Mid-America Apartment (NYSE: MAA) reported Q4 EPS of $1.30, $0.71 better than the analyst estimate of $0.59. Revenue for the quarter came in at $416.82 million versus the consensus estimate of $417 million.

GUIDANCE:

Mid-America Apartment sees FY2020 EPS of $3.02-$3.26, versus the consensus of $2.45.

2020 Net Income per Diluted Common Share and Core FFO and Core AFFO per Share Guidance

MAA is providing initial 2020 guidance for Net income per diluted common share, as well as Core FFO per Share, and Core AFFO per Share. FFO, Core FFO and Core AFFO are non-GAAP measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP measures found later in this release, MAA\'s definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT's, definition, and Core FFO represents FFO further adjusted for items that are not considered part of MAA's core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance. MAA intends to update Net income per diluted common share, Core FFO per Share and Core AFFO per Share guidance on a quarterly basis.

Net income per diluted common share is expected to be in the range of $3.02 to $3.26 per diluted common share, or $3.14 per diluted common share at the midpoint, for the full year of 2020. Core FFO per Share for the year is expected to be in the range of $6.38 to $6.62 per Share, or $6.50 per Share at the midpoint. This initial guidance is based on projections of Same Store Portfolio property revenue growth of 3.25% to 4.25% for the full year based on continued strong occupancy, low resident turnover and steady leasing conditions, while Same Store Portfolio operating expense growth is expected to be in the range of 3.75% to 4.75% for the full year. A primary driver of the operating expense growth range is the expectation of continued increases in property real estate taxes. As a result, Same Store NOI growth for the full year is expected to be 3.00% to 4.00%. FFO guidance for 2020 includes an expected effective interest rate range of 3.9% to 4.1%. MAA expects Core FFO for the first quarter of 2020 to be in the range of $1.53 to $1.65 per Share, or $1.59 per Share at the midpoint. MAA does not forecast Net income per diluted share on a quarterly basis as MAA cannot accurately predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year).

MAA expects total recurring capital expenditures for the full year of 2020 to be approximately $79.0 million, which would produce expected Core AFFO per Share of $5.71 to $5.95 per Share, or $5.83 per Share at the midpoint, for the full year of 2020.

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