Jun 30, 2024

MAA Q2 2024 Earnings Report

Reported results ahead of expectations, driven by strong demand and a diversified portfolio.

Key Takeaways

MAA reported second quarter 2024 results exceeding expectations, with new supply being absorbed steadily and strong demand for apartment housing. The company's diversified portfolio and operating platform contributed to higher performance and lower volatility.

Same Store Portfolio revenue grew by 0.7% with Average Effective Rent per Unit up 0.5%.

Same Store Portfolio property operating expense increased by 3.7% and NOI decreased by 1.0%.

Resident turnover remained historically low at 43.5% on a trailing twelve month basis.

MAA acquired a newly built 306-unit multifamily apartment community in Raleigh, North Carolina.

Total Revenue
$546M
Previous year: $535M
+2.1%
EPS
$2.22
Previous year: $2.28
-2.6%
FFO attributable to the Company
$2.06
Gross Profit
$178M
Previous year: $202M
-11.6%
Cash and Equivalents
$76.5M
Previous year: $150M
-49.1%
Total Assets
$11.6B
Previous year: $11.4B
+1.5%

MAA

MAA

MAA Revenue by Segment

Forward Guidance

MAA is updating its prior 2024 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance.

Positive Outlook

  • Earnings per common share - diluted revised range: $4.37 to $4.65
  • Core FFO per Share - diluted revised range: $8.74 to $9.02
  • Core AFFO per Share - diluted revised range: $7.78 to $8.06
  • Property revenue growth revised range: 0.15% to 1.15%
  • Property operating expense growth revised range: 3.75% to 4.75%

Challenges Ahead

  • NOI growth revised range: -2.50% to -0.10%
  • MAA expects Core FFO for the third quarter of 2024 to be in the range of $2.08 to $2.24 per diluted Share
  • Same Store Revenues 0.01
  • Same Store Expenses (0.05 )
  • Storm Costs included in NOI (1) (0.03 )