Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — REITWorld Conference 2011
18 slides from Mid-america Apartment Communities's conference presentation, Nov 14, 2011
Slide 1: REITWorld Conference
a & a — REITWorld Conference November 2011 co MAA
Slide 2: MAA's Strategy
MAA‘s Strategy * Full Cycle Performance Objective - Establish high quality recurring cash flow - Capture lower volatility over full cycle - Platform supporting a secure and growing dividend * Sunbelt Region Focus - Superior demand side performance - Competitive advantages to manage supply pressure *
Slide 3: Strong Performance Outlook At A Compelling Value
Strong Performance Outlook At A Compelling Value Positioned To Deliver Robust Internal Growth Through The Recovery Cycle — Job growth outlook and household formation trends ahead of national trends — Newsupply outlook very manageable relative to demand; strong positive absorption Unit renovation and
Slide 4: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Employment growth in MAA‘s markets expected to outpace the national average and the major institutional markets. Annual Employment Growth 4.5% Annual Compounded 40% Employment Growth (2012-2015): 35% 3.0% All MAA Markets (weighted): 2.7% 2.5% National MSA Average:
Slide 5: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle * MAA‘s markets showing favorable supply dynamics for next few years * Permitting levels increasing, but MAA markets remain down 61% from 2006 peak — Only 50% to 70% market rate product — Much of large market product urban infill = Secondary markets up significantl
Slide 6: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Active Redevelopment Program Will Further Support Revenue Growth Opportunities * $20M inredevelopment investment in * Average rental rate increase for renovated 2010/11 units of 10% © Project 5,000 units renovated in 2010/11 * 12,000-14,000 additional units across
Slide 7: Strong External Growth Prospects
Strong External Growth Prospects Significant deal flow and opportunities as a result of long established regional focus and in-place networks. Extensive market and sub-market knowledge supports accurate and timely analysis. Strong property management and asset management capabilities support accurat
Slide 8: Disciplined Capital Deployment
Disciplined Capital Deployment * Our extensive relationships, market Current Value Net Income Minus Apartment CPPI Growth knowledge, and disciplined Last Yrs (annualized) Last 40 Yrs (annualized) acquisition process provide a oo a consistent acquisition pipeline HME AME EQR AB * This pipeline has he
Slide 9: Disciplined Capital Deployment
Disciplined Capital Deployment Aggregate actual cash flows have exceeded proforma Outperformed expectations despite significant economic downturn Disciplined protocols for deploying capital Creating value through the acquisition process and on- going management $40,000 $35,000 $30,000 $25,000 $20,00
Slide 10: $110 Million Development in Process
$110 Million Development in Process * Welllocated, High quality properties * Pricing below replacement cost * Mix of Large and Secondary markets * Minimal development risk — Fixed price/shared risk contracts = Close oversight, minimal overhead * Initial lease-up begins 2012 * Earnings contribution 2
Slide 11: Acquisitions Providing Meaningful Future Growth
Acquisitions Providing Meaningful Future Growth * Deals completed in 2011 purchased at an average 6% cap rate * Creating positive spread over cost of capital * Resulting in significant FFO accretion in first full year ¢ Based on current estimated cost of capital, our annual acquisition plans ($300 t
Slide 12: Solid Balance Sheet Position
Solid Balance Sheet Position * Balance Sheet significantly strengthened over last ten years * Total leverage (Debt + Preferred) reduced 18% over last ten years ¢ Fixed charge coverage better than sector median ll FFO/Share** — Debt+Pref/Gross Assets 4.50 70% ey 85% $4.00 Ne 6006 $3.50 55% $3.00 50%
Slide 13: Positioning Balance Sheet for Future
Positioning Balance Sheet for Future © Current financing advantage Low cost “legacy” contracts - Mature in tranches 2011-2018 MAA Debt/Market Cap 9/30/2011 - Capacity and flexibility to grow ¢ Taking advantage of environment - Increasing fixed rate debt to 90% - Using long terms (7-10 years), increa
Slide 14: Attractive Pricing Opportunity
Attractive Pricing Opportunity MAA is currently priced at an implied cap rate discount to the sector average. However, MAA‘s historical long-term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding regional ‘market’ performance
Slide 15: Attractive Pricing Opportunity
Attractive Pricing Opportunity From 2000-2010, the compounded annual growth rate of MAA’s FFO/share is 24 highest in the sector. Strong record of performance and solid positioning for continued strong relative performance within sector, provides compelling opportunity at current pricing. FFO/Share C
Slide 16: Summary
Summary * Strong long-term performance record for shareholders ¢ Established and proven public platform * Solid internal growth prospects © Competitive strengths enables regional outperformance * Robust external growth pipeline * Disciplined approach to capital deployment © Solid balance sheet posit
Slide 17: A Brighter View - End of Presentation
SSMAA A Brighter View End of Presentation 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 2E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statem
Slide 18: Brighter View
Brighter View
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