Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (May 2015)
16 slides from Mid-america Apartment Communities's investor presentation, May 11, 2015
Slide 1: Capital Markets Update May 2015
CAPITAL MARKETS UPDATE MAY 2015 WWW.MAAC.COM
Slide 2: Disciplined Capital Deployment; High Quality Assets
2 DISCIPLINED CAPITAL DEPLOYMENT; HIGH QUALITY ASSETS 3 ESTABLISHED COMPETITIVE STRENGTHS AND ADVANTAGES 4 INVESTMENT GRADE BALANCE SHEET A FULL-CYCLE STRATEGY • Well diversified across the high-growth Southeast/Southwest region • Strong balance sheet productivity; established record of high return
Slide 3: Balanced Portfolio Supports Full Cycle Performance
BALANCED PORTFOLIO SUPPORTS FULL CYCLE PERFORMANCE DIVISION OFFICES 3 ATLANTA CHARLOTTE DALLAS JACKSONVILLE NASHVILLE Large Markets % of Q1 2015 NOI 1 Atlanta, GA 8.3% 2 Austin, TX 7.9% 3 Charlotte, NC 7.0% 4 Raleigh/Durham, NC 6.9% 5 Fort Worth, TX 5.9% 6 Dallas, TX 5.6% 7 Nashville, TN 5.3% 8 Tamp
Slide 4: Strategic Competitive Capabilities
„X Scale and efficiency „X Recruit/retain top talent „X Margin outperformance STRATEGIC COMPETITIVE CAPABILITIES 4 BUYING OPPORTUNISTICALLY SUPERIOR CAPITAL MANAGEMENT OPERATING AT A SUPERIOR LEVEL ASSET MANAGEMENT SUPERIORITY IN LOCAL MARKETS EXITING INVESTMENTS OPPORTUNISTICALLY „X Off market tran
Slide 5: Significant Portfolio Repositioning Since 2010
(3) Acquisition metrics reflect expected stabilization performance for acquired non-stabilized deals. 4 26 Acq Disp SIGNIFICANT PORTFOLIO REPOSITIONING SINCE 2010 5 Improved Margin and Internal Growth Prospects Transaction Volume(1) (in millions) Age(2) (in years) Effective Rent per Unit(2)(3) Units
Slide 6: MAA Today – Higher Quality Portfolio and Stronger Internal Growth Prospects
$716 $750 $799 $863 $910 $965 $4,463 $4,684 $5,164 $5,766 $6,141 $6,259 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $700 $750 $800 $850 $900 $950 $1,000 2010* 2011* 2012* 2013* 2014^ 2015F^ Same Store Effective Rent/Unit After Capex NOI/Unit MAA TODAY – HIGHER QUALITY PORTFOLIO AND STRONGER INTERNAL G
Slide 7: Development Strategy; Strong Value Creation
DEVELOPMENT STRATEGY; STRONG VALUE CREATION Recently completed and active development pipeline totaling approximately $400 million with an average NOI yield of about 7.5% and average rents of $1,250 Expected Cost Active Developments MSA Total Units Total (in millions) Per Unit (in thousands) CG at B
Slide 8: Meaningful Redevelopment Opportunity; Strong Value Creation
MEANINGFUL REDEVELOPMENT OPPORTUNITY; STRONG VALUE CREATION 8 Redevelopment Opportunity • Redevelopments performed on turn at select communities, resulting in minimized down time and efficiency in evaluating effectiveness of program for real-time improvements to product mix and scope • 30%-50% of th
Slide 9: Strong Operating Platform Drives Competitive Advantage Across Regional Focus
STRONG OPERATING PLATFORM DRIVES COMPETITIVE ADVANTAGE ACROSS REGIONAL FOCUS Regional Market Leading Expertise • 21 years of institutional property management experience in markets we serve • Onsite team has seen multiple cycles of the apartment markets in the same cities • We understand up and down
Slide 10: Operations Focused on Exceptional Service
BEST ONLINE REPUTATION Among Public Multifamily REITs and NMHC’s Top 50 Apartment Managers(1) OPERATIONS FOCUSED ON EXCEPTIONAL SERVICE Implemented training and customer service process on CLP portfolio following merger Since merger, increased “recommend rate” for CLP portfolio on national third par
Slide 11: Solid Investment Grade Balance Sheet
SOLID INVESTMENT GRADE BALANCE SHEET 11 Credit metrics MAA LT Target Total unencumbered assets to book value 70.5% >70% Net debt / recurring EBITDA 6.2x 6.0x Net debt / gross assets1 42.1% 40%-43%GAV Secured debt / gross assets1 17.7% 15%-20% Fixed charge coverage ratio2 4.0x > 4.0x Note: As of 3/31
Slide 12: 93% Debt Fixed or Hedged
93% DEBT FIXED OR HEDGED SOLID INVESTMENT GRADE BALANCE SHEET 12 Debt Summary ($ in millions) Secured Debt, 15% Unsecured Common Debt, 21% Equity, 64% Total Capitalization at March 31, 2015 $6.15B Common Equity $3.48B Debt *Total Capitalization equals the total number of shares of common stock and u
Slide 13: Summary
$2.55 $2.59 $2.91 $2.99 $3.08 $3.09 $3.30 $3.99 $4.33 $4.28(1) $4.55(2) $2.35 $2.38 $2.42 $2.46 $2.46 $2.46 $2.51 $2.64 $2.78 $2.92 $3.08 2005 2006 2007 2008 2009 2010 2011 2012* 2013* 2014* 2015F* AFFO / Share Dividends SUMMARY 13 Proven platform has become even stronger • Increased market capitali
Slide 14: MAA Today
MAA TODAY 14 Residences at Burlington Creek; Kansas City, MO Year Completed: 2014 Retreat at Vintage Park; Houston, TX Year Completed: 2014 Bulverde Oaks; San Antonio, TX Year Completed: 2014 Cityscape at Market Center; Dallas, TX Year Completed: 2013 Stonefield Commons; Charlottesville, VA Year Com
Slide 15: MAA Today
MAA TODAY 15 CG at Randal Lakes; Orlando, FL Year Completed: 2014 CR at South End; Charlotte, NC Year Completed: 2014 Rivers Walk; Charleston, SC Year Completed: 2013 CR at Frisco Bridges; Dallas, TX Year Completed: 2013 Seasons at Celebrate VA, Phase II; Fredericksburg, VA Year Completed: 2013 1225
Slide 16: Forward Looking Statements
FORWARD LOOKING STATEMENTS 16 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 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made a
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