Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (August 2010)
17 slides from Mid-america Apartment Communities's investor presentation, Aug 16, 2010
Slide 1: Capital Markets Update
MAA Capital Markets Update August 2010 Mid-America Apartment Communities, Inc.
Slide 2: Successful Company Platform
MAA Successful Company Platform Sixteen Year Record of Success • Sector Leading Long-Term Shareholder Return • Full Cycle Performer • S&P Small-Cap 600 • Strong Corporate Governance Disciplined Capital Deployment • Value Investor - Acquisitions Focused • Extensive Network & Deal Flow • Proven Succes
Slide 3: Outperforming Sector Over Full Cycle
MAA 2004-2010E NOI Std Dev MAA 2.1% 3.7% Sector 1.6% 4.7% 2000-2010E NOI Std Dev MAA 1.0% 3.7% Sector 0.9% 5.2% Repositioned portfolio and strengthened platform = stronger “up” cycle performance profile Source: Green Street Residential REIT Update and company filings. Outperforming Sector Over Full
Slide 4: Full Cycle Performer - Dividend Stability
MAA Unique full cycle strategy, strong operating platform & disciplined capital deployment have produced high quality earnings and cash flow Stable and growing dividend for shareholders over last 15 years One of only three apartment REITs with no dividend cut in 15 years FFO Payout (67%) below secto
Slide 5: Recovery Cycle Underway
MAA Source: Witten Advisors. Recovery Cycle Underway MAA is particularly well positioned for strong positive absorption trends that will exceed national norms
Slide 6: Recovery Cycle Underway: Declining New Completions
MAA Apartment New Completions Average 1999-2009 Projected Average 2010-2014 % Drop in Average Annual Supply All MAA Markets 65,522 29,261 55.3% Large MAA Markets 52,459 22,512 57.1% Secondary MAA Markets 13,063 6,748 48.3% U.S 133,254 79,943 40.0% West 34,066 23,768 30.2% Northeast 12,293 8,983 26.9
Slide 7: High Growth Region = Higher Demand
MAA Source: Economy.com Household formation trends in MAA markets exceed national outlook High Growth Region = Higher Demand Pro-Business Environment Greater Access to Labor and Land Strong Distribution And Logistics Structure Positive Demographic Flow Lower Cost of Living Expanding Import/Export Ac
Slide 8: Recovery Cycle Underway: Falling Permits
MAA Portfolio Stability MAA’s large markets are at a lower relative supply level than all other market segments 2005 peak of 120k permits in MAA markets, dropped to estimated 25k in 2010 (80% drop from peak to trough) % Change in Permits Issued 5+ Units Source: U.S. Census Bureau. Recovery Cycle Und
Slide 9: Recovery Cycle Underway: Job Growth Projections
MAA Source: Economy.com. Job Growth Projections by Market 5 Yr Projected Growth Recovery Cycle Underway Job growth in MAA markets is projected to exceed national average and the top 25 REIT markets (80% of apartment sector properties).
Slide 10: Strong Operating Platform
MAA 6/30/10 YTD MAA Rents Over (Under) Market MAA Occupancy Over (Under) Market Revenue Over (Under) Market Phoenix 2.2% 4.4% 6.7% Raleigh 0.0% 3.0% 3.0% Savannah 6.7% 9.2% 16.0% Ft. Lauderdale 6.0% 4.5% 10.6% San Antonio 0.0% 4.4% 4.4% Tallahassee 5.9% 5.9% 11.8% Tampa 3.9% 6.3% 10.2% Winston Salem
Slide 11: Recovery Cycle Underway: Lease Over Lease Rent Growth
MAA New Lease & Renewal Rent Growth Blended Rent Growth % Sharp recovery in pricing is underway. Pricing for new residents is expected to exceed renewal pricing later this year and will drive meaningful recovery in overall pricing and revenues. Lease Over Lease Rent Growth Recovery Cycle Underway
Slide 12: New Value Growth Opportunities
MAA New Value Growth Opportunities Sixteen year track record focused exclusively on sourcing, underwriting, financing and closing on apartment properties in the Sunbelt Region Deal flow has significantly increased in past 60 days Well established record of performance for sellers; MAA active with al
Slide 13: New Value Growth Opportunities
MAA New Value Growth Opportunities Active current deal flow with lenders, developers and distressed financing/liquidity needs $102MM acquisitions (1,192 units) year-to-date Additional $138MM in final contract stages Of the combined deals closed and in final contract phases: • $196MM in distressed le
Slide 14: Balance Sheet in Strong Position
MAA Fixed Charge Coverage Debt to EBITDA Balance Sheet in Strong Position Balance Sheet significantly strengthened over last ten years Total leverage (Debt + Preferred) reduced 17% over last ten years Debt to EBITDA and fixed charge coverage better than sector median
Slide 15: Attractive Pricing Opportunity
MAA FFO Multiple Source: SNL financial research. Attractive Pricing Opportunity MAA trades at a discount to sector average despite an established record of long-term out performance, solid prospects for strong performance from same store portfolio and growing opportunities for accelerating new growt
Slide 16: Why Buy MAA
MAA Why Buy MAA High-growth region, strong operating platform well positioned for recovery Solid prospects for robust internal growth over the next few years; demonstrated competitive ‘recovery cycle’ performance Strong balance sheet and extensive deal flow; well positioned to capture meaningful new
Slide 17: End of Presentation
MAA End of Presentation 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 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about a
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