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Mid-America Apartment Communities: Higher Rates Take Their Toll, Opportunity Emerges (Rating Upgrade)


  • I suggested caution on MAA during my last review given the macro-backdrop and the fact the stock had seen a nice run.
  • With the 16% drop, that caution was clearly warranted. While not fun for holders of MAA, this weakness opens up a buying opportunity yet again.
  • Be mindful of the broader headwind higher rates pose on the Real Estate sector. While MAA has mostly long-term debt, investors are not always discerning when it comes to sector sell-offs.
  • The market is starting to price in a more dovish Fed starting later this year. While this may turn out to be incorrect, in the near term it provides a tailwind for income plays.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Vibrant Sunrise Over Lake Eola Park and the Orlando Skyline in Downtown Orlando Florida USA

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Main Thesis & Background

The purpose of this article is to evaluate Mid-America Apartment Communities, Inc. (NYSE:MAA) as an investment option. The company is a "real estate investment trust that focuses on the acquisition, selective development, redevelopment, and

Consider the Income Lab.

This article was written by

Dividend Seeker profile picture

I began my career in financial services in 2008, at the height of the market crash. This experience has shaped my investment strategy - which is focused on diversification, dividends, and growth opportunities. I am a competitive tennis player, and I competed at the Division I level in undergrad. I have a Bachelors and MBA in Finance.

(He is a contributing author for the investing group CEF/ETF Income Laboratory where he specializes in macro analysis. Features of CEF/ETF Income Laboratory include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts. Learn more.)

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MAA, VOO, RSP, DIA, QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

The more it dropped the more I bought. Now at 750 shares we sit and wait. One of the best priced REITs, still. Camden and UDR too in the apartment world. Remember, long term, and I've been around the States 45 years now, first as a tenant, then a landlord, rents rise. The unit I rented first for $180 in 78 now goes for $1800. Not too shabby. As long as management is good, and the above guys are pretty good.
Dividend Seeker profile picture
Great perspective, thanks for sharing
mdfuller_OR profile picture
@Dividend Seeker why multi family and not single family?
Dividend Seeker profile picture
Certainly a good option, I have some mortgage exposure through PDO so I don't really need more in that area
birder profile picture
I have recently been buying MAA.
Dividend Seeker profile picture
You and me both!
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