Goldman Sachs Downgrades Mid-America Apartment Communities (MAA) to Neutral

Goldman Sachs analyst Julien Blouin downgraded Mid-America Apartment Communities (NYSE: MAA) from Buy to Neutral.

The analyst comments "In this note, we look at realtime trends for our single family rental and multifamily REIT names ahead of 2Q25 earnings. We find that while sunbelt demand (measured by gross absorption) is now outpacing supply, significant vacancy levels remain and will need to be worked through before pricing power improves. As a result, we downgrade MAA, as we believe rent growth expectations are too elevated over the next several quarters, and we are now 0.5% and 2% below consensus FFO in 2025 and 2026, respectively. Realtime rent growth data implies that new lease rent growth peaked earlier than typical in multiple key markets (including Washington DC, Houston, Los Angeles, and Boston), but conversely has continued to accelerate in the city of San Francisco (where each of EQR/ESS/UDR all have minor exposures). Census BTR starts declined in 4Q24 and remained subdued in 1Q25, which could bode well for 2H25 deliveries, however in the near term we believe key SFR markets will continue to feel the impacts of supply pressures in peak leasing season (SFR listings across multiple key markets have continued to rise). On valuation, we believe SFR REITs screen particularly attractive (trading at the widest discount to REITs since 1Q22). See below for more details."

For an analyst ratings summary and ratings history on Mid-America Apartment Communities click here. For more ratings news on Mid-America Apartment Communities click here.

Shares of Mid-America Apartment Communities closed at $151.10 yesterday.

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