Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (August 2013)
22 slides from Mid-america Apartment Communities's investor presentation, Aug 6, 2013
Slide 1: Capital Markets Update
Exhibit 99.1 Capital Markets Update August 2013
Slide 2: MAA overview
MAA overview $4.7 billion total market capitalization, 165 Properties, 49,113 Units – $8.7 billion total market capitalization, post merger Focus on the High-Growth – Second largest multifamily REIT based on unit count: 85,000 units, post merger Sunbelt 19+ year established public company platform R
Slide 3: 2Q13 results ahead of expectations
2Q13 results ahead of expectations FFO per diluted share and unit of $1.27, 12% growth over 2Q12 and $0.05 above the midpoint of guidance previously 1 provided. Same store results over 2Q12: – NOI increased 5.5% – Revenue increased 4.4%, supported by a 4.1% increase in average effective rent – Occup
Slide 4: Proven strategy and long term outperformance
Proven strategy and long term outperformance Total return performance – 10 years % 321% 350 MAA MSCIUS REIT Index Multifamily peers 300 250 219% 200 179% 150 100 50 0 -50 06/30/03 06/29/04 06/29/05 06/29/06 06/29/07 06/28/08 06/28/09 06/28/10 06/28/11 06/27/12 06/28/13 Note: Multifamily peers includ
Slide 5: Strategy
Strategy Build Focus on high-growth region and markets Consistent Appeal to wide range of rental market Growing Cash Flow Maintain young portfolio Diversify across both large and secondary markets Reduce Maintain strong balance sheet; access to capital Volatility Maintain organizational stability Ma
Slide 6: Full cycle outperformance
Full cycle outperformance Same store NOI growth 10.0% MAA Multifamily peers 8.0% 6.0% 4.0% MAA average: 3.2% 2.0% Peer average: 3.1% 0.0% MAA 2009 trough: (1.8%) (2.0)% (4.0)% (6.0)% Peer 2009 trough: (4.7%) (8.0)% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Green Street Residential Sector
Slide 7: Enhanced diversification across high-growth Sunbelt Region post merger
Enhanced diversification across high-growth Sunbelt Region post merger Portfolio distribution by total units ¹ Nevada less than 2,000 Units Virginia Missouri Kentucky North 2,000–5,000 Units Carolina Tennessee Arizona Arkansas South greater than 5,000 Units Carolina Georgia Alabama Texas Florida Not
Slide 8: Synergy and enhanced value creation potential through merger
Synergy and enhanced value creation potential through merger Significant overlap in asset footprint creates potential for overhead synergies and operating margin improvement Significant overlap in technology to drive and track performance, leading to minimal business disruption Opportunity to improv
Slide 9: Merger timeline
Merger timeline Announcement Expected Close Full Integration April 2014 June 3, 2013 September 2013 December 2014 Identified $25M of synergies: Lender consents on $2.6 billion Early integration efforts Realize 100% of synergy 75% personnel in debt complete opportunity 25% non-personnel Numerous join
Slide 10: Significant presence in both large and secondary, high growth markets
Significant presence in both large and secondary, high growth markets 5-year projected employment growth CAGR (%) Large markets with meaningful presence Major non-MAA markets 3.7% 3.2% 3.2% 3.0% 2.8% 2.8% 2.6%2.6% 2.5% 2.3% 2.3% 2.4% 2.1% 2.1% 2.0% 2.0% 2.0% U.S. average: 2.0% 1.8%1.8%1.8% 1.6% 1.5%
Slide 11: New MAA will have an enhanced full cycle market focus across the Sunbelt region
New MAA will have an enhanced full cycle market focus across the Sunbelt region % of 2Q13 same store NOI by market Large markets Secondary markets 69.1% 61.0% 54.8% 45.2% 39.0% 30.9% MAA CLP New MAA 2Q13 unit count by market Top 10 markets by NOI MAA CLP New MAA Large markets Secondary markets 1 DFW
Slide 12: External growth – acquisition activity
External growth – acquisition activity Active capital redeployment Price Cap (000s) Units Rate Age MAA Acquisitions by Year (wholly-owned): 2009 $ 78,300 1,064 6.9% 4 2010 $ 230,050 2,138 6.0% 1 2011 $ 362,515 3,055 5.9% 3 2012 $ 345,075 2,451 5.6% 6 2013 YTD $ 103,642 886 5.9% 4 $ 1,119,582 9,594 5
Slide 13: New MAA will have enhanced deal flow opportunities
New MAA will have enhanced deal flow opportunities Legends at Lowe’s Farm Colonial Reserve at Las Colinas • MAA purchase: Sept. 2011 • CLP purchase: Nov. 2012 • MSA: Dallas, TX • MSA: Dallas, TX • Acquisition price: $47mm • Acquisition price: $43mm • Total units: 456 • Total units: 306 • Year built:
Slide 14: New MAA will maintain a disciplined approach to new development
New MAA will maintain a disciplined approach to new development Active multifamily development pipeline ($mm, except per unit costs) Total Cost Expected Cost Expected MSA Units to Date to Complete Total Per Unit Stabilization MAA River's Walk Charleston 270 $ 27.1 $ 6.3 $ 33.4 $ 124 4Q14 220 Riversi
Slide 15: Strong investment grade balance sheet – capital structure profile
Strong investment grade balance sheet – capital structure profile New MAA capital structure % of unencumbered assets Floating vs. fixed rate debt Unsecured vs. secured debt 39.2% debt / market capitalization Note: As of 8/1/13. Includes pro rata share of unconsolidated joint venture debt 15
Slide 16: Investment grade balance sheet metrics
Investment grade balance sheet metrics Debt / LTM EBITDA LTM fixed charge coverage ratio 9.0x 5.0x 4.6x 7.9x 8.1x 4.5x 8.0x 3.8x 4.0x 3.5x 3.5x 3.4x 7.0x 6.5x 3.5x 3.0x 6.3x 6.4x 2.7x 2.7x 6.0x 6.0x 3.0x 6.0x 2.5x 2.0x 5.0x 4.5x 1.5x 4.0x 1.0x 0.5x 3.0x 0.0x AVB CPT PPS EQR BRE New ESS UDR AVB CPT P
Slide 17: Opportunity
Opportunity • MAA is currently priced at a multiple and Implied 10 Year IRR implied cap rate discount to the sector • MAA outperforms by 100 bps on unleveraged basis average. with continued cap rate discount. • MAA outperforms by 175 bps on a leveraged basis. 1 • Implies long term same store earning
Slide 18: Strategy and long-term outlook
Strategy and long-term outlook Optimize cash flow growth through “full-cycle” Support growing and secure dividend Deliver superior long-term risk-adjusted returns Focus on high-growth Sunbelt markets Prudent capital deployment practices Disciplined approach to new development Proactive capital recyc
Slide 19: High quality, well located properties in large markets
High quality, well located properties in large markets Allure at Brookwood Atlanta, GA 2012 Acquisition Bella Casita at Las Colinas Dallas, TX 2010 Acquisition 1225 South Church Charlotte, NC Phase I 2010 Acquisition Phase II Development Tattersall at Tapestry Park Jacksonville, FL 2011 Acquisition
Slide 20: High quality, well located properties in secondary markets
High quality, well located properties in secondary markets Rivers Walk Charleston, SC Development Market Station Kansas City, MO 2012 Acquisition Haven at Blanco San Antonio, TX 2012 Acquisition Ridge at Chenal Valley Little Rock, AR Development 20
Slide 21: Forward-looking statements
Certain matters in this presentation may constitute forward-looking statements within the meaning of Section 27-A of the Securities 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 anticipated economic and
Slide 22: Additional Information about the Proposed Merger Transaction and Where to Find It
Additional Information about the Proposed Merger Transaction and Where to Find It In connection with the proposed transaction, MAAexpects to file with the SEC a registration statement on Form S-4 that will include a definitive joint proxy statement of MAA and Colonial Properties Trust that also cons
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