Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — NAREIT REIT Week 2017
17 slides from Mid-america Apartment Communities's conference presentation, Jun 6, 2017
Slide 1: NAREIT REIT Week June 6-8, 2017
NAREIT REIT WEEK JUNE 6 - 8, 2017
Slide 2: Sunbelt Focused Apartment REIT: Established Record of Strong Value Creation
SUNBELT FOCUSED APARTMENT REIT REIT WEEK 2017 2 ESTABLISHED RECORD OF STRONG VALUE CREATION AND SUPERIOR LONG - TERM SHAREHOLDER RETURN 1 HIGH QUALITY AND DIVERSIFIED EARNINGS STREAM; SUPPORTS FULL - CYCLE PERFORMANCE PROFILE • High recurring and diversified earnings stream to support growing divide
Slide 3: Balanced & Diversified Portfolio Supports Full Cycle Outperformance
BALANCED & DIVERSIFIED PORTFOLIO REIT WEEK 2017 3 SUPPORTS FULL CYCLE OUTPERFORMANCE Multifamily Markets Regional Office TOP 20 MARKETS 1 % of NOI 2 1Q 2017 Atlanta , GA 13.2% Dallas, TX 9.8% Charlotte, NC 7.4% Tampa, FL 6.7% Austin, TX 6.2% Washington, DC 5.9% Orlando, FL 5.7% Raleigh/Durham, NC 4.
Slide 4: Sunbelt Market Focus Supports Superior Full-Cycle Performance
REIT WEEK 2017 4 SUNBELT MARKET FOCUS SUPPORTS SUPERIOR FULL - CYCLE PERFORMANCE AN D LONG - TERM OUTPERFORMANCE SUPERIOR JOB GROWTH IN RELATION TO NEW SUPPLY PROJECTED TO OUTPERFORM IN MAA PORTFOLIO SINGLE FAMILY HOUSING NOT A THREAT 6.9:1 6.4:1 6.1:1 5.6:1 2017 2018 NEW JOBS TO NEW COMPLETIONS MAA
Slide 5: Leasing Update – As of May 31, 2017
AVG DAILY OCCUPANCY MAY 2016 QTD MAY 2017 QTD Combined Adjusted Same Store 96.1% 96.1% MAA Same Store 96.3% 96.3% Post Same Store 95.4% 95.3% LEASING UPDATE – AS OF MAY 31, 2017 5 - 3.9% - 3.5% - 2.4% - 1.7% - 0.5% 6.3% 6.0% 6.0% 6.3% 6.3% 1.0% 1.1% 1.7% 2.2% 2.6% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.
Slide 6: PPS Merger Strengthens Platform; Integration Activities on Track
PPS MERGER STRENGTHENS PLATFORM AND PROVIDES COMPELLING VALUE; I NTEGRATION ACTIVITIES ON TRACK REIT WEEK 2017 6 SYNERGY AND NOI UPSIDE OPPORTUNITY FFO COMMENTS IDENTIFIED AT MERGER PER SHARE IMPACT IN 2018 2019 AND BEYOND Overhead Synergies $20 million $0.17 $20 million $20 million Full capture exp
Slide 7: Development Pipeline Poised to Deliver Value
• MAA’s established history and success as a disciplined investor will drive process • Manage the design and investment from an owner/operator perspective; optimize long - term margins DEVELOPMENT PIPELINE POISED TO DELIVER VALUE REIT WEEK 2017 7 EXPECTED TOTAL COST (IN MILLIONS) PROPERTY MSA TOTAL
Slide 8: NOI Lift Opportunities from PPS Merger
NOI LIFT OPPORTUNITIES FROM PPS MERGER REIT WEEK 2017 8 OPPORTUNITIES INITIATIVES EXPECTED TIME FRAMES R ECONCILE REVENUE MANAGEMENT PRACTICES Improved use of historic trends at property level; optimize unit definitions for better pricing results; improve lease expiration processes; tighter override
Slide 9: Redevelopment = Strong Value Creation
• Redevelopments are performed on turn at select communities minimizing down time and allowing us to evaluate the effectiveness of the program for real - time improvements • Standard program includes kitchen and bath upgrades • Stainless appliances • Counter top replacement • U pdated cabinetry • Pl
Slide 10: Solid Investment Grade Balance Sheet
SOLID INVESTMENT GRADE BALANCE SHEET REIT WEEK 2017 10 DEBT SUMMARY ($ IN MILLIONS) AT 3/31/2017 Unsecured Bonds $1,841 40.4% Unsecured Term Loans 850 18.7% Unsecured Credit Facilities 570 12.5% Total Unsecured Debt $3,261 71.6% Total Secured Debt $1,296 28.4% TOTAL DEBT $4,557 Note : Total Market C
Slide 11: Enhanced Investment Grade Balance Sheet and Manageable Debt Maturity Profile
ENHANCED INVESTMENT GRADE BALANCE SHEET AND MANAGEABLE DEBT MATU RITY PROFILE REIT WEEK 2017 11 CREDIT METRICS AT 3/31/2017 MAA SECTOR AVG 3 Total debt / total assets 1 34.1% 34.6% Total secured debt / total assets 1 9.7% 12.5% Unencumbered NOI 80.0% 75.4% Net d ebt / Recurring EBITDA 2, 4 5.61x 5.2
Slide 12: MAA Compounding Value
MAA COMPOUNDING VALUE REIT WEEK 2017 12 $2.38 $2.42 $2.46 $2.46 $2.46 $2.51 $2.64 $2.78 $2.92 $3.08 $3.28 $3.48 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F MAA DIVIDENDS 2006 - 2017F 1 Guidance for 2017 AFFO per diluted common share is in the range $5.15 - $5.35 with a midpoint of $
Slide 13: Strong Dividend Growth & Coverage
STRONG DIVIDEND GROWTH & COVERAGE REIT WEEK 2017 13 $2.38 $2.42 $2.46 $2.46 $2.46 $2.51 $2.64 $2.78 $2.92 $3.08 $3.28 $3.48 91.9% 83.7% 82.3% 79.9% 85.4% 76.1% 66.7% 74.3% 66.7% 62.0% 66.1% 66.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F MAA DIVIDENDS AND AFFO PAYOUT RATIO 1 2006
Slide 14: Current Implied Cap Rate Spread vs. Long Term Proven Results Provides Opportunity
CURRENT IMPLIED CAP RATE SPREAD VS. LONG TERM PROVEN RESULTS PRO VIDES OPPORTUNITY 4.8% 5.7% 2.7% 2.9% Sector Average MAA Market Implied Cap Rate Long-Term Same Store NOI Growth TOTAL IMPLIED UNLEVERAGED RETURN CAP RATE DISPARITY = INVESTMENT OPPORTUNITY REIT WEEK 2017 14 MAA is currently priced at
Slide 15: Multiple Disparity = Investment Opportunity
MULTIPLE DISPARITY = INVESTMENT OPPORTUNITY REIT WEEK 2017 15 MAA FULL CYCLE EARNINGS PERFORMANCE UNDERPRICED COMPARED TO SECTOR FFO Multiple 2 MAA: 17.3 Sector: 19.4 Average sector FFO multiple 2 is equivalent to a $113.70 MAA share price, or 11.8% higher than 3/31/2017 share price Same Store NOI S
Slide 16: Summary
REIT WEEK 2017 16 • Focused on driving growing cash flows with lower levels of volatility through the cycle • B alanced capital allocation across the high - growth Sunbelt region • Largest owner/operator focused on high - growth Sunbelt region; competitive advantages support long - term outperforman
Slide 17: Forward Looking Statements
FORWARD LOOKING STATEMENTS REIT WEEK 2017 17 This investor presentation contains forward - looking statements within the meaning of Section 27 A of the U . S . Securities Act of 1933 as amended and Section 21 E of the U . S . Securities Exchange Act of 1934 , as amended . These forward - looking sta
MID America Apartment Communities — NAREIT REIT Week 2017 on 6ix