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.
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 in this article is solely for informational purposes. This article was originally published on Barchart.com
