Mid America Apartment Communities ( NYSE: MAA ) has raised its full-year outlook on core adjusted funds from operations as well as net operating income growth after it turned in stronger-than-expected Q3 results on Wednesday.
The residential REIT sees 2022 core AFFO at $7.67 at the midpoint compared with the prior target of $7.46. NOI growth (midpoint) is expected to be 17.0% vs. 15.0% in the previous view. Property revenue growth is targeted at 13.5% vs. 12.0% in the prior guidance.
Despite a broader cooldown in the U.S. housing market, "we continue to see strong demand for apartment housing across our Sunbelt markets as steady growth in jobs and wages, along with positive new household formations and migration trends across our markets, fuels a growing need for housing," said Chairman and CEO Eric Bolton.
As such, Q3 FFO of $2.19 a share topped the average Wall Street estimate of $2.11 and climbed from $1.78 a year before.
Revenue of $520.8M also surpassed the consensus of $507.6M and increased from $452.6M a year ago.
Net operating income was $329.4M at September 30 compared with $279.7M at Sep. 30, 2021.
Recurring capital expenditures totaled $38.7M in Q3, up from $26.4M in the year-ago quarter.
Adjusted EBITDAre of $301.6M advanced from $254M in Q3 2021.
Conference call on Thursday at 9:00 a.m. CT (10:00 a.m. ET).
Earlier, Mid America Apartment Communities FFO of $2.19 beats by $0.08, revenue of $520.8M beats by $13.09M .
For further details see:
Mid America Apartment Communities guides for higher year core AFFO, NOI growth