Mid-America Apartment Communities (MAA) Q3 2024 earnings summary

Executive summary

• Core FFO for Q3 2024 was $2.21 per share, $0.05 above guidance midpoint, though down from $2.29 year-over-year, driven by favorable same-store expenses and overhead cost control.

• Net income available for common shareholders rose 4.1% to $114.3M, with total revenue up 1.7% year-over-year to $551.1M, supported by new developments and acquisitions.

• Same Store Portfolio occupancy held steady at 95.7%, with flat revenue growth and a 0.4% decline in average effective rent per unit.

• Resident turnover reached a record low of 42.8% on a trailing twelve-month basis, with strong collections and low move-outs to home purchase.

• Portfolio includes 293 apartment communities and eight developments under construction across 16 states and D.C.

Financial highlights

• Q3 2024 Core FFO was $2.21 per share, $0.05 above guidance; net income was $114.3M, up from $109.8M year-over-year.

• Q3 2024 total revenues were $551.1M, up 1.7% year-over-year; average physical occupancy was 95.7%.

• Same-store revenue was flat year-over-year; repairs and maintenance costs grew 2% year-over-year.

• Q3 new lease pricing declined 5.4%, while renewals increased 4.1%; blended lease-over-lease for 2024 expected at -3%.

• Net debt to EBITDA/Adjusted EBITDAre was 3.9x; 90% of debt fixed, average maturity 7 years, effective rate 3.8%.

Outlook and guidance

• Management expects moderating new supply in 2025, with normal seasonal leasing and a recovery cycle in spring.

• Full-year 2024 Core FFO per share guidance is $8.80–$8.96; same-store NOI growth expected at -1.9% to -0.7%.

• Effective rent growth guidance midpoint adjusted to 0.35%; same-store revenue guidance revised to 0.5% at midpoint.

• Property operating expense growth projection lowered to 3.75% at midpoint; real estate tax expense guidance lowered to 2%.

• Q4 occupancy expected at 95.4%-95.5%; renewal rates for Nov-Dec in the 4%-4.5% range.