Mid-America Apartment (MAA) AI Stock Analysis

• Market Cap: $17.89B
• Dividend Yield: 4.07%
• Average Volume (3M): 946.85K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.59
• Revenue Growth: 1.55%
• EPS Growth: 0.73%
• Country: US
• Employees: 2,532
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Residential
• EPS (TTM): 1.59
• Shares Outstanding: 117,057,720
• 10 Day Avg. Volume: 1,066,208
• 30 Day Avg. Volume: 946,854
• PEG Ratio: 4.24
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.13
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 24.57
• Enterprise Value/Ebitda: 3.34
• 1Y Price Target: $170.29
• Price Target Upside: 14.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 57 Neutral
• Price Target: $161.00 ▲(7.90%Upside)

The overall stock score is primarily impacted by the mixed financial performance, with strong balance sheet fundamentals but declining revenues and cash flow issues. Technical analysis also reflects a bearish trend, while valuation concerns are balanced by a decent dividend yield. Positive earnings call insights and corporate events contribute to a cautiously optimistic outlook.

Positive Factors

Financial performance

The company reported core FFO numbers of $2.20 which was four cents higher than consensus and seven cents higher than analyst numbers, as well as above the company's expectations.

Future investment opportunities

On the investment front, the company expects to be a net investor ($75M acquisition-to-disposition spread), with an additional $300M of opportunities through development.

Occupancy and lease rates

Occupancy was 95.6% during the quarter, up 30 basis points year over year.

Negative Factors

Guidance and expenses

The guidance for the second quarter is 2.7% below consensus due to seasonal expenses and tax settlement timing.

Lease pricing pressures

Lease pricing for new leases in the Same Store Portfolio decreased by 8.0% due to supply pressures.

Revenue and NOI decline

In the third quarter of 2024, MAA's same store portfolio property operating revenues decreased 20 basis points, while expenses increased by 3.4% and NOI decreased by 2.1%, year-over-year.

Mid-America Apartment Business Overview & Revenue Model

Company Description

Mid-America Apartment Communities, Inc. (MAA) is a real estate investment trust (REIT) that specializes in the acquisition, development, redevelopment, and management of multifamily apartment communities across the United States. The company focuses on providing high-quality rental housing options in key growth markets, primarily in the Southeast, Southwest, and Mid-Atlantic regions. MAA's portfolio encompasses a diverse range of properties, offering residents a variety of amenities and living spaces to meet their housing needs.

How the Company Makes Money

MAA generates revenue primarily through the rental income from its portfolio of multifamily apartment communities. The company leases apartments to residents, who pay rent on a monthly basis, which constitutes the core revenue stream. Additionally, MAA may earn ancillary income from fees related to services provided to residents, such as pet fees, parking fees, and utility reimbursements. The company also engages in property development and redevelopment, which can lead to increased rental income and property value over time. As a REIT, MAA benefits from favorable tax treatment, provided it distributes a significant portion of its taxable income as dividends to shareholders, which can also attract investment and support its financial performance.

Mid-America Apartment Financial Statement Overview

Summary

The financial performance shows strengths in the balance sheet with no debt and solid equity, but the income statement and cash flow statement reveal challenges such as declining revenues and cash generation issues.

Income Statement

The income statement presents a mixed picture. The company showed a declining revenue trend over recent years. Revenue for the most recent year was null, indicating operational challenges. Despite this, EBITDA margins have improved significantly from 2022 to 2023, reflecting efficiency in operations. However, EBIT margins are negative, pointing to high depreciation or amortization expenses relative to operational income. Net profit margin has shown consistency, albeit with slight fluctuations, demonstrating some stability in net income.

Balance Sheet

The balance sheet is robust, with a strong equity position and no total debt reported in the most recent year. This indicates a reduction in leverage and potential for financial stability. Return on equity is fluctuating but generally aligns with industry norms for REITs. The equity ratio remains solid, suggesting a stable capital structure. The company's assets have grown consistently, contributing to a stable financial position.

Cash Flow

Cash flow performance is mixed. The free cash flow is null for the latest year, indicating potential challenges in cash generation. However, previous years showed healthy free cash flow, supporting the company's ability to fund operations and investments. Operating cash flow to net income ratios have been strong, reflecting good cash earnings quality. The lack of free cash flow growth in the latest year is a concern and reflects the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	2.19B	2.15B	2.02B	1.78B	1.68B
Gross Profit	705.48M	713.27M	747.48M	687.71M	517.75M	526.67M
EBITDA	1.35B	1.30B	1.29B	1.35B	1.25B	944.25M
Net Income	565.47M	527.54M	552.81M	637.44M	533.79M	254.96M
Balance Sheet
Total Assets	11.81B	11.81B	11.48B	11.24B	11.29B	11.19B
Cash, Cash Equivalents and Short-Term Investments	55.78M	43.02M	41.31M	38.66M	54.30M	25.20M
Total Debt	0.00	5.01B	4.57B	4.41B	4.52B	4.56B
Total Liabilities	5.65B	5.66B	5.19B	5.03B	5.10B	5.09B
Stockholders Equity	5.95B	5.96B	6.11B	6.03B	6.00B	5.89B
Cash Flow
Free Cash Flow	751.87M	775.92M	597.81M	762.30M	615.33M	397.01M
Operating Cash Flow	1.09B	1.10B	1.14B	1.06B	894.97M	823.95M
Investing Cash Flow	-794.12M	-825.50M	-775.26M	-405.24M	-253.59M	-484.73M
Financing Cash Flow	-299.38M	-271.12M	-367.90M	-722.77M	-546.40M	-374.14M

Mid-America Apartment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAA, the sentiment is Negative. The current price of 149.21 is below the 20-day moving average (MA) of 149.44, below the 50-day MA of 155.48, and below the 200-day MA of 155.15, indicating a bearish trend. The MACD of -1.94 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAA.

Mid-America Apartment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	74 Outperform	$25.56B	26.24	9.01%	4.12%	3.91%	8.78%
INVH	73 Outperform	$20.09B	95.40	4.92%	3.54%	6.11%	-37.43%
CPT	71 Outperform	$15.99B	103.89	2.47%	3.73%	0.56%	-73.40%
UDR	69 Neutral	$13.54B	114.33	3.40%	4.21%	2.35%	-73.89%
ESS	66 Neutral	$18.99B	27.25	12.09%	3.61%	7.61%	27.83%
Sector *	63 Neutral	$6.96B	18.86	-1.16%	6.91%	4.65%	-25.28%
MAA	57 Neutral	$17.89B	30.99	9.37%	4.07%	1.55%	0.73%

Mid-America Apartment Corporate Events

Mid-America Apartment Highlights at Nareit REITweek 2025

MAA announced its participation in the Nareit REITweek 2025 Investor Conference, highlighting its strong market positioning and operational strategies. The company emphasized its robust development pipeline, disciplined capital allocation, and strong balance sheet, which support its continued growth and ability to deliver attractive returns for investors.

The most recent analyst rating on (MAA) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on Mid-America Apartment stock, see the MAA Stock Forecast page.

Mid-America Apartment Holds 2025 Annual Shareholder Meeting

On May 20, 2025, Mid-America Apartment held its 2025 Annual Meeting of Shareholders, where shareholders voted on several key matters. Eleven directors were elected to serve until the 2026 Annual Meeting, executive compensation was approved in an advisory vote, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025.

The most recent analyst rating on (MAA) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on Mid-America Apartment stock, see the MAA Stock Forecast page.

Mid-America Apartment Highlights Strong Financial Performance

In a recent update, Mid-America Apartment Communities (MAA) highlighted its strong financial performance and strategic initiatives aimed at sustaining growth. The company reported a forecasted Core FFO per share growth rate of 4.6% over five years and emphasized its robust dividend track record. MAA’s long-term shareholder returns have consistently outperformed peers, and its diversified portfolio strategy is expected to drive future value creation. The company is also focusing on new developments, redevelopments, and technological advancements to enhance its platform capabilities and capture high growth and demand in its markets.