Mid-America Apartment Communities Inc (MAA) Q3 2023 Earnings Report: A Comprehensive Analysis
MAA reported diluted earnings per common share of $0.94 for Q3 2023, compared to $1.05 in Q3 2022.
Funds from operations (FFO) per share for Q3 2023 stood at $2.16, slightly down from $2.19 in Q3 2022.
MAA's Same Store Portfolio reported a revenue growth of 4.1% in Q3 2023 compared to the same period in the prior year.
As of the end of Q3 2023, MAA had five communities under development, representing 1,970 units once complete, with a projected total cost of $642.7 million.
Mid-America Apartment Communities Inc (NYSE:MAA) released its Q3 2023 earnings report on October 25, 2023. The company reported diluted earnings per common share of $0.94 for the quarter ended September 30, 2023, compared to $1.05 for the same period in 2022. The Funds from operations (FFO) per share for the quarter stood at $2.16, slightly down from $2.19 in Q3 2022.
Financial Performance
During the third quarter of 2023, MAA's Same Store Portfolio produced growth in revenues of 4.1%, as compared to the same period in the prior year, with Average Effective Rent per Unit up 4.5% while capturing strong Average Physical Occupancy of 95.7%. The Same Store Portfolio property operating expense and Net Operating Income (NOI) increased by 4.7% and 3.7%, respectively, as compared to the same period in the prior year.
Development and Acquisition Activities
As of the end of the third quarter of 2023, MAA had five communities under development, representing 1,970 units once complete, with a projected total cost of $642.7 million and an estimated $296.4 million remaining to be funded. MAA also acquired a 323-unit multifamily community located in the Phoenix, Arizona market after the end of the third quarter of 2023.
Balance Sheet and Financing Activities
MAA's balance sheet remains strong with a historically low Net Debt/Adjusted EBITDAre ratio of 3.4x and $1.4 billion of combined cash and available capacity under MAALPs unsecured revolving credit facility as of September 30, 2023. Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2023 were $167.8 million, as compared to $148.3 million for the same period in the prior year.
Outlook
MAA expects Core FFO for the fourth quarter of 2023 to be in the range of $2.21 to $2.37 per Share, or $2.29 per Share at the midpoint. The company does not forecast Earnings per common share on a quarterly basis as it generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter.
Explore the complete 8-K earnings release (here) from Mid-America Apartment Communities Inc for further details.
This article first appeared on GuruFocus.
