Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (February 2009)
20 slides from Mid-america Apartment Communities's investor presentation, Feb 10, 2009
Slide 1: Investor Update February 2009
Investor Update February 2009
Slide 2: Strong Public Company Platform
Strong Public Company Platform • 15-Year Track Record – Exclusively Multifamily – Top-Tier Returns to Shareholders – Value Investor, Strong Operator – Stable Leadership • High Quality Portfolio – 145 Communities; 42,554 Units – Younger Portfolio than Sector Average • Diversified in High Growth Regio
Slide 3: Strong Year of Performance in '08
Strong Year of Performance in ‘08 Lincoln on the Green, Memphis Chalet at Fall Creek, Houston
Slide 4: Strong Year of Performance in '08
Strong Year of Performance in ‘08 Lyon’s Gate, Phoenix Eagle Ridge, Birmingham • Unit Interior Upgrades – 3,782 units, $5,146 per unit – $18 MM total invested – Average $82/month rent increase, or 11% • Operating Platform Upgrades – Roll-out of web-based marketing and customer interface/service prog
Slide 5: Out-Performing Sector
Out-Performing Sector MAA compounded annual FFO growth has been 3.5% versus the sector average of 0.9% Steady FFO growth has generated healthy growth in AFFO (FFO minus recurring capital expenditures); resulting in one of the top-tier dividend pay-out ratios and balance sheets.
Slide 6: Outlook for Apartment Leasing
Outlook for Apartment Leasing Source: Witten Advisors Weak employment trends will result in meaningful moderation in revenue growth in 2009 and first half of 2010. Late and into 2011 recovery looks to be very strong. For informational purposes only. Do not use or disclose this information for any pu
Slide 7: Outlook for Apartment Leasing
Outlook for Apartment Leasing Source: Witten Advisors For informational purposes only. Do not use or disclose this information for any purpose other than within the context of this presentation. Delivery of new supply collapses setting up for very strong positive absorption...high occupancies and st
Slide 8: Outlook for Apartment Leasing
Outlook for Apartment Leasing Positive demographic trends expected to further fuel a very strong recovery for apartment leasing fundamentals. Green Street Advisors, Apartment REITs - ’08 & ’09 Market Outlook, 11/30/07 • New construction is less than half of 1999 peak. Projected to decline further 20
Slide 9: MAA Is Well Positioned
MAA Is Well Positioned MAA’s Ability to Continue Strong Performance…through the weaker part of the cycle as well as in the strong recovery period to follow…is driven by a few key variables. Silverado, Austin • Focus on High Growth Sunbelt Region with Strong Diversification • Proven Strong Operating
Slide 10: Focus on High Growth Sunbelt
National MSA Average 1.1% Sunbelt Region MSA Average 1.5% Focus on High Growth Sunbelt Employment Growth Projections ’09 - ’13 Annual Compounded Growth Rates MAA in 7 of the top 10 projected “Echo Boom Household” Markets: Dallas, Houston, Atlanta, Phoenix, Austin, South FL, Orlando. Source: Economy.
Slide 11: Diversified For Full Cycle
Diversified For Full Cycle Source: BLS By diversifying across both primary and select secondary markets MAA is better able to withstand the down part of the cycle, deliver strong results in the up part of the cycle, and capture lower risks and volatility over the full cycle.
Slide 12: Sophisticated Operating Platform
Sophisticated Operating Platform Georgetown Grove, Savannah Lighthouse Court, Jacksonville • Ability to out-perform markets; particularly in secondary market segment • Seasoned full web-based management system • Fully automated on-line leasing • Fully operational yield management • 2009 Initiatives
Slide 13: Strong Balance Sheet Position
Strong Balance Sheet Position Watermark, Dallas Grand Reserve, Lexington • $104 MM new equity raised in 2008 at $53 net/share • $183 MM of capacity in Agency/Bank credit facilities • 2009 debt maturities only $39MM, to be refinanced from capacity above • 2010 maturities only $50MM (bank line) to be
Slide 14: Strong Balance Sheet Position
MAA Median Fixed charge coverage 2.51 2.30 FFO Payout ratio ‘08 66% 79% FFO payout ratio ‘09 70% Debt/Gross Assets 50% 55% Source: KeyBanc 10-24-08, and MAA Common 44% Debt 50% Strong Balance Sheet Position • Superior Ratios – Fixed Charge – Payout Ratio – Leverage • Only $6MM of development funding
Slide 15: External Growth Opportunities
External Growth Opportunities Grand Courtyards, Dallas Lanier Club, Atlanta • Improving opportunities for attractive acquisitions – A number of distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Credit facil
Slide 16: Well Positioned For 2009
Well Positioned For 2009 Monthaven, Nashville Park Place, Houston • Unit interior initiative: 7,000 units completed in the last three years • Lease-up and new development projects reduced ‘08 FFO by $0.16/share, reduced to $0.07 in ‘09 • No 2009 development exposure • Other new initiatives in 2009 e
Slide 17: Forecast 2009
Forecast 2009 • Very weak employment market continues • Resident turnover continues to decline • Delinquency increases modestly • New operating initiatives offset some market weakness • Forecast same store; 0% to (2%) revenue; (3%) to (5%) NOI • Interior upgrade initiative scaled back; 2,000 units a
Slide 18: MAA Offers Attractive Value
MAA Offers Attractive Value *Source: KeyBanc 2-2-09 FFO Multiple Price Discount from NAV • Compared to peers – Sells at 3 rd biggest discount to consensus NAV – Sells at 3 rd lowest FFO multiple • MAA is arguably the most recession resistant – Market mix – No development – Balance sheet strength – S
Slide 19: Summary
Summary Kirkwood, Houston Los Rios Park, Dallas ü Proven Platform ü Strong operations ü 15 years of success as Public Company ü Top-Tier Shareholder Returns ü Young Portfolio with Growth Upside ü Portfolio Strategy Provides Stable and High Risk-Adjusted Earnings Platform ü Disciplined Capital Alloca
Slide 20: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause act
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