Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (September 2009)
19 slides from Mid-america Apartment Communities's investor presentation, Sep 9, 2009
Slide 1: Institutional Investor Update
Institutional Investor Update September 2009
Slide 2: Strong Public Company Platform
Strong Public Company Platform Talus Ranch, Phoenix, AZ • Positive 15-Year Track Record – Top-Tier Returns to Shareholders – Proven Strong Operator – S & P Small-Cap 600 – Stable Management; Long Tenure – Strong Corporate Governance • Disciplined Capital Deployment – Value Investor – Extensive Netwo
Slide 3: Out-Performing Sector
Out-Performing Sector MAA is the #1 performing stock for total shareholder return among all apartment REITs over the last 10 Years, 5 Years and Year-To-Date 3
Slide 4: Out-Performing Sector
Out-Performing Sector • MAA began re-positioning its portfolio in 2003 resulting in a profile that is well positioned to compete well in ‘up’ cycles and hold up better in ‘down’ cycles • In addition, the operating platform has been significantly strengthened through expanded asset management focus,
Slide 5: Record Second Quarter Results
Record Second Quarter Results Edge at Lyon’s Gate, Phoenix, AZ • Second Quarter Records – FFO of $0.98, up 3%* – Same store physical occupancy ended Q2 at 95.6%, up from 95.0%* – Fixed Charge Coverage at 2.71, up from 2.51* • Same store NOI was down 0.2%* on weaker pricing, but better than planned a
Slide 6: Strong Long-Term Outlook for Apts
Strong Long-Term Outlook for Apts • Markets expected to be difficult 2009 - 2010 as a result of weak employment trends – Little pricing power; off-set to some degree with strong occupancy and expense control (lower resident turnover) – MAA’s regional focus, two-tier market strategy, asset quality an
Slide 7: Apartment Sector: Promising Trends
Apartment Sector: Promising Trends Copper Ridge, • Single family home ownership likely to Dallas/Ft.Worth remain relatively constrained – Higher down-payments – Tighter credit – Higher mortgage interest rates • Home ownership currently 67.5% of households – Peaked at 69.5% – May revert to more susta
Slide 8: Strong Long-Term Outlook for Apts
Strong Long-Term Outlook for Apts Recovery begins in 2010 and outlook very for 2011 strong and 2012 Source: Witten Advisors 8
Slide 9: Focus on High Growth Sunbelt
Focus on High Growth Sunbelt • Positive demographic flows Employment Growth Projections 2009 - • Positive migration, immigration flows Annual Compounded 2013 Growth Rates • Low business/living costs National MSA Average 1.1% • Pro-business regulatory environment Sunbelt Region MSA Average 1.5% • Goo
Slide 10: Well Positioned for 2009 and Beyond
Well Positioned for 2009 and Beyond • Employment in Mid-America’s markets is forecast to out- perform the national average • 34 of MAA’s 46 markets are projected to grow faster than the national average • Minimal new supply will help support very strong positive absorption for several years • MAA is
Slide 11: Well Positioned For 2009
Well Positioned For 2009 Lighthouse Court, Jacksonville, • Unit interior initiative: 7,500 units completed FL in the last three years • Lease-up and new development projects reduced 2008 FFO by $0.16/share, reduced to $0.07 in 2009 • 2009 development expenditures limited to $9 million • Other new in
Slide 12: Strong Balance Sheet Position
Strong Balance Sheet Position • $163 MM of unused credit Capital Structure - facilities 12/31/2008 Other Debt • 2009 refinancing complete, only 11% $50 MM (bank line) for 2010 Common • Only $9 MM of development 44% Debt Agency Debt funding planned for 2009 50% 89% • Agency loan maturities well ladde
Slide 13: External Growth Opportunities
External Growth Opportunities Grand Courtyards, Dallas, • Improving opportunities for TX attractive acquisitions – A number of distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Credit facilities in place at
Slide 14: Forecast 2009
Forecast 2009 • Resident turnover continues to show encouraging trends – Down 9% in Q2 – 22% fewer move-outs to buy a home • Some market weakness partially offset by new initiatives – New revenue-generating initiatives – Same store net operating income declines 2½% to 4½% – Up to $75 MM wholly-owned
Slide 15: Strong Management and Governance
Strong Management and Governance • Long-planned CFO transition effective January 1st – Al Campbell promoted to CFO – Simon Wadsworth continues as Director & Special Advisor to the CEO – Management depth, length of tenure, and company commitment to succession planning facilitates transition • Active
Slide 16: MAA Offers An Attractive Value
MAA Offers An Attractive Value • Sells at an implied price per unit of approximately $65k – Replacement value of $110k - $120k – $110k/unit generates price/share of $105 • Sells at an implied cap rate of 7.1 – 6.0 to 7.0 cap rate generates a price/share of $42 to $54 • MAA is arguably one of the bes
Slide 17: Summary
Summary ü MAA Is a Proven Platform St. Augustine, Jacksonville, FL • 15+ Years as a Public Company • Strong Operating Platform • Top-Tier Performance for Shareholders • More Recession-Resistant • Record Results Q1 09 ü Opportunity to Invest Ahead of Recovery • Balance Sheet is Strong, With Capacity
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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