Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (February 2010)
19 slides from Mid-america Apartment Communities's investor presentation, Feb 10, 2010
Slide 1: Capital Markets Update, February 2010
Capital Markets Update February 2010
Slide 2: Strong Public Company Platform
Strong Public Company Platform Talus Ranch, Phoenix, AZ • Sixteen Year Record of Success – Top-Tier Returns to Shareholders – Strong Operator; Sophisticated Platform – S&P Small-Cap 600 – Strong Corporate Governance • Disciplined Capital Deployment – Value Investor – Extensive Network & Deal Flow –
Slide 3: Full Cycle Strategy
Full Cycle Strategy • MAA began re-positioning its portfolio in 2003; profile that is well positioned to compete favorably in ‘up’ cycles and holds up better in ‘down’ cycles Seven+ Year Time Frame Inclusive of • Over the last six years MAA’s operating Recovery/Strong Market Cycle and platform has b
Slide 4: Focus on High Growth Region
Focus on High Growth Region Employment Growth Projections 2011 - • Strong pro-business environment Annual Compounded 2013 Growth Rates • Increasing port activity; jobs National MSA Average 2.6% • Access to less expensive labor MAA Market Average 3.1% • Good transportation infrastructure • Low busine
Slide 5: Near-Term Outlook
Near-Term Outlook • Leasing will remain challenged Key Assumptions 2010 Forecast over the next few quarters. FFO/Share $3.45 - $3.65 • Focus remains on holding AFFO/Share $2.73 - $2.93 occupancy and aggressively managing expenses. SS Revenue (2%) - (3%)* • Pricing trends in 2009 will carry SS Expens
Slide 6: Strong Long-Term Outlook
Strong Long-Term Outlook • Eventual recovery in employment trends will generate a rapid recovery in NOI – Pent-up demand; Significant growth of prime rental demographic • New apartment starts are predicted to hit a post-WW II low – Lack of financing; Investment returns insufficient • Single family h
Slide 7: MAA Positioned to Out-Perform
MAA Positioned to Out-Perform Annual Employment Growth • 85% of the properties owned by the Apartment REIT Sector are concentrated in 25 markets • MAA’s markets are concentrated in the high growth Sunbelt region, including a large presence in many of these REIT “top 25” markets (60% of portfolio), a
Slide 8: MAA Positioned to Out-Perform
MAA Positioned to Out-Perform 8 Source: Economy.com
Slide 9: Region Out-Performance Prospects
Region Out-Performance Prospects Expansion of Panama Canal Expected • The Panama canal is currently undergoing a $5 To Create Additional Long-Term billion expansion that will allow ships triple the size of current capacity to pass. Employment Growth For The Southeast • Currently, these ships port on
Slide 10: MAA Positioned to Out-Perform
MAA Positioned to Out-Perform New Multifamily Supply Projections (REIS Data) Average Annual Projected Average Supply Annual Supply (# of Units) (# of Units) % Drop in Average Market 1999-2009 2010-2013 Annual Supply MAA Markets (*) 65,709 28,686 56% Primary REIT Markets 89,591 48,261 46% United Stat
Slide 11: MAA Positioned to Out-Perform
MAA Positioned to Out-Perform Employment growth out-performance, coupled with new supply delivery well below historical averages, positions the portfolio for strong revenue growth potential Employment Growth * Completions ** 2010 2011 2012 2013 2010 2011 2012 2013 Historical Dallas/Ft. Worth 0.5% 2.
Slide 12: Sophisticated Operating Platform
Sophisticated Operating Platform Technology platform supports efforts to both optimize revenue growth and better control expenses Prospects/Resident • Pricing system Contact – Supported strong occupancy while achieving optimal pricing in a weak leasing environment…will also support faster recovery i
Slide 13: Strong Balance Sheet Position
Strong Balance Sheet Position • Leverage and ratios at historically strong levels • Plenty of capacity - $100 MM unused Common Debt • Only near-term maturity is $50 MM (bank line) for 2010 (Q1 planned 49% 46% close) • Agency loan maturities well laddered over 2011 - 2018 5% Preferred Fixed Charge Co
Slide 14: External Growth Opportunities
External Growth Opportunities Grand Courtyards, Dallas, • Improving opportunities for TX attractive acquisitions – Distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Credit facilities in place at pre-crisis
Slide 15: External Growth Opportunities
External Growth Opportunities Lighthouse Court, Jacksonville, • Competitive advantage over other FL potential buyers; particularly in secondary markets • MAA’s acquisition team sources an average of 200-300 potential acquisition opportunities each year • Best opportunities at the moment with ‘less t
Slide 16: MAA Offers An Attractive Value
MAA Offers An Attractive Value MAA is well positioned for coming recovery cycle: 1. Region and Markets employment growth forecasted to out-perform sector 2. Limited new supply risks 3. Balance sheet strong; capacity and ability to capture meaningful level of new growth 4. Strong dividend and coverag
Slide 17: Summary
Summary ü MAA Is a Proven Platform Stone Ranch, San Antonio, TX • 16 Years as a Public Company • Top-Tier Performance for Shareholders • Full Cycle Performer • Top Apartment REIT Performer 2000 - 2009 ü Opportunity to Invest Ahead of Recovery • Balance Sheet is Strong, With Capacity • Fund II New Gr
Slide 18: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause act
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