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Mid-America Apartment Communities Inc. Message Board

  • zebraspit zebraspit Nov 29, 2001 1:45 PM Flag

    I'm out

    I exited all of my shares in the past month. They represented a very large portion of my total portfolio. I had been a big bull on this co. for a couple of years or so.
    I think the stock(including, particularly, the preferreds) has done all that I thought it could do, and the downside now is more than the upside.
    I still worry about the "Walden" risk, with regard to the preferred shares. It could take them back down into the 'teens(which is where I bought them on the last Walden scare).

    Something about Cates leaving made me think, perhaps superstituously,
    that it was a good time for me to leave.

    I'll be back, probably, if the price gets tempting again.

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    • Our new development pipeline was reported at just under $100 million in our third quarter report (see"investors" section, "financial reports" sub-directory, "3rd quarter report and supplemental data"). We'll be updating progress on this "not yet fully productive" asset base in our Q4 release. Thanks for the inquiry.

      Eric Bolton

    • Can you tell us approximately the dollar amount of non-earning assets currently owned by MAA? I thought your last post was very informative and gave some insight into your understanding of MAA's strategy. Merry Christmas!

    • thanks for your prompt reply. the steady pattern of insider buying by you, george cates and simon wadsworth is one of the main reasons this is my largest holding.
      best regards.

    • The dividend is secure....and growing more secure (see our Q3 information releases). As a result of funding our new development pipeline over the last few years, the pay-out ratio has been higher than we like...but comfortably funded through very profitable property sales (a routine part of our business plan). Clearly, a "liquidating" pay-out ratio is not sustainable over the long haul. As our new development pipeline continues to stabilize, earning assets as a percentage of total assets will continue to increase; expanding our ability to add additional assets and earnings.

      It would be inappropriate for me to get into forecasting on this board, but growing the "top line" and driving the pay-out ratio down (through earnings growth) is something we are very focused on. By timing our exit from new development when we did, we have removed a significant business risk...especially for this part of the economic cycle. Given our lower risk to development and associated funding obligations, we can carry higher leverage than other REIT peers who have development risks to cover.

      Your management team is fully aligned with you (ALL of our eggs are in this basket!). A secure dividend and steadily growing intrinsic value per share is our constant focus.

      Eric Bolton

    • Sorry to see you sell. I'm sure it comes as no surprise to you....but we continue to believe in the stock's upside and the opportunity offered by the market's current pricing. Insiders have consistently been strong prices above current levels! In all market conditions I believe a very healthy portion of any portfolio should be "value" oriented....especially in today's volatile environment. MAA provides a solid value investment, backed by high quality & stable assets, with a steadily strengthening balance sheet and capacity (all detailed in our latest earnings release and conference call transcript available at our web site: currently paying a 9% dividend yield! Thanks for the support of MAA in the past...hope to see you back soon.

      Eric Bolton

      • 2 Replies to ericbolton_maa
      • >>(all detailed in our latest earnings release and
        conference call transcript available at our web site:<<

        Mr. Bolton, I couldn't find this transcript at your site. If it's there, it's not easy to find.
        I've asked Michelle Sargent, by email, to send me a link.

        For whatever it's worth, I did buy some MAA common back today, in part because of your post here.
        After looking around, it seems like a better place to park cash than the alternatives. Though I'm not looking for anything on the upside in the near term, I'd love to be wrong.


      • Thanks for that.

        Curious, where/when did insiders buy at prices higher than current?
        Didn't see that in the Yahoo insider info.

        I may be back sooner than later. With the market so high again, p/e wise--unjustifiably, IMHO-- I might seek refuge again in the 9% yield and the value, as you describe.

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