Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — NAREIT Institutional Investor Forum June 2009
19 slides from Mid-america Apartment Communities's conference presentation, Jun 3, 2009
Slide 1: NAREIT Institutional Investor Forum June 2009
NAREIT Institutional Investor Forum June 2009
Slide 2: Strong Public Company Platform
Strong Public Company Platform • 15-Year Track Record – Exclusively Multifamily – Top-Tier Returns to Shareholders – Value Investor, Strong Operator – Stable Leadership • High Quality Portfolio – 144 Communities; 42,252 Units – Younger Portfolio than Sector Average • Diversified in High Growth Regio
Slide 3: Out-Performing Sector
Out-Performing Sector MAA compounded annual FFO growth has been 3.5% versus the sector average of 0.9% Steady FFO growth has generated healthy growth in AFFO (FFO minus recurring capital expenditures); resulting in one of the top-tier dividend pay-out ratios and balance sheets.
Slide 4: Record First Quarter
Record First Quarter Edge at Lyon’s Gate, Phoenix, AZ Eagle Ridge, Birmingham, AL • FFO of $1.01, up 5% from Q1 2008, and a record • Physical occupancy ended Q1 at 95.5%, up from 93.5% at year end • Same store NOI was down 1.1% on weaker pricing, but better than planned • Resident turnover declined
Slide 5: Outlook for Apartment Leasing
Outlook for Apartment Leasing Source: Witten Advisors, Presentation at NMHC Research Forum, March 31, 2009, “Update on the Apartment Markets: The Macro View,” Source - - U.S. Bureau of Labor Statistics, forecast by Witten Advisors. For informational purposes only. Do not use or disclose this informa
Slide 6: Outlook for Apartment Leasing
Outlook for Apartment Leasing Source: Witten Advisors, Presentation at NMHC Research Forum, March 31, 2009, “Update on the Apartment Markets: The Macro View,” Source - - U.S. Bureau of Labor Statistics, forecast by Witten Advisors. For informational purposes only. Do not use or disclose this informa
Slide 7: Outlook for Apartment Leasing
Outlook for Apartment Leasing • Current Homeownership Rate = 67.5% • Every 1% Decline = 1.1 million renter households Source: Raymond James & Associates, Inc., U.S. Housing and Homebuilding Outlook , April A return to the historical average U.S. home ownership rate has significantly positive implica
Slide 8: Outlook for Apartment Leasing
Outlook for Apartment Leasing Source: Witten Advisors Weak employment trends will result in meaningful moderation in revenue growth in 2009 and first half of 2010. Late and into 2011 recovery looks to be very strong. For informational purposes only. Do not use or disclose this information for any pu
Slide 9: Well Positioned for 2009
Well Positioned for 2009 MAA’s ability to continue strong performance…through the weaker part of the cycle as well as in the strong recovery period to follow…is driven by a few key variables. Silverado, Austin, TX • Focus on High Growth Sunbelt Region with Strong Diversification • Secondary markets
Slide 10: Well Positioned For 2009
Well Positioned For 2009 Lighthouse Court, Jacksonville, FL Georgetown Grove, Savannah, GA • Unit interior initiative: 7,000 units completed 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 limit
Slide 11: Focus on High Growth Sunbelt
National MSA Average 1.1% Sunbelt Region MSA Average 1.5% Focus on High Growth Sunbelt Employment Growth Projections 2009 - 2013 Annual Compounded Growth Rates MAA in 7 of the top 10 projected “Echo Boom Household” Markets: Dallas, Houston, Atlanta, Phoenix, Austin, South FL, Orlando. Source: Econom
Slide 12: Diversified For Full Cycle
Diversified For Full Cycle Source: BLS By diversifying across both primary and select secondary markets MAA is better able to withstand the down part of the cycle, deliver strong results in the up part of the cycle, and capture lower risks and volatility over the full cycle.
Slide 13: Strong Balance Sheet Position
Strong Balance Sheet Position Watermark, Dallas, TX Grand Reserve, Lexington, KY • $104 MM new equity raised in 2008 at $53 net/share • $175 MM of capacity in Agency/Bank credit facilities • 2009 debt maturities refinanced April • 2010 maturities only $50MM (bank line) to be renewed • Fixed rate/swa
Slide 14: Strong Balance Sheet Position
MAA Median Fixed charge coverage 2.77 2.14 FFO Payout ratio 2008 66% 79% FFO Payout ratio 2009F 69% 84% Debt/Gross Assets 51% 54% Sources: Sector Median reported by KeyBanc 4-17-09 MAA: Fixed charge coverage and debt//gross assets as reported for Q1 09. Common 44% Debt 50% Strong Balance Sheet Posit
Slide 15: External Growth Opportunities
External Growth Opportunities Grand Courtyards, Dallas, TX Lanier Club, Atlanta, GA • Improving opportunities for attractive acquisitions – A number of distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Cred
Slide 16: Forecast 2009
Forecast 2009 • Weak employment market continues (national unemployment 9% - 10%) • Resident turnover continues show encouraging trend – Down to 49.5% in Q1 from 53.1% a year ago – Reduced move-outs to buy a home • Some market weakness partially offset by initiatives – New revenue-generating initiat
Slide 17: MAA Offers An Attractive Value
MAA Offers An Attractive Value Village Oaks, Tampa, FL Prescott, Atlanta, GA • Sells at an implied price per unit of $59k - $61k – Replacement value of $110k - $120k – $110k/unit generates price/share of $105 • Sells at an implied cap rate of 7.6 – 6.0 to 7.0 cap rate generates a price/share of $42
Slide 18: Summary
Summary Kirkwood, Houston ü MAA Is a Proven Platform • 15 Years of Success as Public Company • Strong Operating Platform • Top-Tier Performance for Shareholders • More Recession-Resistant • Record Results Q109 ü Opportunity to Invest After Significant Sector Sell-Off and Ahead of Recovery ü Young Po
Slide 19: 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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