Mid-America Apartment Communities: Fair Value On The Common, Be Careful With The Preferred
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IWA Research1.88K FollowersFollow5ShareSavePlay(14min)CommentsSummaryMid-America Apartment Communities trades near intrinsic value, limiting the risk-reward despite potential tailwinds and improving supply-demand dynamics.MAA expects a ~50% drop in new supply deliveries in 2025, potentially supporting rent and occupancy recovery into 2026.MAA maintains a sustainable ~4.57% dividend yield with a ~78% payout ratio, supported by a well-laddered, mostly fixed-rate debt profile.Preferred shares (MAA.PR.I) offer minimal upside, as redemption is likely post-October 2026, with neither option being attractive at current prices.
Daniel Villalobos Oliver/iStock Editorial via Getty Images Introduction Mid-America Apartment Communities (MAA) is now back to some of its lowest levels in the past half a decade, with the industry facing oversupply issues and more potential headwinds from theThis article was written byIWA Research1.88K FollowersFollowAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.