Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (August 2012)
19 slides from Mid-america Apartment Communities's investor presentation, Aug 13, 2012
Slide 1: Capital Markets Update August 2012
Capital Markets Update August 2012
Slide 2: Strategy For Value Creation
MAA | A BRIGHTER VIEW 2 Strategy For Value Creation • Full Cycle Performance Objective – High quality recurring cash flow – Superior long - term total shareholder return – Secure, growing dividend • Focused on High Growth Sunbelt Region – Superior long - term “demand” performance – Competitive advan
Slide 3: Full Cycle Performance Profile
MAA | A BRIGHTER VIEW 3 -8% -6% -4% -2% 0% 2% 4% 6% 8% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F Adj NOI Growth Sector Average MAA Full Cycle Performance Profile MAA Annual Dividend $1.50 $1.70 $1.90 $2.10 $2.30 $2.50 $2.70 1995 1996 1997 19981999 200020012002200320042005 200
Slide 4: Disciplined Capital Deployment
MAA | A BRIGHTER VIEW 4 Disciplined Capital Deployment Total Price Dividend Return EQR 61.54% 38.30% 99.84% MAA 51.44% 43.60% 95.04% HME 37.07% 42.97% 80.04% ESS 45.21% 32.88% 78.09% AEC 22.37% 44.18% 66.55% AVB 31.84% 33.40% 65.24% UDR 17.30% 45.95% 63.24% CPT 25.15% 37.04% 62.19% PPS 21.40% 25.99%
Slide 5: Well Positioned for Recovery Cycle
MAA | A BRIGHTER VIEW 5 Well Positioned for Recovery Cycle Employment growth in MAA’s markets expected to outpace the national average. Source: Bureau of Labor Statistics, Economy.com, Zelman & Associates July 23, 2012 Strong Job Growth & Household Formation Region Affordable, lower taxes, pro - bus
Slide 6: MAA Better Positioned in Sunbelt Region
MAA | A BRIGHTER VIEW 6 MAA Better Positioned in Sunbelt Region • Not the typical Sunbelt Region exposure to supply risks • MAA’s “two - tier market” portfolio strategy drives down risks/volatility while continuing to capture the superior demand side characteristics of the region • Permitting trends
Slide 7: Well Positioned for Recovery Cycle
MAA | A BRIGHTER VIEW 7 Well Positioned for Recovery Cycle • 2Q12 same store physical occupancy ended at 95.9% • Leasing traffic running well ahead of prior year • 2Q12 renewal pricing up 6.2%; new lease pricing up 4.2% • Resident turnover near historic low Same Store Average Effective Rent/Income 1
Slide 8: Robust External Growth
MAA | A BRIGHTER VIEW 8 Robust External Growth • Significant deal flow and opportunities as a result of long established regional focus and in - place networks. • Extensive market and sub - market knowledge supports accurate and timely analysis. • Strong property management and asset management capa
Slide 9: Capital Recycling
MAA | A BRIGHTER VIEW 9 Capital Recycling 2Q12 Effective Price Age Rent Recent Acquisitions Tier MSA ($000s) Units (years) per Unit 2011 Alamo Ranch Secondary San Antonio 30,000$ 340 3 906$ 2011 Verandas at Southwood Secondary Tallahassee 24,825$ 300 9 957$ 2011 Retreat at Magnolia Park Secondary Ga
Slide 10: Creating Value through External Growth
MAA | A BRIGHTER VIEW 10 Creating Value through External Growth • Significant improvement in operating margins drives value creation • MAA able to create value that less sophisticated operating platforms are unable to achieve • Capabilities and platform strength include: - Yield management systems a
Slide 11: Disciplined Approach to New Development
MAA | A BRIGHTER VIEW 11 Disciplined Approach to New Development Cool Springs (428 units in Nashville) – 239 units leased 6/30/12 – Expected stabilization 4Q13 Ridge at Chenal Valley (312 units in Little Rock) – 151 units leased 6/30/12 – Expected stabilization 3Q13 1225 South Church Phase II (210 u
Slide 12: Active Redevelopment Program Will Further Support Revenue Growth
MAA | A BRIGHTER VIEW 12 Well Positioned for Recovery Cycle Active Redevelopment Program Will Further Support Revenue Growth Opportunities • $20M in redevelopment investment in 2010/2011 with 4,900 units renovated • 1,530 units renovated in YTD 2012 with average rental rate increases for renovated u
Slide 13: Solid Balance Sheet Position
MAA | A BRIGHTER VIEW 13 • Balance Sheet significantly strengthened over last ten years • Total leverage (Debt + Preferred) reduced 20% over last ten years • Leverage and coverage ratios in position to support full IGR MAA Debt/Market Cap 6/30/2012 64% 36% $2.80B $1.59B Debt Common Equity Solid Bala
Slide 14: Positioning Balance Sheet for Future
MAA | A BRIGHTER VIEW 14 Positioning Balance Sheet for Future • Received Investment Grade Rating from Moody’s and Fitch – Baa2 Moody’s – BBB Fitch – Pursuing S&P rating • Strong balance sheet and credit metrics support continued discipline growth and value creation Net Debt to EBITDA Fixed Charge Co
Slide 15: Attractive Pricing Opportunity
MAA | A BRIGHTER VIEW 15 Attractive Pricing Opportunity • MAA is currently priced at an implied cap rate discount to the sector average. • However, MAA’s historical long - term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding
Slide 16: Superior Long Term Performance Profile
MAA | A BRIGHTER VIEW 16 Superior Long Term Performance Profile • Proven ability to deliver long - term superior earnings growth and shareholder performance • Ability to capture returns to capital that compare favorably to other strategies, and with lower risks and volatility • Disciplined capital d
Slide 17: Summary
MAA | A BRIGHTER VIEW 17 Summary • Strong long - term performance record for shareholders • Established and proven public platform • Solid internal growth prospects • Competitive strengths enables regional outperformance • Robust external growth pipeline • Disciplined approach to capital deployment
Slide 18: Forward-looking statements
18 Certain matters in this presentation may constitute forward - looking statements within the meaning of Section 27 - A of the Securit ies 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 anticipate d e co
Slide 19: SeMAA
SeMAA
MID America Apartment Communities — Investor Presentation (August 2012) on 6ix