Mid-America Apartment Communities Inc. (MAA) is the largest apartment owner and the seventh largest apartment property manager in the United States with about 300 apartment communities containing more than 100,000 apartments and four office buildings.
The real estate investment trust (REIT) has a diverse portfolio spread across the Southeast, Southwest, and Mid-Atlantic regions with its biggest Q3’20 income concentrations in Atlanta, GA (13.1%) and Dallas, TX (8.7%). Through its tech-driven operating platform, the company has built a strong balance sheet and paid more than 100 consecutive quarters of dividends.
In terms of its balance sheet, the company remains in a strong position with a lower debt to asset ratio than its peers at 30.6% versus 33.7% and a net debt to adjusted EBITDA ratio of 4.66x compared to 5.5x for its peers, as of the third quarter.
Robust Performance
Mid-America Apartment Communities reported third quarter revenue that rose 1.8% to $423.2 million, beating consensus estimates by $9.51 million, along with FFO of $1.57 per share, beating consensus estimates by one cent per share.
Despite the impact of COVID-19, the company collected 98.6% of billed residential rent for October 2020. The company has worked with those who have lost wages or compensation stemming from COVID-19, and including promises to pay from those residents, its rent cash collections and promises totaled 99.2% of billed rent during the third quarter.
The company increased its quarterly dividend by 2.5% to $1.025 per share, which represents a 3.3% forward yield. The dividend is payable on January 29, 2021 to shareholders on record as of January 15, 2021.
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