Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Nareit's REITworld: 2020 Annual Conference
26 slides from Mid-america Apartment Communities's conference presentation, Nov 13, 2020
Slide 1: Nareit's REITworld: 2020 Annual Conference
Nareit’s REITworld: 2020 Annual Conference November 17-19, 2020 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking state
Slide 3: Rent Collections Update (as of November 12, 2020)
Q3 OCTOBER NOVEMBER RESIDENTIAL RENTS As of November 12, 2020 $000S % OF TOTAL BILLED $000S % OF TOTAL BILLED $000S % OF TOTAL BILLED TOTAL BILLED $374,226 $125,009 $124,487 CASH COLLECTED $370,975 99.1% $123,843 99.1% $121,157 98.4%* DEFERRED PAYMENTS OUTSTANDING1 $416 0.1% $39 0.0% $346 0.3% 97.3%
Slide 4: Same Store Pricing and Occupancy Update (as of November 12, 2020)
Same Store Pricing and Occupancy Update (as of November 12, 2020) 1 Represents new leases that went into effect during the month; lease price is typically set on average 28 days ahead of lease start date 2 Includes the impact of concessions 3 Represents renewals that went into effect during the mont
Slide 5: 2021 Considerations – Preliminary Supply and Demand Expectations
2021 Considerations – Preliminary Supply and Demand Expectations MAA FOOTPRINT PORTFOLIO LEVEL Job Growth: During 2020, the impact of COVID and economic shutdown in MAA markets was less severe than nationally, nevertheless MAA markets are expected to lose 2 to 2.5 million jobs. We expect MAA’s sunbe
Slide 6: 2021 Considerations – Operations and Capital Allocation
2021 Considerations – Operations and Capital Allocation OPERATIONS CAPITAL ALLOCATION Pricing: Blended lease over lease pricing for 2020 is likely to end up in the 1.0% to 1.4% range (1.4% November YTD). Leases signed in 2020 will influence effective rent growth performance through the first half of
Slide 7: Market Diversification and Submarket Balance across the Sunbelt Region
Market Diversification and Submarket Balance across the Sunbelt Region Multifamily Market Multifamily Market and Regional Office Multifamily Market and Corporate Headquarters 1 Based on gross asset value at 9/30/2020 for total multifamily portfolio 2 Average effective rent/unit for 3Q 2020 of $1,325
Slide 8: High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Upside Opportunity
High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Upside Opportunity PRIMARY EMPLOYMENT SECTORS FOR EXISTING RESIDENTS Healthcare Professional Services Finance/ Banking/ Insurance Retail Education Technology Restaurants/ Food Service Hospitality Real Estate Governm
Slide 9: Continued Low Resident Turnover
Continued Low Resident Turnover Resident turnover continues to decrease, reaching record lows in Q3 2020. Move outs to buy a single family home or rent a single family home remain consistent at approximately 20% and 6% of all move outs, respectively. Trailing 12 Month Resident Turnover % of Total Mo
Slide 10: Technology Advances Enhance Operations and Add Value
2019 Test and 2020 Expansion Tests at 15 properties in 2019 were well received Mobile control of lights, thermostat and security as well as leak monitoring provides additional value to residents Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges
Slide 11: Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years
Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years Approximately 25,000 units redeveloped during past 3 years Redevelopments are performed on turn at select communities (properties remain in Same Store group), minimizing down time and allowing us to continually refine the pr
Slide 12: Future Opportunity to Capture Pipeline of Units Yet to be Redeveloped
Future Opportunity to Capture Pipeline of Units Yet to be Redeveloped MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.0% Cap Rate Net Value Creation $14.8M $296.0M $226.5M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 2,952 2,787 5,3
Slide 13: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value Property Repositioning Program Thoughtful Upgrades to Maximize Revenue Program differentiated from kitchen/bath redevelopment – includes upgrade of amenities, exteriors and common areas to keep pace with market demand Candidates evaluated on
Slide 14: Current $460 million development pipeline includes diversified product and markets
Novel Midtown, Phoenix, AZ Current $460 million development pipeline includes diversified product and markets Development Program Supports Balanced and Diversified Portfolio Strategy MAA Frisco Bridges II, Dallas, TX Sand Lake, Orlando, FL The Robinson, Orlando, FL Expected Completion 4Q 2021 Expect
Slide 15: Development Pipeline and Lease-ups Poised To Deliver Value
6.1% AVERAGE EXPECTED STABILIZED NOI YIELD $28M - $29M TOTAL EXPECTED STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 9/30/2020 PROPERTY MSA TOTAL UNITS TOTAL EXP COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION2 MAA Frisco Bridges II Dallas, TX 348 $ 69.0 2Q 2020 1Q 2022 Novel
Slide 16: Credit Metrics and Debt Maturity Profile
% MATURING .8% 4.3% 8.3% 8.1% 9.4% 9.1% 0% 13.5% 8.9% 12.7% 24.9% Credit metrics At 9/30/2020 MAA SECTOR AVG2,3 Total debt / adjusted total assets1 30.6% 33.7% Total secured debt / adjusted total assets1 3.4% 4.8% Unencumbered NOI / total NOI 93.2% 92.3% Net Debt / Adjusted EBITDAre4 4.66x3 5.50x Co
Slide 17: Solid Investment Grade Balance Sheet
Solid Investment Grade Balance Sheet Debt Summary ($ in millions) At 9/30/2020 Unsecured Public Bonds $3,682.7 83.2% Unsecured Private Bonds 221.7 5.0% Commercial Paper 35.0 .8% Total Unsecured Debt1 $3,939.4 89.0% Total Secured Debt $486.2 11.0% Total Debt $4,425.6 Note: Total Capitalization is def
Slide 18: Strong Commitment to Serving All Stakeholders
Strong Commitment to Serving All Stakeholders Our long-term commitment to sustainability is an essential part of how we provide exceptional service and enduring value for our stakeholders. We are dedicated to continuous progress with leadership across the company focused on tracking and enhancing ou
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms APPENDIX At September 30, 2020
Slide 20: Reconciliation of FFO, Core FFO, Core AFFO and FAD
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Included in Other non-operating (income) expense in the Consolidated Statements of Operations. For the nine months ended September 30, 2020, $4.8 milli
Slide 21: Reconciliation of Net Operating Income to Net Income
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Dollars in thousands Three Months Ended Nine Months Ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net Operating I
Slide 22: EBITDAre and Adjusted EBITDAre Reconciliation
Dollars in thousands Three Months Ended Twelve Months Ended September 30, 2020 September 30, 2019 September 30, 2020 December 31, 2019 Net income $ 62,036 $ 81,459 $ 332,776 $ 366,618 Depreciation and amortization 127,679 124,684 506,683 496,843 Interest expense 41,010 44,513 170,308 179,847 Income
Slide 23: Reconciliation of Net Debt, Gross Assets and Gross Real Estate Assets
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET Included in Restricted cash in the Consolidated Balance S
Slide 24: Definitions of Non-GAAP Financial Measures – Adjusted EBITDAre
Definitions of Non-GAAP Financial Measures Adjusted EBITDAre For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part
Slide 25: Definitions of Non-GAAP Financial Measures – Funds From Operations
Definitions of Non-GAAP Financial Measures Funds From Operations (FFO) FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of rea
Slide 26: Definitions of Other Key Terms
Definitions of Other Key Terms Average Effective Rent per Unit Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing
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