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Dec 31, 2021
MAA Q4 2021 Earnings Report
Reported strong rent growth and high occupancy, driven by accelerating demand for apartment housing.
Key Takeaways
MAA reported fourth-quarter results ahead of expectations, driven by strong rent growth and high occupancy. Property revenues from the Same Store Portfolio increased by 9.3%, primarily driven by a 10.1% growth in Average Effective Rent per Unit. The company is carrying strong pricing momentum into 2022 and expects favorable leasing conditions.
Property revenues from the Same Store Portfolio increased 9.3% during the fourth quarter of 2021 as compared to the same period in the prior year, ahead of expectations. That increase was primarily driven by a 10.1% growth in Average Effective Rent per Unit for the Same Store Portfolio.
Property operating expenses for the Same Store Portfolio increased 4.6% during the fourth quarter of 2021 as compared to the same period in the prior year, in line with expectations.
Net Operating Income (NOI) from the Same Store Portfolio increased 12.1% during the fourth quarter of 2021 as compared to the same period in the prior year.
MAA completed redevelopment of 1,368 apartment homes during the fourth quarter of 2021, capturing average rental rate increases of approximately 12% above non-renovated units.
Revenue by Segment
Forward Guidance
MAA is providing initial 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
- Full Year 2022 Earnings per common share - diluted $4.87 to $5.23 Midpoint $5.05
- Core FFO per Share - diluted $7.74 to $8.10 Midpoint $7.92
- Core AFFO per Share - diluted $6.95 to $7.31 Midpoint $7.13
- MAA Same Store Portfolio: Property revenue growth 8.0% to 10.0%
- Property operating expense growth 5.0% to 6.0%
Challenges Ahead
- NOI growth 10.0% to 12.0%
- MAA expects Core FFO for the first quarter of 2022 to be in the range of $1.83 to $1.99 per Share, or $1.91 per Share at the midpoint.
- MAA does not forecast Net income per diluted share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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