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Why Mid-America Apartment Is A Superior REIT


  • Mid-America Apartment Communities is a residential REIT giant with a market cap of around $18 billion, focused on the mid-American market and managing 276 same-store communities with close to 100,000 units.
  • MAA has a healthy balance sheet with an A-range rating from all three major rating agencies, a debt capitalization rate of 19%, and close to $2 billion in available liquidity.
  • The company has consistently outperformed its peers with a dividend yield of 3.7%, 117 consecutive quarters of dividend payments, and an average annual dividend growth rate of 8.1% over the past five years.
Geschäftsmann Hand hält goldene Trophäe mit Stern auf blauem Hintergrund. Geschäftliche Herausforderung, Belohnung, Wettbewerbskonzept. 3D-Rendering

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It's time to talk about Mid-America Apartment Communities (NYSE:MAA), a REIT I have never discussed before. In this case, I went with a very positive title, which I believe is fully warranted as the company behind the MAA ticker is superior. Not only

This article was written by

Leo Nelissen profile picture

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT on Alpha.

As a member of the iREIT on Alpha team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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 (17)

I am long MAA since 2018. Will buy more shares soon. Price might drop further If a recession cuts into growth....
On the watch list, thanks
In my experience real estate has benefited most from inflation in the past with their low monthly returns and large capital expenditures for periodic updates and maintenance. At this time I would rather remain in cash earning a risk free 5% or so while the Fed is fighting inflation. Any really significant pullback in the future might arouse my interest.
I own shares, but am considering taking a pause in adding additional until the excess supply coming in their major markets washes through. Could be a 12-18 month period where occupancy softens in places like Austin and Dallas due to the amount of supply. I am hoping it presents a great entry point as the drop off in new construction starts and population growth should provide great mid-term lift.
Based on its price chart MAA has a resistance level near $140. I'm in for a small position at $148. It pays to be cautious with entry points in this market.

I am currently involved in the construction market and I have seen how multifamily housing can build wealth for its owners. If the occupancy rate remains high, the owner can generally raise rents over time while the original investment is based on a fixed repayment...and the deal becomes a positive cash flow machine.

Since I'm too old to dive into the development and management of multifamily housing directly, REITS are my best way to play this wealth generation strategy. MAA is one of the highest rated firms with properties in areas that I believe will continue to grow. So for now, I'm a new owner and I'll watch and learn while I earn.

Thanks for the article and confirming my due diligence on MAA.
Leo Nelissen profile picture
@Think Forward Thank you for adding your view to the discussion!

The data supports your findings. Multifamily construction has gone through the roof lately.
@Leo Nelissen True. Young families have difficulty affording single family homes in current the economy leaving them looking for alternatives.
@Think Forward. Alternatives now include Build to Rent. Such as Inovation Homes, American Homes 4 Rent, Progressive Residential, and now a host of privateers who will be selling or up reiting in the future.
What about the concern that their revenue is expected to decline in combination with their current substantial debt?
Leo Nelissen profile picture
@imranfat Their debt is fine. No worries there.
Dr.DaveR profile picture
$MAA is my only residential REIT. I started an underwr position a few months back and am waiting to fill if we have a substantial correction.
Risk Professor profile picture
MAA is on my short list of potential buys.
birder profile picture
I too like MAA and I own a moderate position in it. ESS and EQR are other two that I currently like but not nearly so much as MAA.
Hi Leo,
You mentioned VNQ.
I said stated this before, as much as I like the safety of ETFs, I have not found any REIT ETFs that are decent.
Long MAA and a bunch of other REITs
Long VNQ for quite a while (a mistake)
Leo Nelissen profile picture
@Ron1634 Yeah, I agree with you there. I think I know why that is: I dislike most REITs. So, ETFs that combine these companies are often not what I'm looking for.
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