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Mid-America Apartment (MAA) Q2 FFO & Revenues Top Estimates

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Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported second-quarter 2020 core funds from operations (FFO) of $1.59 per share, surpassing the Zacks Consensus Estimate of $1.54. Further, the reported tally comes in higher than the prior-year quarter’s $1.53.

The residential REIT’s quarterly results reflect growth in same-store net operating income (NOI) and rise in average effective rent per unit for the same-store portfolio.

Rental and other property revenues came in at $413 million in the June-end quarter, outpacing the Zacks Consensus Estimate of $410.6 million. The reported figure also comes in 1.4% higher than the year-ago quarter’s $407.4 million.

The company stated that as of Jul 27, it has collected 98.1% of its billed rent in rent cash collections for July.

Quarter in Detail

The same-store portfolio revenues grew 2.1% on rise in average effective rent per unit of 3.4%, year over year. During the second quarter, the company’s same-store NOI increased 2% year over year. Average physical occupancy for the same-store portfolio was 95.4%, contracting 60 basis points (bps) year over year.

During the second quarter, rent growth in the company’s same-store portfolio for both new and renewing leases, compared with the prior lease, came in at 1.2% on a combined basis.

As of Jun 30, 2020, unencumbered NOI was 91.1% of total NOI, higher than the 90.6% reported as of Mar 31, 2020.

As of Jun 30, 2020, MAA held cash and cash equivalents of $19.7 million, down from $34.5 million as of Mar 31, 2020. Additionally, as of the same date, total debt outstanding was $4.5 billion.

Furthermore, as of the same date, $926.6 million of combined cash and capacity were available under its unsecured revolving credit facility, net of commercial paper borrowings.

Portfolio Activity

During the April-June quarter, the company did not undertake any acquisition or disposition activities of apartment communities, land parcels or commercial properties.

During the reported quarter, the company redeveloped 655 units. As of Jun 30, 2020, the company had six development communities under construction with an average stabilized NOI yield of 6.1%.

MAA currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITs

Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported second-quarter funds from operations (FFO) as adjusted of $1.81 per share, up 4.6% from the year-ago quarter’s $1.73. The reported figure came in line with the Zacks Consensus Estimate.

Boston Properties Inc.’s (BXP - Free Report) funds from operations (FFO) per share of $1.52 missed the Zacks Consensus Estimate of $1.74 in the June-end quarter. The reported figure also decreased 14.6% from the year-ago quarter’s $1.78.

Highwoods Properties Inc.’s (HIW - Free Report) funds from operations (FFO) per share of 93 cents surpassed the Zacks Consensus Estimate of 89 cents in the second quarter. The figure also improved 7% from the 87 cents reported in the year-ago period.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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