MAA Q4 2023 Earnings Report

Reported operating results ahead of expectations, driven by stable employment, positive migration, and low resident move-outs.

Key Takeaways

MAA reported fourth-quarter results with Core FFO performance exceeding expectations. Solid demand, driven by stable employment, positive migration trends, and historically low resident move-outs, contributed to the positive results. New apartment supply is currently impacting rent growth performance and will likely persist through the summer leasing season.

Same Store Portfolio produced growth in revenues of 2.1%, as compared to the same period in the prior year, with Average Effective Rent per Unit up 2.2% while capturing strong Average Physical Occupancy of 95.5%.

Same Store Portfolio property operating expense and Net Operating Income (NOI) increased by 5.9% and 0.1%, respectively, as compared to the same period in the prior year.

Resident turnover remained low at 44.9% on a trailing twelve month basis driven by historically low levels of move-outs associated with buying single family-homes.

MAA completed the redevelopment of 1,394 apartment homes during the fourth quarter of 2023, capturing average rental rate increases of approximately 6% above non-renovated units.

Total Revenue

$542M

Previous year: $528M

+2.7%

EPS

$2.32

Previous year: $2.32

+0.0%

FFO attributable to the Company

$2.53

Previous year: $2.12

+19.3%

Gross Profit

$210M

Previous year: $209M

+0.5%

Cash and Equivalents

$55.1M

Previous year: $38.7M

+42.5%

Total Assets

$11.5B

Previous year: $11.2B

+2.2%

MAA

MAA Revenue by Segment

Forward Guidance

MAA is providing initial 2024 guidance for Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share, along with its expectations for growth in Property revenue, Property operating expense and NOI for the Same Store Portfolio in 2024.

Positive Outlook

Earnings per common share - diluted $4.45 to $4.85
Core FFO per Share - diluted $8.68 to $9.08
Core AFFO per Share - diluted $7.72 to $8.12
Property revenue growth 0.15% to 1.65%
Property operating expense growth 4.10% to 5.60%

Challenges Ahead

NOI growth -2.80% to 0.20%
higher interest expense as a result of incremental borrowings related to our acquisition activities in 2023
development activities
debt refinancing
MAA expects Core FFO for the first quarter of 2024 to be in the range of $2.12 to $2.28 per diluted Share, or $2.20 per diluted Share at the midpoint.

Company Overview

Full financial data and analysis

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