Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — 2022 Citi Global Property CEO Conference
36 slides from Mid-america Apartment Communities's conference presentation, Mar 4, 2022
Slide 1: 2022 Citi Global Property CEO Conference
2022 Citi Global Property CEO Conference March 6 - 9, 2022 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 state
Slide 3: MAA At a Glance
28 S&P 500 $31.7B 102K ~2,500 20 YR YEARS PUBLIC MEMBER COMPANY TOTAL MARKET CAP APARTMENT UNITS ASSOCIATES AVG EXEC TENURE ~$1B 14K+ BBB+ 4.34x 18.1% 112 ’22F TOTAL DEVELOPMENT, LU PIPELINE UNIT OPPORTUNITY REDEVELOPMENT PROGRAM CREDIT RATING (POSITIVE OUTLOOK) NET DEBT TO ADJ EBITDAre 10-YEAR ANNU
Slide 4: Consistently Strong Performance for Shareholders
Consistently Strong Performance for Shareholders Steady Annual Core FFO Growth Consistent and compounding Core FFO and dividend growth through market cycles; high quality earnings stream Strong dividend track record; steady growth and well covered Top tier shareholder returns within the multifamily
Slide 5: Differentiated Portfolio Strategy
Differentiated Portfolio Strategy Unique Sunbelt focus…captures benefits of high growth and demand Diversification within Sunbelt…mitigates periodic supply-side pressures… drives superior full cycle performance Diversified renter price point… appeals to largest segment of the rental market… creates
Slide 6: Top Markets: Unique Diversification and Balance across the Sunbelt Region
TOP 10 MARKETS | % 4Q21 Same Store NOI TOP 10 MARKETS 1 Atlanta, GA 13.2% 6 Orlando, FL 6.3% 2 Dallas, TX 8.7% 7 Washington, DC 5.8% 3 Tampa, FL 6.9% 8 Raleigh/Durham, NC 5.3% 4 Austin, TX 6.4% 9 Nashville, TN 4.7% 5 Charlotte, NC 6.3% 10 Fort Worth, TX 3.8% Unique Diversification and Balance across
Slide 7: A Proven Portfolio Strategy for Long-Term Growth and Stability
A Proven Portfolio Strategy for Long-Term Growth and Stability Our diverse portfolio of high-quality Sunbelt properties appeals to the largest segment of the rental market Our portfolio strategy drives robust long-term growth and greater stability through the full market cycle + Jefferson Sand Lake,
Slide 8: Strong Demand Prospects for MAA Markets
Strong Demand Prospects for MAA Markets >20% Tampa Phoenix Total Move-ins from Non-MAA States CA | NY | IL | NJ | MA | WA >52% Of Move-ins from Non-MAA States Came from Peer Coastal/Gateway States In 2021 MAA Markets continued to see growing in-migration… Population Growth Forecast Household Formati
Slide 9: Demand Expected to Outpace Supply in 2022
UNDERPERFORMERS OUTPERFORMERS Washington DC < Atlanta > Tampa Houston < Dallas > Orlando < Charlotte > Phoenix < Austin > Jacksonville < Nashville > Demand Expected to Outpace Supply in 2022 Supply deliveries remain relatively consistent with a modest decline expected in 2022 Strong compounded job g
Slide 10: Same Store Resident Profile in Top Markets
SAME STORE RESIDENT PROFILE IN TOP MARKETS QTD AT 12/31/2021 AVG NEW LEASE RENTS AVG NEW RESIDENT INCOME RENT/ INCOME MEDIAN RESIDENT AGE % SINGLE TOP 5 EMPLOYMENT SECTORS 1 2 3 4 5 Atlanta, GA $1,773 $89,482 23.8% 33 82% Dallas, TX $1,609 $84,400 22.9% 32 84% Tampa, FL $2,068 $96,803 25.6% 38 78% A
Slide 11: Continued Low Resident Turnover
Continued Low Resident Turnover 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 Associated with Single-Family Housin
Slide 12: Strong Performance Today, While Strengthening for Tomorrow
Strong Performance Today, While Strengthening for Tomorrow Cumulative Same Store NOI Growth MAA continues to deliver on its mission to drive long-term outperformance through all phases of the economic cycle with less volatility Outperformance during the latest down cycle positions us well, as compar
Slide 13: 2022 Pricing Trends
2022 Pricing Trends SAME STORE FULL YEAR 2020 JAN-JUN 2021 JUL-DEC 2021 Full year 2021 jan 2022 Feb 2022 Full year 2022F EFFECTIVE LEASES NEW LEASE AVG Pricing Growth Lease Over Lease -2.5% 4.7% 19.3% 11.8% 15.6% 15.1% RENEWAL AVG Pricing Growth Lease Over Lease 5.2% 7.5% 11.9% 9.7% 17.0% 17.8% BLEN
Slide 14: Full Year 2022 Same Store Outlook
Property Revenue Growth [8.0% … 9.0% … 10.0%] Effective Rent Growth Seasonal trends and comparisons expected to impact 2H 2022 [9.0% … 10.0% … 11.0%] Average Physical Occupancy Forecast 30bps below prior year [95.6% … 95.8% … 96.0%] Full Year 2022 Same Store Outlook REVENUE Property Expense Growth [
Slide 15: 2022 Core FFO and Investment Outlook
2022 Core FFO and Investment Outlook Full Year 20222 [$7.74 … $7.92 … $8.10] Q1 20223 [$1.83 … $1.91 … $1.99] Total Overhead Corporate Property Management + G&A [$116M … $118M … $120M] EXPECTED CORE FFO/SHARE1 Midpoint is up approximately 8.5% from 2021 primarily driven by technology investments, ex
Slide 16: Development Program Supports Continued Value Creation
MAA Westglenn | Denver, CO MAA Park Point | Houston, TX MAA Windmill Hill | Austin, TX Novel Val Vista | Phoenix, AZ Novel West Midtown | Atlanta, GA Novel Daybreak | Salt Lake City, UT Combination of In-House and Joint Venture “Pre-Purchased” Development Expands Revenue Growth Potential 2022: Addit
Slide 17: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value 5.9% AVERAGE EXPECTED STABILIZED NOI YIELD $27M - $28M TOTAL EXPECTED STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 12/31/2021 PROPERTY MSA TOTAL UNITS TOTAL EXP COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION1 MAA W
Slide 18: 2022 Development Expectations
2022 Development Expectations msa Units Est. Start 5.25% – 5.75% AVERAGE EXPECTED STABILIZED NOI YIELD $28M - $30M TOTAL EXPECTED STABILIZED INCREMENTAL NOI Denver, CO 352 1H 2022 Raleigh, NC 406 1H 2022 Tampa, FL 495 2H 2022 Denver, CO 181 2H 2022 2022 Development Pipeline Expansion By 2H 2022 Deve
Slide 19: Unit Interior Upgrade Program Continues to Drive Higher Value
Unit Interior Upgrade Program Continues to Drive Higher Value Property Redevelopment Program Opportunity Approximately 14K units remaining for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn at select communit
Slide 20: Future Redevelopment Opportunity
Future Redevelopment Opportunity Potential for Continued Value Creation Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.0% Cap Rate Net Value Creation $16.4M $328.4M $250.7M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 4,909
Slide 21: Repositioning Select Properties to Drive Additional Value
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 Prope
Slide 22: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value 2020–2022 Roll-out Mobile control of locks, lights and thermostat as well as leak detection provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Continued upgr
Slide 23: MAA's Technology Enhancements Expand, Upgrade Leasing Toolbox
MAA’s Technology Enhancements Expand, Upgrade Leasing Toolbox Objective to create a multi-functional and fully integrated self-service/self-touring leasing platform that results in a seamless, easy to use process for the entire resident journey from initial prospect engagement to ultimate move out.
Slide 24: Strong, Investment-Grade Balance Sheet
Strong, Investment-Grade Balance Sheet Note: Total Capitalization is defined here as common shares and units outstanding multiplied by the closing stock price on 12/31/2021, plus total debt outstanding at 12/31/2021, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstan
Slide 25: Balance Sheet Strength Positions Us Well for Future Growth
Balance Sheet Strength Positions Us Well for Future Growth Opportunities % MATURING 2.8% 7.7% 8.8% 8.9% 6.6% 13.2% 8.8% 12.4% 6.6% 9.8% 14.4% Credit metrics At 12/31/2021 MAA SECTOR AVG2,3 Total debt / adjusted total assets1 29.8% 32.2% Total secured debt / adjusted total assets1 2.4% 4.5% Unencumbe
Slide 26: Our Sustainability Commitment: Continued Improvement in 2021
A Brighter View for Today and Tomorrow: Our Sustainability Commitment Continued Improvement in 2021 74 100 30 30 44 70 2021 GRESB SCORE THREE GREEN STARS MANAGEMENT SCORE PERFORMANCE SCORE ENERGY USE INTENSITY 15% GREEN HOUSE GAS INTENSITY 15% WATER USE INTENSITY 10% 2018 – 2028 REDUCTION GOALS SETT
Slide 27: Supporting Our Associates' Well-Being
SUPPORTING OUR ASSOCIATES’ WELL—BEING 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 lifestyles On
Slide 28: Appendix
Appendix At December 31, 2021 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 29: Reconciliation of FFO, Core FFO, Core AFFO and FAD
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS (1) Included in Other non-operating income in the Consolidated Statements of Operations. For the three and twelve months ended December 31, 2021, $33.7
Slide 30: Reconciliation of Net Operating Income to Net Income
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Dollars in thousands Three Months Ended Year Ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net Operating Income
Slide 31: Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME (1) Included in Other non-operating income in the Consolidated Statements of Operations. (2) For the three and twelve months ended December 31, 2021, $33.7 million and $51.7 million,
Slide 32: Reconciliation of Net Debt, Gross Assets and Real Estate Assets
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET Dollars in thousands December 31, 2021 December 31, 2020
Slide 33: Reconciliation of EPS to Core FFO for 2022 Guidance
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2022 GUIDANCE (1) Non-Core FFO items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or
Slide 34: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 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 part
Slide 35: Definitions of Non-GAAP Financial Measures: FFO
Definitions of Non-GAAP Financial Measures 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 rea
Slide 36: Definitions of Other Key Terms
Definitions of Other Key Terms 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. Leasing
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