Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (September 2021)
31 slides from Mid-america Apartment Communities's investor presentation, Sep 13, 2021
Slide 1: Capital Markets Update September 2021
Capital Markets Update September 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking sta
Slide 3: Differentiated Portfolio Strategy
Differentiated Portfolio Strategy MAA is uniquely diversified and balanced across the high-growth Sunbelt region, appealing to the largest segment of the rental market, which drives strong demand and greater stability. Outlook & Update Portfolio strategy supports above-sector-average performance exp
Slide 4: Unique Market Diversification and Submarket Balance across the Sunbelt Region
Unique Market Diversification and Submarket Balance across the Sunbelt Region 4 1 Based on gross asset value at 6/30/2021 for total multifamily portfolio 2 Average effective rent/unit for 2Q 2021 of $1,350 or higher for A to A+ and below $1,350 for B to B+ for total multifamily portfolio 3 Garden st
Slide 5: Cumulative Rent Growth Projections: 2021-2025
Cumulative Rent Growth Projections: 2021-2025 Strong Rent Growth Prospects for Sunbelt Markets 5 Source: Yardi Matrix Bulletin, April 2021; Green Street, company data
Slide 6: 2021 Same Store Outlook
2021 Same Store Outla REVENUE EXPENSE Property Revenue Growth Full Voor 2021 Forcast Blended Lease Over Lease Paton 3.75% 4.25% 4.0% 65% -7.5% 1% 7.0' Midpoint ‘combined growth ate oxpectos fo al now leases and renewal ong to ‘Hectin 2028 Full oar 2024 Forecast 95.7%-96.1% 95.9% Midpoint Expected to
Slide 7: 2021 Core FFO and Investment Outlook
2021 Core FFO and Investment Outlook 7 1 In this context, per Share means per diluted common share and unit. 2 Net income per diluted common share is expected to be in the range of $3.79 to $3.99 per diluted common share ($3.89 at the midpoint) for the full year 2021. A reconciliation of Net Income
Slide 8: 2021 Operating Update
2021 Operating Update EFFECTIVE teases, AVG Pricing Growth Lease Over Lease RENEWAL AVG Pricing Growth LENDE! AVG Pricing Growth Lease Over Lease ‘Average Physical OCCUPANCY 96.4% 20.0% 143% 96.4%
Slide 9: High Quality Resident Profile + Affordable Rents = Solid Collections Performance
High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Rent Growth Opportunity 9
Slide 10: Continued Low Resident Turnover
Continued Low Resident Turnover 10 Throughout the pandemic our total move outs to a single family home have stayed within the historical average (range of 25% - 27%). Trailing 12 Month Resident Turnover % of Total Move Outs to Rent or Buy Single Family Homes Resident Turnover and Move Outs Associate
Slide 11: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value 11 2020 and 2021 Roll-out Mobile control of lights, thermostat and security as well as leak monitoring provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Con
Slide 12: Next Generation Platform Expands and Upgrades Leasing Toolbox
12 MAA continues to adopt, develop and deploy innovative solutions to enhance our leasing efficiency and effectiveness as well as our online presence Adapting our approach as prospects’ needs change, multiple tour options available including contactless visits Prominent Call to Action buttons to inc
Slide 13: Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years
13 Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years Property Redevelopment Program Opportunity Approximately 11K units remaining for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn a
Slide 14: Future Redevelopment Opportunity
Future Redevelopment Opportunity 14 Potential for Continued Value Capture Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Top 10 2021 Markets For Redevelopment Atlanta, GA Tampa, FL Charlotte, NC Dallas, TX Washington, DC Phoenix, AZ Nashville, TN Raleigh/Durham, NC
Slide 15: Repositioning Select Properties to Drive Additional Value
15 Repositioning Select Properties to Drive Additional Value MAA Buckhead, Atlanta, GA Updated Leasing Centers Conference Areas to Support Remote Work Exterior Amenities for Today’s Lifestyles MAA Stratford, Atlanta, GA MAA McKinney, Dallas, TX Dramatic Transformations MAA Worthington, Dallas, TX Pr
Slide 16: Development Program Supports Balanced and Diversified Portfolio Strategy
Development Program Supports Balanced and Diversified Portfolio Strategy 16 Novel Daybreak, Salt Lake City, UT Novel West Midtown, Atlanta, GA MAA Windmill Hill, Austin, TX Sand Lake, Orlando, FL MAA Park Point, Houston, TX MAA Westglenn, Denver, CO Novel Val Vista, Phoenix, AZ MAA Robinson, Orlando
Slide 17: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value 17 Established history and success of disciplined capital deployment will govern growth through new development Design and investment managed from an owner/operator perspective; long-term margins optimized Spread between forecasted cost basi
Slide 18: Investment Grade Balance Sheet
Investment Grade Balance Sheet 18 Note: Total Capitalization is defined here as common shares and units outstanding multiplied by the closing stock price on 6/30/2021, plus total debt outstanding at 6/30/2021, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstanding).
Slide 19: Strong Balance Sheet and Manageable Debt Maturity Profile
Strong Balance Sheet and Manageable Debt Maturity Profile 19 1 MAA calculations as specifically defined in Mid-America Apartments, L.P.’s debt agreements. 2 Sector average represents publicly disclosed sector equivalent. 3 Sector constituents include AVB, CPT, EQR, ESS and UDR; data is from 2Q 2021
Slide 20: A Brighter View for Today and Tomorrow: Our Sustainability Commitment
20 A Brighter View for Today and Tomorrow: Our Sustainability Commitment 34% Improvement over Prior Year 2020 Achievements Public GRESB Assessment | Corporate Responsibility Report 30 30 GRESB SCORE GREEN STAR MANAGEMENT SCORE PERFORMANCE SCORE Available on “For Investors” page at www.maac.com 2018
Slide 21: Supporting Our Associates' Well-Being
SUPPORTING OUR ASSOCIATES’ WELL--BEING 21 A Brighter View for Today and Tomorrow: Our Sustainability Commitment Responsive service program and routine surveys Online resident portal for ease of transactions, service request submission and communication Property amenities to promote healthy lifestyle
Slide 22: Performance for Shareholders: Steady Annual Core FFO Growth
Performance for Shareholders 22 Steady Annual Core FFO Growth SOURCE: S&P Global 1 Peer average includes multifamily peers: AVB, CPT, EQR, ESS and UDR & excludes MAA
Slide 23: Appendix
Appendix 23 At June 30, 2021 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 24 (1) Included in Other non-operating (income) expense in the Consolidated Statements of Operations. (2) For the three and six months ended June 30, 2021, $6.3 million and $7.9 million, respectively, of gains from unconsolidated limited partnerships are
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 26 (1) Included in Other non-operating (income) expense in the Consolidated Statements of Operations. (2) For the three and twelve months ended June 30, 2021, $6.3 million and $8.6 million, respectively, of gains from unconsolidated limited partnerships
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 28 (1) Non-Core items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, adjustments for gains or losses from unconsolidated limited partnersh
Slide 29: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 29 Adjusted EBITDAre For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered p
Slide 30: Definitions of Non-GAAP Financial Measures: Funds From Operations (FFO)
Definitions of Non-GAAP Financial Measures 30 Funds From Operations (FFO) FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of
Slide 31: Definitions of Other Key Terms
Definitions of Other Key Terms 31 Average Effective Rent per Unit Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leas
Mid-America Apartment Communities — Investor Presentation (September 2021) on 6ix