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Dec 31, 2024
MAA Q4 2024 Earnings Report
MAA reported its fourth quarter and full year 2024 results, showing a slight decrease in revenue for its Same Store Portfolio but strong occupancy.
Key Takeaways
MAA's Same Store Portfolio revenue decreased by 0.2% in Q4 2024 compared to the prior year, with Average Effective Rent per Unit down 0.5%. However, Average Physical Occupancy remained strong at 95.6%. The company completed development of two multifamily communities and acquired one, while also disposing of two properties.
Same Store Portfolio revenue decreased 0.2% in Q4 2024, partially offset by a 1.8% increase in other property revenues.
Average Physical Occupancy for the Same Store Portfolio was strong at 95.6% in Q4 2024.
MAA acquired a 386-unit multifamily community in Dallas, Texas, and a 3-acre land parcel in Raleigh, North Carolina, for future development.
The company disposed of two multifamily communities in Charlotte, North Carolina, and Richmond, Virginia, for combined net proceeds of approximately $85 million.
MAA
MAA
MAA Revenue by Segment
Revenue by Segment
Total Same Store Revenue
CapyFin.comNon-Same Store and Other Revenue
CapyFin.com Forward Guidance
MAA expects 2025 to be a transition year for revenue performance, with improving market conditions due to declining new supply deliveries. The company anticipates continued strong demand for apartment housing and expects to capture recovery in rental pricing.
Positive Outlook
- Record level of new supply deliveries has peaked, leading to increasingly tighter market conditions and resulting rent growth.
- Sequential blended lease pricing improved by 140 basis points compared to the same sequential trend of the prior year.
- Exposure (current vacant units plus notices to vacate over the next 60 days) improved by 60 basis points compared to the prior year.
- Improved exposure by 70 basis points as of January 31, 2025, compared to the prior year.
- Increasing investments in initiatives to enhance efficiencies and deliver stronger future earnings growth.
Challenges Ahead
- Calendar year 2025 will be a transition year for revenue performance.
- Decline in new supply deliveries will lead to increasingly tighter market conditions.
- Compounding impact in overall revenue performance will become increasingly evident late this year and into 2026.
- The company generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter.
- Higher interest expense is projected for 2025 due to incremental borrowings and debt refinancing.