Valued at a market cap of $17.9 billion, Mid-America Apartment Communities, Inc. (MAA) is a real estate investment trust (REIT) that focuses on the acquisition, development, redevelopment, and management of multifamily homes across the Southeastern, southwestern, and mid-Atlantic regions of the U.S. The Memphis, Tennessee-based company is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.
Ahead of this event, analysts expect the REIT to report an FFO of $2.18 per share, down 4.8% from $2.29 per share in the year-ago quarter. The company has surpassed Wall Street's FFO estimates in three of the last four quarters while missing on another occasion.
Its FFO of $2.22 per share marginally outpaced the consensus estimates for the last quarter. MAA’s outperformance can be attributed to solid housing demand despite new supply pressure and growth in the average effective rent per unit for the same-store portfolio.
For fiscal 2024, analysts expect MAA to report an FFO of $8.88, a decline of 3.2% from $9.17 in fiscal 2023.
Shares of MAA have gained 13.6% on a YTD basis, lagging behind the S&P 500 Index's ($SPX) 20.3% rise but outpacing the Real Estate Select Sector SPDR Fund’s (XLRE) 7.9% returns over the same period.
Shares of MAA jumped 4.8% following its Q2 earnings release on Jul. 31 as, along with its FFO, the company’s revenue of $546.4 million surpassed the Wall Street estimates of $544.9 million and increased 2.1% year-over-year. However, the company’s FFO declined by 2.6% year over year, and its operating expenses, excluding real estate taxes and insurance, increased by 8.2% annually.
Analysts' consensus view on the stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, nine recommend a "Strong Buy," one suggests a "Moderate Buy," 13 indicate a “Hold,” and three recommend a “Strong Sell.”
The average analyst price target for MAA is $159.43, indicating a 3.8% potential upside from the current levels.
On the date of publication, Rashmi Kumari 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.
