We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mid-America Apartment (MAA) Meets Q4 FFO Estimates, NOI Up
Read MoreHide Full Article
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred as MAA, reported fourth-quarter 2018 funds from operations (FFO) of $1.55 per share, in line with the Zacks Consensus Estimate. The bottom line came in higher than the prior-year quarter figure of $1.50.
This residential REIT’s quarterly results reflect growth in same-store net operating income (NOI) and rise in average effective rent per unit for the same-store portfolio.
Rental and other property revenues came in at $398.1 million in the quarter, missing the Zacks Consensus Estimate of $400.2 million. Nonetheless, the top line was higher than the prior-year figure of $382.7 million.
FFO per share for 2018 came in at $6.04, indicating a year-over-year increase of 1.7%. Yet, it missed the Zacks Consensus Estimate of $6.05. MAA recorded rental and other property revenues of $1.6 billion, increasing 2.8%.
Quarter in Detail
During the reported quarter, the company’s same-store NOI increased to $231.9 million, registering 2% year-over-year growth.
The same-store portfolio revenues increased 2.3%, backed by rise in average effective rent per unit of 2.3%. Moreover, average physical occupancy for the same-store portfolio was 96.1%, unchanged from the earlier quarter.
As of Dec 31, 2018, MAA held cash and cash equivalents of nearly $34.2 million, significantly up from approximately $10.8 million as of Dec 31, 2017.
Furthermore, as of the same date, around $490.1 million of combined cash and capacity were available under its unsecured revolving credit facility.
Post Properties Merger
During the fourth quarter, MAA completed its integration efforts with respect to the Post Properties merger, incurring 1 cent per share of merger and integration costs.
Portfolio Activity
During the quarter under review, MAA purchased 10 acres of land in Denver, CO and a nine-acre land parcel in Houston, TX.
During the October-December quarter, it closed on the sale of a three-acre land parcel in Atlanta, GA for $0.7 million.
During the year ended Dec 31, 2018, MAA completed the renovation of 8,155 units under its redevelopment program. Notably, it attained an increase in the average rental rate of 10.5%, above non-renovated units.
At the end of the quarter, MAA had three development community projects under construction, consisting of 577 units, with total projected cost of $118.5 million. Notably, an estimated $87.6 million remained to be funded as of Dec 31, 2018.
Outlook
For first-quarter 2019, MAA expects FFO per share in the range of $1.41-$1.53. Currently, the Zacks Consensus Estimate for the same is pegged at $1.51.
MAA provided guidance for 2019 FFO per share and expects it to be in the range of $6.03-$6.27. Currently, the Zacks Consensus Estimate for the same is pegged at $6.23.
Further, annual same-store portfolio property revenue and expense growth is anticipated to be 1.80%-2.80% and 2.6%-3.6%, respectively, resulting in same-store NOI growth of 1.30%-2.30%.
Our Viewpoint
The company witnessed rent growth reflecting strong job growth and superior household formation trends at its Sunbelt-focused portfolio. Further, with a strong balance sheet, MAA is well poised to capture redevelopment opportunities that will unlock embedded value for the company.
Nevertheless, elevated supply in a number of the company’s markets will likely hamper occupancy at its properties. Escalating competition from other housing alternatives will likely curb the company’s ability to raise rents, thereby affecting its pricing power.
Mid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of Liberty Property Trust , Highwood Properties (HIW - Free Report) and Digital Realty (DLR - Free Report) . All three companies are scheduled to report its quarterly numbers on Feb 5.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Mid-America Apartment (MAA) Meets Q4 FFO Estimates, NOI Up
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred as MAA, reported fourth-quarter 2018 funds from operations (FFO) of $1.55 per share, in line with the Zacks Consensus Estimate. The bottom line came in higher than the prior-year quarter figure of $1.50.
This residential REIT’s quarterly results reflect growth in same-store net operating income (NOI) and rise in average effective rent per unit for the same-store portfolio.
Rental and other property revenues came in at $398.1 million in the quarter, missing the Zacks Consensus Estimate of $400.2 million. Nonetheless, the top line was higher than the prior-year figure of $382.7 million.
FFO per share for 2018 came in at $6.04, indicating a year-over-year increase of 1.7%. Yet, it missed the Zacks Consensus Estimate of $6.05. MAA recorded rental and other property revenues of $1.6 billion, increasing 2.8%.
Quarter in Detail
During the reported quarter, the company’s same-store NOI increased to $231.9 million, registering 2% year-over-year growth.
The same-store portfolio revenues increased 2.3%, backed by rise in average effective rent per unit of 2.3%. Moreover, average physical occupancy for the same-store portfolio was 96.1%, unchanged from the earlier quarter.
As of Dec 31, 2018, MAA held cash and cash equivalents of nearly $34.2 million, significantly up from approximately $10.8 million as of Dec 31, 2017.
Furthermore, as of the same date, around $490.1 million of combined cash and capacity were available under its unsecured revolving credit facility.
Post Properties Merger
During the fourth quarter, MAA completed its integration efforts with respect to the Post Properties merger, incurring 1 cent per share of merger and integration costs.
Portfolio Activity
During the quarter under review, MAA purchased 10 acres of land in Denver, CO and a nine-acre land parcel in Houston, TX.
During the October-December quarter, it closed on the sale of a three-acre land parcel in Atlanta, GA for $0.7 million.
During the year ended Dec 31, 2018, MAA completed the renovation of 8,155 units under its redevelopment program. Notably, it attained an increase in the average rental rate of 10.5%, above non-renovated units.
At the end of the quarter, MAA had three development community projects under construction, consisting of 577 units, with total projected cost of $118.5 million. Notably, an estimated $87.6 million remained to be funded as of Dec 31, 2018.
Outlook
For first-quarter 2019, MAA expects FFO per share in the range of $1.41-$1.53. Currently, the Zacks Consensus Estimate for the same is pegged at $1.51.
MAA provided guidance for 2019 FFO per share and expects it to be in the range of $6.03-$6.27. Currently, the Zacks Consensus Estimate for the same is pegged at $6.23.
Further, annual same-store portfolio property revenue and expense growth is anticipated to be 1.80%-2.80% and 2.6%-3.6%, respectively, resulting in same-store NOI growth of 1.30%-2.30%.
Our Viewpoint
The company witnessed rent growth reflecting strong job growth and superior household formation trends at its Sunbelt-focused portfolio. Further, with a strong balance sheet, MAA is well poised to capture redevelopment opportunities that will unlock embedded value for the company.
Nevertheless, elevated supply in a number of the company’s markets will likely hamper occupancy at its properties. Escalating competition from other housing alternatives will likely curb the company’s ability to raise rents, thereby affecting its pricing power.
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. Quote
MAA currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of Liberty Property Trust , Highwood Properties (HIW - Free Report) and Digital Realty (DLR - Free Report) . All three companies are scheduled to report its quarterly numbers on Feb 5.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>