Mid-America Apartment Communities, Inc. (MAA): history, ownership, mission, how it works & makes money

A Brief History of Mid-America Apartment Communities, Inc. (MAA)

Mid-America Apartment Communities, Inc. (MAA) is a prominent real estate investment trust (REIT) that specializes in the acquisition, development, and management of multifamily apartment communities. As of 2024, MAA has established itself as a leader in the U.S. apartment sector, with a portfolio that spans various markets across the country.

Company Overview

As of September 30, 2024, MAA owned and operated over 100,000 apartment units across the United States. The company is headquartered in Memphis, Tennessee, and is publicly traded on the New York Stock Exchange under the ticker symbol "MAA."

Financial Performance

For the third quarter of 2024, MAA reported a net income of $118.23 million, compared to $113.73 million in the same quarter of 2023. The net income available for common shareholders for the nine months ended September 30, 2024, was $370.50 million, down from $402.96 million in 2023. The earnings per common unit for the third quarter of 2024 were $0.98, consistent with $0.94 in the prior year.

Acquisitions and Developments

In 2024, MAA continued its expansion through strategic acquisitions. Notable transactions included the acquisition of a 310-unit multifamily community in Orlando, Florida for approximately $84 million and a 306-unit community in Raleigh, North Carolina for $81 million. Additionally, MAA acquired land parcels totaling $25 million across several states to support future development initiatives.

Debt and Capital Structure

As of September 30, 2024, MAA's total outstanding debt amounted to $4.88 billion, with a weighted average effective interest rate of 3.8%. The company maintains a strong capital structure, supported by a revolving credit facility of $1.25 billion. The debt portfolio includes $4.05 billion in fixed-rate senior notes and $490 million in variable-rate commercial paper.

Market Position and Strategy

MAA's strategy focuses on high-quality, well-located properties in key growth markets. The company emphasizes operational efficiency and tenant satisfaction, which has resulted in a consistent occupancy rate above 90%. MAA's management continues to explore opportunities for organic growth through property upgrades and value-added renovations.

Conclusion

As of 2024, Mid-America Apartment Communities, Inc. remains a key player in the multifamily housing sector, with a robust financial profile, strategic growth initiatives, and a commitment to providing high-quality living environments. The company's focus on expanding its portfolio through acquisitions and maintaining strong operational metrics positions it well for future success.

A Who Owns Mid-America Apartment Communities, Inc. (MAA)

Ownership Structure

As of September 30, 2024, Mid-America Apartment Communities, Inc. (MAA) has a significant ownership structure involving various stakeholders including its operating partnership, Mid-America Apartments, L.P. (MAALP).

Institutional Ownership

Institutional investors hold a substantial portion of MAA's shares, reflecting confidence in the company's performance.

Recent Shareholder Activity

MAA has engaged in various activities affecting its share structure, including forward sale agreements and an at-the-market equity offering program.

Equity and Market Performance

As of September 30, 2024, MAA's market performance is reflective of its strong operational results and investor confidence.

Conclusion

MAA’s ownership is characterized by a mix of institutional and individual investors, with a substantial portion held by the general partner, reflecting a strong commitment to the company’s growth and performance.

Mid-America Apartment Communities, Inc. (MAA) Mission Statement

Company Overview

Mid-America Apartment Communities, Inc. (MAA) is a leading real estate investment trust (REIT) that focuses on the acquisition, development, and management of multifamily apartment communities. As of September 30, 2024, MAA operates in 39 defined markets across the Southeastern, Southwestern, and Mid-Atlantic regions of the United States, with a diverse portfolio of over 100,000 apartment units.

Mission Statement

MAA's mission is to provide quality apartment homes and exceptional service to its residents while delivering strong financial performance and growth for its investors. The company emphasizes sustainable practices in its operations and development projects, aiming to enhance the communities it serves.

Core Values

• Integrity: Commitment to transparency and ethical practices in all operations.
• Customer Focus: Prioritizing resident satisfaction through responsive service.
• Innovation: Embracing new technologies and methodologies to improve efficiency and sustainability.
• Community Engagement: Supporting local communities and fostering positive relationships.

Financial Performance

As of September 30, 2024, MAA reported the following financial metrics:

Recent Developments

MAA has been actively engaged in expanding its portfolio through acquisitions and development projects. Notably, the company closed on the acquisition of a 310-unit multifamily community in Orlando, Florida for approximately $84 million and a 306-unit community in Raleigh, North Carolina for about $81 million in May and September 2024, respectively. As of September 30, 2024, MAA had eight development communities under construction, totaling 2,762 apartment units with expected costs of $978.3 million.

Dividend Information

MAA typically declares cash dividends on a quarterly basis. For the year ending December 31, 2024, the expected annual dividend rate is $5.88 per share.

Market Position

MAA's strategy includes maintaining a diversified portfolio across various markets and price points, which helps mitigate risks associated with economic fluctuations. The company has a presence in approximately 150 submarkets, featuring a mix of garden-style, mid-rise, and high-rise communities.

Sustainability Initiatives

MAA is committed to sustainable development practices, which include energy-efficient building designs, water conservation efforts, and community engagement to enhance the quality of life for residents and local communities.

Conclusion

MAA's mission statement reflects its commitment to providing quality living environments while achieving strong financial performance. The company continuously seeks to innovate and improve its operations, focusing on resident satisfaction and community impact.

How Mid-America Apartment Communities, Inc. (MAA) Works

Company Overview

Mid-America Apartment Communities, Inc. (MAA) is a publicly traded real estate investment trust (REIT) that focuses on the acquisition, development, and management of apartment communities across the United States. As of September 30, 2024, MAA owned 116,880,291 operating partnership (OP) units, representing a 97.4% limited partnership interest in Mid-America Apartments, L.P. (MAALP).

Financial Performance

For the three months ended September 30, 2024, MAA reported a net income available for common shareholders of $114.3 million, a 4.1% increase from $109.8 million for the same period in 2023. Total revenues increased by $9.1 million, or 1.7%, to $551.1 million from $542.0 million in 2023.

Property Revenues

The property revenues for MAA for the three months ended September 30, 2024, by segment, are as follows:

Property Operating Expenses

For the three months ended September 30, 2024, property operating expenses totaled $615.2 million, a 6.7% increase compared to $576.4 million in the prior year. The breakdown of property operating expenses by segment is as follows:

Debt and Capital Resources

As of September 30, 2024, MAA had total outstanding debt of $4.9 billion, with a weighted average interest rate of 3.8%. Key components of MAA's debt portfolio include:

Equity and Shareholder Returns

MAA declared quarterly dividends at an annual rate of $5.88 per share for the year ending December 31, 2024. As of September 30, 2024, the company had 116,880,291 shares of common stock outstanding with an approximate market value of $18.7 billion based on a share price of $158.90.

Market Position and Future Outlook

MAA operates in a competitive multifamily housing market, focusing on regions in the Southeast, Southwest, and Mid-Atlantic. The company's portfolio strategy emphasizes diversity across various markets to mitigate risks associated with economic fluctuations. Demand for apartments remains strong, contributing to steady occupancy rates and renewal pricing.

How Mid-America Apartment Communities, Inc. (MAA) Makes Money

Revenue Streams

Mid-America Apartment Communities, Inc. (MAA) generates revenue primarily through multifamily residential leases and ancillary services. As of 2024, rental revenues account for approximately 94% of total revenues, with non-lease revenues contributing 5% and other revenues making up the remaining 1%.

Property Revenues Breakdown

The following table shows MAA's property revenues by segment for the nine months ended September 30, 2024:

Average Effective Rent

For the nine months ended September 30, 2024, the average effective rent per unit in the Same Store segment grew by 0.6%, despite a slight decline in average effective rent per unit of 0.4% for the three months ended September 30, 2024 compared to the same period in 2023.

Operating Expenses

MAA's property operating expenses include costs related to personnel, repairs, taxes, insurance, utilities, and other operating expenses. The following table outlines the property operating expenses by segment for the nine months ended September 30, 2024:

Net Operating Income (NOI)

For the nine months ended September 30, 2024, MAA reported a total NOI of $1,026,024 thousand, down from $1,029,862 thousand in 2023. The Same Store NOI for the same period was $990,130 thousand.

Debt and Interest Expense

MAA maintains a significant amount of debt to finance its operations. As of September 30, 2024, the company had $490.0 million in variable-rate debt outstanding. Interest expense for the three months ended September 30, 2024 was $42.7 million, an increase of $6.1 million compared to the previous year.

Cash Flows

The net cash provided by operating activities for the nine months ended September 30, 2024 was $859.2 million, showing a slight decrease from $872.3 million in 2023. The net cash used in investing activities was $651.6 million, which was higher than $428.5 million in 2023.

Acquisitions

In 2024, MAA has made several acquisitions, including:

• A 310-unit multifamily community in Orlando, Florida for approximately $84 million.
• A 306-unit multifamily community in Raleigh, North Carolina for approximately $81 million.
• A 3-acre land parcel in Richmond, Virginia for approximately $14 million.
• A 13-acre land parcel in Phoenix, Arizona for approximately $11 million.

These acquisitions contribute to the growth of MAA's Non-Same Store revenues and help expand its portfolio.

Conclusion on Financial Performance

As of September 30, 2024, MAA's net income available for common shareholders was $358.1 million, reflecting an 8.1% decrease compared to 2023.

Article updated on 8 Nov 2024

Resources:

• Mid-America Apartment Communities, Inc. (MAA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mid-America Apartment Communities, Inc. (MAA)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Mid-America Apartment Communities, Inc. (MAA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.