Mid-America Apartment: Declining Rents Ahead [Downgrade]

Summary

  • Mid-America Apartment Communities is a prime apartment REIT with a heavy presence in the Sunbelt.
  • MAA has underperformed with a RoR of -12% compared to the S&P 500's RoR of 13%.
  • Rent growth in MAA's markets has decelerated significantly while vacancies have increased, leading to a downgrade to a HOLD rating.
  • This idea was discussed in more depth with members of my private investing community, High Yield Landlord. Learn More »
Condominiums with Swimming Pool

Marje

Dear readers,

Mid-America Apartment Communities (NYSE:MAA) is a prime apartment REIT with a heavy presence in the Sunbelt.

My previous work on the stock (latest article - here) focused on trying to determine whether it was better to

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This article was written by

4.76K Followers

David Ksir has extensive private equity experience in finance and European real estate. He manages a small 8-figure family office focused on generating reliable dividend income through value investing.

David also contributes to the High Yield Landlord which is led by Jussi Askola and has a team of 5 other top Seeking Alpha REIT and income analysts. They help investors become passive landlords with their 8% yielding real estate portfolio. Service features include: three portfolios (core, retirement, international), community through chat room, buy/sell alerts, and educational content.

Disclosure: I am associated with another SA contributor Deep Value Explorer.

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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