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Why Is Mid-America Apartment Communities (MAA) Down 1.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Mid-America Apartment Communities (MAA - Free Report) . Shares have lost about 1.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Mid-America Apartment Communities due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Mid-America Apartment Q4 FFO Tops Estimates, Revenues Lag
MAA reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
The residential REIT’s quarterly results were driven by a hike in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $463.6 million during the December-end quarter, lagging the Zacks Consensus Estimate of $464 million. However, the reported figure is 9.4% higher than the year-ago quarter’s $423.6 million.
Per management, "Results for the fourth quarter were ahead of expectations with strong rent growth and high occupancy. The demand for apartment housing across our markets continues to accelerate. We are carrying strong pricing momentum into 2022 and expect leasing conditions in the coming year will remain very favorable.”
Quarter in Detail
The same-store portfolio’s revenues grew 9.3% on a year-over-year rise of 10.1% in the average effective rent per unit. The average physical occupancy for the same-store portfolio in the fourth quarter was 96%, up from the prior-year quarter’s 95.7%. In the fourth quarter, lease pricing in MAA’s same-store portfolio for both new and renewing leases compared with the prior lease grew 16% on a combined basis. The same-store NOI reflects year-over-year growth of 12.1%.
However, the same-store portfolio property operating expenses flared up 4.6%.
Balance Sheet Position
As of Dec 31, 2021, $1.1 billion of combined cash and capacity was available under its unsecured revolving credit facility, net of commercial paper borrowings. As of the same date, the total debt outstanding was $4.5 billion.
As of Dec 31, 2021, unencumbered NOI was 95.2% of the total NOI.
As of the same date, MAA held cash and cash equivalents of $54.3 million, up from the $25.2 million reported at the end of 2020.
Portfolio Activity
During the fourth quarter, MAA redeveloped 1368 units. As of Dec 31, 2021, the same had six development communities under construction, with a projected average stabilized NOI yield of 5.9%.
Outlook
MAA projects 2022 core FFO per share at $7.74-$8.10.
Management forecasts same-store property revenue growth of 8-10%, while same-store property operating expense growth is projected at 5-6%. Moreover, same-store NOI growth is anticipated to be10-12%.
MAA projects first-quarter 2022 core FFO per share at $1.83-$1.99.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Mid-America Apartment Communities has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Mid-America Apartment Communities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Mid-America Apartment Communities (MAA) Down 1.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Mid-America Apartment Communities (MAA - Free Report) . Shares have lost about 1.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Mid-America Apartment Communities due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Mid-America Apartment Q4 FFO Tops Estimates, Revenues Lag
MAA reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
The residential REIT’s quarterly results were driven by a hike in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $463.6 million during the December-end quarter, lagging the Zacks Consensus Estimate of $464 million. However, the reported figure is 9.4% higher than the year-ago quarter’s $423.6 million.
Per management, "Results for the fourth quarter were ahead of expectations with strong rent growth and high occupancy. The demand for apartment housing across our markets continues to accelerate. We are carrying strong pricing momentum into 2022 and expect leasing conditions in the coming year will remain very favorable.”
Quarter in Detail
The same-store portfolio’s revenues grew 9.3% on a year-over-year rise of 10.1% in the average effective rent per unit. The average physical occupancy for the same-store portfolio in the fourth quarter was 96%, up from the prior-year quarter’s 95.7%. In the fourth quarter, lease pricing in MAA’s same-store portfolio for both new and renewing leases compared with the prior lease grew 16% on a combined basis. The same-store NOI reflects year-over-year growth of 12.1%.
However, the same-store portfolio property operating expenses flared up 4.6%.
Balance Sheet Position
As of Dec 31, 2021, $1.1 billion of combined cash and capacity was available under its unsecured revolving credit facility, net of commercial paper borrowings. As of the same date, the total debt outstanding was $4.5 billion.
As of Dec 31, 2021, unencumbered NOI was 95.2% of the total NOI.
As of the same date, MAA held cash and cash equivalents of $54.3 million, up from the $25.2 million reported at the end of 2020.
Portfolio Activity
During the fourth quarter, MAA redeveloped 1368 units. As of Dec 31, 2021, the same had six development communities under construction, with a projected average stabilized NOI yield of 5.9%.
Outlook
MAA projects 2022 core FFO per share at $7.74-$8.10.
Management forecasts same-store property revenue growth of 8-10%, while same-store property operating expense growth is projected at 5-6%. Moreover, same-store NOI growth is anticipated to be10-12%.
MAA projects first-quarter 2022 core FFO per share at $1.83-$1.99.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Mid-America Apartment Communities has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Mid-America Apartment Communities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.