Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Nareit's REITworld: 2021 Annual Conference
32 slides from Mid-america Apartment Communities's conference presentation, Nov 8, 2021
Slide 1: Nareit's REITworld: 2021 Annual Conference
Nareit’s REITworld: 2021 Annual Conference November 9-11, 2021 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: Differentiated Portfolio Strategy
Differentiated Portfolio Strategy MAA’s differentiated approach and strategy has delivered long-term total shareholder return outperformance. MAA’s focus on the high-growth Sunbelt region, appealing to the largest segment of the rental market, captures strong demand and greater stability. Outlook &
Slide 4: Unique Market Diversification and Submarket Balance across the Sunbelt Region
Unique 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 9/30/2021 for total multifamily portfolio 2 Average effective rent/unit for 3Q 2021 o
Slide 5: High Quality Properties Appealing to a Large Portion of the Rental Market
High Quality Properties Appealing to a Large Portion of the Rental Market… MAA Lenox Atlanta , GA MAA Worthington Dallas, TX MAA Reserve Charlotte, NC Charlotte at Midtown Nashville, TN Sync 36 Denver, CO MAA Parkside Orlando, FL Drive more robust long-term growth performance and greater stability t
Slide 6: Strong Demand Prospects for Sunbelt Markets
Strong Demand Prospects for Sunbelt Markets Source: Moody’s Job growth prospects Population growth Household formation STRENGTH in MAA Markets Household formation above population growth projections supports continued in-migration trends for MAA markets. Sunbelt markets capture higher demand for hou
Slide 7: Strong Rent Growth Prospects for Sunbelt Markets
U.S Markets with Highest Cumulative Rent Growth Projections: 2022-2026 Strong Rent Growth Prospects for Sunbelt Markets Source: Yardi Matrix, Green Street, Company MAA Markets (Weighted by MAA 3Q21 Same Store NOI) Non-MAA REIT Markets (Weighted by Sector NOI) All Markets Projected Rent Growth (2022
Slide 8: 2021 Operating Update
2021 Operating Update SAME STORE Full Year 2020 Q1 2021 Q2 2021 Q3 2021 OCT 2021 EFFECTIVE LEASES NEW LEASE AVG Pricing Growth Lease Over Lease -2.5% -0.8% 8.7% 20.4% 19.9% RENEWAL AVG Pricing Growth Lease Over Lease 5.2% 6.9% 7.8% 10.7% 13.4% BLENDED AVG Pricing Growth Lease Over Lease 1.3% 2.7% 8.
Slide 9: 2022 Initial Considerations
2022 Initial Considerations OPERATIONS CAPITAL ALLOCATION/SOURCES & USES Pricing: Blended lease over lease pricing for the full year 2021 is expected to be in the 10% range, driving strong “earned in” rent growth in the 5% range into 2022. With a typical 12-month lease term, 2022 effective rent grow
Slide 10: Same Store Resident Profile in Top Markets
SAME STORE RESIDENT PROFILE IN TOP MARKETS Q3 2021 AVG NEW LEASE RENTS Q3 2021 AVG NEW RESIDENT INCOME RENT/ INCOME MEDIAN RESIDENT AGE % SINGLE TOP 5 EMPLOYMENT SECTORS 1 2 3 4 5 Atlanta, GA $1,805 $95,683 22.6% 33 82% Dallas, TX $1,535 $86,684 21.2% 33 84% Charlotte, NC $1,518 $78,884 23.1% 34 84%
Slide 11: Continued Low Resident Turnover
Continued Low Resident Turnover Throughout the pandemic our total move outs to a single-family home have stayed within the historical average (range of 25% - 27%). Trailing 12 Month Resident Turnover % of Total Move Outs to Rent or Buy Single Family Homes Resident Turnover and Move Outs Associated w
Slide 12: 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 Property Redevelopment Program Opportunity Approximately 15K units remaining for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn at s
Slide 13: Future Redevelopment Opportunity
Future Redevelopment Opportunity Potential for Continued Value Capture Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.0% Cap Rate Net Value Creation $18.1M $362.0M $276.8M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 5,508
Slide 14: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value MAA Buckhead, Atlanta, GA Updated Leasing Centers Conference Areas to Support Remote Work Exterior Amenities for Today’s Lifestyles MAA Stratford, Atlanta, GA MAA McKinney, Dallas, TX Dramatic Transformations MAA Worthington, Dallas, TX Prope
Slide 15: Next Generation Leasing Platform
MAA continues to adopt, develop and deploy innovative solutions to enhance our leasing efficiency and effectiveness as well as our online presence Adapting our approach as prospects’ needs change, multiple tour options available including contactless visits Prominent Call to Action buttons to increa
Slide 16: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value 2020, 2021, 2022 Roll-out Mobile control of lights and thermostat as well as leak monitoring provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Continued upg
Slide 17: Development Program Supports Balanced and Diversified Portfolio Strategy
Development Program Supports Balanced and Diversified Portfolio Strategy Novel Daybreak, Salt Lake City, UT Novel West Midtown, Atlanta, GA MAA Windmill Hill, Austin, TX Sand Lake, Orlando, FL MAA Park Point, Houston, TX MAA Westglenn, Denver, CO MIDRISE INNER LOOP Novel Val Vista, Phoenix, AZ MAA R
Slide 18: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value 6.0% AVERAGE EXPECTED STABILIZED NOI YIELD $37M - $38M TOTAL EXPECTED STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 09/30/2021 PROPERTY MSA TOTAL UNITS TOTAL EXP COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION1 Sand
Slide 19: Investment Grade Balance Sheet
Investment Grade Balance Sheet Debt Summary ($ in millions) At 9/30/2021 Unsecured Public Bonds $4,150 91.4% Unsecured Private Bonds 0 0.0% Commercial Paper 25 0.6% Total Unsecured Debt1 $4,175 92.0% Total Secured Debt $366 8.0% Total Debt $4,541 Note: Total Capitalization is defined here as common
Slide 20: Strong Balance Sheet and Manageable Debt Maturity Profile
Strong Balance Sheet and Manageable Debt Maturity Profile % MATURING 0.6% 2.8% 7.7% 8.8% 8.9% 6.5% 13.1% 8.7% 12.3% 6.5% 24.1% Credit metrics At 9/30/2021 MAA SECTOR AVG2,3 Total debt / adjusted total assets1 30.3% 32.4% Total secured debt / adjusted total assets1 2.4% 4.7% Unencumbered NOI / total
Slide 21: A Brighter View for Today and Tomorrow: Our Sustainability Commitment
A Brighter View for Today and Tomorrow: Our Sustainability Commitment Continued Improvement in 2021 74 100 30 30 44 70 2021 GRESB SCORE THREE GREEN STARS MANAGEMENT SCORE PERFORMANCE SCORE ENERGY USE INTENSITY 15% GREEN HOUSE GAS INTENSITY 15% WATER USE INTENSITY 10% 2018 – 2028 REDUCTION GOALS SETT
Slide 22: Supporting Our Associates' Well-Being
SUPPORTING OUR ASSOCIATES’ WELL--BEING A Brighter View for Today and Tomorrow: Our Sustainability Commitment Responsive service program and routine surveys Online resident portal for ease of transactions, service request submission and communication Property amenities to promote healthy lifestyles O
Slide 23: Performance for Shareholders
Performance for Shareholders Steady Annual Core FFO Growth Consistent and compounding Core FFO and dividend growth through market cycles; high quality earnings stream Strong dividend track record; steady growth and well covered Top tier shareholder returns within the multifamily sector Annual Compou
Slide 24: Appendix
Appendix At September 30, 2021 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 25: 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 Amounts in thousands, except per share and unit data Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income av
Slide 26: 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, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net Operating I
Slide 27: Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME Dollars in thousands Three Months Ended Twelve Months Ended September 30, 2021 September 30, 2020 September 30, 2021 December 31, 2020 Net income $ 87,047 $ 62,036 $ 446,085 $ 264,015
Slide 28: 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 Dollars in thousands September 30, 2021 December 31, 2020
Slide 29: Reconciliation to Core FFO and Core AFFO per Share for 2021 Guidance
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2021 GUIDANCE (1) Non-Core FFO items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or
Slide 30: Definitions of Non-GAAP Financial Measures
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 31: Definitions of Non-GAAP Financial Measures: FFO
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 32: 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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