Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (May 2011)
16 slides from Mid-america Apartment Communities's investor presentation, May 10, 2011
Slide 1: Capital Markets Update
Capital Markets Update May 2011 MAA
Slide 2: MAA's Strategy
MAA‘s Strategy » Full Cycle Performance Objective - High quality recurring revenues - Lower volatility over full cycle - Secure and growing dividend » Sunbelt Region Focus = Superior demand side performance - Competitive advantages to manage supply pressure » Large and Secondary Market Focus - Full
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 10 years has been 18.4% B® One of only three multifamily REITs to not reduce dividend over the past 15 years $4.00 $3.50 $3.00 $2.50 $2.00 $2.5
Slide 4: Outperforming Sector Over Full Cycle
8% 6% 4% 2% 0% -2% -4% -6% -8% Outperforming Sector Over Full Cycle Better full cycle performance, with lower volatility, drives stronger and more consistent long-term performance for MAA shareholders 2004-2013F Nol | StdDev MAA 2.6% | 3.2% Sector | 2.2% | 4.3% 2000 2001 2002 Repositioned portfolio
Slide 5: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle bm Pro-business environment 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 bm Lower taxes - Nostate income taxes in TX, TN, FL
Slide 6: 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 3.5% Employment Growth 30% (2021-2014): 2.5% All MAA Markets: 2.8% 20% National MSA Average: 2.3% 25 20%
Slide 7: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Multifamily Completions » According to REIS, for the U.S. Projected % Drop in as a whole, average annual A Average Average Average completions from 2011-2015 are expected to drop 39%. 2999-2010 2023-2015 Annual Supply [AMINA 67,265 29,509 56.1% b In MAA’s markets,
Slide 8: 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 9: External Growth: Actual vs. Proforma Cash Flows
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 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,0
Slide 10: Creating Value through External Growth
fo 55.0% 500% 45.0% oot $700,000 $600,000 $500,000 $400,000 $300,000 Creating Value through External Growth NOI Operating Margin Operating Pre Margin, Acquisition 56.0% Operating Margin, 52.3% Total Property Value (so00's) Aggregate Value, $645,676 Aggregate Purchase Price, $524,146 Significant impr
Slide 11: 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 54.50 70% $4.00 65% 60% #350 55%
Slide 12: Positioning Balance Sheet for Future
Positioning Balance Sheet for Future > Current financing advantage MAA Debt/Market Cap 3/31/2011 - 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), incr
Slide 13: 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’ performa
Slide 14: Attractive Pricing Opportunity
Attractive Pricing Opportunity From 2000-2010, the compounded annual growth rate of MAA‘s FFO/share is 2"4 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) % of Stock Pric
Slide 15: Summary
Summary b 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 bm Solid balance sheet position » Well positioned to perform as
Slide 16: End of Presentation
RSMAA 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 933 and Secti of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements m
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