MidAmerica Apartment Communities Inc. (MAA-PI) reported QQ1 2024 results that underscored durable demand across its high-growth markets, even as new supply continues to pressure pricing in several submarkets. Revenue of $543.6 million rose modestly year-over-year (YoY) by 2.8% and 0.3% sequentially, while net income reached $143.7 million (+5.8% YoY, -10.4% QoQ) and diluted earnings per share (EPS) of $1.22. The company reaffirmed its Core FFO guidance for the year, guiding to a range of $8.70–$9.06 per share, with the midpoint implying a value-creating trajectory supported by development and acquisitions activity.
Key operating trends showed occupancy at 95.3% in QQ1 with strong rent collections at 99.6% of billed rents. Blended lease-over-lease pricing declined by 0.6% for the quarter, reflecting pricing headwinds from new supply, even as renewal pricing remained resilient at +5.0% (April: +5.1%). Management highlighted significant renewal pricing momentum and ongoing demand despite near-term pressure on new-leasing economics. The balance sheet remains robust with ~$1.1 billion of cash and borrowing capacity and net debt-to-EBITDA of 3.6x, positioning MAA-PI to fund development and selective acquisitions in a liquidity-constrained environment.
Management communications stressed a cautious but constructive path through 2024–2025, anchored by a multi-year development program and a growing external growth pipeline. Two development starts were announced post-quarter: a 302-unit project in Charlotte and a 345-unit prepurchase project in Phoenix, with a combined 2,617-unit active development pipeline totaling ~$866 million in cost. Management expects stabilization NOI yields from new starts in the 6.0%–6.5% range, implying an attractive spread versus current cap rates. Overall, the QQ1 results align with a scenario where the company navigates near-term affordability and leasing headwinds while laying the groundwork for stronger NOI growth as supply normalizes and demand remains supportive.