Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (February 2012)
21 slides from Mid-america Apartment Communities's investor presentation, Feb 13, 2012
Slide 1: MAA Update February 2012
MAA Update February 2012
Slide 2: MAA's Strategy
MAA | A BRIGHTER VIEW 2 MAA’s Strategy • Full Cycle Performance Objective - Establish high quality recurring cash flow - Capture lower volatility over full cycle - Platform supporting a secure and growing dividend • Sunbelt Region Focus - Superior demand side performance - Competitive advantages to
Slide 3: 17 Year Compounded Dividend Growth
MAA | A BRIGHTER VIEW 3 17 Year Compounded Dividend Growth MAA Sector Successful Public Platform MAA Annual Dividend $1.50 $1.70 $1.90 $2.10 $2.30 $2.50 $2.70 1995 1996 1997 19981999 200020012002200320042005 2006 2007 20082009 2010 20112012 • Over the long term, MAA total shareholder return has outp
Slide 4: Strong Performance Outlook At A Compelling Value
MAA | A BRIGHTER VIEW 4 Strong Performance Outlook At A Compelling Value • Positioned To Deliver Robust Internal Growth Through The Recovery Cycle – Job growth outlook and household formation trends ahead of national trends – New supply outlook very manageable relative to demand; strong positive abs
Slide 5: Well Positioned for Recovery Cycle: Job Growth
MAA | A BRIGHTER VIEW 5 Well Positioned for Recovery Cycle Employment growth in MAA’s markets expected to outpace the national average. Source: Bureau of Labor Statistics, Economy.com, Zelman & Associates Strong Job Growth & Household Formation Region Affordable, lower taxes, pro - business, extensi
Slide 6: Well Positioned for Recovery Cycle: Supply Dynamics
MAA | A BRIGHTER VIEW 6 Well Positioned for Recovery Cycle • MAA’s markets showing favorable supply dynamics for next few years • Permitting levels increasing, but MAA markets remain down 59% from 2006 peak – Only 50% to 70% market rate product – Much of large market product urban infill – Secondary
Slide 7: Active Redevelopment Program Will Further Support Revenue Growth
MAA | A BRIGHTER VIEW 7 Well Positioned for Recovery Cycle Active Redevelopment Program Will Further Support Revenue Growth Opportunities • $20M in redevelopment investment in 2010/11 • 4,900 units renovated in 2010/11 • Average rental rate increase for renovated units of 10% • 12,000 - 14,000 addit
Slide 8: Strong External Growth Prospects
MAA | A BRIGHTER VIEW 8 Strong External Growth Prospects • Significant deal flow and opportunities as a result of long established regional focus and in - place networks. • Extensive market and sub - market knowledge supports accurate and timely analysis. • Strong property management and asset manag
Slide 9: Acquisitions Providing Meaningful Future Growth
MAA | A BRIGHTER VIEW 9 Acquisitions Providing Meaningful Future Growth • Deals completed in 2011 purchased at an average 6% cap rate • Creating positive spread over cost of capital • Resulting in significant FFO accretion in first full year • Based on current estimated cost of capital, our annual a
Slide 10: Creating Value through External Growth
MAA | A BRIGHTER VIEW 10 Creating Value through External Growth • Significant improvement in operating margins drives value creation • MAA able to create value that less sophisticated operating platforms are unable to achieve • Capabilities and platform strength include: - Yield management systems a
Slide 11: Development Pipeline Supports Future Growth
MAA | A BRIGHTER VIEW 11 1225 South Church Charlotte Ridge at Chenal Valley Little Rock Venue at Cool Springs Nashville Development Pipeline Supports Future Growth • Well located, High quality properties • Pricing below replacement cost • Mix of Large and Secondary markets • Minimal development risk
Slide 12: Just Smart Capital Allocation
MAA | A BRIGHTER VIEW 12 -20%-15%-10% -5% 0% 5% MAA HME EQR ESS UDR AVB AEC AIV BRE CPT PPS CLP Source: Green Street Advisors, July 19, 2011, Just Smart Capital Allocation • Our extensive relationships, market knowledge, and disciplined acquisition process provide a consistent acquisition pipeline •
Slide 13: Disciplined Capital Deployment
MAA | A BRIGHTER VIEW 13 Disciplined Capital Deployment • Aggregate actual cash flows have exceeded proforma • Outperformed expectations despite significant economic downturn • Disciplined protocols for deploying capital • Creating value through the acquisition process and on - going management Note
Slide 14: Solid Balance Sheet Position
MAA | A BRIGHTER VIEW 14 Solid Balance Sheet Position • Balance Sheet significantly strengthened over last ten years • Total leverage (Debt + Preferred) reduced 18% over last ten years • Fixed charge coverage better than sector median 3.8 3.0 MAA Sector *Source: MAA and BMO Capital Market s Update (
Slide 15: Positioning Balance Sheet for Future
MAA | A BRIGHTER VIEW 15 Positioning Balance Sheet for Future • Pursuing Investment Grade Rating - Broaden capital sources - Constant access to capital - Lowest cost over long - term • Major Steps Accomplished - Reduced leverage (46% D/GA) - Recent Fitch Rating of BBB - $135M private placement unsec
Slide 16: Dividend History and Yield
MAA | A BRIGHTER VIEW 16 $2.64$2.51$2.46$2.46$2.46$2.42$2.38$2.35$2.34$2.34$2.34$2.34$2.32$2.30$2.20$2.14$2.04$2.00$1.21 65.3% 2.0% 4.9% 2.8% 4.5% 0.9% 0.9% 0% 0% 0% 0.4% 1.3% 1.7% 1.7% 0% 0% 2.0% 5.2% 2012201120102009200820072006200520042003200220012000199919981997199619951994* • MAA’s Current Divi
Slide 17: Attractive Pricing Opportunity
MAA | A BRIGHTER VIEW 17 Attractive Pricing Opportunity • MAA is currently priced at an implied cap rate discount to the sector average. • However, MAA’s historical long - term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding
Slide 18: Attractive Pricing Opportunity: FFO Growth and Multiple
MAA | A BRIGHTER VIEW 18 From 2000 - 2010, the compounded annual growth rate of MAA’s FFO/share is 2 nd highest in the sector. Strong record of performance and solid positioning for continued strong relative performance within sector, provides compelling opportunity at current pricing. FFO/Share Com
Slide 19: Summary
MAA | A BRIGHTER VIEW 19 Summary • Strong long - term performance record for shareholders • Established and proven public platform • Solid internal growth prospects • Competitive strengths enables regional outperformance • Robust external growth pipeline • Disciplined approach to capital deployment
Slide 20: Forward-looking statements
20 Certain matters in this presentation may constitute forward - looking statements within the meaning of Section 27 - A of the Securit ies Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about anticipate d e co
Slide 21: MAA
SEMAA
MID America Apartment Communities — Investor Presentation (February 2012) on 6ix