Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Nareit REITWeek 2020
25 slides from Mid-america Apartment Communities's conference presentation, Jun 1, 2020
Slide 1: Nareit REITWeek June 2-4, 2020
Nareit REITWeek June 2 - 4, 2020
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: MAA's COVID-19 Response and Reopening
MAA’s COVID-19 Response and Reopening Health and Well-Being Paramount The health and well-being of MAA’s residents, associates and all who visit MAA’s properties are our highest priority. Proactively closed leasing offices to walk-in traffic, postponed resident events and closed amenities in March.
Slide 4: Collections Update (as of May 28, 2020)
Collections Update (as of May 28, 2020) RENTS RECURRING FEES TOTAL APRIL $000S % OF TOTAL BILLED HISTORICAL AVERAGE1 $000S % OF TOTAL BILLED HISTORICAL AVERAGE1 $000S % OF TOTAL BILLED HISTORICAL AVERAGE1 TOTAL BILLED $123,509 $10,226 $133,735 CASH COLLECTED $122,424 99.1% $9,729 95.1% $132,153 98.8
Slide 5: Same Store Pricing and Occupancy Update
Same Store Pricing and Occupancy Update (as of May 28, 2020) 1 Represents new leases that went into effect during the month; lease price is typically set on average 28 days ahead of lease start date 2 Includes the impact of concessions 3 Represents renewals that went into effect during the month; le
Slide 6: Other Operating Update (as of May 28, 2020)
Other Operating Update (as of May 28, 2020) 1 No late fees were charged for residents impacted by COVID-19 or where prohibited by law 2 No termination fees where charged for lease terminations related to COVID-19 3 Non-recurring additional costs resulting from the COVID-19 pandemic, consisting prima
Slide 7: Market Diversification and Submarket Balance across the High Growth Sunbelt
Market Diversification and Submarket Balance across the High Growth Sunbelt Region Multifamily Market Multifamily Market and Regional Office Multifamily Market and Corporate Headquarters Source: Company and Company 1Q 2020 Earnings Release Supplemental 1 Based on gross asset value at 3/31/2020 for t
Slide 8: Current Unemployment Backdrop
Current Unemployment Backdrop On a weighted average of NOI by state, state unemployment claims as a percentage of the workforce for MAA’s portfolio was 11.2% versus national average of 12.7% STATE UNEMPLOYMENT CLAIMS FOR MAA’S PORTFOLIO STATE % SAME STORE NOI1 RATE TX 25.2% 10.0% FL 18.1% 6.5% GA 15
Slide 9: High Quality Resident Profile + Affordable Rents
High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Upside Opportunity PRIMARY EMPLOYMENT SECTORS FOR EXISTING RESIDENTS Professional Services Healthcare Finance/ Banking/ Insurance Retail Education Technology Restaurants/ Food Service Hospitality Real Estate Governm
Slide 10: 2019 Test and 2020 Expansion: Technology Advances Enhance Operations
2019 Test and 2020 Expansion Tests at 15 properties in 2019 were well received Mobile control of lights, thermostat and security as well as leak monitoring provides additional value to residents Additional synergy opportunities in repairs and maintenance and vacant and house electric charges This pr
Slide 11: Unit Interior Upgrades Will Drive Higher Value
Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years Approximately 25,000 units redeveloped during past 3 years Redevelopments are performed on turn at select communities (properties remain in Same Store group), minimizing down time and allowing us to continually refine the pr
Slide 12: Future Opportunity to Capture Pipeline of Units Yet to be Redeveloped
Future Opportunity to Capture Pipeline of Units Yet to be Redeveloped MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.0% Cap Rate Net Value Creation $15.6M $312.0M $238.8M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 3,184 2,982 5,5
Slide 13: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value Property Repositioning Program Thoughtful Upgrades to Maximize Revenue Program differentiated from kitchen/bath redevelopment – includes upgrade of amenities, exteriors and common areas to keep pace with market demand Candidates evaluated on
Slide 14: Development Program Supports Balanced and Diversified Portfolio Strategy
Novel Midtown, Phoenix, AZ Current $490 million development pipeline includes diversified product and markets Development Program Supports Balanced and Diversified Portfolio Strategy MAA Frisco Bridges II, Dallas, TX Jefferson Sand Lake, Orlando, FL The Robinson, Orlando, FL Started Late 3Q 2019 Exp
Slide 15: Development Pipeline and Lease-ups Poised To Deliver Value
6.2% AVERAGE EXPECTED STABILIZED NOI YIELD $30M - $31M TOTAL EXPECTED STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 3/31/2020 PROPERTY MSA TOTAL UNITS TOTAL EXP COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION2 Copper Ridge II Fort Worth, TX 168 $ 30.0 1Q 2020 2Q 2021 MAA Fri
Slide 16: Credit Metrics and Debt Maturity Profile
% MATURING 3% 4% 15% 10% 9% 9% 0% 13% 9% 13% 15% Credit metrics At 3/31/2020 MAA SECTOR AVG4 Total debt / adjusted total assets1 31.5% 33.4% Total secured debt / adjusted total assets1 4.4% 5.0% Unencumbered NOI / total NOI 90.6% 90.9% Net Debt / Adjusted EBITDAre2 4.71x3 5.11x Consolidated income a
Slide 17: Strong Culture Serving All Stakeholders
Strong Culture Serving All Stakeholders Our long-term commitment to sustainability and responsibly managing our relationships is an essential part of how we provide exceptional service and value for our stakeholders. We are dedicated to continuous progress and have established an ESG council of exec
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms APPENDIX At March 31, 2020
Slide 19: 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 March 31, 2020 2019 Net income available for MAA common shareholders $ 35,726 $
Slide 20: 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 March 31, 2020 December 31, 2019 March 31, 2019 Net Operating Income Same Store NOI $ 249,287 $ 250,971 $ 237,838 Non-Same
Slide 21: 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 March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 Net income $ 37,952 $ 65,958 $ 338,613 $ 366,618 Depreciatio
Slide 22: 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 March 31, 2020 December 31, 2019 Uns
Slide 23: 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 24: 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 25: 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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