MAA downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank analyst Nicholas Yulico downgraded MAA to Sector Perform from Outperform. The firm now expects incremental pressure on Sunbelt markets in 2023-2024 due to weakening demand environment paired with higher supply impact, the analyst tells investors in a research note. MAA’s lower price-point rents, diversified Sunbelt portfolio and low-leverage balance sheet is attractive in a weakening credit environment, but Scotiabank thinks investors are increasingly unwilling to pay a premium for the stock as growth slows within the Multifamily subsector.