Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Citi 2014 Global Property CEO Conference
12 slides from Mid-america Apartment Communities's conference presentation, Mar 3, 2014
Slide 1: Citi 2014 Global Property CEO Conference March 2014
Citi 2014 Global Property CEO Conference March 2014
Slide 2: Merger Integration Update
Merger Integration Update Announcement June 3, 2013 Closed October 1, 2013 Dec 2014 Dec 2013 Identified $25M of synergies Numerous due - diligence site visits Exchange of non - public financial information; extensive due diligence and valuation analysis Pre - announcement review with Rating Agencies
Slide 3: Merger Opportunities
Merger Opportunities 3 • We believe there is approximately $25 million ($0.32 per share) of combined expense synergies across the platform, to be captured on a run rate basis by the end of 2014 ● NOI operating synergies: economies of scale in combined insurance program and national accounts; R&M and
Slide 4: 2014 Guidance and Earnings Summary
2014 Guidance and Earnings Summary 4 2014 Guidance Range Core FFO/Share $4.80 - $5.00 Core AFFO/Share $4.00 - $4.20 SS Revenue Growth 3.5% - 4.5% SS Expense Growth 3% - 4% SS NOI Growth 4% - 5% Multifamily Acquisition Volume $200 - $300 Million Multifamily Disposition Volume $125 - $175 Million Comm
Slide 5: Leasing Outlook
Leasing Outlook 5 New Jobs Per Multifamily Completion • Over the last up cycle (2004 - 2007), the ratio of new jobs to multifamily completions in our markets averaged 7 to 1; 2014 projections around 8 to 1 in our large markets and over 10 to 1 in our secondary markets. • The projected ratio for larg
Slide 6: Development - Lease Up Pipeline
Development - Lease Up Pipeline * Expected stabilized NOI yield between 7% and 8% Development and Lease Up Pipeline ($mm, except per unit costs) $242.8 Total Expected MSA Units to Date to Complete Total Per Unit Stabilized Active Development *: 220 Riverside Jacksonville 294 17.2$ 23.3$ 40.5$ 138$ 4
Slide 7: Redevelopment Pipeline
Redevelopment Pipeline 7 $242.8 2013 Results • Redeveloped approximately 2,600 units at an average cost of approximately $4,200 per unit • Achieved an average rent increase of $89 per month ($1,068 per year), 11% higher than non - redeveloped units • Generated a cash on cash return of 24% assuming 9
Slide 8: Continuous Portfolio Upgrade Through Capital Recycling
Continuous Portfolio Upgrade Through Capital Recycling 8 Focus Remains On Maintaining a Full Cycle Portfolio Profile - Large and Secondary Markets Capital Redeployment Price (000s) Units Acquisitions by Year (wholly-owned): 2009 78,300$ 1,064 2010 230,050$ 2,138 2011 362,515$ 3,055 2012 345,075$ 2,4
Slide 9: Continuous Portfolio Upgrade Through Capital Recycling
Continuous Portfolio Upgrade Through Capital Recycling 9 • MARKET ENTRY San Antonio, TX; Charlotte, NC; Kansas City, MO; Richmond, VA; and Fredericksburg, VA • MARKET EXPANSION Dallas/Fort Worth, TX; Orlando, FL; Atlanta , GA; Phoenix, AZ; Raleigh, NC; Nashville , TN, Austin, TX; Little Rock, AR; an
Slide 10: Strong Investment Grade Balance Sheet and Manageable Debt Maturity Profile
Strong Investment Grade Balance Sheet and Manageable Debt Maturity Profile Credit metrics New MAA LT Target Credit Ratings Total unencumbered assets to book value 62.2% 65% - 70% Fitch BBB Net Debt / Recurring EBITDA 1 6.3x 6.0x Moody’s Baa2 Net Debt / gross assets 2 42.4% 40% - 45% GAV S&P BBB Secu
Slide 11: Summary
Summary 11 x Good progress on merger integration x Merger related opportunities and scale creates upside over the next 2 - 3 years x Outlook for continued solid leasing fundamentals x Pipeline of redevelopment, lease - up and new development to contribute to earnings x Actively continuing to create
Slide 12: Forward-looking statements
Certain matters in this presentation may constitute forward - looking statements within the meaning of Section 27 - A of the Securities Act of 1933 and Section 21 E of the Securities and Exchange Act of 1934 . Such statements include, but are not limited to, statements made about anticipated economi
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