Mid-America Apartment Communities MAA, commonly known as MAA, reported first-quarter 2025 core funds from operations (FFO) per share of $2.20, which surpassed the Zacks Consensus Estimate of $2.16. However, the reported figure fell 0.9% year over year from $2.22.
Results reflected healthy demand and an occupancy rise. The REIT witnessed low levels of resident turnover.
Rental and other property revenues of $549.3 million for the first quarter missed the Zacks Consensus Estimate of $551.3 million. However, the reported figure was 1.04% higher than the year-ago quarter’s tally.
Per Brad Hill, president and CEO of MAA, “Same Store operating performance exceeded our expectations with strong demand for apartment housing driving high occupancy, reduced delinquency and improved pricing trends. Our Same Store blended lease pricing increased by 160 basis points sequentially, 70 basis points better than last year's sequential trend. With strong occupancy, improved year-over-year exposure, and record low resident turnover, MAA is well positioned for the busy spring and summer leasing season.”
MAA’s Q1 in Detail
The same-store portfolio’s revenues increased 0.1% on a year-over-year basis. MAA experienced a decline of 0.6% in the average effective rent per unit. The same-store portfolio’s property operating expenses rose 1.2% on a year-over-year basis. As a result, the same-store portfolio’s net operating income (NOI) fell 0.6% on a year-over-year basis.
The average physical occupancy for the same-store portfolio in the first quarter was 95.6%, which was 30 basis points higher than the prior-year period. Our estimate for the same was 95.5%.
As of March 31, 2025, resident turnover in the same-store portfolio remained historically low at 41.5% on a trailing 12-month basis. This stemmed from record-low levels of move-outs related to buying single-family homes.
During the first quarter, MAA's same-store effective blended lease rate declined 0.5%, with the effective new lease rate dropping -6.3%, while the effective renewal lease rate growing 4.5%.
MAA’s Portfolio Activity
In March 2025, MAA exited the Columbia, SC market by selling its two multifamily properties (576 units, average age 32 years) for around $83 million, realizing net gains of about $72 million on the sales.
As of March 31, 2025, MAA had seven communities under development, with total expected costs of $851.5 million. Moreover, MAA had four recently completed development communities and three recently acquired communities in lease-up with a total cost to date of $657.3 million.
MAA’s Balance Sheet Position
MAA exited the first quarter of 2025 with cash and cash equivalents of $55.8 million, up from $43 million recorded as of Dec. 31, 2024.
As of March 31, 2025, MAA had a strong balance sheet with $1.0 billion in combined cash and capacity available under its unsecured revolving credit facility. It had a net debt/adjusted EBITDAre ratio of 4 times.
As of the same date, the total debt outstanding was $5 billion. Its total debt average years to maturity was seven years. As of March 31, 2025, unencumbered NOI was 95.8% of the total NOI.
MAA’s 2025 Guidance
MAA projects a second-quarter 2025 core FFO per share in the band of $2.05- $2.21, with $2.13 at the midpoint. The Zacks Consensus Estimate of $2.18 lies within the range.
This residential REIT expects its 2025 core FFO per share in the range of $8.61-$8.93, with the midpoint being $8.77. The Zacks Consensus Estimate for the same is currently pegged at $8.79 and lies within the range.
For 2025, management anticipates same-store property revenue growth of -0.35% to 1.15% and operating expense growth of 2.45% to 3.95%. As a result, the same-store NOI growth is anticipated between -2.15% and -0.15%. Average physical occupancy for the same-store portfolio is guided in the range of 95.3%-95.9%, with the midpoint being 95.60%.
MAA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. price-consensus-eps-surprise-chart | Mid-America Apartment Communities, Inc. Quote
Performance of Other Residential REITs
Equity Residential EQR reported first-quarter 2025 normalized FFO per share of 95 cents, which outpaced the Zacks Consensus Estimate of 93 cents. The figure also improved 2.2% from the year-ago quarter. Rental income of $760.8 million missed the consensus mark of $766.8 million. Rental income was up 4.1% year over year. Equity Residential’s results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis. Equity Residential reaffirmed its guidance for 2025. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
AvalonBay Communities AVB reported first-quarter 2025 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80. The figure also climbed 4.8% from the prior-year quarter’s tally. AvalonBay’s quarterly performance reflects better-than-expected operating results. AvalonBay has also reaffirmed its full-year 2025 outlook. Total revenues in the quarter came in at $745.9 million, missing the Zacks Consensus Estimate marginally. However, the figure increased 4.6% on a year-over-year basis.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
