Mid-America Apartment Communities: A Fresh Look After Q1 Results

And Value for All
2.04K Followers

Summary

  • Names in the multi-family residential space are down considerably and represent a potential buy opportunity here for investors willing to look past economic cycle problems.
  • I explain why I consider Mid-America Apartment Communities my top pick.
  • Reasonable dividend yield, good growth prospects, decent base valuation. All the ingredients to produce long-term double-digit returns are there.
  • Trading around $150, I rate shares a buy with 12.5%- 15% total return potential.

Exterior view of multifamily residential building; Mountain View, San Francisco bay area, California

Sundry Photography

Apartment REITs prices have fallen sharply in recent months, with investors spooked by the fears of a recession. While not particularly cheap, relative valuations in the space seem reasonable, and I find several names buyable here. These include dividend aristocrat Essex Property

This article was written by

2.04K Followers
Finance Director. I work for a large-cap, EU-listed, consumer goods company. Passionate about everything concerning finance and, in particular, investing. I manage my portfolio. Current equity portfolio follows a buckets allocation strategy (as of 2023) that's about 50% ETF, 25% High Yield (incl. preferred shares), 15% DGI, and 10% high-conviction names (kind of bin collecting anything not fitting the other  categories, but mostly spec growth & deep value).At the ongoing assets progression rate, I am hopeful to retire from corporate life and turn to full-time investing within a decade. In the meantime, I will continue contributing to Seeking Alpha as a hobby and for self-development.I am a former semi-pro chess player, now at high risk of becoming a ski bum: that's why I tend not to write much during winter months.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MAA 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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