Is Mid-America Apartment Communities Stock Outperforming the Dow?

Germantown, Tennessee-based Mid-America Apartment Communities, Inc. (MAA) is a leading real estate investment trust (REIT) specializing in high-quality multifamily residential properties across the Sun Belt region. Valued at a market cap of $19 billion, MAA benefits from strong population inflows and robust employment trends and a well-diversified portfolio spanning key growth markets like Texas, Florida, and North Carolina. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Mid-America Apartment Communities fits this criterion perfectly. The company's strategic focus on suburban and urban locations supports steady rental income and high occupancy rates. Backed by a strong balance sheet and disciplined capital management, MAA continues to drive long-term growth through acquisitions, new developments, and property enhancements, positioning itself as a resilient player in the multifamily housing sector.

Shares of MAA are currently trading 5.1% below their 52-week high of $173.38, achieved recently on March 4. Mid-America Apartment shares have climbed 6% over the past three months, outpacing broader Dow Jones Industrial Average’s ($DOWI) 2% fall during the same time frame. 

In the long term, MAA stock has gained 3.6% over the past six months, shadowing $DOWI's marginal increase over the same period. Also, MAA has risen 27.7% over the past 52 weeks, compared to $DOWI's 8.1% gains. 

MAA has consistently traded above its 200-day moving average since the end of January. The stock has also stayed above its 50-day moving average since early February, indicating an uptrend.

MAA reported its fourth-quarter earnings on Feb. 5, and its shares jumped 1.5%. Earnings per common share increased to $1.42 from $1.37 a year ago, while core FFO per share came in at $2.23, falling short of analysts' expectations. Same-store revenue saw a slight 0.2% decline for the quarter but edged up 0.5% for the full year. 

Looking ahead, management forecasts 2025 Core FFO per share between $8.61 and $8.93, anticipating stronger rent growth as new supply deliveries peak and market conditions tighten.

In contrast, rival Equity Residential (EQR) has declined 3.7% over the past six months but gained 16.8% over the past year, yet lags behind EQR. 

Despite MAA's underperformance, analysts remain moderately optimistic about its prospects. Among the 27 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $169 represents a 2.7% premium to the prevailing market prices.