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Mid-America Apartment Communities Inc. Message Board

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    A case of an acquisition messing up a good thing.

    by jridley17 Jul 31, 2014 9:34 AM

    Most REIT mergers are better for seller than buyer. Not much in economies of scale beyond a few thousand apartments. Only makes sense to do an acquisition if seller trading below NAV of properties. Colonial had mediocre management, but that does not really matter since can quickly convert to MAA systems and procedures. Only thing that matters is the value of properties acquired. Location of Colonial properties was in same market are making integration easier.

    I'm watching as price drops. At some point will make sense to buy more. I wish there was more reliable information available on NAV/share. Long run value should track cost of developing equivalent new buildings as long as population in service areas is growing. Should not matter where interest rates are or what inflation is. These will drive faster or slower new development, but in the long run, new buildings will be developed and old ones will have value adjust accordingly

    Sentiment: Buy

MAA
75.93-0.07(-0.09%)Dec 26 4:04 PMEST

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