MAA - Mid-America Apartment Communities Inc. (MAA) Q4 2023 Earnings Call Transcript
2024-02-08 15:50:28 ET
Mid-America Apartment Communities, Inc (MAA)
Q4 2023 Results Conference Call
February 08, 2024 10:00 AM ET
Company Participants
Andrew Schaeffer - Senior Vice President, Treasurer & Director, Capital Markets
Eric Bolton - Chairman & Chief Executive Officer
Brad Hill - Executive Vice President & Chief Investment Officer
Tim Argo - Executive Vice President, Chief Strategy & Analysis Officer
Clay Holder - Senior Vice President & Chief Accounting Officer
Al Campbell - Executive Vice President & Chief Financial Officer
Joe Fracchia - Executive Vice President and Chief Technology & Innovation Officer
Conference Call Participants
Josh Dennerlein - Bank of America
Austin Wurschmidt - KeyBanc
John Kim - BMO Capital
Jamie Feldman - Wells Fargo
Dan Tricarico - Scotiabank
Eric Wolfe - Citi
Rich Anderson - Wedbush
Alexander Goldfarb - Piper Sandler
Michael Goldsmith - UBS
Haendel St. Juste - Mizuho Securities
Brad Heffern - RBC Capital Markets
Adam Kramer - Morgan Stanley
James Feldman - Wells Fargo
Presentation
Operator
Please go ahead.
Andrew Schaeffer
Thank you, Carrie and good morning, everyone. This is Andrew Schaeffer, Treasurer and Director of Capital Markets for MAA. Members of the management team participating on the call this morning with prepared comments are Eric Bolton, Brad Hill, Tim Argo and Clay Holder. Al Campbell, Rob DelPriore, and Joe Fracchia are also participating and available for questions as well.
Before we begin with our prepared comments this morning I want to point out that as part of this discussion, company management will be making forward-looking statements. Actual results may differ materially from our projections. We encourage you to refer to the forward-looking statements section in yesterday's earnings release and our 34x filings with the SEC, which describe risk factors that may impact future results.
During this call, we will also discuss certain non-GAAP financial measures. A presentation of the most directly comparable GAAP financial measures as well as reconciliations of the differences between non-GAAP and comparable GAAP measures can be found in our earnings release and supplemental financial data.
Our earnings release and supplements are currently available on the -- for Investors page of our website at www.maac.com. A copy of our prepared comments and audio recording of this call will also be available on our website later today. After some brief prepared comments the management team will be available to answer questions.
I will now turn the call over to Eric.
Eric Bolton
Thanks Andrew and good morning. Core FFO results for the fourth quarter were ahead of our expectations. Higher non-same-store NOI performance and lower interest expense drove the outperformance. As expected during the fourth quarter, a combination of higher new supply and a seasonal slowdown in leasing traffic increasingly weighed on new resident lease pricing during the quarter. Encouragingly, we did see some of this pressure moderate in January with blended pricing improving 130 basis points from the fourth quarter performance led by improvement in new lease pricing. Stable employment conditions, continued positive migration trends, a higher propensity of new households to rent apartments and continued low resident turnover are all combining to support steady demand for apartment housing.
We continue to believe that late this year, new lease pricing performance will improve and we will begin to capture recovery in that component of our revenue performance. In addition, with the pressure surrounding higher new supply deliveries likely to moderate later this year, we continue to believe the conditions are coming together for overall pricing recovery to begin late this year and into 2025....
Mid-America Apartment Communities, Inc. (MAA) Q4 2023 Earnings Call Transcript