Mid-America Apartment Q3 FFO Rises, Tops View; Lifts FY Outlook

(RTTNews) - Mid-America Apartment Communities Inc. (MAA) Wednesday reported an increase in funds from operations for the third quarter, as rental revenues surged. FFO for the quarter came in ahead of Wall Street estimates.

Third-quarter funds from Operations, or FFO, rose to $103.8 million or $1.31 per share from $50.1 million or $1.13 per share last year. On average, ten analysts polled by Thomson Reuters expected FFO of $1.21 per share for the quarter. Analysts' estimates typically exclude special items.

Core FFO, which excludes non-recurring items, improved to $101.6 million or $1.28 per share from $55.4 million or $1.25 per share a year ago.

Net income for the quarter increased to $67.0 million or $0.89 per from $44.3 million or $1.04 per share last year.

Total operating revenues increased to $248.8 million from $135.4 million last year. Analysts had a consensus revenue estimate of $247.3 million for the quarter.

Chief Executive Eric Bolton said, "Third quarter results reflect a continued strong level of rental demand across our portfolio. Solid rent growth and strong occupancy performance continue as the demand for apartment housing outpaces new supply trends across the Sunbelt region."

Mid-America Apartment declared quarterly dividend, which will be paid on October 31, 2014 to holders of record on October 15, 2014.

Looking ahead, the company now expects Core FFO for the full year in the range of $4.87 to $4.99 per share, up from prior outlook of $4.79 to $4.95 per share. Analysts currently expect FFO of $4.86 per share.