Stock Monitor: Ellington Residential Mortgage Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 15, 2018 / Active-Investors.com has just released a free earnings report on Mid-America Apartment Communities, Inc. (NYSE: MAA) ("MAA"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=MAA. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 31, 2018. The Memphis, Tennessee-based real estate investment trust beat funds from operations (FFO) estimates, and provided guidance for the upcoming quarter and full year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Mid-America Apartment Communities most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the quarter ended December 31, 2017, MAA recorded rental and other property revenues of $382.74 million, up 25% compared to $307.20 million in Q4 2016. The Company's revenue numbers lagged analysts' estimates of $386.3 million.
For the full year FY17, MAA generated rental and other property revenues of $1.53 billion, reflecting a growth of 35% versus $1.13 billion in FY16.
During Q4 2017, the Company's net income available for common shareholders was $122.5 million, or $1.08 per diluted common share, compared to $39.1 million, or $0.44 per diluted common share, for Q4 2016. The Company's reported quarter results included gains related to the sale of real estate assets of $0.60 per share; merger and integration costs related to the merger transaction with Post Properties, Inc. of $0.05 per share; and non-cash income related to an embedded derivative in the preferred shares issued in the Post Properties Merger of $0.03 per share. MAA's Q4 2016 results included gains related to the sale of real estate assets of $0.36 per share, and merger and integration costs related to the Post Properties Merger of $0.42 per share.
For Q4 2017, MMA's FFO was $177.2 million, or $1.50 per diluted share, compared to $104.2 million, or $1.13 per diluted share, for Q4 2016. The Company's reported quarter results included a non-cash income related to an embedded derivative in the preferred shares of $0.03 per share, and merger and integration costs related to the Post Properties Merger of $0.05 per share compared to $0.40 per share for Q4 2016. The Company's FFO numbers beat Wall Street's estimates of $1.48 per share.
For FY17, the Company's net income available for common shareholders was $324.7 million, or $2.86 per diluted common share, compared to $211.9 million, or $2.69 per diluted common share, for FY16. MAA's FFO was $699.6 million, or $5.94 per share, for FY17 compared to $463.4 million, or $5.59 per share, for FY16.
During Q4 2017, MAA's combined adjusted same store portfolio generated a 1.8% growth in revenues, supported by a strong average physical occupancy of 96.2%, and an effective rent growth of 1.7%. Resident turnover for the combined adjusted same store portfolio remained low at 50.1% on a rolling twelve-month basis for the reported quarter.
Acquisition and Disposition Activities
During Q4 2017, MAA acquired a newly-developed apartment community, Acklen West End, a 320-unit property located in the Downtown/West End submarket of Nashville, Tennessee, for a purchase price of $71.8 million.
During Q4 2017, MAA sold two properties located in Atlanta, Georgia, for combined proceeds of $97.4 million, resulting in total net gains recognized on the sale of real estate assets of approximately $68.3 million. The sale of these two apartment communities, which had an average age of 19 years, achieved an economic cap rate after capital expenditure of 5.9%.
Development and Lease-up Activities
As of December 31, 2017, MAA had three development communities under construction, consisting of two new development communities and one expansion project. The total development costs for the three communities are projected to be $214.0 million, of which an estimated $46.3 million remained to be funded as of the end of Q4 2017.
MAA had five apartment communities, containing a total of 1,538 units, remaining in initial lease-up as of the end of Q4 2017. Physical occupancy for the five lease-up projects averaged 62.5% as of December 31, 2017.
During Q4 2017, MAA redeveloped a total of 1,832 units at an average cost of $6,503 per unit, bringing the total units renovated to 8,375 during the year ended December 31, 2017, at an average cost of $5,463; achieving average rental rate increases of 8.8% above non-renovated units.
During Q4 2017, MAA paid $47.5 million relating to the remaining balances on two secured property mortgages, and $80.0 million relating to the partial pay-down of its secured credit facility with the Federal National Mortgage Association.
As of December 31, 2017, MAA's total debt to total assets ratio was 33.2% compared to 33.9% as of December 31, 2016. The Company's total debt outstanding was $4.5 billion at an average effective interest rate of 3.6%. Out of the total debt, 83.0% of total debt was fixed or hedged against rising interest rates for an average of 4.7 years. MAA had approximately $598.3 million of combined cash and capacity under its unsecured revolving credit facility.
For FY18, MAA is forecasting net income per diluted share to be in the range of $1.78 to $2.08. The Company is expecting FFO per share to be in the band of $5.85 to $6.15 for FY18. MAA's initial guidance is based on projections of revenue growth for the MAA same store portfolio of 1.75% to 2.25% for FY18, while expense growth is expected to be in the range of 1.5% to 2.5%.
For Q1 2018, MAA is forecasting FFO per share to be in the band of $1.38 to $1.48. The Company does not forecast net income per diluted share on a quarterly basis.
Stock Performance Snapshot
February 14, 2018 - At Wednesday's closing bell, Mid-America Apartment Communities' stock marginally fell 0.16%, ending the trading session at $87.85.
Volume traded for the day: 751.72 thousand shares, which was above the 3-month average volume of 746.03 thousand shares.
After yesterday's close, Mid-America Apartment Communities' market cap was at $9.97 billion.
Price to Earnings (P/E) ratio was at 56.17.
The stock has a dividend yield of 4.20%.
The stock is part of the Financial sector, categorized under the REIT - Residential industry. This sector was up 1.8% at the end of the session.
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