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 ....
Read the full article on Seeking Alpha
For further details see:
Mid-America Apartments: 2024 Will Be Tough, But Things Should Improve Beyond