MAA - Mid-America Apartments: 2024 Will Be Tough But Things Should Improve Beyond

2024-05-28 02:51:48 ET

Summary

• Mid-America Apartment Communities is a high-quality apartment REIT with a strong balance sheet and a history of dividend increases.
• Short to medium-term prospects for MAA are likely to be disappointing due to oversupply in the Sunbelt residential market.
• However, in the long-term, there is potential for a supply/demand mismatch and a recovery in occupancy and pricing power for MAA.

Dear readers,

Mid-America Apartment Communities ( MAA ) is a high-quality apartment REIT which owns predominantly A-Class space in the Sunbelt, has no exposure to California, and has a strong A- balance sheet rating. The REIT has a long history (13 years) of dividend increases, with an 8.8% 5-year dividend CAGR, and yields 4.5%. As such, it can represent an interesting vehicle for income investors to get reasonably high yield and exposure to a traditional asset class (i.e. residential real estate) which could benefit from a downward movement in interest rates, which seems likely. For details regarding my thesis of falling interest rates, check-out this article ....

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