Germantown, Tennessee-based Mid-America Apartment Communities, Inc. (MAA) is a leading real estate investment trust (REIT) specializing in high-quality multifamily residential properties across the Sun Belt region. Valued at a market cap of $19 billion, MAA benefits from strong population inflows and robust employment trends and a well-diversified portfolio spanning key growth markets like Texas, Florida, and North Carolina.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Mid-America Apartment Communities fits this criterion perfectly. The company's strategic focus on suburban and urban locations supports steady rental income and high occupancy rates. Backed by a strong balance sheet and disciplined capital management, MAA continues to drive long-term growth through acquisitions, new developments, and property enhancements, positioning itself as a resilient player in the multifamily housing sector.
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Shares of MAA are currently trading 5.1% below their 52-week high of $173.38, achieved recently on March 4. Mid-America Apartment shares have climbed 6% over the past three months, outpacing broader Dow Jones Industrial Average’s ($DOWI) 2% fall during the same time frame.
In the long term, MAA stock has gained 3.6% over the past six months, shadowing $DOWI's marginal increase over the same period. Also, MAA has risen 27.7% over the past 52 weeks, compared to $DOWI's 8.1% gains.
MAA has consistently traded above its 200-day moving average since the end of January. The stock has also stayed above its 50-day moving average since early February, indicating an uptrend.
MAA reported its fourth-quarter earnings on Feb. 5, and its shares jumped 1.5%. Earnings per common share increased to $1.42 from $1.37 a year ago, while core FFO per share came in at $2.23, falling short of analysts' expectations. Same-store revenue saw a slight 0.2% decline for the quarter but edged up 0.5% for the full year.
Looking ahead, management forecasts 2025 Core FFO per share between $8.61 and $8.93, anticipating stronger rent growth as new supply deliveries peak and market conditions tighten.
In contrast, rival Equity Residential (EQR) has declined 3.7% over the past six months but gained 16.8% over the past year, yet lags behind EQR.
Despite MAA's underperformance, analysts remain moderately optimistic about its prospects. Among the 27 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $169 represents a 2.7% premium to the prevailing market prices.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
