Analyst Barry Oxford from Colliers Securities reiterated a Buy rating on Mid-America Apartment (MAA – Research Report) and keeping the price target at $165.00.
Barry Oxford’s rating is based on Mid-America Apartment Communities’ strategic focus on full-cycle investment performance, particularly in high-demand areas such as the Southeast, Southwest, and Mid-Atlantic. Despite experiencing flat same-store revenue growth and a slight decrease in average effective rent per unit in the third quarter of 2024, MAA maintained a historically low resident turnover rate, which reflects strong tenant retention. The company’s robust balance sheet, characterized by a low total debt to market capitalization ratio and a high proportion of fixed-rate debt, further supports its financial stability.
Oxford also considered the company’s succession plans, as the transition to a new CEO is anticipated to be smooth due to the leadership experience of Bradley Hill. While there are concerns about supply issues in the Southeast in the first half of 2025, the expectation of improved fundamentals in the latter half of the year suggests potential for growth. Additionally, the recent unsecured offering aimed at reducing borrowing costs demonstrates MAA’s proactive financial management, reinforcing the Buy rating.
In another report released today, Morgan Stanley also upgraded the stock to a Buy with a $168.00 price target.
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Mid-America Apartment (MAA) Company Description:
Mid-America Apartment Communities, Inc. is a real estate investment trust. The firm engages in the operation, acquisition and development of apartment communities. It operates through the following segments: Same Store Communities and Non-Same Store and Other. The Same Store Communities segment focuses on communities that the company has owned. The Non-Same Store and Other segment include recent acquisitions, communities in development or lease-up. The company was founded in 1994 and is headquartered in Memphis, TN.
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