DB:M2K

Stock Analysis Report

Mid-America Apartment Communities

Executive Summary

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States.

Snowflake

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Mid-America Apartment Communities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: M2K has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

M2K

1.1%

DE REITs

-0.5%

DE Market


1 Year Return

38.9%

M2K

32.1%

DE REITs

12.2%

DE Market

Return vs Industry: M2K exceeded the German REITs industry which returned 32.1% over the past year.

Return vs Market: M2K exceeded the German Market which returned 12.2% over the past year.


Shareholder returns

M2KIndustryMarket
7 Day2.5%1.1%-0.5%
30 Day1.7%1.8%4.4%
90 Day8.9%8.9%11.1%
1 Year43.7%38.9%36.9%32.1%15.8%12.2%
3 Year60.2%44.0%39.9%20.2%24.7%13.8%
5 Year154.6%112.6%54.3%20.8%35.0%16.6%

Price Volatility Vs. Market

How volatile is Mid-America Apartment Communities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mid-America Apartment Communities undervalued compared to its fair value and its price relative to the market?

59.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: M2K (€123) is trading above our estimate of fair value (€121.52)

Significantly Below Fair Value: M2K is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: M2K is poor value based on its PE Ratio (59.9x) compared to the REITs industry average (8.1x).

PE vs Market: M2K is poor value based on its PE Ratio (59.9x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: M2K is poor value based on its PEG Ratio (23.3x)


Price to Book Ratio

PB vs Industry: M2K is overvalued based on its PB Ratio (2.6x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is Mid-America Apartment Communities forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M2K's forecast earnings growth (2.6% per year) is above the savings rate (0.2%).

Earnings vs Market: M2K's earnings (2.6% per year) are forecast to grow slower than the German market (12.9% per year).

High Growth Earnings: M2K's earnings are forecast to grow, but not significantly.

Revenue vs Market: M2K's revenue (3.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: M2K's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if M2K's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mid-America Apartment Communities performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M2K has high quality earnings.

Growing Profit Margin: M2K's current net profit margins (16.1%) are lower than last year (18.1%).


Past Earnings Growth Analysis

Earnings Trend: M2K's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: M2K's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: M2K had negative earnings growth (-7%) over the past year, making it difficult to compare to the REITs industry average (103.4%).


Return on Equity

High ROE: M2K's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mid-America Apartment Communities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: M2K has a high level of physical assets or inventory.

Debt Coverage by Assets: M2K's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: M2K's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if M2K has a sufficient allowance for bad loans.

Low Risk Liabilities: M2K reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if M2K has an acceptable proportion of non-loan assets held.

Low Risk Deposits: M2K has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if M2K has an appropriate level of bad loans.


Next Steps

Dividend

What is Mid-America Apartment Communities's current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.3%markettop25%3.7%industryaverage2.9%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: M2K's dividend (2.79%) is higher than the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: M2K's dividend (2.79%) is low compared to the top 25% of dividend payers in the German market (3.7%).


Stability and Growth of Payments

Stable Dividend: M2K's dividends per share have been stable in the past 10 years.

Growing Dividend: M2K's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), M2K's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: M2K's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of Mid-America Apartment Communities's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

H. Bolton (62yo)

18.1yrs

Tenure

US$4,660,152

Compensation

Mr. H. Eric Bolton Jr., has been the Chief Executive Officer at Mid-America Apartment Communities, Inc. since October 2001; Chairman since September 2002 and President since December 1996. Mr. Bolton joine ...


CEO Compensation Analysis

Compensation vs Market: H.'s total compensation ($USD4.66M) is about average for companies of similar size in the German market ($USD4.61M).

Compensation vs Earnings: H.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.9yrs

Average Tenure

51yo

Average Age

Experienced Management: M2K's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

68yo

Average Age

Experienced Board: M2K's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: M2K insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$616,25307 Nov 19
David Stockert
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$123.25
SellUS$222,70102 Aug 19
David Stockert
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,047
Max PriceUS$108.79
SellUS$637,80803 May 19
Claude Nielsen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,500
Max PriceUS$98.12
SellUS$163,40215 Feb 19
David Stockert
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,777
Max PriceUS$91.95

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • H. Bolton (62yo)

    Chairman

    • Tenure: 18.1yrs
    • Compensation: US$4.66m
  • Tom Grimes (50yo)

    Executive VP & COO

    • Tenure: 7.9yrs
    • Compensation: US$2.40m
  • Leslie Bratten Wolfgang

    Senior VP

    • Tenure: 0yrs
  • David Ward (60yo)

    Executive VP of Development

    • Tenure: 0yrs
  • Al Campbell (52yo)

    Executive VP & CFO

    • Tenure: 9.8yrs
    • Compensation: US$2.21m
  • Rob DelPriore (50yo)

    Executive VP & General Counsel

    • Tenure: 6.3yrs
    • Compensation: US$2.00m
  • Joseph Fracchia

    Senior VP & Chief Information Officer

    • Tenure: 2.9yrs
  • A. Holder (42yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.8yrs
  • Jennifer Patrick

    Investor Relations Contact

    • Tenure: 11.7yrs
  • Matthew Smith

    Senior Vice President of Investments

    • Tenure: 0yrs

Board Members

  • Alan Graf (65yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$232.23k
  • Tom Lowder (69yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$200.98k
  • James Lowder (69yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$201.92k
  • Claude Nielsen (68yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$210.98k
  • H. Bolton (62yo)

    Chairman

    • Tenure: 18.1yrs
    • Compensation: US$4.66m
  • Dave Stockert (56yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$200.98k
  • William Sanders (69yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$208.48k
  • Phil Norwood (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$219.73k
  • Gary Shorb (68yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$202.23k
  • Monica McGurk (49yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$204.73k

Company Information

Mid-America Apartment Communities, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mid-America Apartment Communities, Inc.
  • Ticker: M2K
  • Exchange: DB
  • Founded: 1977
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$16.264b
  • Market Cap: US$14.172b
  • Listing Market Cap: US$14.679b
  • Shares outstanding: 118.14m
  • Website: https://www.maac.com

Number of Employees


Location

  • Mid-America Apartment Communities, Inc.
  • 6815 Poplar Avenue
  • Suite 500
  • Germantown
  • Tennessee
  • 38138
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAANYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1994
M2KDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1994
0K1ELSE (London Stock Exchange)YesCommon SharesGBUSDJan 1994
MAA.PRINYSE (New York Stock Exchange)PFD SER IUSUSDDec 2016

Biography

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, de ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 20:47
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.