Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (January 2012)
21 slides from Mid-america Apartment Communities's investor presentation, Jan 9, 2012
Slide 1: Capital Markets Update January 2012
Capital Markets Update January 2012
Slide 2: MAA's Strategy
MAA | A BRIGHTER VIEW 2 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
Slide 3: Successful Public Platform
MAA | A BRIGHTER VIEW 3 Successful Public Platform MAA Annual Dividend $1.50 $1.70 $1.90 $2.10 $2.30 $2.50 $2.70 1995 1996 1997 19981999 200020012002200320042005 2006 2007 20082009 2010 20112012 Over the long term, MAA total shareholder return has outperformed the sector Annual compounded return to
Slide 4: Strong Performance Outlook At A Compelling Value
MAA | A BRIGHTER VIEW 4 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 – New supply outlook very manageable relative to demand; strong positive abs
Slide 5: Well Positioned for Recovery Cycle: Employment Growth
MAA | A BRIGHTER VIEW 5 Well Positioned for Recovery Cycle Employment growth in MAA’s markets expected to outpace the national average and the major institutional markets. Note: Approximately 80% of the entire Apartment REIT Sector portfolio is located in the Major Institutional Markets group con si
Slide 6: Well Positioned for Recovery Cycle: Supply Dynamics
MAA | A BRIGHTER VIEW 6 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
Slide 7: Active Redevelopment Program Will Further Support Revenue Growth
MAA | A BRIGHTER VIEW 7 Well Positioned for Recovery Cycle Active Redevelopment Program Will Further Support Revenue Growth Opportunities • $20M in redevelopment investment in 2010/11 • Project 5,000 units renovated in 2010/11 • Average rental rate increase for renovated units of 10% • 12,000 - 14,0
Slide 8: Strong External Growth Prospects
MAA | A BRIGHTER VIEW 8 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 manag
Slide 9: Acquisitions Providing Meaningful Future Growth
MAA | A BRIGHTER VIEW 9 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 a
Slide 10: Creating Value through External Growth
MAA | A BRIGHTER VIEW 10 Creating Value through External Growth • Significant improvement in operating margins drives value creation • MAA able to create value that less sophisticated operating platforms are unable to achieve • Capabilities and platform strength include: - Yield management systems a
Slide 11: Development Pipeline Supports Future Growth
MAA | A BRIGHTER VIEW 11 1225 South Church Charlotte Ridge at Chenal Valley Little Rock Venue at Cool Springs Nashville Development Pipeline Supports Future Growth • Well located, High quality properties • Pricing below replacement cost • Mix of Large and Secondary markets • Minimal development risk
Slide 12: Disciplined Capital Deployment
MAA | A BRIGHTER VIEW 12 Disciplined Capital Deployment -20%-15%-10% -5% 0% 5% MAA HME EQR ESS UDR AVB AEC AIV BRE CPT PPS CLP Source: Green Street Advisors, July 19, 2011, Just Smart Capital Allocation • Our extensive relationships, market knowledge, and disciplined acquisition process provide a co
Slide 13: Disciplined Capital Deployment: Actual vs. Proforma Cash Flows
MAA | A BRIGHTER VIEW 13 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 Note
Slide 14: Solid Balance Sheet Position
MAA | A BRIGHTER VIEW 14 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 1.0 1.5 2.0 2.5 3.0 3.5 4.0 MAA Sector *Source: BMO Capital Marke
Slide 15: Positioning Balance Sheet for Future
MAA | A BRIGHTER VIEW 15 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), incre
Slide 16: Attractive Pricing Opportunity: Dividend Yield
MAA | A BRIGHTER VIEW 16 Attractive Pricing Opportunity • MAA’s Current Dividend Yield is 4.2% compared to a Sector Average of 3.1%. • MAA’s AFFO Pay - Out Ratio is 81% as compared to a Sector Average of 87%. • A more stable earnings platform, an established history of consistent dividend performanc
Slide 17: Attractive Pricing Opportunity: Implied Cap Rate
MAA | A BRIGHTER VIEW 17 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
Slide 18: FFO/Share Growth and Current FFO Multiple
MAA | A BRIGHTER VIEW 18 From 2000 - 2010, the compounded annual growth rate of MAA’s FFO/share is 2 nd 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 Com
Slide 19: Summary
MAA | A BRIGHTER VIEW 19 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
Slide 20: Forward-looking statements
20 Certain matters in this presentation may constitute forward - looking statements within the meaning of Section 27 - A of the Securit ies Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about anticipate d e co
Slide 21: SeMAA
SeMAA
MID America Apartment Communities — Investor Presentation (January 2012) on 6ix