i don't know if anyone has noticed, but the stock price is actually up for the year. in an industry where management in many cos still thinks its running a private enterprise, george cates et al have consisitently put the sh (and stock price) first. given the carnage in the industry and the radical change in maa strategy, to my mind this is a noteworhty accomplishment. here's to more asset sales/ share repurchases and a prosperous new year.
AHMEN.... I can't figure out this market. Your comment is right on and the overal strategy of MAA management will take another year or so to manifest itself in the ffo results. This stock and its preferred sister are a great value. If you are pure income oriented investor check the MAApb issue. It pays interest monthly and is priced almost 100bp below the comparable MAApa. The MAApb is yeilding about 14.4% at its current price!
Who can say why the market prices a stock, any stock, the way it does! There's little interest in our (or most other) preferred, and the daily changes is often - generally? - illogical.
I'm so "worried" about our preferreds that, for the very first time in my life, I bought 10,000 shares (market basket mix of A, B and C) a few weeks ago. I'm a buyer and believer in the common, first and foremost, but just couldn't pass up the arbitrage available between our preferred and prevailing interest rates. Time will tell; I'm extremely confident of our preferred dividend safety, so the test of the investment will come with its relation with market interest rates fluctuations, of course.
...and other than this single foray into the preferred arena, I'm still intending, as always, to put other cash I can scrape up from time to time into (hold on for a real surprise!) the common.
Sam Zell, a person with wide experience in involving REITs, gave an interview in Barrons,12/27/99.
In the article, regarding the REIT Modification Act of 1999, Mr. Zell gos on to say," The new bill will remove the remaining shackles, allowing REITs to more aggressively and effectively provide services to tenants. We will be able to manage our properties and look after our tenants as customers by offering things like broadband communications directly through 100% owned subsidiaries."
United Dominion Resources, (UDR) has just announced an agreement in conjunction with CAIS Internet, to provide broadband communications for tenants in their 84000 appartments (for a percentage.)
Who would not want to rent a luxury 2BR for $250?......Who would not want to be able to rent a luxury 2BR for $250 and still make money.
This writer has an idea based on the fact that 80%+ of all renters leave to buy a home and the "REIT Modification Act of 1999."
Basicly, the renter will give $500 back of let say $750 (for one year) rent when the tenant leaves to buy a home......however the tenant must buy from a particular builder(s) in which the landlord has a business relationship as a realator.
The closing would look like this: A) Ex-tenant receives $6000 for buying the home......basicly a downpayment. B) The landlord (MAA?) would receive $7200 (6% of $120,000 home) as a finders fee or acting as a realator.
There is nothing to keep the landlord from also becoming a morgage broker to find a morgage for the tenant, sell him the insurance to cover the home as well as the furniture in the home.....
Just an example in which one can play with numbers after looking at the idea......