Scotiabank downgrades MAA to Underperform on ‘subpar’ rent growth

Scotiabank downgraded MAA (MAA) to Underperform from Sector Perform with a price target of $120, down from $138. The firm cites its expectations for “subpar” rent growth in the Sunbelt markets for the downgrade. It will take several years to absorb the “significant overbuilding” that has occurred in most Sunbelt markets, the analyst tells investors in a research note. Scotiabank believes this will prevent a return to pre-Covid occupancy levels that would allow for better Sunbelt rent growth.