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    Jeff Spector • Bank of America

    Jeff Spector's questions to Mid-America Apartment Communities Inc (MAA) leadership

    Jeff Spector's questions to Mid-America Apartment Communities Inc (MAA) leadership • Q4 2024

    Question

    An analyst on behalf of Jeff Spector asked if demographic shifts are influencing MAA's long-term portfolio strategy regarding asset class and urban/suburban mix. They also requested details on recent transaction cap rates and the target yield spread between development and acquisitions.

    Answer

    Brad Hill, President and CEO, affirmed that the long-term strategy remains consistent, focusing on high-demand Sunbelt regions with a diverse market mix to attract a broad renter base. On transactions, he disclosed that recent dispositions traded at cap rates in the low 6% range, while acquisitions of lease-up assets are projected to stabilize near 6%. He highlighted that their new developments are yielding around 6.4%, representing a 140-basis-point spread over current market cap rates of approximately 5.5%.

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    Jeff Spector's questions to Douglas Emmett Inc (DEI) leadership

    Jeff Spector's questions to Douglas Emmett Inc (DEI) leadership • Q4 2024

    Question

    Jeff Spector of Bank of America requested more color on the market dynamics supporting the positive absorption outlook for 2025, beyond just lower lease expirations. He also asked for details on the industries driving the new demand from larger tenants.

    Answer

    President and CEO Jordan Kaplan attributed his optimism to a significant increase in leasing activity and showings, particularly the return of tenants seeking over 10,000 square feet, which he noted was a missing piece previously. Executive Stuart McElhinney added that the Q4 demand from larger tenants was broad-based and not concentrated in any single industry.

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    Jeff Spector's questions to Douglas Emmett Inc (DEI) leadership • Q3 2024

    Question

    An analyst on behalf of Jeff Spector of Bank of America asked for the source of confidence that leasing to tenants over 10,000 square feet will continue into 2025. He also inquired about which specific industries are driving the current leasing demand.

    Answer

    President and CEO Jordan Kaplan clarified that while the current pipeline for larger tenants looks good, he cannot predict its continuation into 2025. However, he expressed confidence based on a more favorable lease expiration schedule over the next five years, which should aid in achieving positive absorption. Executive Stuart McElhinney added that recent leasing demand was broad-based across all key industries, including legal, financial services, entertainment, and healthcare.

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