Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (May 2010)
13 slides from Mid-america Apartment Communities's investor presentation, May 10, 2010
Slide 1: Capital Markets Update May 2010
MAA Mid-America Apartment Communities, Inc. Capital Markets Update May 2010
Slide 2: Strong Public Company Platform
Strong Public Company Platform MAA Sky View Ranch, Phoenix, AZ Grand Courtyards, Dallas, TX • Sixteen Year Record of Success Top Tier Performance for Shareholders Strong Operator; Sophisticated Platform Included in S&P Small-Cap 600 Strong Corporate Governance Disciplined Capital Deployment – Value
Slide 3: Full Cycle Strategy
Full Cycle Strategy • MAA began re-positioning its portfolio in 2003 resulting in a profile that is well positioned to compete favorably in ‘up’ cycles and holds up better in ‘down’ cycles Over the last six years MAA’s operating platform has been strengthened through expanded asset management focus,
Slide 4: Focus on High Growth Region
Focus on High Growth Region • Strong pro-business environment Increasing port activity; jobs Access to less expensive labor Good transportation infrastructure Low business/living costs Positive demographic flows Positive migration, immigration flows Diversified employment base Logistics Manufacturin
Slide 5: Near-Term Outlook
Near-Term Outlook Leasing will remain challenged over the next few quarters. Focus remains on holding occupancy and aggressively managing expenses. Pricing trends in 2009 will carry into 2010; stable re-pricing in 2010 expected to set the stage for improvement in 2011. New initiatives and fee progra
Slide 6: Strong Long-Term Outlook
Strong Long-Term Outlook • Eventual recovery in employment trends will generate a rapid recovery in NOI – Pent-up demand; Significant growth of prime rental demographic New apartment starts are predicted to hit a post-WW II low Lack of financing; Investment returns insufficient Single family home ow
Slide 7: MAA Positioned to Out-Perform
MAA Positioned to Out-Perform MMA Annual Employment Growth 2010 2011 - 2013 Top 25 REIT Markets 0.3% 2.7% MAA Markets 0.5% 3.2% 85% of the properties owned by the Apartment REIT Sector are concentrated in 25 markets MAA’s markets are concentrated in the high growth Sunbelt region, including a large
Slide 8: MAA Positioned to Out-Perform: New Multifamily Supply Projections
MAA Positioned to Out-Perform MMA New Multifamily Supply Projections (REIS Data) Market Average Annual Supply (# of Units) 1999-2009 Projected Average Annual Supply (# of Units) 2010-2013 % Drop in Average Annual Supply MAA Markets (*) 65,709 28,686 56% Primary REIT Markets 89,591 48,261 46% United
Slide 9: Strong Balance Sheet Position
Strong Balance Sheet Position Leverage and ratios at historically strong levels Plenty of capacity > $175 MM unused No remaining 2010 maturities Agency loan maturities well laddered over 2011 – 2018 After Preferred Redemption Debt Preferred Common Capital Structure 50.0% 6.0% 44.0% MAA Sector Fixed
Slide 10: External Growth Opportunities
External Growth Opportunities MAA Competitive advantage over other potential buyers; regional focus MAA’s acquisition team sources an average of 200-300 potential acquisition opportunities each year Best opportunities at the moment with ‘less than stabilized’ properties Evidence growing that newer,
Slide 11: MAA Offers An Attractive Value
MAA Offers An Attractive Value MAA is well positioned for the coming recovery cycle 1. Region and Markets employment growth forecasted to out-perform apartment sector 2. Limited new supply risks; well below historical averages 3. Core growth positioned to be very competitive 4. Good external growth
Slide 12: MAA Offers An Attractive Value
MAA Offers An Attractive Value Total Debt + Preferred/ 2010E AFFO Return on 10 Year Price/2010 Recurring EBITDA Payout Ratio Invested Capital Total Return Estimated AFFO ESS 7.17x AIV 52.63% MAA 7.26% MAA 370% PPS 33x MAA 8.20x EQR 77.14% ESS 6.78% AVB 339% AVB 29x AVB 8.25x MAA 83.67% HME 6.77% ESS
Slide 13: Safe Harbor Disclosure
Safe Harbor Disclosure MMA 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
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