Mid-America Apartment (NYSE: MAA) reported Q3 EPS of $1.00, $0.59 better than the analyst estimate of $0.41. Revenue for the quarter came in at $384.55 million versus the consensus estimate of $387.98 million.

Highlights

• The Combined Adjusted Same Store portfolio of properties generated a 1.7% increase in revenues for the third quarter supported by strong Average Physical Occupancy of 96.1% and effective rent growth of 2.1%.
• Combined Adjusted Same Store property operating expenses grew by 3.2%, impacted by expenses incurred during the quarter resulting from Hurricanes Harvey and Irma. As a result, Combined Adjusted Same Store NOI increased 0.8% for the quarter as compared to the same period in the prior year. Excluding the hurricane related expenses incurred, Combined Adjusted Same Store NOI increased 1.8% as compared to the same period in the prior year.
• Within the Combined Adjusted Same Store Portfolio, rents on renewals and leases written for new resident move-ins in the third quarter combined to average 2.6% higher than the previous in-place leases.
• Resident turnover for the Combined Adjusted Same Store Portfolio remained low for the third quarter at 50.4% on a rolling twelve month basis.
• During the third quarter, MAA sold three properties, which were located in the Lakeland, Florida; Montgomery, Alabama; and Fort Worth, Texas markets. The sale of these three communities with an average age of 28 years achieved an economic cap rate after capex of 5.3%.
• During the third quarter, MAA completed development of a new apartment community located in Atlanta, Georgia, and as of the end of the third quarter, MAA had five development projects underway.
• MAA's development projects include 1,434 units, with a total projected cost of approximately $305.0 million, with approximately $69.7 million remaining to be funded as of the end of the third quarter.
• As of the end of the third quarter, three properties remained in lease-up, including one development project completed during the third quarter, with average quarter-end physical occupancy of 61.5% for the group.
• During the nine months ended September 30, 2017, MAA completed renovation of 6,543 units under its redevelopment program, achieving average rental rate increases of 9.5% above non-renovated units.

For earnings history and earnings-related data on Mid-America Apartment (MAA) click here.