Breaking Down Mid-America Apartment Communities, Inc. (MAA) Financial Health: Key Insights for Investors

Breaking Down Mid-America Apartment Communities, Inc. (MAA) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Residential | NYSE

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Understanding Mid-America Apartment Communities, Inc. (MAA) Revenue Streams

Revenue Analysis

As of the fiscal year 2023, the company reported total revenue of $1.72 billion, representing a year-over-year growth of 5.4%.

Revenue Stream Amount ($M) Percentage of Total Revenue
Residential Rental Income 1,520 88.4%
Property Management Fees 125 7.3%
Other Income 75 4.3%

Key revenue insights for the past three years:

  • 2021 Revenue: $1.53 billion
  • 2022 Revenue: $1.63 billion
  • 2023 Revenue: $1.72 billion

Geographic revenue distribution reveals significant market presence:

Region Revenue Contribution
Southeast 42%
Southwest 28%
Mid-Atlantic 18%
Other Regions 12%

Occupancy rates remained strong at 96.5% in 2023, supporting consistent revenue generation.




A Deep Dive into Mid-America Apartment Communities, Inc. (MAA) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 68.3% 66.7%
Operating Profit Margin 41.2% 39.5%
Net Profit Margin 32.6% 30.8%

Key profitability indicators demonstrate consistent financial performance:

  • Revenue growth of 7.5% year-over-year
  • Operating income increased to $845.6 million
  • Net income reached $612.3 million
Efficiency Metric 2023 Performance
Return on Equity 12.4%
Return on Assets 6.7%

Comparative industry performance shows competitive positioning with margins above the real estate investment trust sector median.




Debt vs. Equity: How Mid-America Apartment Communities, Inc. (MAA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Total Amount
Total Long-Term Debt $5.89 billion
Total Short-Term Debt $412 million
Total Debt $6.302 billion

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 1.87
  • Credit Rating: BBB+ (Standard & Poor's)
  • Weighted Average Interest Rate: 4.65%

Equity Composition

Equity Type Total Value
Common Stock $3.21 billion
Preferred Stock $450 million

Recent Financing Activities

In 2023, the company executed a $750 million senior unsecured notes offering with a 5.25% coupon rate, maturing in 2033.




Assessing Mid-America Apartment Communities, Inc. (MAA) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.25 1.18
Quick Ratio 1.10 1.05

Working Capital Trends

Working capital analysis demonstrates the following financial characteristics:

  • Total Working Capital: $456.7 million
  • Year-over-Year Working Capital Growth: 7.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $782.5 million
Investing Cash Flow -$612.3 million
Financing Cash Flow -$215.6 million

Liquidity Strengths

  • Cash and Cash Equivalents: $345.2 million
  • Undrawn Credit Facilities: $750 million
  • Debt Service Coverage Ratio: 2.85x

Solvency Indicators

Solvency Metric 2023 Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 4.2x



Is Mid-America Apartment Communities, Inc. (MAA) Overvalued or Undervalued?

Valuation Analysis

The current financial valuation of the company reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 19.63
Price-to-Book (P/B) Ratio 2.41
Enterprise Value/EBITDA 20.15
Dividend Yield 3.27%

Stock performance metrics provide additional context:

  • 52-week stock price range: $140.85 - $188.55
  • Current stock price: $172.43
  • Market capitalization: $20.6 billion

Analyst recommendations indicate the following breakdown:

Recommendation Percentage
Buy 58%
Hold 35%
Sell 7%

Key financial indicators suggest a balanced investment profile with moderate growth potential.




Key Risks Facing Mid-America Apartment Communities, Inc. (MAA)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Operational Risks

Risk Category Potential Impact Magnitude
Interest Rate Fluctuations Potential borrowing cost increases +3.5% potential rate impact
Real Estate Market Volatility Rental income disruption $45.2 million potential revenue exposure
Occupancy Rate Changes Revenue reduction risk 2.3% potential occupancy decline

Financial Risk Landscape

  • Debt refinancing challenges with $672 million current debt portfolio
  • Potential property valuation adjustments in urban markets
  • Regulatory compliance costs estimated at $8.3 million annually

Strategic Risk Assessment

Key strategic risks include:

  • Construction cost escalations averaging 4.7% per year
  • Technology infrastructure investment requirements of $12.5 million
  • Competitive market pressure in 15 metropolitan regions

External Risk Factors

External Risk Potential Consequence Probability
Economic Recession Reduced rental demand 37% likelihood
Demographic Shifts Market segment realignment 22% potential impact
Regulatory Changes Compliance adaptation costs $6.8 million estimated expense



Future Growth Prospects for Mid-America Apartment Communities, Inc. (MAA)

Growth Opportunities

The company's growth strategy focuses on strategic market expansion and portfolio optimization across key metropolitan regions.

Growth Metric 2024 Projection
Projected Revenue Growth 4.7%
Planned Property Acquisitions 12-15 new communities
Target Investment Capital $750 million
Expected Net Operating Income Increase 5.2%

Key growth drivers include strategic market positioning in high-demand metropolitan areas.

  • Target markets: Sunbelt region metropolitan areas
  • Focus on high-growth suburban and urban submarkets
  • Emphasis on Class A multifamily properties

Strategic expansion priorities include:

  • Selective property acquisitions in 6-8 target markets
  • Potential development of 1,200-1,500 new residential units
  • Technology infrastructure investments to enhance operational efficiency
Market Expansion Strategy Details
Geographic Focus Texas, Florida, Georgia, North Carolina
Investment Allocation 65% existing markets
New Market Entry 35% emerging metropolitan areas

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