Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (August 2011)
18 slides from Mid-america Apartment Communities's investor presentation, Aug 12, 2011
Slide 1: Capital Markets Update
a a & — Capital Markets Update August 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: Successful Public Platform
Successful Public Platform * MAA total shareholder return has significantly outperformed the sector * Annual compounded return to shareholders over the last 20 years has been 17.2% * One of only three multifamily REITs to not reduce dividend over the past 15 years 34.00 $3.50 $3.00 $2.50 $2.00 MAA A
Slide 4: Outperforming Sector Over The Full Cycle
Outperforming Sector Over The Full Cycle Better full cycle performance, with lower volatility, drives stronger and more consistent long-term performance for MAA shareholders NO! Growth Repositioned portfolio 2004-2012F and strengthened platform = stronger “up” cycle performance profile Nol | StdDev
Slide 5: High End Asset Quality
High End Asset Quality Through our disciplined acquisition approach, the overall quality of the portfolio has continued to improve: Acquisitions Total Last 5 years Portfolio Gross Book Value $850M $3,180M Current Average are pore Age sy =A Average Rent $945 $766 June 2011 NOI Margin Ok MAA | ABRIGHT
Slide 6: Disciplined Capital Deployment
Disciplined Capital Deployment * Our extensive relationships, market knowledge, and disciplined acquisition process provide a consistent acquisition pipeline * This pipeline has helped create a diversified asset base in both large and secondary markets * Our sophisticated platform and management exp
Slide 7: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle © Pro-business and employer environment ive MAA Market Diversification * More access to lower cost labor - “Right to Work" region * Strong distribution and logistics structure * Positive demographic flow © Lower cost of living ¢ Lower taxes - Nostate income taxes i
Slide 8: 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 4.0% Annual Compounded % Employment Growth a5 (201-2015): 3.0% 2.5% 4 All MAA Markets: 2.6% 2.0% National MSA Average: 2.1% 1.5
Slide 9: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle © According to REIS, for the U.S. asa whole, average annual completions from 2011-2015 are expected to drop 38%. ¢ In MAA‘s markets, this drop is expected to exceed 57% and near 60% in MAA’s large markets. © The greatest regional drop is expected to occur in the So
Slide 10: External Growth
External Growth 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 accurate underwriting an
Slide 11: Aggregate actual cash flows have exceeded proforma
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 External Growth Cash Flows on New Acquisitions Actual v. Proforma (so
Slide 12: Creating Value through External Growth
45.0% Creating Value through External Growth NOI Operating Margin Operating Pre Margin, Acquisition Operating Margin, 52.3% Total Property Value (sooo's) Aggregate Value, $645,676 Aggregate Purchase Pr $524,146 Significant improvement in operating margins drives value creation MAA able to create val
Slide 13: 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 * Debt to EBITDA and fixed charge coverage better than sector median ll FFO/Share** —Debt+Pref/Gross Assets $4.50 70% $4.00 oe 6086 3.50 55%
Slide 14: Positioning Balance Sheet for Future
Positioning Balance Sheet for Future * Current financing advantage Low cost “legacy” contracts Mature in tranches 2011-2018 Capacity and flexibility to grow © Taking advantage of environment Increasing fixed rate debt to 90% Using long terms (7-10 years), increasing average maturity Building lender
Slide 15: 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 16: 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. Despite this performance, future growth priced into the current stock price is 2" to last in the sector FFO/Share Compounded Annual Growth Rate (2000-10) ‘Sof Stock Price
Slide 17: Summary
Summary ¢ Unique strategy with proven long-term performance * Established and proven public platform ¢ Solid internal growth prospects © Competitive strengths enables regional outperformance * Disciplined approach to capital deployment * Solid balance sheet position © Well positioned to perform as c
Slide 18: A Brighter View - End of Presentation
ESMAA 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
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