Home Featured Mid-America Apartment Communities Sees Continued Apartment Housing Demand

Mid-America Apartment Communities Sees Continued Apartment Housing Demand

146
SHARE

Mid-America Apartment Communities wrapped up 2018 slightly ahead of where the company expected with FFO per share of $6.06 per share excluding the non-cash mark-to-market accounting adjustment related to the preferred shares. “We’re encouraged with our fourth quarter results as positive trends and rent growth and high occupancy are clearly evident while the new supply pipeline in several markets will challenge near-term rent growth,” explained CEO Eric Bolton on the firm’s Q4 earnings call. “We’re encouraged with the continued strong demand for apartment housing across our markets.”

He explained that the company’s portfolio continues to benefit from strong job growth and overall high demand for apartment housing. “We continue to believe that new supply pressure in 2019 will remain elevated but down slightly from 2018.”

In summary, he said that the REIT expects 48% of its portfolios’ market exposure will show some level of improvement in 2019 with lower supply as compared to prior year. He added that 44% of the company’s market exposure is expected to see slightly higher levels of new delivery in 2019. “And 8% of the portfolio exposure will see current year deliveries in line with prior year new deliveries. Assuming the demand side equation remains strong we expect the positive pricing momentum we’ve seen over the back half of 2018 to continue through calendar year 2019.”

He explained on the call that “As we continue to work through the later stages of the current cycle we do expect to see developers get a little more aggressive with their lease-up tactics and have dialed that into our expectations for 2019. With the goal of maximizing long-term revenue results we remain focused on continuing to capture the encouraging trends in rent growth.”