Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (September 2014)
19 slides from Mid-america Apartment Communities's investor presentation, Sep 22, 2014
Slide 1: Capital Markets Update September 2014
CAPITAL MARKETS UPDATE SEPTEMBER 2014 6584 POPLAR AVENUE MEMPHIS, TN 38138 / WWW.MAAC.COM
Slide 2: A Platform for Full-Cycle Performance
2 SUCCESSFUL TRANSFORMATIVE MERGER FURTHER STRENGTHENS PLATFORM 3 SOLID DEMAND DRIVES POSITIVE LEASING OUTLOOK 4 CAPITAL RECYCLING CONTINUES TO STRENGTHEN PORTFOLIO A PLATFORM FOR FULL - CYCLE PERFORMANCE • Long - term established record of top - tier shareholder returns • 82 Quarters of consistent
Slide 3: Superior Long-Term Performance
SUPERIOR LONG - TERM PERFORMANCE 3 12.1 % 10.2% 7.8% 4.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% MAA-US SNL US REIT Equity S&P 500 DJIA Total Shareholder Return Annualized over 10 Years June 30, 2014 Source: SNL Equity Research $ 112,642 $10,000 $30,000 $50,000 $70,000 $90,000 $110,000 $130,000
Slide 4: Consistent and Growing Dividend Returns
* KeyBanc Capital Markets, The Leaderboard, Sept. 12, 2014 CONSISTENT AND GROWING DIVIDEND RETURNS 4 $1.21 $2.00 $2.04 $2.14 $2.20 $2.30 $2.32 $2.34 $2.34 $2.34 $2.34 $2.35 $2.38 $2.42 $2.46 $2.46 $2.46 $2.51 $2.64 $2.78 $ 2.92E 0% 20% 40% 60% 80% 100% $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75
Slide 5: Full-Cycle Performance Profile; Well Diversified Across High-Growth Sunbelt Region
FULL - CYCLE PERFORMANCE PROFILE; SUPERIOR LONG - TERM RESULTS WELL DIVERSIFIED ACROSS HIGH - GROWTH SUNBELT REGION 5 Nevada Arizona Texas Mississippi Arkansas Kentucky Missouri Virginia North Carolina South Carolina Alabama Florida Georgia Tennessee Large Markets % of Total Q2’14 NOI 1 Atlanta, GA
Slide 6: Full Cycle Performance: Same Store NOI Growth
-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* MAA Large MAA Secondary MAA Sector GOOD PERFORMANCE IN THE “UP” PART OF THE CYCLE AND DOWNSIDE PROT ECTION IN THE “DOWN” PART OF THE CYCLE – COMPETITIVE GROWTH WITH LOWER VOLATILITY
Slide 7: Merger Integration Update
ORIGINAL EXPECTATIONS FOR OVERHEAD AND EXPENSE SYNERGIES ($25 MI LLION), NOI OPERATING UPSIDE, AND REDEVELOPMENT OPPORTUNITIES REMAIN INT ACT. MERGER INTEGRATION UPDATE 7 Remainder of 2014 Realize 100% of stated overhead synergy opportunity on a run rate basis Complete remaining portion of $250M - $
Slide 8: Strong Investment Grade Balance Sheet and Manageable Debt Maturity Profile
STRONG INVESTMENT GRADE BALANCE SHEET AND MANAGEABLE DEBT MATURITY PROFILE 8 Credit metrics MAA LT Target Total unencumbered assets to book value 66.9% 65% - 70% Net debt / recurring EBITDA 1 6.4x 6.0x Net d ebt / gross assets 2 42.8% 40% - 45%GAV Secured debt / gross assets 2 19.5% 15% - 20% Fixed
Slide 9: Strong Credit Ratings and Bond Covenant Coverage
STRONG CREDIT RATINGS AND BOND COVENANT COVERAGE 9 Credit ratings Agency Rating Outlook Fitch Ratings 1 BBB Positive Moody’s Investors Service 2 Baa2 Stable S&P Ratings Services 1 BBB Stable (1) Mid - America Apartment Communities, Inc. & Mid - America Apartments, LP (2) Mid - America Apartments LP
Slide 10: July-August 2014 Leasing Update
PRICING ON NEW LEASES AND RENEWALS CONTINUED TO BE STRONG IN JULY AND AUGUST WHILE PHYSICAL OCCUPANCY CONTINUED TO IMPROVE. JULY - AUGUST 2014 LEASING UPDATE 10 95.0% 95.2% 95.8% 94.9% 95.4% 96.1% 95.0% 94.9% 95.4% 94.2% 94.4% 94.6% 94.8% 95.0% 95.2% 95.4% 95.6% 95.8% 96.0% 96.2% June July August Av
Slide 11: Focus on Strong Demand Markets, Strive to Mitigate Supply Pressures
FOCUS ON STRONG DEMAND MARKETS, STRIVE TO MITIGATE SUPPLY PRESSURES 11 0 0.2 0.4 0.6 0.8 1 1.2 1.4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E MAA Large MAA Secondary Top 25 Institutional 0.8% 1.3% 1.8% 2.3% 2.8% 3.3% 3.8% 2014 2015 2016 MAA Large MAA Secondary Top 25 Institutional Proje
Slide 12: Development and Lease-Up Pipeline
*Expected stabilized NOI yield between 7% and 8% DEVELOPMENT AND LEASE - UP PIPELINE 12 Development and Lease - Up Pipeline ($mm, except per unit costs) at June 30, 2014 Total Expected MSA Units to Date to Complete Total Per Unit Stabilized Active Development *: CG at Bellevue Phase II Nashville 220
Slide 13: Redevelopment Pipeline
REDEVELOPMENT PIPELINE 13 2013 Results • Redeveloped approximately 2,600 units at an average cost of approximately $4,200 per unit • Achieved an average rent increase of $89 per month ($1,068 per year), 11% higher than non - redeveloped units • Generated a cash on cash return of 24% assuming 95% occ
Slide 14: 2014 Guidance
*Updated J uly 30, 2014, Second Quarter 2014 Earnings Release, Supplemental Data 2014 GUIDANCE 14 2014 Guidance* Range Core FFO/Share $4.79 - $4.95 ($4.87 Midpoint) Core AFFO/Share $4.04 - $4.20 ($4.12 Midpoint) SS Revenue Growth 3.0% - 3.5% SS Expense Growth 1.5% - 2.5% SS NOI Growth 4% - 4.5% Mult
Slide 15: Continuous Portfolio Upgrade Through Capital Recycling
CONTINUOUS PORTFOLIO UPGRADE THROUGH CAPITAL RECYCLING 15 • MARKET ENTRY San Antonio, TX; Charlotte, NC; Kansas City, MO; Richmond, VA; Fredericksburg, VA; Charlottesville, VA • MARKET EXPANSION Dallas/Fort Worth, TX; Orlando, FL; Atlanta , GA; Phoenix, AZ; Raleigh, NC; Nashville , TN; Austin, TX; T
Slide 16: 2014 Transactions Update
2014 TRANSACTIONS UPDATE PROPERTY MARKET Grand Cypress* Houston, TX Venue at Stonebridge Ranch* Dallas, TX Stonefield Commons Charlottesville, VA Cityscape at Market Center Dallas, TX Verandas at Southwood* Tallahassee, FL *Purchase of partner’s interests in Fund II assets 16 Stonefield Commons, Cha
Slide 17: Steady Recycling Program Improving Internal Earnings Growth Profile
STEADY RECYCLING PROGRAM IMPROVING INTERNAL EARNINGS GROWTH PROFILE PROTECTING DOWNSIDE CYCLE RISKS SUPPORTING FULL - CYCLE PERFORMANCE Historical Portfolio Allocation (as a % of GAV) 27% 27% 30% 35% 39% 43% 44% 48% 50% 52% 49% 49% 50% 63% 73% 73% 70% 65% 61% 57% 56% 52% 50% 48% 51% 51% 50% 37% 0% 1
Slide 18: Summary
SUMMARY 18 x 20 year track record of superior growth in shareholder value x Annualized 10 year return of 12 . 1 % assuming reinvestment of dividend a t June 30 , 2014 x Merger related opportunities and scale creates upside over the next 2 - 3 years x Outlook for continued solid leasing fundamentals
Slide 19: Forward Looking Statements
FORWARD LOOKING STATEMENTS 19 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 21 E of the Securities and Exchange Act of 1934 . Such statements include, but are not limited to, statements
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