Mid-America Apartment Communities (MAA) Q2 2024 earnings summary

Executive summary

• Core FFO for Q2 2024 was $2.22 per share, $0.03 above guidance midpoint, but down from $2.28 in Q2 2023, driven by strong demand, stable occupancy, and favorable expense performance.

• Net income available for common shareholders was $101.0 million for Q2 2024, down 30.2% from Q2 2023, with revenue growth of 2.1% and higher effective rent per unit.

• Portfolio comprised 291 apartment communities across 16 states and DC, with seven development projects underway totaling 2,617 units.

• Resident retention and satisfaction are at record highs, with renewal accept rates and Google scores leading the sector.

• Acquired a 306-unit community in Raleigh, NC, and started new developments in Charlotte, NC, and Phoenix, AZ.

Financial highlights

• Q2 2024 revenues were $546.4 million, up from $535.1 million in Q2 2023; same-store revenue grew 0.7% year-over-year, with average physical occupancy at 95.5%.

• Net income available for common shareholders: $101.0 million in Q2 2024 vs. $144.8 million in Q2 2023; earnings per share (diluted): $0.86 in Q2 2024, down from $1.24 in Q2 2023.

• Core FFO: $266.6 million for Q2 2024, down from $273.3 million in Q2 2023.

• Net debt to EBITDA/Adjusted EBITDAre at 3.7x as of June 30, 2024.

• 93.3% of debt was fixed rate with a 7.4-year average maturity at a 3.8% effective rate.

Outlook and guidance

• Full-year 2024 core FFO per share guidance reaffirmed at midpoint ($8.88), range narrowed to $8.74–$9.02.

• 2024 earnings per diluted share guidance revised to $4.37–$4.65, down from $4.66–$5.02.

• Effective rent growth guidance midpoint lowered by 35 bps to 0.5%; average occupancy guidance lowered by 20 bps to 95.5%.

• Same-store NOI guidance reaffirmed at -1.3%; same-store revenue guidance revised to 0.65%.

• Expect supply pressure to moderate in 2025, with demand outpacing new deliveries and improved pricing power.