Mid-America Apartment Q2 core FFO per share falls on historically low resident turnover

Overview

• US apartment REIT's Q2 revenue rose slightly year-over-year

• Core FFO per share and EPS declined from prior year

• Company repurchased 0.4 mln shares for $50 mln in Q2

Outlook

• MAA lowers 2026 earnings per share guidance to $3.96-$4.20 from $4.18-$4.50

• Company maintains 2026 core FFO per share guidance at $8.41-$8.65

• MAA expects Q3 2026 core FFO per share of $2.04-$2.16

Result Drivers

• STEADY DEMAND - Co said steady demand supported Q2 Core FFO results, according to CEO Brad Hill

• LEASE PRICING - Sequential improvement in new lease pricing and strong renewal rates contributed to blended lease pricing gains

• LOW RESIDENT TURNOVER - Resident turnover remained historically low at 39.6% in Q2, with few move-outs for single-family home purchases

Company press release: ID:nPn231Vb3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 14 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy."

• Wall Street's median 12-month price target for Mid-America Apartment Communities Inc is $142.00, about 4.7% above its July 28 closing price of $135.64

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 37 three months ago

Reuters Recommended Reads

• July 27 - REIT UDR sees 2026 FFO below estimate as higher costs weigh

• July 28 - Extra Space Storage lifts 2026 outlook as Q2 Core FFO per share rises

• July 28 - BXP Q2 profit beats expectations on higher occupancy, raises FY outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)