. Notably, MAA has exceeded Wall Street’s FFO estimates in three out of the last four quarters, while it fell short in one. The core FFO for the previous quarter was $2.21 per share, which surpassed consensus estimates by 1.4%.
Future Projections
Looking ahead to fiscal 2024, analysts expect MAA to report earnings per share (EPS) of $8.89, marking a 3.1% decline from $9.17 in fiscal 2023. However, in fiscal 2025, EPS is projected to experience slight growth, increasing to $8.93.
Stock Performance Over the Past Year
Over the last year, shares of Mid-America Apartment have increased by 13.3%. While this performance lags behind the S&P 500 Index’s increase of 22%, it has outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) modest returns during the same period.
Latest Earnings and Stock Movement
Following the release of its Q3 earnings on October 30, MAA shares experienced a slight decline, despite reporting better-than-expected core FFO of $2.21 and revenues of $551.1 million. Issues such as rising same-store portfolio property operating expenses and flat year-over-year revenues may have contributed to this downturn.
Management’s Outlook and Analyst Ratings
Management remains hopeful for 2025, anticipating a notable drop in new supply that could positively impact the company’s portfolio. They believe that demand may soon outstrip supply, ushering in a new multi-year cycle.
Wall Street analysts currently hold a moderately optimistic view on MAA’s stock, giving it an overall “Moderate Buy” rating. Out of 26 analysts, 10 advise a “Strong Buy,” one recommends a “Moderate Buy,” 12 suggest a “Hold,” and three propose a “Strong Sell.” This sentiment shows an improvement from three months ago, when eight analysts had a “Strong Buy” recommendation.
The average price target for MAA stands at $165.26, indicating a potential upside of approximately 10% from current trading levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided herein are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
