MAA Q3 2022 Earnings Report

Operating results announced for the quarter ended September 30, 2022, highlighting strong demand for apartment housing across Sunbelt markets and expansion of the new development pipeline.

Key Takeaways

MAA reported strong third quarter results with significant increases in property revenues, operating expenses, and Net Operating Income (NOI) in its Same Store Portfolio. The company also expanded its development pipeline and completed the initial lease-up of a community in Orlando, Florida.

Same Store Portfolio produced increases in property revenues, operating expenses and Net Operating Income (NOI) of 14.6%, 10.1% and 17.4%, respectively, compared to the same period in the prior year.

Acquired two recently completed communities in Tampa, Florida and Charlotte, North Carolina, and a land parcel in Denver, Colorado for future development.

Closed on the disposition of a 396-unit multifamily community in Maryland for gross proceeds of $103.5 million subsequent to the end of the third quarter.

Completed the redevelopment of 2,305 apartment homes, capturing average rental rate increases of approximately 10% above non-renovated units.

Total Revenue

$521M

Previous year: $453M

+15.1%

EPS

$2.19

Previous year: $1.78

+23.0%

FFO attributable to the Company

$260M

Previous year: $1.85

+14051945845.9%

Gross Profit

$192M

Previous year: $145M

+32.6%

Cash and Equivalents

$39M

Previous year: $29.8M

+30.8%

Total Assets

$11.3B

Previous year: $11.3B

+0.7%

MAA

MAA Revenue by Segment

Forward Guidance

MAA is updating its prior 2022 guidance for Net income per diluted common share, Core FFO per Share and Core AFFO per Share, along with its expectations for growth of Property revenue, Property operating expense and NOI for the Same Store Portfolio in 2022.

Positive Outlook

Property revenue growth is expected to be between 13.0% and 14.0%.
NOI growth is expected to be between 16.0% and 18.0%.
Core FFO per Share - diluted is expected to be between $8.37 and $8.53.
Core AFFO per Share - diluted is expected to be between $7.59 and $7.75.
Core FFO for the fourth quarter of 2022 is expected to be in the range of $2.19 to $2.35 per Share.

Challenges Ahead

Earnings per common share - diluted is expected to be between $5.59 and $5.75.
Property operating expense growth is expected to be between 7.0% and 7.5%.
MAA does not forecast Net income per diluted common share on a quarterly basis.
Acquisition and disposition activity materially affects depreciation and capital gains or losses.
The timing of forecasted acquisition and disposition activity within a particular quarter is generally unpredictable.

Company Overview

Full financial data and analysis

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